From: AlanBaggett@volcanomail.com   
      
   New CRA Reporting Requirements For Internet Business Activities :CRA SOTW   
      
      
   Article by Matt MacEwen   
   Collins Barrow National Cooperative Inc.   
   					 	 	 	   
      
   For 2013 and subsequent taxation years, corporations will be required to   
   disclose the income earned from any web pages or websites they administer. The   
   percentage of the corporation's gross revenue generated from the Internet must   
   be reported on the    
   recently released Schedule 88 for T2 Corporation Income Tax Returns.   
      
   The CRA identified several situations that may suggest a vendor earns income   
   from web pages or websites:   
      
   The vendor sells goods and/or services on a website. The vendor may provide a   
   "shopping cart" and process payment transactions, or use a third-party service   
   to process transactions   
   Customers call, complete and submit a form or email the vendor to make   
   purchases, orders, bookings, etc.   
   The vendor sells goods and/or services on auction, marketplace or similar   
   websites operated by others   
   The vendor earns income from advertising, income programs or traffic that a   
   site generates. For example:   
      
   static advertisements placed on the site for other businesses;   
   advertising programs such as Google AdSense or Microsoft adCenter.   
   The CRA also noted that taxpayers are required to file Schedule 88 if they   
   have created a profile or other page describing their business on blogs,   
   auction sites, online marketplaces or any other web-based portal or directory   
   that generates income.   
      
   The form requires corporations to indicate the number of websites that   
   generate income, provide the addresses of the top five websites that generate   
   revenue for the business and list the percentage of gross revenue generated   
   from Internet activities.    
   This information must be tracked on an ongoing basis to comply with these   
   requirements.   
      
   Currently, Schedule 88 is not available with commercial corporate tax   
   preparation software. It is unclear whether the CRA will require corporations   
   to paper file this form separately, since it is not available for electronic   
   filing. It is also not yet    
   clear whether corporations that have already filed their 2013 returns will be   
   required to go back and complete this schedule.   
      
   There is an identical reporting requirement for individuals on the T2125   
   Statement of Business or Professional Activities schedule that is part of the   
   2013 T1 Income Tax and Benefit Returns. This requirement is part of the   
   current T2125 form and should    
   be completed when filing 2013 T1 Income Tax and Benefit Returns.   
      
   These new reporting requirements appear to be very broad in their application.   
   We are hopeful that the CRA will provide further guidance as to how they may   
   affect taxpayers.   
      
   The content of this article is intended to provide a general guide to the   
   subject matter. Specialist advice should be sought about your specific   
   circumstances.   
      
      
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