NO! They woudn't have a clue how pay pal works. On the other hand, they are very aquainted with fish and chips shops and smelly boxes. I any case, pay pal is totally irrelevant as to whether it is taxable or not.
That goes without saying seeing that PP is the cash king. Does he know anything about smelly boxes though?
thats almost the example i was trying to use, (but didnt wanna go right into it), but i know a retired guy who builds hotrods for fun (its his hobby) and of course it turns him a profit. the tax department got wind of it and said he has to register what he's doing as a business. so even though he spent many years tinkering on cars for fun and losing lots of money on it, now that he's doing it and actually making money on the cars the tax department dont see it as a hobby anymore. OH and he also does it with boats
My understanding is that a privately owned motor vehicle that is sold for more than you paid for it does not attract CGT. Also, the capital loss on selling a privately owned motor vehicle does not create a tax deduction. But If you are deemed to be trading in cars, privately, then you will be paying tax on the profits. My understanding is that is has nothing to do with the frequency of sales, but rather the intent of the transaction. Example would be if a car was imported and complied and then on-sold immediately - even if you were doing one car a year, this would be deemed to be a business. It's more likely that you would be caught if you were selling 10 cars a year, but if an audit happened to reveal even a low number of transactions then you would be taxed / fined and perhaps jailed if there was a deliberate plan of avoidance. Michael
