As most of you know, our sharing economy is growing at a much faster pace and our Government is trying to play catch up and looking for ways to bring in the tax revenues that go unreported by many involved in the sharing economy.
Earlier this year, CRA released a tax tip reminding those involved in the sharing economy to ensure that they comply with relevant income tax and GST/HST registration and reporting. CRA has identified five key sectors – accommodation sharing, ride sharing, music and video streaming, online staffing and peer/crowdfunding. CRA also noted that it is co-operating with industries, the provinces and the territories to identify and address areas where the tax system and compliance might be affected.
If you’re involved in the sharing economy, give us a call to discuss how we can help with your reporting and compliance requirements. We know this is an area CRA will be targeting in the coming months and will start reviewing individuals once they get access to the relevant data. My understanding is that Uber and Airbnb are now required to share information with CRA on activities in these sectors.
If you’ve been participating in the sharing economy for the past couple of years and have not reported any of the income, you will likely be a target. If that is you, get in touch with us today and we can discuss options to ensure you’re in compliance with CRA.