Wednesday, June 26, 2013

Harper Government launches new right to ensure Canadian taxpayers are treated fairly

Scarborough, Ontario, June 26, 2013… The Honourable Gail Shea, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency, Mr. J. Paul Dubé, the Taxpayers’ Ombudsman, and Roxanne James, Member of Parliament for Scarborough Centre, today announced the addition of a new right to the Taxpayer Bill of Rights, which gives Canadian taxpayers the ability to lodge a service complaint and request a formal review without fear of reprisal. Minister Shea, Mr. Dubé and MP James also met with members of Certified General Accountants (CGA) Canada to discuss taxpayer fairness.

“Our Government is committed to ensuring that all Canadians are treated with fairness and respect by the Canada Revenue Agency,” said Minister Shea. “In our system of voluntary compliance, taxpayers must have confidence in the objectivity and fairness of CRA’s actions as a tax administrator. This new addition to the Taxpayer Bill of Rights will help reinforce public confidence in Canada’s tax system, and ensure that Canadians taxpayers feel free to speak up if they have a disagreement with the CRA.”

Under the new right added to the Taxpayers Bill of Rights, if taxpayers lodge a service complaint or request a formal review, they can be confident that they will be treated impartially, receive the benefits, credits, and refunds to which they are entitled and pay no more and no less than what is required by law.

Although there is no evidence that Canadians have been subject to reprisal by the CRA, in his work across the country, the Taxpayers’ Ombudsman heard that taxpayers would sometimes hesitate to lodge a complaint for fear of being treated differently afterward. To address this unwarranted fear and encourage Canadians to speak up if they have a disagreement with the CRA, the Ombudsman recommended that a new right be added to ensure Canadians are confident they will be treated fairly.

The Harper Government has demonstrated a firm commitment to support taxpayers in their dealings with the CRA by creating the Office of the Taxpayers' Ombudsman in 2007, which operates independently from the CRA and was established to uphold taxpayer service rights and to provide an impartial review of unresolved service complaints from taxpayers.

“We are pleased to welcome this evolution of the Taxpayer Bill of Rights,” said Mr. Dubé, who recently celebrated five years in the Office as the Taxpayers’ Ombudsman. “Although we work at arm’s-length, the CRA and our office have collaborated well to advance taxpayer fairness. The addition of this new right to the Taxpayer Bill of Rights is an important step forward in providing Canadians with assurances that they will be treated impartially, and, if they feel this is not the case, that they will have effective avenues of redress available to them.”

“The addition of this new right to the Taxpayer Bill of Rights builds on our Government’s longstanding commitment to maintaining the integrity of the tax system and, in turn, the trust of Canadians,” said MP James.

For more information on the Taxpayer Bill of Rights, please visit our Web site at www.cra.gc.ca/rights. You can also visit the Office of the Taxpayers’ Ombudsman at www.taxpayerrights.gc.ca.

Backgrounder
Taxpayer Bill of Rights Amendments

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.

Ministers Shea and Kenney announce more relief for businesses affected by flooding in Alberta


Ottawa, Ontario, June 26, 2013… The Honourable Gail Shea, Minister of National Revenue and the Minister for the Atlantic Canada Opportunities Agency, with the Honourable Jason Kenney, Minister of Citizenship, Immigration and Multiculturalism and Member of Parliament for Calgary Southeast, confirmed today that taxpayers affected by flooding in Alberta will have until August 2, 2013, to file their returns.

The Canada Revenue Agency (CRA) will proactively adjust the due date for all federal business and other returns filed in Alberta that were due during the flooding. A federal business return filed by August 2, 2013, will be considered as filed on time.

“Many Albertans are struggling during these devastating floods, and our Government is here to extend our support in any way we can,” said Minister Shea. “When disasters strike, our true priorities become clear – the protection of our families and communities. We hope that extending the filing deadline eases some of the burden of these difficult times.”

“As efforts turn to assessing the damage and rebuilding, the federal government continues to work with the Alberta government and affected municipal governments to ensure a coordinated response to damage caused by the flooding,” said Minister Kenney “This extension is one of the many ways our Government is helping those affected. For Albertans impacted by the terrible devastation of the flood, there is one less thing to worry about.”

Businesses are reminded that taxpayer relief provisions are also available for those who are unable to meet their tax obligations due to the flooding. For this situation, the CRA offers to expedite taxpayer relief requests through its general enquiries line at 1-800-959-8281 or the business enquiries line at 1-800-959-5525. Taxpayer relief requests can also be made in writing using the Form RC4288, Request for Taxpayer Relief. Requests for taxpayer relief are considered by the CRA on a case-by-case basis.

Businesses are also reminded that if they are unable to physically access the institutions they normally depend on for payments and remittances, the CRA’s e-services can provide quick access to tax payment services and account information. For more information, please visit our Web site at www.cra.gc.ca/businessonline.
 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.

Tuesday, June 25, 2013

Harper Government announces new requirements for Canadians with offshore property and income

Vancouver, British Columbia, June 25, 2013 … Parliamentary Secretary Cathy McLeod was in Vancouver today to announce the launch of a strengthened Foreign Income Verification Statement (Form T1135), one of the Economic Action Plan 2013 measures to crack down on international tax evasion and aggressive tax avoidance. Mrs. McLeod met with members of Certified General Accountants (CGA) Canada to discuss taxation issues, including how best to combat international tax evasion and aggressive tax avoidance.

“Our Government is committed to combating tax evasion and getting tough on tax cheats. Since 2006, we have introduced over 75 measures to improve the integrity of the tax system,” said Parliamentary Secretary McLeod. “The strengthened reporting requirements are just one example of the actions being taken by our Government to crack down on tax cheats. These measures are great news for hardworking Canadians who pay their fair share and bad news for those who may seek to cheat the system.”

Starting with the 2013 taxation year, Canadians who hold foreign property with a cost of over $100,000 will be required to provide additional information to the CRA. The criteria for those who must file a Foreign Income Verification Form (T1135) has not changed; however, the new form has been revised to include more detailed information on each specified foreign property.

Increased reporting requirements include:
  • the name of the specific foreign institution or other entity holding funds outside Canada;
  • the specific country to which the foreign property relates; and
  • the income generated from the foreign property.
The CRA will use the additional information to ensure all taxpayers comply with Canadian tax laws, through activities including education and audit. Failure to report income from domestic or foreign sources is illegal, and Canadians should know that the CRA actively pursues cases of non-compliance. Tax evasion and aggressive tax avoidance can lead to significant taxes, interest and penalties.

These measures will build on the recent commitments made by Prime Minister Stephen Harper at the G-8 Lough Erne Summit in Northern Ireland. The G-8 declaration and the Harper Government’s Action Plan on Transparency of Corporations and Trusts will uphold a high level of transparency.

Economic Action Plan 2013 also proposes to extend the reassessment period for a tax year by three years if a taxpayer has failed to report income from a foreign property on their income tax return and Foreign Income Verification Form (T1135) was not filed, late-filed, or included incorrect or incomplete information concerning a foreign property.

In addition to the new filing requirements, Economic Action Plan 2013 proposed other strong new measures to combat international tax evasion and aggressive tax avoidance. These include:
  • the new Stop International Tax Evasion Program;
  • the mandatory reporting of international electronic funds transfers over $10,000 to the CRA; and,
  • streamlining the judicial process that provides the CRA authorization to obtain information from third parties such as banks.
The Harper Government also recently announced the creation of a dedicated team to implement these measures and a $30 million investment to target international tax evasion and aggressive tax avoidance.

“We are pleased to see the Government taking action on this important issue. Increased reporting requirements of large offshore assets will help to ensure that all Canadians are operating on a level playing field when it comes to their taxes,” said Carole Presseault, Vice President of Government and Regulatory Affairs at CGA Canada. “Our members support the fight against tax evasion, as it hurts all Canadians by reducing government revenue that other law abiding taxpayers are required to make up, and providing an unfair advantage to those seeking to cheat the system.”

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 announces new requirements for Canadians with offshore property and income

Toronto, Ontario, June 25, 2013 … The Honourable Gail Shea, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency, today announced the launch of a strengthened Foreign Income Verification Statement (Form T1135), one of the Economic Action Plan 2013 measures to crack down on international tax evasion and aggressive tax avoidance. Minister Shea also met with members of the Certified General Accountants Association of Canada (CGA-Canada) to discuss taxation issues, including how best to combat international tax evasion and aggressive tax avoidance.

“Our Government is committed to combating tax evasion and getting tough on tax cheats. We have introduced important new measures to strengthen the Canada Revenue Agency’s ability to audit and investigate taxpayers who may be hiding offshore property,” said Minister Shea. “Stronger reporting requirements will provide the CRA with more information to crack down on those who attempt to cheat the system.”

Starting with the 2013 taxation year, Canadians who hold foreign property with a cost of over $100,000 will be required to provide additional information to the Canada Revenue Agency (CRA). The criteria for those who must file a Foreign Income Verification Statement (Form T1135) has not changed; however, the new form has been revised to include more detailed information on foreign property.

Increased reporting requirements include:
  • the name of the specific foreign institution or other entity holding funds outside Canada;
  • the specific country to which the foreign property relates; and
  • the income generated from the foreign property.
The CRA will use the additional information to ensure all taxpayers comply with Canadian tax laws, through activities including education and audit. Failure to report income from domestic or foreign sources is illegal, and Canadians should know that the CRA actively pursues cases of non-compliance. Tax evasion and aggressive tax avoidance can lead to significant taxes, interest and penalties.

These measures will build on the recent commitments made by Prime Minister Stephen Harper at the G-8 Lough Erne Summit in Northern Ireland. The G-8 declaration and the Harper Government’s Action Plan on Transparency of Corporations and Trusts will uphold a high level of transparency.

“I am proud that our Government is protecting law-abiding Canadians by providing the CRA with the tools necessary to go after tax evaders. Since 2006, we have introduced over 75 measures to improve the integrity of the tax system,” said Mark Adler, Member of Parliament for York Centre. “New measures outlined in Economic Action Plan 2013 to tackle international tax evasion and aggressive tax avoidance will result in concrete benefits for all hardworking Canadians. I am pleased that our Government is engaged with stakeholders about this serious and pressing issue.”

Economic Action Plan 2013 also proposes to extend the reassessment period for a tax year by three years if a taxpayer has failed to report income from a foreign property on their income tax return and Foreign Income Verification Statement (Form T1135) was not filed, late-filed, or included incorrect or incomplete information concerning a foreign property.

“We are pleased to see the Government taking action on this important issue. Increased reporting requirements of large offshore assets will help to ensure that all Canadians are operating on a level playing field when it comes to their taxes,” said Carole Presseault, Vice President of Government and Regulatory Affairs at CGA Canada. “Our members support the fight against tax evasion, as it hurts all Canadians by reducing government revenue that other law abiding taxpayers are required to make up, and providing an unfair advantage to those seeking to cheat the system.”

In addition to the new filing requirements, Economic Action Plan 2013 proposed other strong new measures to combat international tax evasion and aggressive tax avoidance. These include:
  • the new Stop International Tax Evasion Program;
  • the mandatory reporting of international electronic funds transfers over $10,000 to the CRA; and,
  • streamlining the judicial process that provides the CRA authorization to obtain information from third parties such as banks.
Minister Shea also recently announced the creation of a dedicated team to implement these measures and a $30 million investment to target international tax evasion and aggressive tax avoidance.

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.

Monday, June 24, 2013

Minister Shea encourages Canadians to support great local charities and receive tax benefits

June 24, 2013... The Honourable Gail Shea, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency, today encouraged Canadians to take advantage of the Harper Government’s new First Time Donor’s Super Credit and make a difference in their communities by giving to a registered Canadian charity. Minister Shea highlighted the new tax credit from Economic Action Plan 2013 while touring a home under construction by Habitat for Humanity in PEI.

"Canadians have a long and proud history of supporting those in need,” said Minister Shea. “We want to continue to foster and promote Canada’s culture of giving. That’s why our Government has introduced this new tax credit to encourage Canadians to give generously to charities that do so much good work in our communities.”

Economic Action Plan 2013 responded to the report by the Standing Committee of Finance on tax incentives for charitable giving by proposing a new temporary First-Time Donor’s Super Credit designed to encourage new donors to give to charity.

This new credit will significantly enhance the attractiveness of donating to a charity for Canadians who are in a position to make donations for the first time.

Cash donations made by first-time donors after March 20, 2013 now qualify for the first-time donor’s super credit. An individual qualifies as a first-time donor if neither they nor their spouse or common-law partner has claimed the charitable donation tax credit since 2007.

“We hope that this credit will encourage Canadians to get involved in giving to our country’s great charities, expanding the donor base for the charitable sector. Our goal is a healthy, vibrant charitable sector that can continue to make an essential contribution to the well-being of our communities.” added Minister Shea.

The first-time donor’s super credit gives you an extra 25% credit when you claim your charitable donation tax credit. This means that you can get a 40% credit for donations of $200 or less, and a 54% credit for the portion of donations that are over $200 up to $1,000.

“We are very pleased that the Government has introduced this new tax credit,” said Susan Zambonin, Executive Director of Habitat for Humanity PEI. “It will make giving to charities like ours even more attractive to Canadians who’ve been considering a donation. Getting more Islanders to donate will help us to get even more families into affordable housing.”

More information about the first-time donor’s super credit is available on the CRA Web site or the Government of Canada’s Economic Action Plan Web site.

Donate wisely by researching charities using the CRA’s Charities Listings before you donate. For more information about donating to charities, 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.

Saturday, June 22, 2013

Taxpayer relief measures available to Canadians affected by flooding in Alberta

Ottawa, Ontario, June 22, 2013... The Canada Revenue Agency (CRA) would like to advise taxpayers who have been affected by flooding in Alberta that they will have access to the CRA’s taxpayer relief provisions if they are unable to meet their tax obligations.

Corporations who are unable to file their T2 returns by July 2 due to flooding can apply to have interest and/or penalties waived or cancelled using Form RC4288, Request for Taxpayer Relief.

The CRA understands that natural disasters may cause great difficulties for affected taxpayers whose primary concerns during this time are their families, homes, and communities. The CRA can provide relief to these taxpayers if they are unable to file their returns by July 2, 2013, due to flooding or because of other circumstances beyond their control. Business owners and self‑employed individuals who were unable to meet their filing and payment obligations are also eligible for relief.

The CRA’s taxpayer relief provisions use a balanced approach to assist taxpayers in resolving tax issues that arise due to circumstances beyond their control. Under these provisions, taxpayers can apply to the CRA to have interest and/or penalties waived or cancelled in situations where they are unable to file a tax return and/or make payments on time because of a natural disaster. The CRA will consider these requests on a case-by-case basis.

All Canadians have access to the CRA's taxpayer relief measures and will be considered for relief if they miss a filing deadline because their lives were disrupted by natural disasters, including tornadoes, flooding, landslides, hurricanes, and forest fires.

For more information, go to www.cra.gc.ca/taxpayerrelief, or call the CRA at 1-800-959-8281 for individual enquiries, and at 1-800-959-5525 for business enquiries.

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.

Tuesday, June 18, 2013

Taxpayer relief measures available to Canadians affected by flooding

Ottawa, Ontario, June 18, 2013... The Canada Revenue Agency (CRA) would like to advise taxpayers who have been affected by flooding in Fort McMurray, Alberta, and other affected areas, that they will have access to the CRA’s taxpayer relief provisions if they were unable to meet their tax obligations.

Self-employed individuals and their spouses or common-law partners who were unable to file their income tax returns by June 17 due to flooding can apply to have interest and/or penalties waived or cancelled using Form RC4288, Request for Taxpayer Relief.

The CRA understands that natural disasters may cause great difficulties for affected taxpayers whose primary concerns during this time are their families, homes, and communities. The CRA can provide relief to these taxpayers if they were unable to file their personal income tax returns by June 17, 2013, due to flooding or because of other circumstances beyond their control.

The CRA’s taxpayer relief provisions use a balanced approach to assist taxpayers in resolving tax issues that arise due to circumstances beyond their control. Under these provisions, taxpayers can apply to the CRA to have interest and/or penalties waived or cancelled in situations where they are unable to file a tax return and/or make payments on time because of a natural disaster. The CRA will consider these requests on a case-by-case basis.

All Canadians have access to the CRA's taxpayer relief measures and will be considered for relief if they miss a filing deadline because their lives were disrupted by natural disasters, including tornadoes, flooding, landslides, hurricanes, and forest fires.

For more information, go to www.cra.gc.ca/taxpayerrelief, or call the CRA at 1-800-959-8281 for individual enquiries, and at 1-800-959-5525 for business enquiries.

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.

Monday, June 17, 2013

GST/HST fraud leads to 92 months in jail

Newmarket, Ontario, June 17, 2013 …The Canada Revenue Agency (CRA) announced today that Roy Francis Smith, of Markham, Ontario, was sentenced in the Ontario Court of Justice in Newmarket, Ontario to 92 months in jail and was further fined $935,506. Roy Smith pleaded guilty in the Ontario Court of Justice in Newmarket, Ontario on June 10, 2013 to one count of fraud over $5,000 under the Criminal Code of Canada.

The CRA investigation revealed that for the years 2001 to 2005 Smith filed fraudulent GST/HST returns thus receiving $9,836,052 in unwarranted refunds. Smith used his position within a large retail energy reseller to get access to the books and records of another recently acquired company. Smith then proceeded to add his name as an authorized representative for the company with the CRA to facilitate the filing of the returns and communicate with the CRA on behalf of the company for which he was managing the books. The investigation further revealed that Smith incorporated a company with a similar name and opened a bank account for the deposit and cashing of the GST/HST refunds fraudulently obtained.

Smith used the proceeds from the fraud against the Canadian people to live a lavish lifestyle. Aside from doing major renovations to his Markham home, Smith transferred millions of dollars to U.S. accounts and bought property outside Canada.

For the taxation years 2002, to 2005, Mr. Smith failed to file T1 Returns. By doing so Smith failed to report the income he had fraudulently received and thus evaded paying $935,506 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 Darrell Mahoney, Assistant Commissioner, Ontario Region, CRA. “To maintain that confidence, the Canada Revenue Agency is determined to hold tax evaders accountable for their actions.”

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. 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 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.

Saturday, June 15, 2013

Canadian Families Receiving Record Tax Relief under Harper Government’s Low-Tax Plan

Cobourg, Ontario, June 15, 2013... On behalf of the Minister of National Revenue, the Honourable Lisa Raitt, Minister of Labour, accompanied by Rick Norlock, Member of Parliament for Northumberland—Quinte West, attended a children’s dance competition today at the Cobourg Highland Games to promote the Children's Arts and Fitness Tax Credits. Minister Raitt highlighted that the Children’s Fitness Tax Credit is on track to provide an estimated $120 million in tax relief to Canadian families in 2012.

“Our Government is committed to keeping taxes low for hard-working Canadian families. These credits support families whose children participate in music or dance lessons, hockey or soccer, and a number of other activities,” said Minister Raitt. “It is great news that the Children’s Fitness Tax Credit is providing record savings.”

When children take part in eligible programs that focus on the arts or fitness, their families can save their receipts and claim the cost of those programs, to a maximum of $500 per child per credit, on their income tax and benefit returns. This means savings of up to $150 on their tax bill for each child’s programs.

According to the 2012 Tax Expenditures and Evaluations publication, the estimated fiscal cost of the Children’s Fitness Tax Credit is $120 million for the 2012 taxation year. This represents a significant expected growth in tax savings from the estimated fiscal cost of $90 million in 2007.

“I’m happy that so many families across the country and right here in Cobourg are benefitting from the tax savings provided by the Children’s Arts and Fitness Tax Credits,” said Mr. Norlock. “We hope to see continued growth in participation for these important programs.”

To find out if your child's program is eligible for the Children's Arts Tax Credit, go to www.cra.gc.ca/artscredit. For the Children’s Fitness Tax Credit, go to www.cra.gc.ca/fitness.

As with all supporting documents, parents have to keep receipts to support their claims for six years.

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.

Friday, June 14, 2013

Harper Government’s Low-Tax Plan Provides Record Tax Relief for Canadian Families

Ottawa, Ontario, June 14, 2013... The Honourable Gail Shea, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency, today highlighted that the Children’s Fitness Tax Credit is on track to provide an estimated $120 million in tax relief to Canadian families in 2012.

"Our Government is committed to keeping taxes low for hardworking Canadian families,” said Minister Shea. “I am proud that this credit is providing record savings. It is a great measure that supports busy and active Canadian families.”

When children participate in eligible programs that focus on physical activity, families can save their receipts and claim the cost of those programs, to a maximum of $500 per child, on their tax returns. This means saving as much as $75 on their tax bill for each child’s programs.

According to the 2012 Tax Expenditures and Evaluations publication, the estimated fiscal cost of the Children’s Fitness Tax Credit will be $120 million in 2012. This represents a significant growth in tax savings from the estimated fiscal cost of $90 million in 2007.

“We will continue to support tax relief measures so that Canadian families can be involved in children’s activities while keeping more of their hard-earned dollars,” added Minister Shea. “I’m happy that so many families across the country are benefitting from increased physical activity and tax savings.”

To find out if your child's program is eligible for the Children's Fitness Tax Credit, go to www.cra.gc.ca/fitness.

The CRA encourages Canadians to take advantage of its safe, secure, and convenient electronic services to file their tax returns. In most cases, with direct deposit, individuals can receive their refund in as little as eight business days, compared with four to six weeks for a paper return.

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.

Thursday, June 13, 2013

Interest rates for the third calendar quarter

Ottawa, Ontario, June 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 in accordance with applicable legislation and will be in effect from July 1, 2013 to September 30, 2013. There have been no changes to the prescribed interest rates since last quarter.

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 taxpayers overpayments will be 1%.
  • The interest rate to be paid on non-corporate taxpayers 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%.
Other taxes, duties, or charges
The interest rates on overdue and overpaid remittances are as follows:

Tax, duty, or other chargesOverdue remittancesOverpaid remittances – Corporate taxpayersOverpaid 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) 5% 1% 3%
Excise Duty (Brewer Licensees) 3% N/A N/A
Softwood Lumber Products Export Charge 5% 1% 3%

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.

Tuesday, June 11, 2013

Richmond Hill resident fined for not filing GST/HST returns

Newmarket, Ontario, May 11, 2013… The Canada Revenue Agency (CRA) announced today that on April 25, 2013, David Keefe, of Richmond Hill, Ontario, pleaded guilty in Ontario Court of Justice in Newmarket, Ontario, to three counts of failing to file GST/HST returns. Mr. Keefe, carrying on business as GTA Duradek, a decking construction company, failed to file GST/HST returns for November 28, 2000 to December 31, 2002. The court imposed a fine of $1,000 per count, for a total of $3,000. He has twelve months to pay the fine and all outstanding 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.

Accounting sub contractor fined for tax evasion

Toronto, Ontario, June 11, 2013 …The Canada Revenue Agency (CRA) announced on June 5, 2013 that Edward G. Gilmore of Scarborough, Ontario, pleaded guilty in the Ontario Court of Justice in Toronto to one count of tax evasion and was fined $13,702.

The CRA investigation revealed that for the years 2005 to 2008 Mr. Gilmore understated his business income by $145,794. The understated income related to contract work done for an accounting firm and from the preparation of income tax returns. By doing so Gilmore avoided paying $27,405 in federal taxes.

The preceding information was obtained from the court records.

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. 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 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.

Monday, June 10, 2013

Harper Government obtains information regarding potential tax evasion and aggressive tax avoidance

Ottawa, Ontario, June 10, 2013… The Honourable Gail Shea, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency, announced today that the Canada Revenue Agency (CRA) has received information from international allies that relates to persons resident in Canada with assets offshore.

“Our Government takes the abuse of Canada’s tax laws seriously. We have reached out to key international partners and have been working to obtain this data in accordance with our tax treaties,” said Minister Shea. “We are now in possession of information on Canadians with offshore assets and we will continue to work with our partners to ensure all Canadians pay their fair share of taxes.”

Canada’s close relationship with our tax treaty partners exemplifies how countries can use exchange of information to help uncover offshore assets of Canadians. The data that the CRA has obtained is voluminous and requires substantial review which is currently underway. Given the magnitude and complexity of the data, the CRA will perform a thorough analysis and take actions as appropriate.

On May 9, Tax Commissioners from Australia, the United Kingdom, and the United States announced that they had obtained data exposing cases of potential tax evasion and aggressive tax avoidance, and Minister Shea secured a commitment that information relevant to Canada stemming from this data would be shared.

“Today, we are seeing the significant benefits of Canada’s ongoing and close collaboration with our international partners to combat the use of offshore tax havens,” said Minister Shea. “Our network of information-sharing agreements, as well as the strong enforcement measures we are implementing, is good news for hard-working, law-abiding Canadians who pay their fair share and bad news for tax evaders in this country.”

The Harper Government is taking strong action to tackle international tax evasion and aggressive tax avoidance. Key enforcement measures proposed in Economic Action Plan 2013 include: the new Stop International Tax Evasion Program, the mandatory reporting of international electronic funds transfers over $10,000 to the CRA, new reporting requirements for Canadian taxpayers with foreign income or properties, and streamlining the judicial process that authorizes the CRA to obtain information from third parties such as banks. Minister Shea also recently announced a $30 million investment to target international tax evasion and aggressive tax avoidance.

As a result of the Harper Government’s efforts to address international tax evasion, the use of CRA’s Voluntary Disclosures Program has seen significant increases and the CRA’s in-depth understanding of international tax evasion and avoidance continues to grow.

Failure to report income from domestic or foreign sources is illegal, and Canadians should know that the CRA actively pursues cases of non-compliance. Tax evasion and aggressive tax avoidance can lead to significant taxes, interest, and penalties. Tax evasion can also lead to fines and/or jail time.

Canadians should come forward if they have information on suspected cases of tax evasion or avoidance through our Informant Leads Program, either by phone at 1-866-809-6841 or over the Internet at www.cra.gc.ca/leads.

Canadians should also take this opportunity, if necessary, to correct their own tax affairs through the use of the Voluntary Disclosure Program (http://www.cra.gc.ca/voluntarydisclosures).

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.

June 17, 2013, is the deadline for self-employed individuals to file their 2012 income tax and benefit return.

The Canada Revenue Agency (CRA) reminds self-employed individuals and their spouses or common-law partners that this year, the June 15 filing deadline has been extended to midnight on Monday, June 17, 2013, as June 15 falls on a Saturday. However, if you had an outstanding balance for 2012, it had to be paid on or before April 30, 2013, to avoid interest charges. A late-filing penalty on amounts owing will apply to returns received after the June 17 deadline.

The CRA invites you to join the growing number of Canadians who are filing electronically. NETFILE is one of the CRA’s electronic tax-filing options. NETFILE allows you to file your individual income tax and benefit return over the Internet quickly and easily, which means a faster refund. For a list of software and Web service options, including those that are free of charge, go to www.netfile.gc.ca/software.

If you have a balance owing, you can make your payment using your financial institution's telephone or Internet banking services. For more information about online payments, go to www.cra.gc.ca/payments or contact your financial institution.

You can also make your payment using the CRA’s My Payment service. My Payment lets you make one or more payments in one simple online transaction. You can use this service if you have access to online banking at a participating financial institution. You can also sign up for direct deposit to receive your refund in your account at your Canadian financial institution – no more waiting for cheques to arrive in the mail.

Save time – go online! The CRA’s online services make it faster and easier to handle your business’s tax matters. You, your employee, or your representative can file, pay, and access detailed information about your tax accounts--all online, all at your fingertips. To learn more about the CRA’s electronic services for businesses, go to: www.cra.gc.ca/businessonline.

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.

Wednesday, June 5, 2013

Palgrave businessman fined for not filing tax returns

Brampton, Ontario, June 5, 2013… The Canada Revenue Agency (CRA) announced today that on April 26, 2013, Vincent Ursini, of Palgrave, Ontario, pleaded guilty in Ontario Court of Justice in Brampton, Ontario, to two counts of failing to file T2 corporation returns, as well as one count of failing to file a T1 return. Mr. Ursini was fined $1,000 per count, for a total of $3,000.

The court ruled that Mr. Ursini, sole director of NVD International Inc., failed to file the corporation’s T2 tax returns for the 2009 and 2010 tax years. Mr. Ursini also failed to file his own personal T1 return for the 2007 tax year. He has six months to pay the fine. All 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.

Tuesday, June 4, 2013

Tax preparer gets 10 year jail term for tax fraud

Oshawa, June 4, 2013...The Canada Revenue Agency (CRA) announced today that on May 31, 2013, Ms. Doreen Tennina was found guilty in the Superior Court of Justice in Oshawa, Ontario, on two counts of fraud over $5,000 under the Criminal Code and was sentenced to the maximum period of 10 years in jail on each count to be served concurrently. She was also ordered to pay a fine of $699,608 for causing her company, Executive Accounting, to fail to report income from the tax evasion scheme.

Ms. Tennina is currently under arrest in Spain, where she previously owned properties. Extradition proceedings are underway. Once Tennina is back in Canada she will commence serving her sentence.

Ms. Tennina, Director and owner of 1517069 Ontario Inc., also known as Executive Accounting, provided tax preparation and accounting related services.

In November 2006, the CRA, as part of their investigation, executed search warrants on Ms. Tennina’s residence, place of business and a storage facility. Documents obtained during the searches revealed that she had fraudulently claimed carrying charges and charitable donations totalling $58,500,000 on 4,200 income tax returns that she prepared on behalf of her clients for the 2003 to 2005 tax years. These false claims reduced the amount of federal taxes owed by over $10,000,000.

Ms. Tennina’s corporation, 1517069 Ontario Inc., failed to report taxable income of $2.8 million for the years 2003 to 2005 resulting in the evasion of $699,608 in federal tax.

The preceding information was obtained from the court records.

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

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 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.

Monday, June 3, 2013

The Harper Government Takes Additional Steps to Help Small Businesses Prosper

Dartmouth, Nova Scotia, June 3, 2013... The Honourable Gail Shea, Minister of National Revenue, and Minister for the Atlantic Canada Opportunities Agency, on behalf of the Honourable Ted Menzies, Minister of State (Finance), today met with business owners in Dartmouth, to highlight the vital role that small businesses play in supporting the economy and job creation, and how the Harper Government’s Economic Action Plan will help them grow and succeed.

“Our Government recognizes that the success of our country’s small business community is critical to creating jobs and driving economic growth,” said Minister Shea, who met with the owner and employees of Mezza Lebanese Kitchen in Dartmouth. “Our low-tax approach allows small business owners to focus more on expanding to create new jobs, and less on their tax bill. Through Economic Action Plan 2013, we are continuing to introduce measures that support Canada’s job creators.”

“Taking action on issues that affect the bottom line of Canadian small businesses is important to help them grow their business and, in turn, help grow the economy,” said Canadian Federation of Independent Business (CFIB) senior policy analyst Jennifer English. “Extending and expanding the temporary Hiring Credit for Small Business and enhancing the Lifetime Capital Gains Exemption are two measures that CFIB recommended and will be welcomed by many small firms across Canada.”

Economic Action Plan 2013 proposes a number of key measures to support small businesses, including:
  • Extending and expanding the temporary Hiring Credit for Small Business for one year, which will provide up to $1,000 against a small firm’s increase in its 2013 Employment Insurance (EI) premiums over those paid in 2012 to employers with premiums of $15,000 or less in 2012. In all, an estimated 560,000 small businesses will benefit from this measure, allowing them to reinvest approximately $225 million in 2013.
  • Increasing the Lifetime Capital Gains Exemption to $800,000 from $750,000 in 2014, and indexing it going forward. The Lifetime Capital Gains Exemption increases the rewards of investing in small businesses and makes it easier for owners to transfer their family businesses to the next generation of Canadians.
The Canada Revenue Agency (CRA) will automatically calculate the hiring credit for a small business without adding any administrative burden or increasing red tape. Amounts are calculated using the Employment Insurance information from the T4 slips filed with the 2012 and 2013 T4 information returns.

“I’ve been working hard to expand my business to the four locations we have today, and the Hiring Credit for Small Business has made it easier for me to bring on the new staff that we need,” said Peter Nahas, owner of Mezza Lebanese Kitchen in Dartmouth. “It’s great to see the Government supporting small businesses like mine.”

The new measures announced in Economic Action Plan 2013 build on the significant actions taken by the Harper Government since 2006 to support small businesses:
  • Reducing the small business tax rate to 11 per cent from 12 per cent.
  • Increasing the small business limit to $500,000 from $300,000.
  • Reducing the red-tape burden on small businesses, such as allowing business owners to go paperless when dealing with CRA.
  • Introducing a Code of Conduct for the Credit and Debit Card Industry to help small business owners when dealing with credit card companies.

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.