Paypal, Govt, Tax

Hi

In my country paypal isn't allowed, so as suggested by many other on the forum, I need to ask someone else to create a paypal account for me. So if I ask my cousin to create a business paypal account for me, and I start selling items on ebay and on internet, will he be contacted by the govt to pay the taxes on the earning in the paypal account?

 

I don't think your cousin can use paypal account..Where does he Live?

 

my cousin lives in US. I will be the one operating the particular paypal business account.

 

If so,you can use ask your cousin to create a paypal account for you.

 

getting the account isn't big deal, but I first need to know about the taxes and stuff...need to tell him all the details upfront, so he know what can come next..

 

You should pay fees if you receive any payment for goods or services
click here

 

i will pay all the fees related to the account and transactions, but I am interested in knowing about the government taxes.

 

it depends on your Country.For me,I need 38$ for withdraw

 

thats is withdrawal fees. you should consult your revenue department about your tax

 

yes, no country in the world wouldnt say no to taxes. Perhaps, the simplest way is to sign on a partnership with your cousin.

 

If you have over 20k usd going through your PP account, the government will know. My cut off point is around 15k per PP account, after that...I scrap the account and ebay user ID.

 

but when you withdraw the money to bank, won't government notice/log it

 

They don't notice if you are only depositing under 5k per day over all accounts...they got bigger fish to fry!

 

It does not matter if its your money but receiver, i.e. your friend should show it as income in his stament and he has to pay tax if any

 

Moreover, if the account is opened in US (with an US address), it may be a problem also if you access from your country. Paypal may track the IPs and block the account.