The federal government says online income is taxable and has warned Internet entrepreneurs who use EBay and other web-based sales venues that they must pay up or face prosecution.
“Taxpayers should know that the tax laws that apply to traditional commerce apply in the same way to electronic commerce, like EBay selling,” Revenue Minister Jean-Pierre Blackburn said in a statement Thursday.
“I strongly encourage EBay sellers and, for that matter, any taxpayer who has not already done so, to correct their tax affairs as soon as possible to avoid penalties or prosecution.”
The tax agency says it will begin auditing EBay sellers at summer’s end after receiving detailed information from the online sales outlet.
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