Should eBay and PayPal hand your sales data to the tax authorities?

Extract . . .

There’s been much talk recently both in the UK and in the US regarding eBay, PayPal and the tax man. The big issue is should eBay and PayPal hand across sales data and seller’s details to the authorities to ensure that any taxes due are paid. In the UK the issue was sparked by the story in the Daily Mirror of a seller who is allegedly not paying VAT, even though they are well above the VAT threshold. It’s been suggested that it’s down to eBay to ensure that sellers are registered as businesses, are registered for VAT if their sales exceed the VAT threshold, and that it would create a level playing field for all ensuring no one is disadvantaged by being forced to compete with sellers who aren’t paying their dues.

Read more here
http://tamebay.com/2010/12/should-ebay-and-paypal-hand-your-sales-data-to-the-tax-authorities.html