The Federal Court of Canada has ruled that eBay Canada Ltd. must release personal information about its high-volume sellers to the Canada Revenue Agency.
The CRA is hoping to use the information to find merchants who aren't paying their share of taxes.
The website -- which acts as an online go-between or virtual marketplace for buyers and sellers -- will be required to hand over details such as names, addresses, phone numbers and email addresses of its merchandisers.
The Globe and Mail first reported on Thursday that the agency intends to use the information to determine whether individuals or companies making high-volume sales on the site are reporting income from online sales made in 2004 and 2005.
The CRA will now be able to more easily track booksellers like Gary Nerman and others who sell more than $1,000 a month in on-line merchandise. The owner of Nerman's Books and Collectibles in Winnipeg told 麻豆影视 he's always collected and paid his taxes, even though that has caused him some problems in the past.
"We've even had people accuse us of cheating, (that) we're just trying to get the extra six per cent," he said, referring to customers who thought the money would never get to the government.
Nerman says he's glad that the CRA is finally trying to level the playing field for everyone. He thinks that will make honest booksellers more competitive.
But eBay had maintained in the suit that it is a subsidiary of eBay Inc. and as a result its records are kept in digital files outside of Canada.
The company also argued that the CRA hasn't provided a convincing argument that it was conducting a genuine and serious inquiry.
However, Justice Roger Hughes ruled eBay must provide the information regardless of where it is stored. But he reserved making a decision until next week on whether the CRA's investigation is valid.
The agency is targeting top eBay sellers who qualified for the PowerSeller program in 2004 and 2005, according to court documents. Patrons who sell more than $1,000 monthly can qualify for the PowerSeller program.
Canadians spend roughly $5 billion online annually. About a quarter of those sales go through eBay, which is by far the largest online market.
With a report from CTV Winnipeg's Jon Hendricks
