What is ITA Part 2?
The Income Tax Act Part Two is a new directive that aims to improve tax transparency. As a digital platform, Taskrabbit is legally required to comply with this and report specific information about Taskers to the tax authorities.
Taskrabbit is required to submit this report yearly for all Taskers operating on the platform who are residents of Canada.
Amendments to the Income Tax Act
How often are the reports filed?
ITA PART XX is an annual reporting requirement. Each January, Taskrabbit will share Tasker information along with details of all earnings made by the Tasker through the Taskrabbit platform for the previous calendar year.
How does ITA PART XX impact me?
Taskrabbit is required to collect specific tax information and report it to the tax authorities for all Taskers resident in Canada.
ITA PART XX is effective as of 1 January 2024. If you do not provide the information to Taskrabbit that we’re required to report to the tax authorities, despite our reminders, Taskrabbit is required by law to suspend your payouts until you provide the required information.
What tax information does Taskrabbit need to report?
- First and last name
- Primary residence address
- Date of birth
- Tax identification number (TIN) or place of birth if no TIN is available
- VAT identification number, if available
- Financial account identifier(s) i.e. bank account used to receive payment
- Name of account holder if you do not use your account for payment
- Total earnings through the Taskrabbit platform (for the previous calendar year)
- Number of payments received from Taskrabbit
- Any service fees, taxes or commissions that Taskrabbit deducted
- Amounts paid to you for Tasks via the Taskrabbit platform per quarter
How will Taskrabbit make sure the information is accurate?
Where possible Taskrabbit is required to validate and verify the information we report about Taskers. We rely on the information that you provide to us when you sign up, in addition to any ID verification you may have gone through.
However, If we notice discrepancies or missing data, we may ask you to update the relevant information.
Finally, Taskrabbit will share any information we report to the tax authorities with each Tasker.
Will Taskrabbit share information about me and my earnings with the tax authorities?
Yes. To meet legal requirements, we’ll need to collect certain information from you, including tax information and report it to the tax authority.
These rules apply to all digital platforms that facilitate the provision of personal services (such as food delivery, transport services, services around the home, etc.).
Providing your Tax Identification Number (TIN)
If the TIN information stored on your account is invalid or missing you will receive an email requesting that you update the TIN on your Tasker account.
You can add or update your TIN information via the Tasker app by navigating to “Profile” > “Payments” > “Tax Information.”
What is the structure of a TIN in Canada?
- Number of characters: Nine
- Format: 999999999 (9 digits)
- Name: Social Insurance Number (SIN)
Where can I find my SIN number?
We will be required to report your 2024 earnings, in January 2025. As we currently do not have your SIN or VAT identification number on file, we will be soon asking you to provide this in the Tasker app.
In Canada, your Social Insurance Number (SIN) is a unique identifier used for various government services. Here are some places and ways to find your SIN:
- SIN Card or Confirmation of SIN Letter: If you were issued a SIN card or a Confirmation of SIN letter, you can find your number there.
- Tax Returns and Tax Documents: Your SIN is usually listed on your tax returns and other tax-related documents such as T4 slips.
- Bank Statements and Documents: Some banking documents may also include your SIN, especially if you provided it to the bank for tax reporting purposes.
- Employment Records: Your employer's records or pay stubs may also have your SIN, as it is required for tax withholding purposes.
- Government Correspondence: Letters or documents from the Canadian government, particularly those related to employment insurance, Canada Pension Plan, or other benefits, might include your SIN.
If you have lost your SIN or cannot find it, you can apply for a replacement:
- Service Canada Office: Visit a Service Canada office with your original identity documents (such as a birth certificate, permanent resident card, or passport) to apply for a new SIN.
- Online or by Mail: In some cases, you can apply for a replacement online or by mail. Check the Service Canada website for the most current procedures and requirements.
For more information, you can visit the Service Canada website.