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ARTICLE · 20 JANUARY 2025

New Tax Reports For Direct Sellers!

Millar Kreklewetz
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The new year brings possible new tax reporting requirements for direct sales platform operators ("Direct Sellers")!

CanadaTax
Jack Millar
Jack Millar
John Bassindale
John Bassindale

The new year brings possible new tax reporting requirements for direct sales platform operators ("Direct Sellers")!

These changes stem from amendments to the Income Tax Act ("ITA") and mandate that digital platform operators throughout the online "gig" economy report income and certain other information about some of the sellers using their websites or apps to the Canada Revenue Agency (the "CRA"). See our prior article for more technical information.

Those affected include certain Direct Sellers operating on a "buy-resale" model. Filings for the 2024 year are due by January 31, 2025!

Which Direct Sellers Are Affected?

The new requirements generally apply to Direct Sellers operating on a buy-resale model, namely where products are sold to independent sales contractors ("ISC") who then re-sell those products to their customers through a replicated website or app. They do not appear to capture Direct Sellers exclusively using "sales-representative" models

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