Canadian Paypal obligations for TAX and the CRA (Canuck thread)
There are many threads pertaining to SSN requirements at $20,000 / 200 for the IRS but I see very little info for Canada.
All law abiding Canadian sellers will have Business Number "BN" with the CRA. You should be familiar with this especially if you collect and remit GST/HST because this number is used when you remit taxes. Whether your legal business structure is a sole proprietor, partnership or corporation each Canadian can only have one BN. The only way to have more than one BN is having multiple corporations. Since a corporation is its own entity, each corp has its own BN.
Since you can only have one BN, getting a new BN requires forming a corporation. This is not a cheap or easy task. Whether its provincial or federal you are looking at ~$400 just to incorporate. You're filling situation just got x10 more complicated and you are looking at minimum ~$1000 / year in accountant fees for filling corporate returns.
Does Paypal ever require a Business Number "BN" or SIN number? Is there any sort of similar threshold for Paypal in Canada where a BN or SIN is required as seen with Americans for the IRS?
If Paypal requires a BN and you have a suspended account with your BN supplied you cannot reuse this or you will be linked.
Canadians, how do you overcome BN requirements? Did you undertake the onerous task if forming a corporation for a fresh BN? If you have multiple accounts did you provide a BN for each account? What is your current situation regarding stealth, GST/HST collection, BN requirements or any general tax headaches how are you overcoming these hurdles? |