Quote:
Originally posted by Nugget
Yes im a paysite owner, my accountant said i do not need to claim GST really there is no way to figure this out unless i go through every single signup on ibill, i checked there is over 89,000 transactions how in the world would we figure this out?
i wish i would have went offshore like 90% of the other companies out there.
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There are many cases that the government has won against pay site owners. The general rule is (I asked the auditor about this), is if you own a member based site, you need to know what percentage of them are Canadian. If you don't know this, the CCRA will assume 100% and they will want 7% of all your sales.
From the 89,000 transactions you have, try to see if you can get their IP addresses. Pay ibill if you have to do get these IP addresses and do a geographical lookup on each one to figure out what percentage of your surfers are canadian. Believe me, this sounds like a shitload of work to do on 89k transactions but imagine paying 7% of all your sales in GST plus interest on it. On top of this, you may have to pay a penalty but its unlikely.
I realize this seems bad but I would strongly suggest getting a tax attorney since the government does have precedence on winning against paysite owners.
A credit card statement is sometimes enough for an invoice since they can get the details from Visa/Mastercard. If you were ripped off by a designer, you should have written it off as bad debt.
I hope this helps.
WG