CRA must suspect that there are sales being done over the internet that are not being reported on income tax and sales tax returns. To deal with this, taxpayers who do report this income on their tax returns will have additional information to report from now on. Starting with the 2013 tax year, if your business advertises or sells goods on a website, you will have to disclose the number of websites your business earns income from, and the percentage of gross revenue that is generated from the internet. There will not be additional tax based on this disclosure. It will be a challenge for many small businesses to compile this information.
The reporting forms have been designed, but the instructions at this point are limited, so we think a lot of sales will come under the new reporting requirements. To find out if your business will be affected by these new reporting requirements, please call your CPA, CGA at Clark, Robinson.