On Mon, 19 Jan 2004 18:37:36 GMT, "Matt Doggie"
<mdoggie_nosuchemail RemoveThis @msn.com> wrote:
>
>I am in Canada, and I am using PayPal to sell shareware (written by me) to
>U.S. If I don't report my earning to revenue canada, will they be able to
>catch it?
>
>Customer in U.S. <---------> Pay Pal <---------> My bank (Canada)
>
>My shareware is online downloadable, no actual shipment is made. Also, my
>annual sales is less than $2000 US.
>
>How does the International cross-border e-commerce work? Does U.S. tax
>office exchange information with Revenue canada? anyone can explain?
>
>
>Thanks..
Now I'm no expert, but I believe in the US, you are responsible to pay
taxes(income, franchise, sales, etc) where your company 'exists'(has
offices) and where sales are traced back to, when it comes to
ecommerce, treated like a mail order services/merchandise.
Example, a NY sales made by a NY office, is responsible to pay taxes
associated with the NY sales to NY state, even if it's an NJ company.
Also, NJ will claim all is taxable, but give credit for taxes already
paid. (SOON to change Under McSleezy). So you aren't double
taxed(Goal of McFlorio)
But if you an NJ company doing NY sales and you have no existance in
NY, you are still liable to NJ taxes, but not NY.
So......... following this example I was given, I belived because of
free trade, you aren only responsible to your Canadian offices for
taxes.
Now whether or not you want to report is your own desision, but let me
tell you about our fourth branch of the US government, the IRS, will
find out. Sooner or later, a company like PayPal will get some
department reviewed and your tax id or something will trace back and
you have to pay lots and lots of money. So, IMHO pay your taxes
fully, and seek out the advice and services of an accountant.
later,
tom
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