On March 30, 2017 Square Canada Inc. sent a message to its affected users noting that they would be providing certain pieces of information to CRA pursuant to a Federal Court Order. The Company provides Square Reader, a popular small square-shaped tool that connects to the headset jack of a mobile device in order to collect payment via credit card.

preparing supporting documents for CRA’s likely follow-up on clients using this technology

The Order requires the following information in regards to sellers that have processed more than $20,000 during any of the calendar years 2012-2015, or January 1, 2016 through April 30, 2016:

• The names and addresses associated with the account.
• The associated financial institutions, transit numbers, and account numbers.
• The number of Square Readers and Stands linked to the account.
• The total monthly aggregate of transactional information between the seller and the customer.
• The number of employee permissions granted through employee/location management functionality.

Editors’ Comment
It is noted that many artisans and vendors that do not have a fixed place of business use this technology. The project is presumably aimed at detecting underground economy activity.

Thanks to Dan Loney, CPA, CA, CFP of Chatham, Ontario for his comments on this issue.