(e) Will CRA accept an estimate of the percentage of revenue generated in Sched. 88?
(f) Is Schedule 88 required to be completed by a financial institution that allows clients to access their bank account via the Internet?
CRA responded (TaxInterpretations translation):
…(e)…[W]here after making reasonable efforts, the taxpayer is not in a position to provide the exact percentage of its revenue derived from all its internet business activities, a reasonable estimate of these will be acceptable.
…(f)…[I]n general, a taxpayer will not have to declare a website which does not directly generate income. For example, the following types of websites are not included:
- Telephone directory sites which list the web or site page of the business
- Web pages or sites which only provide information.
Generally, banks generate income through their websites, for example, from transaction, fund transfer and cheque order charges. Accordingly,…these sites must be declared.