Internet Businesses:  Did you Know About Schedule 88?

T2 filers must complete Schedule 88, effective with year-ends beginning 2013. This form is more detailed that the new “Internet Business Activities” added to schedule T2125 of the T1 return however, in both cases the information is to be filed with the tax return.

While having no direct effect on the tax return, Schedule 88 requires disclosure of two specific items:

1. The percentage of gross revenue earned through internet activities
2. The URL or web address of the various websites

Who needs to file? Companies whose websites: 

• Sell goods and/or services through their own shopping cart or a third party’s.
• Don’t have electronic payment processing but instead have customers call, complete and submit a form, or e-mail a form to make a purchase.
• Provide an online auction, marketplace or similar environment operated by others.
• Earn income from advertising, income programs, or other traffic generated by their site.
• Earn income by creating a profile or other landing page describing the business on blogs, auction, marketplace or any portal or directory websites.