A tip from a reader lead us to an exclusive story about how Square payment system was sharing its merchant data with the CRA. The story was widely read as it has impacts for business owners on mobile payment processing systems and gives insight into the federal government's promise to increase scrutiny of tax-dodging companies.
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CRA targets tax-avoiding merchants using Square payment system
Federal tax officials have launched a probe aimed at netting tax-evading retailers who use a popular point-of-sale system called Square.
Backed by an order issued by the Federal Court of Canada, the Canada Revenue Agency has told Square Canada Inc. that it must hand over sales transaction data for all Canadian sellers who took in more than $20,000 annually in the calendar years between 2012 and 2015 or during the period between January 1, 2016 and April 30, 2016. Square must also provide the CRA with address and bank-account details for those users, payroll data and other information.
“The majority of individuals and businesses file their tax returns and pay what they owe, in full and on time. However, there are some who try to avoid paying what they owe by operating in the underground economy,” David Walters, a spokesman for the CRA, told The Globe and Mail. “Finding these people and fighting the underground economy is one of the CRA’s top priorities,” he said in a statement. Full story.
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