Volume V

Issue : 16: October 11, 2007

• Canada to Criminalize Activities Related to Identity Theft
• EU Could Seek $100 Billion from U.S. Based on WTO Internet Gambling Claim
• Federal Court Orders eBay to Disclose Identity of High Volume Sellers to Canadian Tax Authorities
• Fallout from TJX Information Security Breach
• U.S. District Court Hears Challenge to Online Gambling Restrictions
• Landmark File Sharing Decision Released: Jury Orders $222,000 in Statutory Damages
• U.S. Court Finds Passing Reference in Invoice to Web based Contractual Terms Non-binding

Home > Volume V > Issue 16: October 11, 2007 > Federal Court Orders eBay to Disclose Identity of High Volume Sellers to Canadian Tax Authorities

Federal Court Orders eBay to Disclose Identity of High Volume Sellers to Canadian Tax Authorities

The Canada Revenue Agency (CRA) has been granted a Federal Court order requiring eBay Canada Ltd. to turn over the names, addresses, phone numbers and email addresses of all high-volume sellers on the popular website, along with the gross volume sales figures for those sellers. The CRA is seeking to determine whether those individuals or companies are reporting the income they made from online sales in 2004 and 2005. According to the court filings, the CRA is targeting people who qualified for eBay’s “Power Seller” program in those years. “Power Sellers” come in five categories, ranging from $1,000 in monthly sales, to over $150,000 in monthly sales.

On a review of an ex parte order originally made on November 6, 2006, Justice Roger Hughes ruled that, although the requested information is held outside of Canada by eBay Inc., the subsidiary eBay Canada Ltd. is still legally obligated to turn over the information. The ruling is based on the finding that eBay Canada has access to and uses the relevant information, although the physical computer memory storage lies outside of Canada.

A ruling on the validity of the CRA request in respect of being a genuine and serious inquiry into the “Power Sellers” group has been reserved for a future hearing.

For a copy of the Order, visit:

http://www.canlii.org/en/ca/fct/doc/2007/2007fc930/2007fc930.html