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Glen Stephens
Dealer
Michael Eastick kindly forwarded me a news item from “The Australian”
national daily on March 13.
In part it
the article said:
“Yesterday, eBay emailed about 1000 Australian sellers who had annual
turnover of more than $50,000, telling them that in response to a request
from the ATO, details of their memberships and dealings on eBay had been
passed on to tax officials.”
“Data the
ATO asked for covered the tax years from 2003-04 to 2005-06, and included
members' contact names, sellers' user names, telephone numbers, duration of
membership and monthly sales turnover.’’
“The ATO
declined to comment on the nature of its inquiries.”
There are
certainly many local sellers of stamps on ebay who turn over more than
$A50,000 p.a.
Whether
they routinely remit the Tax Office (ATO) the 10% GST on those local sales
is anybody’s guess, but some of them openly and proudly call themselves
“collectors”, so draw your own conclusions.
GST is
just one side of the coin ... evaded income tax on the profits is the other
side, and both have severe penalties and fines on offer if those avoiding
either tax are detected.
ebay
GST inputs illegal?
The ATO is also cracking down on those
Australian sellers who in the past have claimed
the GST component of ebay fees as an input
credit.
This is illegal as ebay Australia is overseas
based and is not liable to pay GST itself on
fees collected, “The Australian” article
outlined.
It stated that ebay's: “Australian business
is run from Switzerland by eBay International,
and as a foreign entity it does not collect
GST.”
One large dealer told me today his ebay related
fees averaged about $1,000 a month, and he has
innocently claimed about $5,000 total in recent
years as a GST input credit, fully assuming GST
was buried within that figure.
He was now concerned he needs to voluntarily pay
that back now – as a lump sum, or be penalised
100% - plus interest, and fined, if he is caught
in this net.
Taxing Times
Ahead?
There is also growing
pressure for ebay USA
and UK to adopt a
similar tough stance on
those selling on ebay
and not paying tax.
I read an interesting
article on this in
"USA Today" during
my plane journey home
from New York this month
on this growing
problem.
Another long piece in
the highly respected
"Financial Times"
can be found here -
http://tinylink.com/?RfPrrGX27f
That article outlines a
US Government move to
require ebay to report
to the Internal Revenue
Service (IRS) all
clients who sell more
than 100 lots a year or
$5,000 or more value a
year in total sales.
The article says the US
Treasury expects to
collect $US 2
BILLION in
extra taxes from the new
regime, due to come into
force next January.
Ebay has 97 million USA
based users, who in 2006
reportedly sold $US 25.2
billion in merchandise,
exceeding the gross
national product of many
countries.
More than 720,000
Americans make their
primary or secondary
income from ebay,
according to a 2005
study.
How many ebay users pay
the income and state
sales taxes they owe on
their online earnings is
unknown. However
experts suspect the
percentage is very low.
Stamps on
ebay
Disclaimer – I sell
nothing on eBay and in
the stamp section think
the waters are infested
with some quite
un-regulated and razor
toothed sharks.
Some sellers (not
all I stress)
are often knowingly
peddling regummed,
mis-described and
repaired junk onto often
clueless bunnies, so
please tread VERY
carefully.
The emails and material
sent to me direct for
inspection that support
this theory would amaze
some folks.
Collectors selling off
duplicates and small
dealers offering
thematics and lower
priced items certainly
offer a very valuable
service.
However when large
volume traders
masquerading as
“collectors” who are
members of no dealer
associations whatever
start offering 4 figure
items, the alarm bells
need to ring loud and
clear.
Sadly the emergence of
ebay as a large
marketplace for
expensive stamps means
cowboys can get on there
and call all sorts of
ugly looking second
grade junk "well centred"
and "Superb" and "MUH"
etc.
And sadly, often
hoodwink unsophisticated
and new to stamp
collecting buyers.
I wrote about this
seller a year back, and
sadly the same
over-described material
still seems to be
getting offered with
impunity, so this is an
opportune time to
re-visit him/her.
Sure - offer this
garbage on ebay as
badly centred and
regummed and toned
by all means if it
is - and pray often
clueless buyers buy
it from you.
However when stamps
are poorly centred
and clearly faulty
please do
NOT
describe them
otherwise.
The ugly looking set of Roo
"Specimens" illustrated nearby
(lot 200087615960) was offered
for sale in mid March by
"joanne620" for
$A199.95. The lot heading
called the stamps in the heading
- the silly caps and quotes are
theirs:
The text calls them "fantastic"
and rambles on about "future
capital gains". This person
should be charged by ASIC for
giving un-licensed (and quite
un-true) "investment" advice!
"Beautiful
and Superb"
And apologies for the really crummy looking scan. These low grade
hillbilly blurry digital photos are all this experienced seller EVER
offers to buyers. Hmmmm. Wonder why?
And if anyone thinks I am being too "tough" here on this seller -
think again. I make no apologies for raising him/her again.
This clown has been merrily and knowingly flogging this over-priced
junk for well over 3 years and such actions help destroy our hobby.
When the Ma and Pa Kettle newbie buyers that patronise these kind of
sellers finally decide to sell, and find they paid miles above
retail and lose a packet, they tell others about their fate, and
that hurts us all in the end.
ebay
not interested
Despite a few trade members with contacts in high places
spending countless hours trying to get this cowboy removed from
ebay - nothing has occurred. ebay de-registered this
"joanne620" seller for a short time, and weight of
money presumably changed their view.
ebay is after money, and this seller has probably sold way into
6 figures of material, generating ebay many, many, $1,000s of
revenue in 2 way commissions - and that seems to be all ebay
care about.
One well known dealer has inspected some of the junk this person
had mailed out, and advises much of the alleged "MUH" high value
Kangaroo material was roughly and crudely regummed and/or re-reperforated.
ebay are not stamp dealers, and frankly could not care less
about most of the mis-described philatelic stuff being offered.
The words "Caveat Emptor" come strongly to mind.
Not just Australia
There was a widely reported news piece in the USA the day I
wrote this column (March 14) that a massive scam involving
dodgy stamps on ebay USA had been uncovered that had netted
the main operators some MILLIONS of dollars profit. Full
report link here -
www.msnbc.msn.com/id/17171372
Once again the legitimate collectors and dealers have been
onto this crook for years and ebay have largely ignored it
until now.
He has been investigated by law enforcement and postal
authorities, suspended by eBay, and exposed in Internet
forums devoted to stamp collecting con men. But keeps
merrily ripping off suckers.
It says - "a retired FBI agent who worked numerous stamp
fraud cases during his years with the bureau describes it as
'the most prolific and most notorious' scam ever perpetrated
in eBay’s problematic stamp-collecting category."
There is a very useful website that expertly tracks ebay
traders who are selling dodgy material, or who have been
suspended -
scads.org/shame/shame.htm
Most listed are US sellers, but for instance SCADS has this
comment about "joanne620" listed under
"Sellers of questionable, mis-described or poorly described
items" - "Australian seller, sold reperforated and
regummed high-value Australian stamps in private auctions
using private feedback in early 2006"
Once again I stress to buyers of stamps on the internet -
from whatever source - be CERTAIN the person you are dealing
with is a member of reputable stamp trade bodies.
Buy a dud stamp off someone who is, and you stand an
excellent chance of a refund or price adjustment down the
track. Buy it off Joe Cowboy at some PO Box in Woop Woop,
and you totally kiss your money goodbye in most cases.
"I'm just selling my late Uncle's stamp collection, and I am
a real novice so please don't ask me any of that technical
stuff"
is a great smokescreen for many dodgy ebay sellers. Nuf sed.
One
area of modern issues doing incredibly well are the Australia Post FDC's
with commemorative coins inserted in them.
These
are called "PNC's" - or Philatelic Numismatic covers.
Several have a $1 coin like 2000 Victoria Cross "For Valour" (which
sells for $225) and 2000 "LAST ANZACS".
An
attractive PNC
And others like the 2002 Queen’s Jubilee
have a 50¢ coin plus the stamp issues - and
that one is the priciest one of them all!
And most importantly that the coin catalogue
"Bible" from Greg McDonald now lists and
prices and illustrates these PNC's.
We sell these now for $275, and demand is
far stronger than supply"
said Craft.
I asked Peter Craft - a multi decade veteran
of this business what his tip was from the
growing series of PNC's.
His instant answer was the 2003 Queen Golden
Jubilee issue. Issue price was $11.95, and
yet he sells them for only $24. He said:
"This contains an aluminum bronze 50c piece
which is also unique to that PNC."
Peter Craft feels this issue may soon be
selling for a much higher multiple on issue
price.
HOWZAT!
I received large number of calls from clients in
recent weeks wanting to buy the recent “Ashes” PNC.
This PNC seems to have been issued with almost no
fanfare, and for the first time, is individually
numbered – only 8,000 were done – to satisfy both
stamp and coin collectors, worldwide.
$150
item
Each PNC has the special “Ashes” $1
coin inset into it. I understand
these have sold for up to $150 each
on ebay.
I can’t confirm that, but did check
ebay as this was typed and saw one,
lot 230102787016 sell as I watched
for $A138 with 8 active bidders, so
$150 seems very possible.
The seller was "tonyozcan" - the
successful buyer’s handle was
“youbloodyripper” – you can’t
get much more Australian than that!
P.O. issue price was $19.95 only
weeks back.
The demand for these Ashes PNC’s is
not only restricted to local buyers
– near all of my website stock has
sold to Indian or British “Cricket”
thematic collectors, and 8,000 PNC’s
will not spread nearly far enough.
If you are looking for a new
collecting challenge, PNC’s might
well be one to consider? There are
not many in the series, and prices
seem headed all one direction.
The just released Harbour Bridge PNC
is NOT numbered, so the "Ashes"
being numbered, and in such a tiny
run might be a very good item in the
future.
The one mint stamp nearly every
reader of this magazine lacks is the
5/- 1932 Sydney Harbour Bridge.
It has always been Australia's
"glamour" stamp.
Not nearly as pricey as most mint
bi-colour Roos, but far more keenly
sought in my experience.
The "Five Bob Bridge" is on near
every "want" list - and collector
wish list.
Like the similar era icons the GB
1929 £1 PUC, and the USA 1930
Zeppelins, this is the real deal for
a 20th Century complete collection
in most eyes.
Corner cancel CTO copies from
"Specimen" packs are very plentiful
- and are still very desirable of
course.
Superb
engraving
However a mint example, and especially MUH seems like the "Holy
Grail" for many folks filling up hingeless albums. They will cost
you way less than $1,000 for a genuine example, yet most
readers will only ever dream of owning one.
I
listed one up on my
www.glenstephens.com/rarity page this week. It is illustrated
nearby. When the scan was up large on my screen I mused it really
has to take the prize as one of the most attractive stamp designs
ever issued by Australia.
Finding a nice copy of this stamp is a lot harder than many
imagine. They were rotary or single line perforated, on basically
blotting paper grade stock, and even adjacent copies have different
perfs and centering.
This issue was prone to gum toning, and rust spots also seem to
occur on most copies. The hand applied gum cracks and "crazes"
heavily on most of them, especially if stored in humid areas.
Finally the perfs and centering are often both woeful.
The "Coathanger" stamp issue turns 75 years old on March 14. I plan
to get out and walk over it on the real anniversary March 19 - along
with 300,000 other folks.
The bridge was closed to traffic on March 19 from 4.30am to 11.00pm
- the longest closure in its history.
I
had lunch with "Stamp News" advertiser Martyn Grieve from
A-One Stamps last month. His lounge room looks directly out on the
"Coathanger". Martyn walked across it on the opening day in 1932 -
I bet not many readers can claim that!
According to "Guinness World Records", it is the widest
long-span bridge in the world and is the largest steel arch bridge.
The "Gray" effect
A detailed report of my visit to, and the results from, the
Arthur Gray 'Kangaroos' sale in New York is elsewhere. (Click
HERE.)
Many pundits warned the $A7.15 million paid at that sale would
drain every spare cent from the local market for months.
They of course were totally wrong - the exact reverse has
occurred. Money is pouring into good Kangaroo items like there
is no tomorrow. Because of Gray, not the opposite.
The fact world stock markets are jittery is of course always
fantastic news for the stamp market. A safe and secure haven
for many.
Prestige Philately had a nice collection of lower value
Kangaroos on offer in their March 10 auction.
Most of them were from one major local vendor Barry Gribble.
Gribble was described as "leaping out of his skin"
over the results!
This issue was prone to gum toning, and rust spots also seem to
occur on most copies. The hand applied gum cracks and "crazes"
heavily on most of them, especially if stored in humid areas.
Finally the perfs and centering are often both woeful.
50%
over ACSC
When he consigned his material Gribble said he would be happy to
get $225,000 for the collection. The invoice price of his sold
lots totalled near enough to $A500,000.
This collection was missing the bi-colours, proofs, and essays
that Gray was so strong in, but was very solid in lower value
Kangaroo monograms and imprints - and decent KGV heads.
I "attended" the Prestige sale live via computer, and was amazed
at the prices some of the material realised. Lot after lot was
selling for well over full ACSC catalogue value.
A 1/- 3rd watermark hinged imprint pair was one I recall well,
that was invoiced for $12,815 on an ACSC value of only $8,000.
One very expensive Kangaroo item I wanted for a client cost me
well over 3 times estimate to secure it. The market is RED hot.
A fine used NSW 1d "Sydney View" - SG 12 cat £275 ($A685) was
invoiced for about $3,500. Estimate was only $400. The list
goes on.
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April 2007
Tax Office actively
targets ebay sellers
One such seller I
noticed abusing this in
recent times is someone
with the ebay handle
"joanne620"
- who I am reliably
advised is not female,
nor called Joanne.
This seller is not
someone uneducated about
stamps. He/she has in
fact over 1,567 ebay
positive "feedback"
points and over 2,263
ebay sales in the past
year alone, and sells a
lot of stamps - if not
entirely stamps.
Over-priced JUNK
"BEAUTIFUL KANGAROO C of A
SPECIMEN SET"MINT"INVESTMENT" -
""SUPERB" PRISTINE " FRESH ""
VERY SCARCE "" INVESTMENT
What total nonsense! No dealer
in this magazine would dare
offer such heavily hinged ugly
off centred junk at even half
that price. They are not
"beautiful", nor are they
"superb", nor are they an
"investment" at $199.95 in
anyone's wildest fantasy.
Investment? Next month you
would NOT get a quarter what you
paid for these stamps from any
established dealer. See how
much I offer you for a Roo with
missing perfs.
You get the picture. And this is not just an isolated example -
"joanne620" always has other overpriced, mis-described
offerings that are in the same league. And he/she is not alone.
I urge all readers to carefully peruse Simon Dunkerley's
previous articles on some of the pitfalls of ebay - as well as
the excellent editorial in this magazine in March 2006 on ebay.
ebay is about profits. Every time a sale is made they make 2
lots of commission. When PayPal is used to pay (the most common
payment method) ebay make another commission (often two) as they
also own PayPal.
Buy off any large dealer in this magazine and you can bet they
are generally members of respected stamp trade bodies. Buy a
mis-described dog - and IF the dealer will not
play ball, the trade body WILL assist with your refund. Trust
me on that.
“PNC’s”
Some $5 coin inset examples are the 1997 Don Bradman issue, and 2000
Olympics.
These coin/stamp items clearly have a large
following, and mainstream stamp/coin dealers
tell me the market is quite strong on these.
These coin/stamp items clearly have a strong
following, and mainstream stamp/coin dealers
tell me the market is quite strong on these.
I phoned a leading stamp and coin retailer
Prospect Stamp and Coins in Sydney to get
the input of a retail dealer and was
surprised at what I heard.
"These PNC’s are the undoubted boom area
in Australia Post products" the
owner/manager Peter Craft told me.
He continued: "some of the quite recent
PNC issues that all your readers could have
purchased from Australia Post mail order at
issue price, we readily sell for twenty
times or more than that price already."
Craft explained to me the reason for the
huge increases are because often the coin in
the PNC is obtainable to coin dealers and
collectors in no other way.
"For example, the 2002 Queen Jubilee
issue was freely sold by Australia Post at
$9.95. The 2002 dated 50¢ coin in there is
only available to the coin market if you
tear open a 2002 PNC.”
Of course, for each one torn up, one less
exists for the stamp market!
Happy Birthday!
The weight of the steel arch alone is 39,000 tons. I was surprised
to read given our large steel industry that 79% of the steel used
for the bridge was imported from the UK. Indeed all the 6 million
hand-driven rivets were made in the UK.
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GLEN $TEPHEN$ Full Time Stamp Dealer in Australia for over 25 years.
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