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.

Harper Government encourages Canadians to take advantage of the first-time donor’s super credit this holiday season

Ottawa, Ontario, December 10, 2013 - The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, today met with representatives from the United Way Ottawa to encourage Canadians to take advantage of the first-time donor's super credit and to make a difference in their communities during the holiday season by giving to a registered Canadian charity.

“Canadians are well known for supporting those in need and the holiday season offers the perfect opportunity to donate to a favourite charity or cause”, said Minister Findlay. “The first-time donor's super credit is designed to support families and communities, including Canada's charitable sector. We want to continue to foster and promote Canada's culture of giving and to encourage everyone to donate generously to charities that do so much good work in our communities.”

Individuals qualify as first-time donors if neither they nor their spouse or common-law partner has claimed the charitable donation tax credit since 2007. Monetary donations made by first-time donors after March 20, 2013, qualify for the first-time donor's super credit. The credit can be claimed starting in 2013 and will continue through to 2017. Canadians must donate by December 31^st to qualify for a tax credit for the 2013 tax year.

“On behalf of United Way and the more than 100 other charities that we work with, I want to acknowledge the government for its role in encouraging a culture of philanthropy across our country”, said Michael Allen, President and Chief Executive Officer. "In many ways the charitable sector and government need to work together to find creative ways to enable donors to think both with their head and heart about their charitable giving. The holiday season is a great time for first-time donors to consider leveraging this new tax credit while building a better tomorrow for all Canadians."

In 2012, federal tax assistance for charitable donations was more than $2.9 billion. The first-time donor's super credit was introduced in the Economic Action Plan 2013 to encourage new donors to give generously to charities. It provides an extra 25% credit in addition to federal and provincial charitable donation tax credits. This means that donors can get a 40% federal credit for monetary donations of $200 or less, and a 54% federal credit for the part of donations over $200 and up to $1,000.

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

For more information on donating wisely, go to 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.

What’s new for this tax-filing season?

Did you know?
You may be eligible for new or improved tax relief measures and services when filing your 2013 income tax and benefit return.

Important facts

• First-time donor’s super credit – This new credit for first-time donors gives an extra 25% credit for cash donations when you claim your charitable donations tax credit. This means you can get a 40% federal credit for up to $200 in donations and a 54% credit for the part of donations that is over $200 but not more than $1,000. This is in addition to the provincial credit. For more information, go to www.cra.gc.ca/fdsc.
• Family caregiver amount – If you have a dependant with an impairment in physical or mental functions, the additional amount you may be able to claim has increased to $2,040 when calculating certain non-refundable tax credits. For more information, go to www.cra.gc.ca/familycaregiver.
• Pooled registered pension plan (PRPP) – The PRPP is a new retirement savings option for individuals, including those who are self-employed. For more information, go to www.cra.gc.ca/prpp.
• Adoption expenses – The period to claim adoption expenses has been extended for adoptions finalized in 2013 and later years.
• Investment tax credit – Eligibility for the mineral exploration tax credit has been extended to flow‑through share agreements entered into before April 1, 2014.
• Tax-free savings account (TFSA) – The annual TFSA dollar limit increased to $5,500 on January 1, 2013, for the 2013 contribution year, and remains at that amount for the 2014 contribution year.

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.

Minister Kerry-Lynne Findlay marks International Day of Persons with Disabilities

Ottawa, Ontario, December 3, 2013... The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue and Member of Parliament for Delta-Richmond East, marked the International Day of Persons with Disabilities today by reminding Canadians that the Harper Government has introduced a number of tax measures and programs to support persons with disabilities, as well as opportunities to save money for the future.

“Our Government is committed to ensuring that persons with disabilities have access to all the information and help they need to receive the tax credits they are entitled to,” said Minister Findlay. “Persons with disabilities and their supporting family members can sometimes shoulder a significant financial burden, and programs such as the disability tax credit help to alleviate that burden.”

The disability tax credit (DTC) helps to reduce the amount of income tax paid by a person with a severe and prolonged impairment in physical or mental functions. This credit can also be transferred to reduce the income tax payable of a supporting family member or spouse of a person with a disability.

“We appreciate the important role that persons with disabilities play in shaping and growing our country. We will continue to strengthen our Economic Action Plan to ensure that persons with disabilities and all Canadians can contribute meaningfully to Canada’s future,” added Minister Findlay.

Once a person with a disability has applied for and is deemed eligible for the DTC, the following credits and programs may be available to them:

• Registered disability savings plan (RDSP) – An RDSP is a savings plan to help save for the long-term financial security of a person with a disability. Grants and bonds provided by the Government of Canada can help them and their families save for the future.
• Children’s arts tax credit and children’s fitness tax credit – For each credit, families caring for a child who is eligible for the DTC and is under 18 years of age at the start of the year, can claim up to $1,000 per year, as long as a minimum of $100 was paid for registration or membership fees in eligible programs.

Other credits may be available to those supporting certain family members or relatives who are dependent on them due to a physical or mental infirmity (whether they are eligible for the DTC or not):

• Caregiver amount – The caregiver amount may be claimed by a person who maintains and lives in a dwelling together with one or more dependants. Each dependant (other than a parent or grandparent) must have been 18 years of age or older and dependent on the supporting person due to an impairment in physical or mental functions.
• Amount for infirm dependants age 18 or older – This amount may be claimed for dependants who are 18 years of age or older and dependent on a supporting person due to an impairment in physical or mental functions. The dependant does not have to live with the supporting person. The amount for infirm dependants age 18 or older and the caregiver amount cannot both be claimed for the same dependant.
• Family caregiver amount (FCA) – The FCA may be claimed for a dependant with an impairment in physical or mental functions, and provides an additional amount of $2,000 in calculating each of the following tax credits:
  • spouse or common-law partner amount;
  • amount for an eligible dependant;
  • amount for children under age 18 at the end of the year; and
  • caregiver amount.
  The maximum amount for infirm dependants age 18 or older includes the additional amount of $2,000 for the FCA.

For more information on tax matters for persons with disabilities, go to www.cra.gc.ca/disability.

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.

Taxpayer relief deadline is December 31, 2013 for requests related to 2003

Ottawa, Ontario, November 29, 2013...The Canada Revenue Agency (CRA) reminds taxpayers and registrants (for both GST/HST and non-GST/HST purposes) that they have until December 31, 2013, to make a taxpayer relief request related to 2003.

The deadline applies to taxpayer relief requests for:

• the 2003 tax year;
• any reporting period that ended during the 2003 calendar year; or
• any interest and certain penalties that accrued during the 2003 calendar year, for any tax year or reporting period.

What is taxpayer relief?
The various laws that the CRA administers allow for the cancellation or waiver of penalties and interest when taxpayers and registrants are unable to meet their tax obligations due to circumstances beyond their control. The CRA may also accept certain late-filed, amended, or revoked income tax elections, and issue income tax refunds or reduce income tax payable beyond the normal three-year period.

The 10-year limitation period for taxpayer relief
Taxpayer relief provisions are limited to a 10-year period. This means that the CRA may grant relief related to any tax year or reporting period that ended within 10 calendar years of the year the taxpayer relief request is made.

The CRA may also cancel or waive interest and certain penalties that accrued within 10 calendar years of the year the taxpayer relief request is made, regardless of the tax year or reporting period in which the debt originated.

If you are a taxpayer or registrant involved in a tax process
Some taxpayers and registrants may be involved in a tax process with the CRA, such as an audit, objection, or appeal, for the 2003 tax year, or a reporting period that ended in 2003. If you are involved in a tax process and are not sure if you need to make a taxpayer relief request, you should make a request before the noted deadline of December 31, 2013.

Taxpayers and registrants or their authorized representatives can make a taxpayer relief request by completing Form RC4288, Request for Taxpayer Relief.

For more information about the taxpayer relief provisions, go to www.cra.gc.ca/taxpayerrelief.

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 Honourable Kerry-Lynne D. Findlay on the release of the Auditor General's Report

Today, I am pleased that the Auditor General's audit has confirmed that the Canada Revenue Agency (CRA) appropriately managed the information it received in 2007 on potentially undeclared income in offshore accounts in Liechtenstein.

The audit also recognizes that the CRA, through its management approach, gained valuable intelligence about the workings of these types of complicated offshore banking schemes to enhance its detection and audit procedures for cases of international tax evasion and aggressive tax avoidance.

The Liechtenstein list was the first such list received by the CRA, and limited information was available on the use of offshore accounts. I am pleased to report that, through dedicated efforts, the CRA has completed all 46 audits based on information from the list, and has to date assessed over $24 million in taxes owed.

The CRA accepts all recommendations made by the Auditor General to further strengthen its capacity to address non-compliance by taxpayers who have offshore holdings. Action plans to address the recommendations are currently underway.

Budget 2013 also announced new tools and legislative measures that will complement this effort, including:

• the new Stop International Tax Evasion Program;
• the mandatory reporting of international electronic funds transfers over $10,000 to the CRA;
• enhanced reporting requirements for Canadian taxpayers with foreign income or assets -  Foreign Income Verification Statement (Form T1135); 
• streamlining the judicial process in which the CRA seeks authorization to obtain information on unnamed persons from third parties such as banks; and
• extending the normal reassessment period by three years for taxpayers who have failed to report income from a specified foreign property on their annual income tax return and failed to properly file the Foreign Income Verification Statement (Form T1135).

Canada plays a strong role in international efforts to detect and deter abusive offshore tax schemes, and will continue to collaborate with international partners to share intelligence.

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.

Minister Kerry-Lynne Findlay highlights red tape reduction measures to help small businesses thrive

Delta, British Columbia, November 13, 2013 The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue and Member of Parliament for Delta-Richmond East, today met with local business community leaders at a roundtable event in Delta, B.C., to highlight measures introduced by the Harper Government to reduce red tape for small business.

“Our government is keenly aware that small businesses are fundamental to great economies, job creation, community confidence, and supporting local economic activities,” said Minister Findlay. “We have consulted with small business owners who have provided valuable insight into what would make running their businesses easier and what improvements to our services they wanted to see. Their feedback has allowed us to implement significant and focussed red tape reduction measures. There are now fewer regulations and the cost of red tape has been reduced by nearly $20 million annually.”

The CRA’s Red Tape Reduction Action Plan lays out 12 commitments by the CRA to address the irritants businesses identified during the Red Tape Reduction Commission’s consultations in 2010, and further refined by the CRA’s own consultations in 2012.

Some highlights for 2013 are:

• A new CRA Red Tape Reduction Action plan webpage that gives businesses up-to-date information on the CRA’s progress.
• A new online mail service for Canadian small businesses. Businesses can now communicate with the CRA online, which will help streamline their interactions with the CRA.
• The My Business Account online enquiries service. Businesses or their representatives can ask the CRA tax-related questions about their accounts online and they will receive answers online and in writing.
• A one-stop-shop webpage for business services. Businesses can now easily find information and service options relevant to their tax situation.
• Agent ID for the CRA’s business enquiries telephone service. Now, when a business owner calls the CRA, the agent who answers provides an ID at the beginning of the call. The Agent ID number provides increased accountability for business calls to the CRA, ensures a consistent experience for callers, and makes it easier for business owners to give feedback on CRA services.

The CRA will continue to consult every two years with small businesses and small business service providers in cities across the country to seek their views on progress made and to ensure the Agency’s action plans remain relevant to small business needs.

For opportunities to participate in further consultations, please go to the CRA’s Red Tape Reduction webpage regularly, and stay connected by subscribing to our mailing lists and joining the conversation on Twitter. The CRA’s next consultation period will be in 2014.

Minister Findlay also discussed the Harper Government’s recent announcement of an agreement-in-principle between Canada and the European Union (EU) on a comprehensive economic and trade agreement, seizing a historic opportunity to gain preferential access to the largest market in the world—a market with over 500 million consumers and a gross domestic product of $17 trillion.

The Minister noted that the Canada–EU trade agreement will generate prosperity and growth for all Canadian businesses, including small and medium-sized businesses, in every region of the country. It will help them to succeed abroad by making it easier and less costly for them to do business in the EU. The Canada–EU trade agreement will also help level the playing field in the EU, making Canadian small and medium-sized businesses more competitive, giving them a significant advantage over most third-party competitors.

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.

The Harper Government continues to help small businesses with red tape reduction measures

Vancouver, British Columbia, November 12, 2013 The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue and Member of Parliament for Delta-Richmond East, today met with business community leaders at a roundtable event in Vancouver to highlight the Canada Revenue Agency’s (CRA) many red tape reduction initiatives undertaken as part of its Red Tape Reduction Action Plan.

“Our government remains focused on the actions that have carried us through tough economic times: protecting jobs and the economy and keeping taxes low,” said Minister Findlay. “Talking to small businesses allows us to highlight significant changes we have made to reduce red tape and we are working hard to improve the CRA’s services, so that small and medium-sized businesses can more easily fulfill their tax obligations while saving time and money.”

The CRA’s Red Tape Reduction Action Plan lays out 12 commitments by the CRA to address the irritants businesses identified during the Red Tape Reduction Commission’s consultations in 2010, and further refined by the CRA’s own consultations in 2012.

Some highlights for 2013 are:

• A new CRA Red Tape Reduction Action plan webpage that gives businesses up-to-date information on the CRA’s progress.
• A new online mail service for Canadian small businesses. Businesses can now communicate with the CRA online, which will help streamline their interactions with the CRA.
• The My Business Account online enquiries service. Businesses or their representatives can ask the CRA tax-related questions about their accounts online and they will receive answers online and in writing.
• A one-stop-shop webpage for business services. Businesses can now easily find information and service options relevant to their tax situation.
• Agent ID for the CRA’s business enquiries telephone service. Now, when a business owner calls the CRA, the agent who answers provides an ID at the beginning of the call. The Agent ID number provides increased accountability for business calls to the CRA, ensures a consistent experience for callers, and makes it easier for business owners to give feedback on CRA services.

The CRA will continue to consult every two years with small businesses and small business service providers in cities across the country to seek their views on progress made and to ensure the Agency’s action plans remain relevant to small business needs.

For opportunities to participate in further consultations, please go to the CRA’s Red Tape Reduction webpage regularly, and stay connected by subscribing to our mailing lists and joining the conversation on Twitter. The CRA’s next consultation period will be in 2014.

Additionally, the Harper Government continues to help create jobs across all sectors of the economy, finalizing an agreement-in-principle between Canada and the European Union (EU) on a comprehensive economic and trade agreement, seizing a historic opportunity to gain preferential access to the largest market in the world—a market with over 500 million consumers and a gross domestic product of $17 trillion.

Minister Findlay noted that the Canada–EU trade agreement will generate prosperity and growth for all Canadian businesses, including small and medium-sized businesses, in every region of the country. It will help them to succeed abroad by making it easier and less costly for them to do business in the EU. The Canada–EU trade agreement will also help level the playing field in the EU, making Canadian small and medium-sized businesses more competitive, giving them a significant advantage over most third-party competitors.

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.

Gravenhurst resident fined for not filing tax returns

Gravenhurst, Ontario, November 08, 2013… The Canada Revenue Agency (CRA) announced today that on October 29, 2013, Lawrence Seehaver, of Gravenhurst, Ontario, pleaded guilty in Ontario Court of Justice in Bracebridge to three counts of failing to file a personal income tax return. He was fined $1,000 per count for a total fine of $3,000. Seehaver was ordered to file all outstanding returns by April 30, 2014.

Seehaver failed to file his personal income tax returns for 2008 to 2010. The CRA made several requests for the missing returns before serving Seehaver with notices demanding that the returns be filed. Failure to comply with these notices resulted in the charges being laid.

The preceding information was obtained from the court records.

In addition to the fines imposed by the courts, individuals or corporations convicted of failing to file tax returns are still obligated to file the tax returns and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at  www.cra.gc.ca/convictions.

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.

Important new T3 information for trust administrators

Did you know?
The Canada Revenue Agency (CRA) has opened a second centre of expertise at the Summerside Tax Centre in Prince Edward Island to process T3 trust income tax and information returns for testamentary and “inter-vivos” trusts. This new location joins the Ottawa Technology Centre in processing all T3 returns.

Trustees and representatives need to send their T3 returns to the appropriate tax centre for processing.

Where do I send my T3 return?
Returns with a trustee address based in the Northwest Territories, Yukon, British Columbia, Alberta, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Montréal, Laval, or Sherbrooke should be mailed to the Summerside Tax Centre.

Summerside Tax Centre
T3 Estate and Trust Returns
Canada Revenue Agency
275 Pope Road
Summerside PE C1N 6A2

Returns with a trustee address based in Nunavut, Saskatchewan, Ontario, or any location in Quebec other than Montréal, Laval, or Sherbrooke should be mailed to the Ottawa Technology Centre.

Ottawa Technology Centre
T3 Estate and Trust Returns
Canada Revenue Agency
875 Heron Road
Ottawa ON K1A 1A2

For more information on trusts, go to http://www.cra.gc.ca/trusts or call 1-800-959-8281.

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.

Canada Revenue Agency announces maximum pensionable earnings for 2014

Ottawa, Ontario, November 1, 2013... The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2014 will be $52,500—up from $51,100 in 2013. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $52,500 in 2014 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2014 remains $3,500.

The employee and employer contribution rates for 2014 will remain unchanged at 4.95%, and the self‑employed contribution rate will remain unchanged at 9.9%.

The maximum employer and employee contributions to the plan for 2014 will be $2,425.50 each, and the maximum self-employed contribution will be $4,851.00. The maximums in 2013 were $2,356.20 and $4,712.40.

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.

Mississauga man fined for failing to file tax returns

Hamilton, Ontario, October 31, 2013… The Canada Revenue Agency (CRA) announced today that on October 23, 2013, Vekto Lumi, of Mississauga, Ontario, pleaded guilty in the Ontario Court of Justice in Hamilton to two counts of failing to file corporate tax returns as director of Vima Group Inc. and Lumi Installations Ltd. Vekto Lumi further pleaded guilty to one count of failing to provide information when required under the Income Tax Act. He was fined a total of $20,000 for all three counts.

Lumi, employed in the flooring business, failed to file T2 income tax returns for Lumi Installations Ltd. for 2009 and for Vima Group Inc. for 2006. He was a director of both companies. He was fined $1,000 per count and given 12 months to pay these fines. Lumi was also fined $18,000 for personally failing to comply with requirements to provide statements of assets, liabilities and living expenses covering the 2006 to 2010 tax years. He was given 18 months to pay this fine.

The preceding information was obtained from the court records.

In addition to the fines imposed by the courts, individuals or corporations convicted of failing to file tax returns are still obligated to file the tax returns and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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.

Professional engineer fined and sentenced to house arrest for tax evasion

Thunder Bay, Ontario, October 30, 2013... The Canada Revenue Agency (CRA) announced today that Carl Gustafson, a professional engineer (P.Eng.) and a director of Norall Group Contracting Inc., was sentenced on October 25, 2013, in the Ontario Court of Justice in Thunder Bay to a fine of $84,417 and given a nine month conditional sentence that included five months of house arrest and four months of curfew. Gustafson pleaded guilty on September 3, 2013, to one count of income tax evasion. The fine represents 100% of the total federal income tax evaded. Gustafson was given two years to pay the fine.

A CRA investigation found that Gustafson followed a tax evasion scheme promoted by Russell Porisky through the Paradigm Education Group (Paradigm) and in doing so failed to report $459,174.01 in income. The unreported income was paid to Gustafson by Norall Group Contracting Inc. for services rendered, for the years 2005 to 2009 inclusive. Gustafson was counseled to file false income tax returns by a member of the Paradigm Education Group. The Paradigm scheme is based on the faulty premise that the Federal Government cannot impose a direct tax on a human being because it would be unconstitutional and further, that taxing the labour of a human being would violate the Canadian Bill of Rights as it is a confiscation of property.

The preceding information was obtained from the court records.

“Canadian taxpayers must have confidence in the fairness of the tax system,” said Vince Pranjivan, Deputy Assistant Commissioner of the Ontario Region of the Canada Revenue Agency. “To maintain that confidence, the Canada Revenue Agency is determined to hold tax evaders accountable for their actions.”

The Canada Revenue Agency warns all Canadians to beware of individuals that try to convince you that Canadians do not have to pay tax on the income they earn. These individuals, also known as tax protesters, not only fail to report their own earnings, but they also conspire, counsel, and promote these tax schemes. Canadian courts have repeatedly and consistently rejected all arguments made in these tax protester schemes. For those involved in tax protester schemes, the CRA will reassess income tax, and charge interest and penalties. In some cases, these individuals will be prosecuted for tax evasion. If convicted, they could face significant fines and possibly jail time. More information on tax protester schemes is available at www.cra.gc.ca/alert.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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.

Mississauga woman fined for failing to file tax returns

Brampton, Ontario, October 28, 2013... The Canada Revenue Agency (CRA) announced today that on October 23, 2013, Marilou Parcero, of Mississauga, pleaded guilty in the Ontario Court of Justice in Brampton to six counts of failing to file tax returns. Ms. Parcero was fined $1,000 per count, for a total of $6,000, and was given three months to pay the fine. She was also given six months to file all outstanding tax returns.

Ms. Parcero, a management consultant, failed to file her 1999 to 2008 personal income tax returns. The CRA made several requests for the missing returns before serving Ms. Parcero with notices demanding that the returns be filed. Failure to comply with these notices resulted in charges being laid.

The preceding information was obtained from the court records.

In addition to the fines imposed by the courts, individuals or corporations convicted of failing to file tax returns are still obligated to file the tax returns and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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.

Harper Government red tape reduction measures help small businesses seize the moment

Toronto, Ontario, October 25, 2013 The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, today met with business community leaders at a roundtable event in Toronto to highlight many of the initiatives that the Canada Revenue Agency (CRA) has implemented as a result of its Red Tape Reduction Action Plan and consultations with small businesses.

“Our Government recognizes the vital role small businesses play in creating jobs and supporting the economy, especially during this week as this is Small Business Week,” said Minister Findlay. “Small businesses provided input with suggested improvements to our services and what they shared helped us as we implemented significant red-tape reduction measures. There are now fewer regulations and the cost of red tape has been reduced by nearly 20 million dollars annually.”

The CRA’s Red Tape Reduction Action Plan webpage, launched today by Minister Findlay, lays out the 12 commitments that the CRA has made, based on the irritants businesses identified during the Red Tape Reduction Commission’s consultations in 2010, and further refined by the CRA’s own consultations in 2012.

“We have already made many improvements to services so that business owners can more easily meet their tax obligations, saving them time and money, and creating jobs in local communities,” said Minister Findlay. “As we continue to implement action plan commitments, and promote and support Canadian businesses large and small through the historic Canada-EU Trade Agreement, we want to make sure that small businesses are informed. Our government is listening and taking action, building on a tradition of service, integrity, and professionalism.”

Some highlights for 2013 are:

• A new CRA Red Tape Reduction Action plan webpage that gives businesses up-to-date information on the CRA’s progress.
• A new online mail service for Canadian small businesses. Businesses can now communicate with the CRA online which will help streamline their interactions with the CRA.
• The My Business Account online enquiries service. Businesses or their representatives can ask the CRA tax-related questions about their accounts online and they will receive answers online and in writing.
• A one-stop-shop webpage for business services. Businesses can now easily find information and service options relevant to their tax situation.
• Agent ID for the CRA’s business enquiries telephone service. Now, when a business owner calls the CRA, the agent who answers provides an ID at the beginning of the call. The Agent ID number provides increased accountability for business calls to the CRA, ensures a consistent experience for callers, and makes it easier for business owners to give feedback on CRA services.

The CRA will continue to consult every two years with small businesses and small business service providers in cities across the country.

For opportunities to participate in further consultations, please visit the CRA’s Red Tape Reduction webpage regularly, and stay connected by subscribing to our mailing lists and joining the conversation on Twitter. The CRA’s next consultation period will be in 2014.

Meanwhile, the Harper Government continues to help create jobs across all sectors of the economy, finalizing an agreement in principle between Canada and the European Union (EU) on a Comprehensive Economic and Trade Agreement, seizing an historic opportunity to gain preferential access to the largest market in the world—a market with over 500 million consumers and a Gross Domestic Product of $17 trillion.

Minister Findlay noted that the Canada-EU Trade Agreement will generate prosperity and growth for all Canadian businesses, including small and medium sized businesses, in every region of the country. It will help them to succeed abroad by making it easier and less costly for them to do business in the EU. The Canada-EU Trade Agreement will also help level the playing field in the EU, making Canadian small and medium-sized businesses more competitive, giving them a significant advantage over most third-party competitors.

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.

Looking for ways to lend a hand to your community?

Did you know?
For over 40 years, the Canada Revenue Agency (CRA) has supported community organizations that provide volunteer assistance to eligible individuals who need help preparing their income tax and benefit returns.

If you have a basic understanding of income tax and are interested in helping out your community, lend a hand! Contact a participating organization near you to become a volunteer in the Community Volunteer Income Tax Program (CVITP). The CRA will support you by offering training and tax software. The registration period to become a volunteer is from October to January.

Who does CVITP help?
Over 18,000 CVITP volunteers help complete more than 500,000 income tax returns every year, lending a hand to thousands of people in communities across the country who need their assistance! The program is available to any taxpayer with modest income and a simple tax situation. This may include:

• social assistance recipients;
• newcomers to Canada;
• seniors; and
• students.

Don’t worry – you don’t need to be a tax expert! Volunteers do not prepare tax returns for complex situations, such as:

• returns for deceased persons;
• individuals who file for bankruptcy;
• self-employed individuals;
• individuals who report capital gains or losses;
• individuals who report employment expenses; or
• individuals who report business or rental income and expenses.

Need more information?
For more information about the CVITP, to find out how to become a volunteer, or to find a participating community organization in your area, go to http://www.cra-arc.gc.ca/volunteer, or call us at 1-800-959-8281.

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.

Mississauga couple fined for not filing tax returns

Brampton, Ontario, October 23, 2013… The Canada Revenue Agency (CRA) announced today that on October 18, 2013, Elissa Mai and her spouse, Michael Mai, both of Mississauga, Ontario, pleaded guilty in the Ontario Court of Justice in Brampton, Ontario, to one count each of failing to file their 2008 personal income tax returns. They were each fined $1,000. The fines are in addition to any taxes and interest owed as well as any civil penalties that may be assessed by the CRA. The outstanding tax returns have since been filed.

The preceding information was obtained from the court records.

When individuals or corporations are convicted of failing to file tax returns, in addition to any fines imposed by the courts, they are still obligated to file the tax return and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.
 
Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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.

Guelph man fined for failing to file tax returns

Guelph, Ontario, October 23, 2013 … The Canada Revenue Agency (CRA) announced today that on October 22, 2013, Messias Teves, of Guelph, pleaded guilty in Ontario Court of Justice in Guelph to a total of three counts of failing to file tax returns. He was fined $1,000 per count, for a total of $3,000. All outstanding returns have been filed.
 
Mr. Teves failed to file his 2009 to 2011 personal income tax returns. His income was earned in the construction industry. The CRA made several requests for the missing returns before serving Mr. Teves with notices demanding that the returns be filed. Failure to comply with these notices resulted in charges being laid.

The preceding information was obtained from the court records.

In addition to the fines imposed by the courts, individuals or corporations convicted of failing to file tax returns are still obligated to file the tax returns and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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.

Thunder Bay businessman fined $54,000 for not filing tax returns

Thunder Bay, Ontario, October 10, 2013 … The Canada Revenue Agency (CRA) announced today that on October 8, 2013, Pasquale (Pat) Stilla, of Thunder Bay, Ontario, pleaded guilty, in the Ontario Court of Justice in Thunder Bay, Ontario, to 18 counts of failing to file personal and corporate income tax returns. He was fined $3,000 per count for a total of $54,000. Mr. Stilla must pay the fine and file all outstanding returns by October 8, 2014.

Mr. Stilla pleaded guilty to two counts of failing to file his 2007 and 2008 personal income tax returns.
As the corporate director, Mr. Stilla pleaded guilty to 16 counts of failing to file corporate returns, for various years from 2003 to 2008, for the following corporations: 6510051 Canada Inc. operating as Central Spring; 1468001 Ontario Ltd. operating as The Spring People; 1304845 Ontario Ltd. operating as G Stilla & Sons Trucking; and 2064897 Ontario Inc.

The preceding information was obtained from the court records.

“Under the Canadian tax system, the government relies on Canadians to pay the taxes they owe,” said Vince Pranjivan, Deputy Assistant Commissioner of the Ontario Region of the Canada Revenue Agency (CRA). “The Agency takes appropriate measures to ensure that everyone meets their tax obligations.”

When individuals or corporations are convicted of failing to file tax returns, in addition to any fines imposed by the courts, they are still obligated to file the tax return and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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.

Spouses fined $13,000 for failure to file tax returns

Brampton, Ontario, October 10, 2013... The Canada Revenue Agency (CRA) announced today that on June 7, 2013, Pawanjeet Garewal pleaded guilty in the Ontario Court of Justice in Brampton, Ontario, to ten counts of failure to file corporate income tax returns. Her husband, Prabhjeet Garewal, also pleaded guilty to three counts of failure to file individual income tax returns. On October 9, 2013, they were fined $1,000 per count by the Court, for a total of $10,000 for Ms. Garewal and $3,000 for Mr. Garewal. The fine has since been paid in full. All outstanding returns have been filed.

Pawanjeet Garewal, as the director for East West Ebazaar Com Inc., an online Indian shopping business, failed to file the 2003 to 2008 corporate income tax returns for the company. In addition, Ms. Garewal, in her role as director for Onkar Group Inc., did not file the 2010 corporate income tax return for this company. She also failed to file the 2008 to 2010 corporate income tax returns as a director of the advertising firm Onkar Publishing Inc.

Her husband, Prabhjeet Garewal, failed to file his 2008 to 2010 personal income tax returns. Charges were laid only after repeated requests to file the outstanding returns were ignored. The Garewals only filed the returns after charges were laid.

The preceding information was obtained from the court records.

In addition to the fines imposed by the courts, individuals or corporations convicted of failing to file tax returns are still obligated to file the tax returns and pay the full amount of taxes owing, plus interest, as well as any civil penalties that may be assessed by the CRA.

Individuals who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These individuals may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at
www.cra.gc.ca/convictions .

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.

Former London executive convicted of tax evasion

London, Ontario, October 9, 2013 … The Canada Revenue Agency (CRA) announced today that Rob Roy McGregor of London, Ontario, was sentenced on October 4, 2013, in the Ontario Court of Justice in London, Ontario, to a fine of $80,000. On March 15, 2013, McGregor pleaded guilty to three counts of tax evasion. The fine is in addition to any taxes owed, as well as any interest and civil penalties that may be assessed by the CRA.

McGregor, a chartered accountant and former vice president of finance and administration for a London-area tool and mould company, failed to report a total of $475,251 in taxable income and benefits received from his former employer in 2000, 2001 and 2002. In doing so, he evaded a total of $136,931 in federal income taxes.

The preceding information was obtained from the court records.

“Canadian taxpayers must have confidence in the fairness of the tax system,” said Vince Pranjivan, Deputy Assistant Commissioner of the Ontario Region of the CRA. “To maintain that confidence, the CRA is determined to hold tax evaders accountable for their actions.”

When individuals are convicted of income tax and GST evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.

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.

Appointment of a new chair to the Canada Revenue Agency Board of Management

Ottawa, Ontario, October 3, 2013 The Honourable Kerry-Lynne D. Findlay, Minister of National Revenue, P.C., Q.C., M.P, is pleased to announce the appointment of Richard Thorpe as chair of the Canada Revenue Agency (CRA) Board of Management for a four-year term.

Mr. Thorpe is a former member of the British Columbia Legislative Assembly with a portfolio that included various business and tax issues. He has served on the CRA Board of Management since December 2011.

“His extensive experience in the public and private sectors as well as his recent experience as a member of the CRA’s Board will not only provide continuity and strength to the management of the CRA, but will also benefit the CRA’s overall strategic direction,” said Minister Findlay.

The Board of Management consists of 15 members appointed by the Governor in Council. Board members bring an external and diverse business perspective in overseeing the organization and management of the CRA. The Board’s responsibilities include the development of the Corporate Business Plan and the management of policies related to resources, services, property, personnel, and contracts.

The CRA administers tax laws for the Government of Canada and most provinces and territories and various social and economic benefit and incentive programs delivered through the tax system. The CRA plays a key role in achieving government objectives and delivering results for Canadians.

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.

The Harper Government highlights support for seniors and pensioners on National Seniors Day

Ottawa, Ontario, October 1, 2013... The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, and Royal Galipeau, Member of Parliament for Ottawa-Orleans, participated in an event to celebrate National Seniors Day and to promote the many tax relief measures and benefits available to seniors in Canada. Seniors are now receiving approximately $2.7 billion in additional tax relief as a result of these benefits.

“Our Government is proud to pay tribute to the seniors who have helped build our country and continue to make valuable contributions to Canadian communities, workplaces, and society. We also want to ensure seniors are aware of the credits and benefits they are entitled to,” said Minister Findlay. “I am happy to see that the number of Canadian seniors claiming credits and benefits designed specifically for them is increasing year after year.”

Tax savings and services for seniors include:

• Canadians aged 65 or older can claim the age amount, a non-refundable tax credit to help seniors. The age amount has increased by $1,654 since 2006, and was claimed by almost 5 million seniors in 2012.
• In 2012, more than 4.5 million people claimed the non-refundable pension income amount. The maximum amount of pension income that may be claimed in calculating the 15% non-refundable credit doubled in 2006 from $1,000 to $2,000.
• Pension income splitting was introduced by the Harper Government in 2007 and provides a means for seniors to save money. It gives eligible Canadians the opportunity to split up to 50% of their eligible pension income with their spouse or common-law partner, reducing their overall family tax burden. More than 1 million couples took advantage of pension income splitting in 2012.
• Seniors with low-to-modest incomes can also claim the Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit to help reduce the cost of making GST and HST payments.
• Seniors who use public transit might be able to claim the Public Transit Amount on their income tax and benefit return to increase their savings at tax time.
• Seniors can claim medical expenses, such as hearing aids, pacemakers, hospital services, and nursing home costs, on their income tax and benefit return to get tax relief.
• Introduced in 2009, the Tax-Free Savings Account (TFSA) provides seniors with a tax-efficient savings vehicle to help meet ongoing savings needs. The Harper Government has also increased the age limit for contributing to a Registered Retirement Savings Plans (RRSPs) from 69 to 71.
• Seniors may also be eligible to take advantage of the Community Volunteer Income Tax Program (CVITP), a collaboration between community organizations and the Canada Revenue Agency. The CVITP helps prepare tax returns for individuals who have low income and a simple tax situation. Individuals who file a return may be entitled to certain credits and benefits. Volunteer tax preparation clinics are generally offered from February to April across Canada.

“We can all think of a senior who has made a difference in our lives. They are mentors, teachers, grandparents and loved ones,” said Alice Wong, Minister of State (Seniors). “Our Government’s actions to provide these credits and benefits are helping older Canadians live more active and engaged lives within their communities.”

The Government of Canada officially established National Seniors Day in 2010 to provide an occasion for all Canadians to celebrate and appreciate seniors. It coincides with the United Nations International Day of Older Persons.

“Canadian seniors have made, and continue to make, significant contributions to our country. They have played a primary role in shaping the way of life we all enjoy today,” said M.P.Galipeau. “On behalf of all Canadians, our Government is proud to show its appreciation by introducing measures that improve seniors’ quality of life. It is very important that we communicate with Canadian seniors about the credits and benefits available to them at tax time.”

For more information on the age amount, pension income splitting, and other credits and benefits available to seniors, go to www.cra.gc.ca/seniors.

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. 

Tax preparers fined $73,906 for tax evasion

Brampton, Ontario, September 24, 2013… The Canada Revenue Agency (CRA) announced today that on September 18, 2013, Manjula Makkar and Varun Makkar, of Brampton, Ontario, pleaded guilty in the Ontario Court of Justice in Brampton to one count each of income tax evasion under the Income Tax Act. Manjula Makkar was fined $65,104 while Varun Makkar was fined $8,802, representing 50% of the total income taxes evaded.

The Court heard that the Makkars, who are related, provided tax preparation services through a partnership named Makkar and Makkar Tax Services (MMTS), operating in Brampton, Ontario. The CRA determined that the Makkars earned income from the partnership which was not reported on their personal income tax returns for the 2008, 2009 and 2010 tax years. The Court also heard that Manjula Makkar failed to report additional income earned outside the MMTS partnership through her delivery of tax preparation, bookkeeping and accounting services during the same three year period. In total, Manjula Makkar failed to report $531,457 in income, thereby evading $130,208 in taxes, while Varun Makkar failed to report $120,600 in income, thereby evading $17,606 in income taxes.

The Court levied the minimum 50% fine after learning that the Makkars cooperated fully with the CRA throughout the investigation. As well, the Makkars have already paid approximately 100% of the amounts they would have owed if they had properly filed their returns.

The preceding information was obtained from the court records.

“Tax evasion costs all of us,” said Vince Pranjivan, acting Assistant Commissioner of the Canada Revenue Agency, Ontario Region. “The job of our investigators and auditors is to make sure that all Canadians pay the tax they owe.”

When taxpayers are convicted of income tax and GST evasion, they still must repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. On summary conviction, the court may fine an individual 50% to 200% of the tax evaded, and sentence them to a jail term of up to two years. In cases of gross negligence, the Income Tax Act also allows the CRA to assess a penalty of up to 50% of the unpaid tax or the improperly claimed benefit.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at
www.cra.gc.ca/convictions.

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 fourth calendar quarter

Ottawa, Ontario, September 23, 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 in accordance with applicable legislation and will be in effect from October 1, 2013 to December 31, 2013. All interest rates have increased by 1% since last quarter, except for the rate for corporate taxpayers pertaining to interest on loans and indebtedness.

Income tax

• The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums will be 6%.
• The interest rate to be paid on corporate taxpayers overpayments will be 2%.
• The interest rate to be paid on non-corporate taxpayers overpayments will be 4%.
• The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 2%.
• The interest rate used to calculate corporate taxpayers loans or indebtedness will be 5.02%.

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

Tax, duty, or other charges	Overdue remittances	Overpaid remittances – Corporate taxpayers	Overpaid remittances – Non corporate taxpayers
Goods and Services Tax (GST)	6%	2%	4%
Harmonized Sales Tax (HST)	6%	2%	4%
Air Travellers Security Charge	6%	2%	4%
Excise Tax (non GST/HST)	6%	2%	4%
Excise Duty except Brewer Licensees (amounts payable after June 30, 2003)	6%	2%	4%
Excise Duty except Brewer Licensees (amounts payable before July 1, 2003)	4%	N/A	N/A
Excise Duty (Brewer Licensees)	4%	N/A	N/A
Softwood Lumber Products Export Charge	6%	2%	4%

For information on the prescribed interest rates of other calendar quarters, visit 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. 

The Canada Revenue Agency revokes the registration of the ISNA Development Foundation as a charity

Ottawa, Ontario, September 20, 2013. . . The Canada Revenue Agency (CRA) will revoke the registration of the ISNA Development Foundation, a Mississauga-based charity. The notice of revocation will be published in the Canada Gazette with an effective date of September 21, 2013.

On August 20, 2013, and in accordance with subsection 168(1) of the Income Tax Act, the CRA issued a notice of intention to revoke the registration of the ISNA Development Foundation as a charity. The letter stated, in part, that:

“On the basis of our audit, we have concluded that the Organization has: ceased to comply with the requirements of the Act for its continued registration; failed to comply with or contravened any of sections 230 to 231.5 of the Act; issued a receipt for a gift or donation otherwise than in accordance with the Act and its Regulations; and failed to file an information return as required under the Act.

Our analysis of the information obtained during the course of the audit has led the CRA to believe that the Organization had entered into a funding arrangement with the Kashmiri Canadian Council/Kashmiri Relief Fund of Canada (KCC/KRFC), non-qualified donees under the Act, with the ultimate goal of sending the raised funds to a Pakistan-based non-governmental organization named the Relief Organization for Kashmiri Muslims (ROKM) without maintaining direction and control. Under the arrangement, KCC/KRFC raised funds for “relief work” in Kashmir, and the Organization supplied official donation receipts to the donors and disbursed over $281,696 to ROKM, either directly, or via KCC/KRFC.

Our research indicates that ROKM is the charitable arm of Jamaat-e-Islami, a political organization that actively contests the legitimacy of India’s governance over the state of Jammu and Kashmir, including reportedly through the activities of its armed wing Hizbul Mujahideen. Hizbul Mujahideen is listed as a terrorist entity by the Council of the European Union and is declared a banned terrorist organization by the Government of India, Ministry of Home Affairs, under the Unlawful Activities (Prevention) Act of 1967.

Given the commonalities in directorship between ROKM and Jamaat-e-Islami, concerns exist that the Organization’s resources may have been used to support the political efforts of Jamaat-e-Islami and/or its armed wing, Hizbul Mujahideen.”

The Government of Canada has made it clear that it will not tolerate the abuse of the registration system for charities to provide any means of support to terrorism. Canada’s public policy recognizes that the tax advantages of charitable registration should not be extended to organizations whose resources may have been made available, knowingly or unknowingly, to a terrorist entity, whether such financing is direct or indirect through organizations that claim to have nominally “charitable,” social, or cultural aims.

A copy of the notice of intention to revoke and other letters relating to the grounds for revocation are available to the public on request, in the language they were originally written, by calling 1‑800‑267‑2384.

An organization that has had its registration as a charity revoked can no longer issue donation receipts for income tax purposes and is no longer a qualified donee under the Income Tax Act. The organization is no longer exempt from income tax, unless it qualifies as a non-profit organization, and it may be subject to a tax equal to the full value of its remaining assets.

Registered charities perform valuable work in our communities, and Canadians support this work in many ways. The CRA regulates these organizations through the Income Tax Act and is committed to ensuring that they operate in compliance with the law. When a registered charity is found not to comply with its legal obligations, the CRA may revoke its registration under the Income Tax Act.

For more information about the registration of Canadian charities, go to the CRA’s Charities and Giving Web page at www.cra.gc.ca/charities.

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. 

Trio fined for obtaining fraudulent tax refunds

Burlington, Ontario, September 20, 2013 … The Canada Revenue Agency (CRA) announced today that Jonathan Sherwood, Joan Callon and Jeffrey Phinney, formerly of Burlington, Ontario, were sentenced on September 17, 2013, in the Ontario Court of Justice in Burlington, Ontario to a total fine of $43,432. Mr. Sherwood, Ms. Callon and Mr. Phinney pleaded guilty on November 30, 2012 to one count each under the Income Tax Act of willfully obtaining a refund to which the person is not entitled or obtaining or claiming a refund or credit under this Act in an amount that is greater than the amount to which the person or other person is entitled.

Ms. Callon was sentenced to a fine of $15,386, or 150% of the total refund she received from filing the false return. As well, Mr. Sherwood was fined $14,802, or 130% of his unwarranted refund, while Mr. Phinney was fined $13,244, or 100% of his unwarranted refund. The fines are in addition to any taxes owing from the reassessed returns. They have 18 months to pay the fines.

A CRA investigation revealed that Ms. Callon, Mr. Sherwood and Mr. Phinney each knowingly filed their 2006 income tax return which included fraudulent T4 information. The fraudulent information created a refund balance on each return. Mr. Sherwood responded to initial inquiries from the CRA about his return by providing a false T4 slip to support the amounts reported on his 2006 return. He initially told the CRA investigator that the employment earnings on the fraudulent T4 return was from consulting work. He then claimed that he obtained the fraudulent T4 slip as a kickback in compensation for renovation work he had completed. The unwarranted refund was deposited in a bank account which he shared with Ms. Callon, who also filed her 2006 return with fraudulent T4 information, creating a refund balance. Mr. Phinney allowed a third party to file his 2006 T1 return with false information, also obtained from a fraudulent T4 slip. He deposited the resulting refund into his bank account.

Taxpayers who claim false expenses, credits or rebates from the government are subject to serious consequences. They are liable not only for corrections to their tax returns and payment of the full amount of tax owing, but also to penalties and interest. In addition, if convicted of tax evasion, the court may fine them up to 200% of the tax evaded and sentence them for up to a five-year jail term.

Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.

Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions

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.

Deal with your tax affairs – online!

Did you know?

If you need to do business with the Canada Revenue Agency (CRA), why not do it when it’s convenient for you?

Need to file your return? Make a payment? Change your address? You can do all this and more from the comfort of your home, thanks to the CRA’s secure and easy-to-use electronic services.

Need to manage your business’ tax affairs? No problem: you can do that online too.
Canadians are catching on to the advantages of managing their taxes and benefits online – it just makes sense.

Using the CRA’s NETFILE service allows Canadians to file an individual income tax return over the Internet quickly and easily, at their convenience, from wherever they may be in the world. When combined with direct deposit, tax filers can receive their income tax refund in as little as eight days.

Taxpayers and businesses can use their financial institution’s online or telephone banking services to make payments to the CRA. As well, the CRA’s My Payment service, through participating financial institutions, allows for one or more payments to be made in one simple online transaction.

The CRA realizes that some Canadians will not be able to take full advantage of online services. That’s why the CRA will continue to maintain a variety of options to allow Canadians to file and pay their taxes, receive their benefits, and take advantage of tax credits. CRA telephone enquiries agents are available to assist you.

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.

Harper Government cracks down on businesses using electronic sales suppression software to hide sales

Edmonton, Alberta, September 11, 2013 The Honourable Kerry-Lynne D. Findlay, Minister of National Revenue, P.C., Q.C., M.P., was joined by the Honourable Laurie Hawn, Member of Parliament for Edmonton Centre, and Garth Whyte of the Canadian Restaurant and Foodservices Association (CRFA) today to announce new measures to combat the underground economy and the use of electronic suppression of sales (ESS) software.

“Our Government is committed to cracking down those who attempt to cheat the system and ensuring a level playing field for honest businesses,” said Minister Findlay. “All Canadians must meet their tax obligations. Businesses that use ESS software to underreport their revenues and avoid paying taxes are on notice. We will continue to support Canadians who work hard, play by the rules, and pay their taxes.”

Taxpayers are required to maintain adequate books and records as well as all of their electronic data files. ESS software (commonly known as “zapper” software) selectively deletes or modifies sales transactions in point-of-sale systems (for example, electronic cash registers) and business accounting systems, leaving no record of the original transaction. The use of ESS software undermines the competitiveness of businesses that abide by the rules, as it offers an unfair advantage to those who fail to comply with Canada’s tax laws.

“When some businesses cheat, we all lose. These new measures are an important piece of our Government’s plan to help Canada continue on its path to economic growth,” added M.P. Hawn.

Economic Action Plan 2013 proposed new administrative monetary penalties and criminal offences under both the Excise Tax Act and Income Tax Act to specifically address software that can suppress sales records. These measures will strengthen existing penalties and offences for making false statements or omissions under each of the Excise Tax Act and the Income Tax Act, as well as existing sanctions under the Criminal Code.
Under the new proposals, businesses that use, possess, or acquire ESS software will face monetary penalties of $5,000 on a first infraction, and $50,000 on any subsequent infraction. Anyone who manufactures, develops, sells, possesses for sale, offers for sale or otherwise makes available ESS software will face monetary penalties of $10,000 on a first infraction, and $100,000 on any subsequent infraction.

Businesses or others found guilty of a criminal offence of using, possessing, acquiring, manufacturing, developing, selling, offering for sale, or otherwise making available ESS software will face:

• on summary conviction, a fine of not less than $10,000 and not more than $500,000, or imprisonment for a term of not more than two years, or both; or
• on conviction by indictment, a fine of not less than $50,000 and not more than $1 million or imprisonment for a term of not more than five years, or both.

“The Canadian Restaurant and Foodservices Association welcomes this step, which penalizes the underground economy, not the above-ground economy,” said Garth Whyte, CRFA president and CEO. “These measures appropriately target the producers, installers, and users of sales-distorting software, while supporting the competitiveness of Canada’s hard-working small business community, among them 81,000 restaurants, the vast majority of which pay their taxes and operate in full transparency.”

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.