Shopify (SHOP) is resisting a request by the Canada Revenue Agency (CRA) for the company to turnover merchant records of the businesses that use its e-commerce platform.
Shopify chief executive officer (CEO) Tobi Lutke said in a tweet regarding the CRA request, “We will fight this.”
For its part, CRA says it is seeking the merchant records from Shopify to identify businesses that may have been non-compliant when it comes to their tax filings or misstated the revenue they earned.
The federal tax agency said it needs to verify that businesses using Shopify’s e-commerce services reported their income correctly and have satisfied their tax filing obligations.
Canada Revenue Agency added that it takes the privacy of taxpayer information seriously and information collected is protected by the Government of Canada.
“We got asked to backchannel them 6 years of records for all Canadian Shopify stores. This feels like low-key overreach to me,” said Lutke on social media.
Shopify’s stock has gained 73% in the past 12 months and currently trades at $83.15 per share.
