Quote:
Originally posted by TheDoc
Here is the real deal :)
We are >> CURRENTLY << in a legal battle over this. Within the last year a new law was drawn up pointed towards the internet.
First I will start with back taxes. We are fighting this and even though we WILL BE FORCED into paying back taxes. The onlything you can hope for is that they don't go all the way back which they can do. It seems 3 months back is a safe target area for them but do understand they can go back to the start of your business.
Sales from AMERICAN money program (ie topbucks, cen, ect) are NOT subject to GST.
The real fight for us is the sales produced to 3rd party processors. The law says ALL income not just from Canadians. Which would mean if you do 100 sales a day you will be forced pay an extra 7% on all those sales.
Our lawyer for this is the lawyer that wrote the tax law. He moreless says your only hope is to pay LESS of a back tax and fight to get just Canadian transactions to pay the 7% but the chances are VERY slim this will happen. For the most part they understand how the internet works. They understand we CAN prove how many Canadians signed up but they also understand we can FAKE the information. They also know we can block other Canadians from signing up for our paysites which as well can faked.
So their solution is tax ALL income for 3rd party processors.
The new law has NO loop holes such as many other companies used in the past. The NEW gst laws are solid. So if you are a Canadian money program you WILL be paying 7% on your transactions.
Good luck to everyone with this, they are going all out on Internet based companies and they are winning the race.
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exactly what i keep saying.
we've been through it too. 48 months retroactive (600K). however they could have gone back as far as 6 years (when we started up).
of course the past two years generated much more revenue that the years previous ;)