Canadians who auction their goods on eBay can now expect to have their personal information released to the Canada Revenue Agency.
The online auction site has sent a letter to affected customers telling them the law now requires it to send the tax agency the names and gross sales figures of so-called "power sellers." These are eBay sellers who make more than US$1,000 a month in sales over three consecutive months on the site.
"While eBay strenuously objects to these requests made by the CRA, we are obliged to comply with the legal ruling," the company said in the letter.
The company is following a ruling by the Federal Court of Appeal last April, which upheld a lower court decision ordering the company to release personal information about their users' sales activities.
Over the past few days, sellers have been posting queries about their tax obligations on the forums section of eBay's website. Several sellers have gone on the site to say they're extremely upset that the CRA is trying to take a tax bite out of the money they get for their old clothes or used goods.
Many said they didn't understand why they should pay taxes again on items that were already taxed when they were originally bought.
"That's just nuts," exclaimed one seller on the site.
"Don't they (the CRA) have bigger fish that they can fry without putting someone through all that twice!?"
But not everyone appeared to be against the CRA's focus on eBay.
"I do not mind at all (that the CRA is) auditing taxpayers, even if I am the target from time to time. That is the only way to keep the system honest," wrote one online merchant.
The Canada Revenue Agency would not speak specifically about the case with CTV.ca, citing confidentiality provisions. But it said tax laws that apply to traditional commerce apply equally to electronic commerce.
An individual is "responsible for reporting income from all sources to avoid penalties," CRA spokesperson Catherine Jolicoeur told CTV.ca on Monday.
With files from The Canadian Press
