Australian Tax Man!

Got an email from ebay today stating that the ATO want all the sales records from our store going back to 2011 till now.

Good thing we are 110% legitimate and hopefully I have all our records.

It was $20,000 looks like it has changed to $10,000!

I wonder how many others have just had the same thing done to them?








KGV

In the US since 2011 Paypal has reported to the IRS (the US tax man) if you have $20,000 sales in a single year / 200 separate payments in the same year.

Since you have to take Paypal to sell on ebay, if you exceed the above, your ebay sales are de facto reported to the tax man.

Very interesting Jenny2U.

Just been looking around for our store figures for the last year to date.

We have sales over $20,000 and had 3735 transactions in paypal.

6,000 in store fee. That makes a big hole concerning income.


So if $10,000 is reportable in Australia for ebay to the ATO what is going on? The changes to 10,000 to be reportable must of only just happened.

Hi KGV Collector

Any sales deposits or sales over $5000.00 have to be reported to the tax office.

However, you are allowed to make $50,0000 a year from a hobby, (this information was given to me from the tax office, but check just in case.)
Probably because you have a store on ebay, they may be classing you as a business, so therefore any income derived, would be subject to tax.

I would contact the Australian Tax office just to clarify what is happening.

Regards

Horamakhet

We have confessed our income sins to Centrelink every 3 months for the last 3 years. Last visit they only want us to declare our income at the end of each financial year. But I am going back to every 3 months!

Was forced to put in a tax return 2011 to 2012. This is the financial year ATO seem to be interested in the most as the email from ebay states this.

Our tax accountant advised us that we had no need to continue lodging a tax return for 2013 etc and they sent in the relevant info to the ATO about 6 weeks ago.

The plot thickens! The ATO can basically do anything they like!

Hobby business or not is the question!