Donate wisely this holiday season!

Did you know?

The Canada Revenue Agency (CRA) regulates more than 86,000 registered charities in Canada. To make sure your donation goes to a legitimate charity, the CRA advises you to follow a few tips.

Important tips

• Confirm that the organization is a Canadian registered charity.
  Registered charities have to devote their resources to charitable activities and are monitored by the CRA. Only charities that are registered with the CRA can issue official donation receipts, which can be used by the donor to claim a charitable tax credit. To check if an organization is registered, go to the CRA Charities Listings at www.cra.gc.ca/charitylists or call the CRA at1-800-267-2384.
• Get to know the charity.
  Start by visiting the charity's website to learn about its activities and how it's managed. You can also review its financial information and activities by looking at its information returns using the CRA’s Charity Quick View at www.cra.gc.ca/charitylists. One of the best ways to learn about a charity is to volunteer.
• Beware of gifting tax shelter schemes that promise you returns greater than your donation.
  There are many risks associated with these donation schemes and, in many cases, less than 1% of the funds donated are used for charitable works. The CRA strongly advises that you not participate in gifting tax shelter schemes. As of the 2013 tax year, if the amounts you have donated to a gifting tax shelter are in dispute, you are now required by law to pay 50 per cent of the taxes you may owe.
• Learn to recognize the signs of fraud.
  Signs of fraud could include inappropriate pressure to give immediately, individuals who demand cash only or ask that you write a cheque payable to them rather than the charity. In addition, fraudulent organizations sometimes use names that are similar to well-known and respected registered charities.

Learn more about donating wisely this holiday season. Visit www.cra.gc.ca/donors.

Canada Revenue Agency

This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.

Workers aged 60 and over—make sure you are clear on CPP contribution rules

Did you know?

Are you 60 to 70 years of age and did you return to work in 2013 after being away from the workforce? You may not know about changes to Canada Pension Plan (CPP) contributions that came into effect in January 2012. The changes affect employees and self-employed workers aged 60 to 70 (but not those working in Quebec).

Overview of the changes

• All workers aged 60 to 65 have to make CPP contributions—even if they are receiving a CPP or Quebec Pension Plan (QPP) retirement pension.
• Workers who are 65 to 70 years of age and who are receiving a CPP or QPP retirement pension have to contribute unless they have taken action to stop their CPP contributions. By continuing to contribute (which can be done up to and including the month they reach 70 years of age), they will receive more benefits by way of the new post-retirement benefit (PRB). For more information on the PRB and other changes to CPP benefits, go to www.servicecanada.gc.ca/cpp.
• To stop contributingto the CPP, workers have to be at least 65 years of age and receiving a CPP or QPP retirement pension. They must do the following:
  • Employees (who may also have self-employment income) have to complete Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election, send the original form to the Canada Revenue Agency (CRA), and give a copy to their employer. The change will take effect on the first day of the month after the employee gives the form to their employer.
  • Self-employed workers must complete Schedule 8, CPP Contributions on Self-Employment and Other Earnings, when they file their income tax and benefit return. The change will be effective on the first day of the month referenced in Schedule 8.
  Note
  If you choose not to contribute by giving a completed copy of Form CPT30 to your employer, you have to wait until the next calendar year before you can start contributing again.

Canada Revenue Agency

This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.

Take advantage of the new first-time donor’s super credit

Did you know?
The new first-time donor’s super credit gives you an extra 25% non-refundable federal tax credit when you claim your charitable donation tax credit. This means that you can get a 40% credit for up to $200 in cash donations and a 54% credit for the part of the cash donations that is over $200 but not more than $1,000. This is in addition to the provincial credit.

Important facts

• An individual qualifies as a first-time donor if neither the individual nor the individual's spouse or common-law partner has claimed the charitable donation tax credit since 2007.
• The credit will apply only to cash donations made after March 20, 2013 up to a maximum of $1,000 in donations.
• As a temporary credit, you can only claim it once from the 2013 to 2017 taxation years.
• Only donations made to registered charities and qualified donees are eligible. To check if an organization is registered, go to the Canada Revenue Agency Charity Listings: www.cra.gc.ca/charitylists.The Charity Listings also provides information about registered charities’ activities, revenues, and expenditures.
• To find out what your estimated credit will be, use the charitable donation tax credit calculator on the CRA website.

For more information on the first-time donor’s super credit, go to www.cra.gc.ca/fdsc.


Canada Revenue Agency

This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.

Statement by the Canada Revenue Agency on the release of the summary findings of the investigation into the refund cheque issued to Nicolo Rizzuto

Ottawa, Ontario, December 13, 2013 -- Today, the Canada Revenue Agency (CRA) released the summary findings of an internal investigation into a cheque issued in 2007 by the CRA to Nicolo Rizzuto.

The CRA investigation found there is no evidence to support the allegation that the cheque was issued due to fraud, collusion or corruption by CRA employees. The conclusions of the investigation have been independently validated by Ernst & Young LLP, who found that  the review was conducted in an impartial manner and with due diligence.

The CRA has revised procedures to ensure that files are clearly flagged and reviewed thoroughly before refunds are issued. An action plan is in place which includes additional process improvements to be completed by March 31, 2014. The action plan will be reviewed in six months to ensure the new controls are effective.
Canada Revenue Agency

This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.

Interest rates for the first calendar quarter

Ottawa, Ontario, December 13, 2013... The Canada Revenue Agency (CRA) today announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations. These rates are calculated quarterly according to the laws that apply and will be in effect from January 1, 2014 to March 31, 2014. All interest rates have decreased by 1% since last quarter, except for the rate for pertinent loans or indebtedness.

Income tax

• The interest rate charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums will be 5%.
• The interest rate to be paid on corporate taxpayer overpayments will be 1%.
• The interest rate to be paid on non-corporate taxpayer overpayments will be 3%.
• The interest rate used to calculate taxable benefits for employees and shareholders from interest‑free and low-interest loans will be 1%.
• The interest rate for corporate taxpayers’ pertinent loans or indebtedness will be 4.94%.

Other taxes, duties, or charges
The interest rates on overdue and overpaid remittances will be as follows:

Tax, duty, or other charges	Overdue remittances	Overpaid remittances – Corporate taxpayers	Overpaid remittances – Non- corporate taxpayers
Goods and services tax (GST)	5%	1%	3%
Harmonized sales tax (HST)	5%	1%	3%
Air travellers security charge	5%	1%	3%
Excise tax (non-GST/HST)	5%	1%	3%
Excise duty except brewer licensees (amounts due after June 30, 2003)	5%	1%	3%
Excise duty except brewer licensees (amounts due before July 1, 2003)	3%	N/A	N/A
Excise duty (brewer licensees)	3%	N/A	N/A
Softwood lumber products export charge	5%	1%	3%

For information on the prescribed interest rates for other calendar quarters, go to www.cra.gc.ca/interestrates.

Canada Revenue Agency

This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.

What’s new for tax professionals and preparers?

Did you know?

There are changes for tax professionals and preparers this tax-filing season.

Represent a Client – Scanned documents

At this time, you can use the service only to submit documents in response to letters from the CRA’s processing review and corporate assessing review programs that invite you to use the online service.

The Submit Documents service allows you to electronically send documents (examples include medical receipts, moving expenses, other employment expenses, child care expenses, Class 7 Assets, BC Training Tax credit, review of investment tax credit, and new acquisitions) to the Canada Revenue Agency (CRA) for your individual or business clients. You can access it directly through Represent a Client and you can submit documents for multiple clients.

Income tax folios

The CRA recognizes the value of income tax interpretation bulletins for tax professionals and preparers, so it is introducing a new technical publication to update the information in the income tax interpretation bulletins and to improve web functionality. The new publications are called income tax folios. Moving forward, all the interpretation bulletins will be updated and replaced by income tax folios.

Canada Revenue Agency

This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.

Does your business have employees aged 60 to 70?

Did you know?
Changes to the way you deduct Canada Pension Plan (CPP) contributions for your employees aged 60 to 70 came into effect in January 2012.

Employees working in Quebec and other workers not subject to the CPP are not affected by these changes.

CPP deductions for employees aged 60 to 70

• You have to deduct CPP contributions for all employees who are 60 to 65 years of age—even if the employee is receiving a CPP or Quebec Pension Plan (QPP) retirement pension and did not contribute in the past.
• You must also deduct CPP contributions for all employees who are 65 to 70 years of age, unless they choose not to contribute to the CPP by giving you a signed and completed copy of Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election. They also have to send the original Form CPT30 to the Canada Revenue Agency (CRA).
• Workers who were at least 65 years of age in 2012, receiving a CPP or QPP retirement pension, and who had chosen to stop contributing to the CPP can start contributing again if they want to, but they have to wait until the next calendar year. They will be able to do so by giving their employer another signed CPT30 and sending the original to the CRA.
• After the month in which they turn 70 years of age, employees can no longer contribute to the CPP.

Consequences
If you, as the employer, do not deduct or remit CPP contributions to the CRA, you may have to pay your employee’s share and your share of the CPP contributions. If you do not remit the contributions to the CRA by the due date, you may also be charged penalties and interest. For more information, go to www.cra.gc.ca/payroll and select "Penalties, interest, and other consequences."

More information
For more information about how the changes affect employers, go to www.cra.gc.ca/cppchanges-employers.

For tools and information explaining the CPP changes for individuals aged 60 to 70, go to www.servicecanada.gc.ca/cppchanges.

Canada Revenue Agency

This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.