RUMORS PERSIST that the taxman has created several characters in Second Life who are spying on possible tax evaders – those people who don't declare the money they make within the online 3D world.
Rumors are the Waste of time, and Energies. When it Comes in the Form of a revenue Canada Directive, or IRS Ruling, I'll Listen then.
It's never been in Dispute that When you Cash Out of SL any Monies Accrued ARE Taxable, and should be reported. IF The Taxation department becomes aware that you are Pulling Signifigant amounts of Money Out of SL and Not Declaring it then Yes, you will hear from them, But as yet i've seen NO Official Indications that any Special Investigations have been Initiated. Time Involved and Costs Vs. Potential Recoverable Revenues WILL be a Consideration in whether such a special investigation will be Initiated. They will Most Certainly Examine the Question, Maybe Check the Books of more Public Figures like Anshe Chung in order to Make a determination, But It will ALL come down to Profitability. Not expending MORE of their Departmental Budgets Than they could hope to recover for the General Coffers. If it can be done with the Tools they Already have in Place, then it will be done.
Angel.
