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.