Navigating taxes in the emerging sharing economy
Everything old is new again, eventually, so to the barter system, albeit with a new millennium twist. Today, there is what some experts dub the sharing economy, whereby a person profits by sharing an asset. This can consist of a room for the night, use of a car, etc. If this goes on as a way of exchanging a specific thing, or activity, for a separate thing, or activity, well and good. However, those that profit fiscally from such a platform have been, thus far, finding ways to snub the tax man – at least some of them. And the tax man is now figuring out how to not have that happen. Restructuring efforts are underway, around the globe. In one example, the Danish government made an agreement with Airbnb, so that rental revenue data would be appropriately relayed to the government. In Canada, businesses falling under the definition of a “taxi” service now include ride-sharing enterprises.