Shopify vows to fight CRA request to hand over records from more than 121,000 Canadian businesses
Shopify’s CEO Tobias Lutke is able to put up a battle with the Canadian Revenue Agency (CRA) over a transfer by the tax company he says is an ‘overreach’ to the e-commerce firm.
In a tweet, Lutke stated the Ottawa-based e-commerce firm was requested at hand over tax data of greater than 121,000 Canadian shops from the final six years.
“I don’t particularly want a fight with the CRA (Canada’s tax authority)- but we got asked to backchannel them 6 years of records for all Canadian Shopify stores,” Lutke tweeted on Friday.
“This feels like low-key overreach to me. We will fight this.”
I do not notably need a battle with the CRA (Canada’s tax authority)- however we obtained requested to backchannel them 6 years of data for all Canadian Shopify shops. This looks like low-key overreach to me. We will battle this.
— tobi lutke (@tobi) June 24, 2023
CTVNews.ca has reached out to the CRA and Shopify however they didn’t attain out for remark in time for publication.
While there are not any particulars but on why the CRA is inquiring on Shopify’s data, it isn’t remarkable for the company to go after e-commerce platforms over tax evasion considerations, prefer it did to Paypal. eBay was additionally topic to an inquiry over its high-earning sellers on the web site, requiring their earnings be reported to the company.
The news additionally comes as the corporate reported it might be decreasing its workforce by 20 per cent after 1,000 workers had been laid off final summer time. The firm’s first quarter earnings report additionally acknowledged the corporate shall be promoting its retailers instrument, Shopify Logistics, to produce chain administration firm Flexaport.
Shopify’s Q1 report revealed the corporate earned US$68 million in its first quarter of the 12 months ending on March 31, 2023. In comparability to similar quarter interval final 12 months, income is up 25 per cent by US$1.5 billion.
With information from the Canadian Press.
