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?
Yes if he/she withdraw funds to his/her bank account from his/her paypal account as per his/her country policy. DON.
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..
i will pay all the fees related to the account and transactions, but I am interested in knowing about the government taxes.
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.
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.