PayPal to give seller details to taxman

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The PayPal Blog notes that new legislation in the US will require PayPal to hand over sellers’ details to the IRS. US PayPal users who annually receive more than $20,000 in total, and more than 200 seperate payments, will have their details passed to the taxman. PayPal are keen to emphasise that the legislation does not come into effect until 2011, so the first details will not be handed over until 2012.

Last year, eBay Canada was compelled to hand over records relating to Canadian PowerSellers to the Canada Revenue Agency, and eBay Australia gave information on their top sellers to the Australian Taxation Office. With the UK taxman already spidering auctions, it can only be a matter of time before HMRC ask for British sellers’ records, so the advice remains contact them before they contact you.

8 Responses

  1. the taxman does not need ebays sellers records they have enough to chase after now they cant cope with their work load as it is
    its just a frightener
    and anyone who is self employed and says they pay all the tax they should, is suffering self delusion

  2. no worries we will all be bankrupt , by the time the taxman in uk pulls his finger out

  3. Can’t see nothing wrong with that – at last, legit businesses will gain something from the whole process. But I also do not believe HMRC will take this to masses when same happens in the UK. They don’t have the resources to check hundreds of thousands of accounts.

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