Candian Stealth Sellers - How do you overcome tax obligations?
If you wish to collect GST/HST Amazon.ca requires a "Federal Registration Number". A Federal Registration Number is a Business Number. Business Numbers are used by the CRA to identity businesses in Canada. Business Numbers are unique and you are only able to have one per person / entity. You can get more Business Numbers by forming multiple corporations.
I understand Amazon.com requires tax ID after $20,000 sales / 200 items and theres likely a similar requirement for Amazon.ca so taxes are an inevitable situation for all stealth accounts.
If I did register a corporation for a new Business Number and I update my stealth account this may trigger an account review. Amazon may request new documentation including information pertaining to my new Business Number which could include: Copies of my business registration (could be articles of incorporation) which will include my name (wont be my stealth name) as an officer, director, or shareholder of the company. Amazon may also request a complete list of officers, directors, or shareholders along with their ID (passport, etc) as proof of identity. The corporation will be under my legal name which is linked to my suspended account. If I give Amazon any of these documents they will see this and notice the discrepancy. Amazon can also search the Business Number using a public database which will reveal this info as well: https://www.ic.gc.ca/app/scr/cc/Corp...l?locale=en_CA
Amazon can easily see that a stealth account is not part of the corporation and a suspended name (mine) is. So investing in a corporation while prudent may be futile in the end. This would result in a very expensive error both in time, money and resources (~$400 fee to register Federal Canadian Corporation, $1000 / year corporate accounting filling fees, ~$1400 total) X 2 = $2800
Taxes are inescapable situation for us all. If its not now, it will be once you reach your account limit and Amazon demands tax information. I am thinking heavily about how to structure my business and stealth accounts to stand the test of time while legally collecting taxes.
Canadian Stealthers, what has been your experience with tax collection? What unique hurdles have you experienced and how have you overcome it?
What legal structure is your biz based on, ie Corporation, Partnership, Sol P.? How many times have you changed your Federal Registration Number and has this resulted in any sort of Amazon audit / investigation? Has Amazon requested additional documents pertaining to taxes or proof of incorporation? Were you able to overcome this? What advice / suggestions / guidance do you have? How should I proceed with my stealth accounts pertaining to their Business Number? Will Amazon request additional documents if I form corporations and update the Business Numbers?
Thanks Guys There are only two things certain in life: death and taxes
Last edited by Canadianleaf; 07-11-2018 at 10:20 PM.
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