Andrews & Company

Andrews & Co. Chartered Accountants has more than 30 years of experience taking care of the accounting needs of its local, regional and international clients.


Reporting Internet Business Activity

If your business carries on "internet business activity" and earns income from one or more websites then you may have additional reporting requirements that you may not be aware of. 

Effective for tax years where the filing deadline is after December 31, 2014, there is a new requirement to report internet sales activity on Schedule 88 in your T2 corporations tax return.

Types of websites effected

  • Those that allow for the completion of order forms, shopping carts, or similar transactions
  • Market place sites where selling of goods/services occurs
  • Those hosted outside of Canada generating income 


  • Corporations earning income from one or more webpages or websites
  • Self-employed individuals
  • Sole proprietorships
  • Fishing activities
  • Farming activities


  • Required to file the new Schedule 88, Internet Business Activities along with your corporation income tax return (T2)
  • For self-employed individuals this is not a separate schedule, but is included in your income tax and benefit return
  • Report the gross income generate from your page/site as a percentage of your total gross income – if exact percentage cannot be determine use a reasonable estimate


  • For tax years ending after June 30, 2014

Who is exempt?

  • Partnerships currently are not required to report internet income information

If you feel any of the above information relates to your business, we recommend you seek professional advice in order to help you navigate the compliance requirements and avoid any potential penalties.

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