Tax savings for tradespersons

Did you know?
If you were an employed tradesperson in 2012 (including an eligible apprentice mechanic), you may be able to deduct up to $500 of the cost of eligible tools bought to earn your employment income.

Important facts

• An eligible tool is a tool (including associated equipment such as a toolbox) that:
  • you bought to use in your job as a tradesperson and was not used for any purpose before you bought it;
  • your employer certified as being necessary for you to provide as a condition of, and for use in, your job as a tradesperson; and
  • is not an electronic communication device (like a cell phone) or electronic data processing equipment (unless the device or equipment can be used only for the purpose of measuring, locating, or calculating).

For more details on how to calculate the deduction for tools, go to www.cra.gc.ca/trades.

If you are an eligible apprentice mechanic, you may be able to claim an additional tools deduction. To be eligible, you must be registered in a program that leads to a designation as a mechanic licensed to repair self-propelled motorized vehicles, and you have to be employed as an apprentice mechanic. To see if you qualify, go to the Employed apprentice mechanics page at www.cra.gc.ca/trades.

The Canada Revenue Agency’s (CRA) online services make filing even easier and getting your refund faster
The CRA’s online services are fast, easy, and secure. You can use them to file your income tax and benefit return, make a payment, track your refund and more. Sign up for direct deposit too! Your refund and any benefit or credit payments owed to you will be deposited directly into your account, putting your money into your pocket faster. For more information, go to www.cra.gc.ca/getready.


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 Shea consults with farmers and local business leaders on economic issues

Charlottetown, Prince Edward Island (PEI), January 25, 2013... The Honourable Gail Shea, Minister of National Revenue today highlighted the Harper Government’s support for PEI’s agricultural sector at the Annual General Meeting of the PEI Federation of Agriculture, and invited input on economic issues facing Canadians. While attending the meeting, the Minister also took part in discussions about Islanders’ priorities and ideas for achieving the best use of taxpayers’ dollars in the lead-up to the 2013 budget.

"Our Government’s top priority continues to be creating jobs, growth and long-term prosperity and businesses play a vital role in our economy," said Minister Shea. "These consultations help us to identify potential red tape irritants and to better meet the needs of Canadian farmers and businesses, so they can continue to do what they do best—create jobs and spur economic growth."

These consultations add to the Canada Revenue Agency’s (CRA) ongoing dialogue with businesses across the country. In October 2012, Minister Shea announced new measures to cut red tape at CRA as part of the Harper Government’s Red Tape Reduction Action Plan. Based on feedback from businesses coast to coast, progress to date includes the creation of a dedicated team that is responsible for coordinating and addressing small business issues such as making filing easier and eliminating barriers to voluntary compliance with the tax system.

Other measures the CRA has taken to reduce red tape include the creation of a "one-stop" Web page where businesses can now easily find information and service options relevant to their tax situation: www.cra.gc.ca/businessonline. Businesses, or their representatives, can also now ask the CRA a tax question related to their account using the My Business Account online enquiries service. Businesses then receive answers they can rely on in the secure online portal.

To ensure that all Canadians can participate in the pre-budget consultation process, the federal government has launched online consultations through the Department of Finance Canada Web site. Those interested in participating can find more information at www.fin.gc.ca.

Minister Shea receives Golden Scissors Award for Cutting Red Tape and Improving Service for Small Businesses

Ottawa, Ontario, January 25, 2013... The Honourable Gail Shea, Minister of National Revenue today was awarded the Canadian Federation of Independent Business’ (CFIB) Golden Scissors Award for introducing measures that improve services at the Canada Revenue Agency (CRA) and reduce the burden placed on small businesses, as part of the Harper Government’s Red Tape Reduction Action Plan.

“I am honoured to have received this award in recognition of our Government’s efforts to improve the services offered by the Canada Revenue Agency. It means that we are moving in the right direction and are making changes that matter to Canadian businesses,” said Minister Shea. “Our Government is committed to implementing the Red Tape Reduction Action Plan, so that Canadian businesses can focus on creating jobs and growing the economy. Over the next couple of years we hope to continue to build on the successes already achieved and deliver the quality of services that businesses expect and deserve.”

A panel of judges, comprised of several CFIB employees chose Minister Shea, and her work at the CRA, from dozens of nominations across Canada. Over the past six months Minister Shea has been meeting with businesses and their stakeholders from across Canada to hear what they have to say—and that feedback is helping the CRA respond and improve its services.

The Honourable Rob Moore, Member of Parliament for Fundy Royal; the Honourable Tony Clement, President of the Treasury Board; the Honourable Maxime Bernier, Minister State (Small Business and Tourism); and Cathy McLeod, Parliamentary Secretary to the Minister of National Revenue have also played a key role in the achievements recognized by CFIB. Their participation in the Red Tape Reduction Commission, which consulted with business leaders across the country to identify red tape irritants, played a key role in the successful development of the Red Tape Reduction Action Plan.

“I would like to congratulate my colleagues Rob Moore, Tony Clement, and Maxime Bernier for their nominations for this award, and also recognize the contributions of my Parliamentary Secretary, Cathy McLeod. The leadership my colleagues have demonstrated has been key to our Government’s success,” added Minister Shea.

The CRA has introduced two new measures to provide fast, secure, and accurate information to businesses on their tax matters. The My Business Account Enquiries Service allows businesses to ask tax questions related to their account online and receive information they can rely on in writing. Also, the CRA’s business enquiries telephone service now requires agents to provide an Agent ID, comprised of their first name, a number, and a regional suffix. Both of these services allow businesses to communicate with the CRA and increase its accountability during these transactions.

For more information and resources tailored to 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.

CRA delivers enhanced administration and predictability for SR&ED claimants

The Canada Revenue Agency (CRA) administers the Scientific Research and Experimental Development (SR&ED) tax incentive program on behalf of the Government of Canada. The CRA is committed to informing businesses in Canada about available incentives, making them easily accessible, and managing the SR&ED program with fiscal integrity.

In response to Economic Action Plan 2012, the CRA is taking the following steps to improve the predictability of the outcome of SR&ED claims:

• conducting a pilot project to determine the feasibility of a formal pre‑approval process;
• enhancing the on‑line eligibility self‑assessment tool;
• improving the Notice of Objection process; and
• working collaboratively with industry representatives to address emerging issues.

Formal pre‑approval process (FPAP) service
The CRA understands that businesses would like to have more certainty about whether their claim qualifies for the SR&ED investment tax credits. To respond to this need, the CRA is looking at the feasibility of a formal pre‑approval process (FPAP). The CRA will test the concept through a pilot project that will begin during the spring of 2013.

The proposed FPAP service will provide enhanced predictability of the eligibility of an entire SR&ED claim or a specific project. The CRA will work with claimants in real time to help determine what work and expenditures are eligible for SR&ED investment tax credits and what supporting evidence is required. If the pilot project is successful, the proposed FPAP service should result in faster claim processing as it will eliminate the need for a post‑filing, on‑site review of SR&ED claims.

In order to test and evaluate the proposed FPAP service and ensure that it meets the needs of claimants, the CRA is currently seeking participants for the FPAP pilot project. Information about the pilot project and the possibility of participating can be found on the CRA Web site at http://www.cra-arc.gc.ca/txcrdt/sred-rsde/whtsnw/prpprvlsrvc-eng.html.

On‑line eligibility self‑assessment tool (ESAT)
The CRA is enhancing the on‑line eligibility self‑assessment tool (ESAT) that has been available since 2008. The enhanced ESAT will continue to help claimants to determine if the research and development work that has been done has the potential to satisfy the requirements of the SR&ED program. It has been designed to help claimants to better understand the SR&ED policy on the eligibility of research and development work and to determine in a practical way how it applies to a particular business. The enhanced ESAT could also assist claimants in completing Form T661, Scientific Research and Experimental Development (SR&ED) Expenditures Claim. Several members of the SR&ED community will be testing a preliminary version of the tool and providing feedback before the enhanced ESAT is made available on the CRA Web site.

Notices of Objection for claims
The CRA has improved the review process for Notices of Objection related to the scientific eligibility of SR&ED claims. The CRA has hired additional scientific staff with a broad range of science and engineering expertise who can perform a more specialized review in addressing the SR&ED scientific eligibility issues that claimants have raised in their Notices of Objection. The reviews have also been expanded to provide for greater contact between the CRA’s SR&ED scientific staff and the claimants.

Collaboration: listening to stakeholders
The CRA continues to meet with industry representatives to discuss and address emerging SR&ED issues. For example, in October 2012, the CRA held a forum for the oil and gas and mining industry. One of the objectives of the forum was to discuss issues of importance to both the CRA and the industry related to the SR&ED program.

The CRA also jointly developed with SR&ED stakeholders case studies on emerging technical issues for discussion at the forthcoming Association de planification fiscale et financière (APFF) SR&ED Symposium to be held in Montreal, Quebec, in February 2013.

Policy Review Project
Following nearly 16 months of public consultations, in December 2012, the CRA announced the successful completion of its SR&ED Policy Review Project and released consolidated SR&ED policy documents. None of the principles were changed, but the text was re‑written to improve clarity and readability. The policy information was reformatted and restructured and is now presented in a user‑friendly way on the CRA Web site. The new format of the policy documents makes it easier for the CRA to update them regularly to reflect legislative changes and to facilitate understanding through, for instance, the addition of more examples.

More information
For more information about the SR&ED program, visit http://www.cra-arc.gc.ca/sred/ or contact the CRA.



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.

Woodstock subcontractor fined for failing to file tax returns

Woodstock, Ontario, January 23, 2013 … The Canada Revenue Agency (CRA) announced today that on January 17, 2013, Steven C. Wilson, of Woodstock, pleaded guilty at the Ontario Court of Justice in Woodstock, Ontario, to seven counts of failing to file personal income tax returns. Wilson was fined a total of $7,000. He has 18 months to pay the fine. All outstanding returns have been filed.

Mr. Wilson is employed as a framing subcontractor in the construction industry operating under the trade name Mat‑Con Construction. He failed to file his 2004 to 2010 personal income tax returns. The CRA made several requests for the missing returns before serving Mr. Wilson 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.

Minister Shea hosts economic consultations with local business leaders

Summerside, Prince Edward Island, January 23, 2013... The Honourable Gail Shea, Minister of National Revenue today took part in economic consultations with members of the local business community. These consultations were aimed at engaging Canadians in discussions about their priorities and ideas for achieving the best use of taxpayers’ dollars in the lead-up to the 2013 budget.

"Inviting the business community to discuss the issues they face every day is an important part of the pre-budget process," said Minister Shea. "These consultations will help our Government develop a comprehensive and forward-looking agenda that will deliver high-quality jobs and economic growth."

These consultations add to the Canada Revenue Agency’s (CRA) ongoing dialogue with businesses across the country. In October 2012, Minister Shea announced new measures to cut red tape at CRA as part of the Harper Government’s Red Tape Reduction Action Plan. Based on feedback from businesses coast to coast, progress to date includes the creation of a dedicated team that is responsible for coordinating and addressing small business issues such as making filing easier and eliminating barriers to voluntary compliance with the tax system.

Other measures the CRA has taken to reduce red tape include the creation of a "one-stop" Web page where businesses can now easily find information and service options relevant to their tax situation: www.cra.gc.ca/businessonline. Businesses, or their representatives, can also now ask the CRA a tax question related to their account using the My Business Account online enquiries service. Businesses then receive answers they can rely on in the secure online portal. 

In order to ensure that all Canadians can participate in the pre-budget consultation process, the federal government has launched online consultations through the Department of Finance Canada Web site. Those interested in participating can find more information at www.fin.gc.ca.

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 Hiring Credit for Small Business has been extended

Did you know?
The Government of Canada has extended the Hiring Credit for Small Business (HCSB) for 2012. The 2011 federal budget created the HCSB to create jobs, grow the economy and support small businesses.
If you are self-employed, you may be eligible for the hiring credit for small business. This credit gives small businesses relief from the employer’s share of employment insurance premiums paid in 2012. The credit of up to $1,000 will be automatically credited to your payroll account.

Facts about the HCSB

• The HCSB is a credit of up to $1,000.
• The actual amount credited (up to $1,000) is equal to the increase in the Employment Insurance (EI) premiums paid by a business in 2012 over those paid for 2011.
• The HCSB is available to employers whose total employer EI premiums were $10,000 or less in 2011. Employers who created a new business in 2012 may also be eligible.
• The credit is automatically applied when a business files a 2012 T4 information return. To be eligible, the 2012 T4 return must be received prior to January 1, 2016.
• Eligible employers who have outstanding debt are still eligible for the HCSB. The Canada Revenue Agency (CRA) applies the amount of the credit to reduce any outstanding debt owed.
• For more information, go to www.cra.gc.ca/hiringcredit.

How do I apply for the credit?
You don’t need to apply for the HCSB. If you are eligible, the CRA will automatically calculate the credit using the EI information from the T4 slips you file—no added paperwork or red tape!

Try the CRA’s online services for businesses
With CRA online services for businesses, you can file, pay, and manage your tax affairs online at your convenience. For more information, 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.

Minister Shea hosts economic consultations with local community and business leaders

Georgetown, Prince Edward Island, January 22, 2013... The Honourable Gail Shea, Minister of National Revenue, accompanied by Dr. Kellie Leitch, Parliamentary Secretary to the Honourable Diane Finley, Minister of Human Resources and Skills Development, today took part in economic consultations with local community and business leaders. These consultations were aimed at engaging Canadians in discussions about their priorities and ideas for achieving the best use of taxpayers’ dollars in the lead-up to the 2013 budget.

"Economic Action Plan 2012 sets the tone for how we will continue to foster economic growth, job creation, and long-term prosperity in the coming year," said Minister Shea. "These consultations are an important part of the process to build on our success by finding more ways to strengthen Canada’s economy."

These consultations add to the Canada Revenue Agency’s (CRA) ongoing dialogue with businesses across the country. In October 2012, Minister Shea announced new measures to cut red tape at CRA as part of the Harper Government’s Red Tape Reduction Action Plan. Based on feedback from businesses coast to coast, progress to date includes the creation of a dedicated team that is responsible for coordinating and addressing small business issues such as making filing easier and eliminating barriers to voluntary compliance with the tax system.

"I strongly believe talking directly to Canadians is the best way to get input in how to help fuel job and economic growth in PEI, and across Canada," remarked Dr. Leitch. "Indeed, in the past, many of the ideas brought forward in local pre-budget meetings have been reflected in the actual federal budget."

Other measures the CRA has taken to reduce red tape include the creation of a "one-stop" Web page where businesses can now easily find information and service options relevant to their tax situation: www.cra.gc.ca/businessonline. Businesses, or their representatives, can also now ask the CRA a tax question related to their account using the My Business Account online enquiries service. Businesses then receive answers they can rely on in the secure online portal. To ensure that all Canadians can participate in the pre-budget consultation process, the federal government has launched online consultations through the Department of Finance Canada Web site. Those interested in participating can find more information at www.fin.gc.ca.

 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 Shea hosts economic consultations with local business leaders

Amherst, Nova Scotia, January 21, 2013... The Honourable Gail Shea, Minister of National Revenue, and Scott Armstrong, Member of Parliament for Cumberland—Colchester—Musquodoboit Valley, today took part in economic consultations with members of the local business community. These consultations were aimed at engaging Canadians in discussions about their priorities and ideas for achieving the best use of taxpayers’ dollars in the lead-up to the 2013 budget.

“Our Government’s top priority is creating jobs, growth, and long-term prosperity,” said Minister Shea. “We recognize that small businesses in communities like Amherst are essential to job creation. We are committed to working with them as we continue to make progress with our Economic Action Plan.”

These consultations add to the Canada Revenue Agency’s (CRA) ongoing dialogue with businesses across the country. In October 2012, Minister Shea announced new measures to cut red tape at CRA as part of the Harper Government’s Red Tape Reduction Action Plan. Based on feedback from businesses coast to coast, progress to date includes the creation of a dedicated team that is responsible for coordinating and addressing small business issues such as making filing easier and eliminating barriers to voluntary compliance with the tax system.

“I strongly believe talking directly to Canadians is the best way to get input in how to help fuel job and economic growth in Cumberland—Colchester—Musquodoboit Valley, and across Canada,” remarked MP Armstrong. “Indeed, in the past, many of the ideas brought forward in local roundtable meetings have been reflected in the actual federal budget.”

Other measures the CRA has taken to reduce red tape include the creation of a “one-stop” Web page where businesses can now easily find information and service options relevant to their tax situation: www.cra.gc.ca/businessonline. Businesses, or their representatives, can also now ask the CRA a tax question related to their account using the My Business Account online enquiries service. Businesses then receive answers they can rely on in the secure online portal.

To ensure that all Canadians can participate in the pre-budget consultation process, the federal government has launched online consultations through the Department of Finance Canada Web site. Those interested in participating can find more information at www.fin.gc.ca.

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 Committed to Cutting Red Tape: Minister Shea Announces Improvements to Phone Services for Businesses

Moncton, New Brunswick, January 21, 2013... The Honourable Gail Shea, Minister of National Revenue, accompanied by Robert Goguen, Member of Parliament for Moncton—Riverview—Dieppe, today announced new red tape relief for Canadian companies as part of the Harper Government's commitment to support jobs, growth, and long-term prosperity.

As part of the Canada Revenue Agency's (CRA) plan to reduce red tape, Minister Shea unveiled the introduction of "Agent ID," a new addition to the CRA's business enquiries telephone service. The Agent ID number will provide increased accountability for business calls to the CRA. Having the Agent ID makes it easier for business owners and representatives to provide feedback on CRA services, and ensures a consistent and user-friendly experience for callers.

"During the consultations that led to our Government's Red Tape Reduction Action Plan, businesses identified the need for enhanced phone services at the CRA," said Minister Shea. "With the introduction of the new Agent ID number, our Government is acting on a key problem identified by the business community."
The Agent ID requires agents to provide their first name, a number, and a regional suffix (such as O-N-T or A-T-L for Ontario or Atlantic Region) at the beginning of each call.

"The Agent ID number is a key way for businesses to rely on the advice given to them from the CRA Call Centre," said Corinne Pohlmann, Vice-president of National Affairs for the Canadian Federation of Independent Business. "Complying with a complicated tax code is not easy, and it's only fair that you should be able to rely on the advice given to you by the CRA. Increased accountability through the Agent ID number is a step towards improving the CRA's customer service to job creators and taxpayers."

"The CRA is listening to Canadian businesses, and moving forward on the changes they have told us are important to them," said MP Goguen. "Many of the measures highlighted in our Red Tape Reduction Action Plan have already been implemented, including launching an online secure enquiries service where businesses can ask their confidential tax-related questions, and creating a one-stop online business landing page where businesses can easily access tax information and CRA online services."

The CRA's business enquiries telephone line handles over 3 million calls every year. As part of the red tape reduction measures, the CRA is also improving and modernizing the training provided to telephone agents, and continues to make other ongoing enhancement to its service quality and online services.

In addition to the introduction of the Agent ID number, two additional reforms were unveiled today as part of the Harper Government's Red Tape Reduction Action Plan:

• The Honourable Tony Clement, President of the Treasury Board, announced proposed changes to the Food and Drug Regulations that will allow provincially regulated pharmacy technicians to transfer prescriptions to another pharmacy. This reform will benefit more than 15,000 pharmacists across Canada and is expected to save pharmacies an estimated $8.7 million a year in administrative costs.
• The Honourable Maxime Bernier, Minister of State for Small Business and Tourism, and the Honourable Andrew Saxton, Parliamentary Secretary to the President of the Treasury Board, announced plans to reduce the corporate reporting burden for businesses with revenues between $10 and $200 million. The reform would benefit 32,000 businesses and generate $1.2 million in administrative savings. For more information on this announcement, read the news release on Industry Canada's website.

The reforms announced today will generate $10-million in annual savings for Canadian businesses.

The Harper Government has committed to cutting red tape for businesses. Launched in October 2012, the Red Tape Reduction Action Plan introduces systemic reforms to the federal regulatory system to limit regulatory creep and make it more transparent, accountable, and predictable. The Plan includes 90 department-specific changes to eliminate unnecessary paperwork and introduce time-saving measures like single windows and electronic submissions.

For more information on the CRA's work under the Red Tape Reduction Action Plan, go to www.cra.gc.ca/redtapereduction.
For more information on the one-stop online business landing page, go to www.cra.gc.ca/businessonline.
For more information on the secure enquiries service, go to www.cra.gc.ca/mybusinessaccount.

Toronto lawyer fined for failing to file tax returns

Toronto, Ontario, January 17, 2013… The Canada Revenue Agency (CRA) announced today that in two separate judgments on January 10 and January 11, 2013, Speros Kanellos, of Thornhill, Ontario, pleaded guilty to 25 counts of failing to file tax returns for various periods between 1999 and 2007. He was fined a total of $28,000 and was given twelve months to pay the fines. All returns have since been filed.

On January 10, 2013, in the Ontario Court of Justice in Toronto, Ontario, Mr. Kanellos pleaded guilty and was fined $1,000 per count for failing to file GST/HST quarterly returns, resulting in a total fine of $22,000 on 22 counts. On January 11, 2013, in the Ontario Court of Justice in Newmarket, Ontario, Kanellos pleaded guilty and was fined $2,000 per count of failing to file personal T1 returns, for a total of $6,000 on 3 counts.

Mr. Kanellos, also known as Speros Constantine Gus Kanellos, is a self-employed lawyer. CRA pursued two simultaneous prosecutions of Mr. Kanellos in order to have him comply with his respective GST/HST and T1 filing obligations. This was only achieved after CRA laid charges in each case.

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 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.

What’s new for the 2013 tax-filing season?

Did you know?
You may be eligible for new or improved tax relief measures and services when filing your 2012 income tax and benefit return.

Important facts

• Family caregiver amount– If you have a dependant with a physical or mental impairment, you may be able to claim up to an additional $2,000 in the calculation of certain non-refundable tax credits. Go to www.cra.gc.ca/familycaregiver for more information.
• Medical expenses– Prescribed blood coagulation monitors for individuals who need anti-coagulation therapy are now eligible as medical expenses. Go to www.cra.gc.ca/medical for more information.
• Investment credit– Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 1, 2013.

Other changes for 2012

• Employees profit-sharing (EPSP)– You may have to pay a new tax if you are a specified employee and contributions that your employer made to an EPSP and allocated to you for the year are more than the threshold.
• Canada Pension Plan (CPP) working beneficiaries-- On January 1, 2012, the rules for contributing to the Canada Pension Plan changed. The changes apply to you if you are an employee or self-employed, you are 60 to 70 years of age, and you are receiving a CPP or Quebec Pension Plan retirement pension. For more information, go to www.cra.gc.ca/cpp.
• The Canada Revenue Agency (CRA) is now offering more options for logging in to My Account, My Business Account, and Represent A Client online services. In addition to the CRA user ID and password, you may now also be able to use your online banking information to log in to these services if you bank with TD Bank Group, Scotiabank and BMO Financial Group. That means one less username and password to remember. For more information about logging in using your banking information or the registration process, go to www.cra.gc.ca/loginservices.

The Canada Revenue Agency’s (CRA) online services make filing even easier and getting your refund faster
The CRA’s online services are fast, easy, and secure. You can use them to file your income tax and benefit return, make a payment, track your refund and more. Sign up for direct deposit too! Your refund and any benefit or credit payments owed to you will be deposited directly into your account, putting your money into your pocket faster. For more information, go to www.cra.gc.ca/getready.


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 Shea hosts economic consultations with local business leaders

Alberton, Prince Edward Island, January 15, 2013... The Honourable Gail Shea, Minister of National Revenue today took part in economic consultations with members of the local business community. These consultations were aimed at engaging Canadians in discussions about their priorities and ideas for achieving the best use of taxpayers’ dollars in the lead-up to the 2013 budget.

"Our Government’s top priority remains creating jobs, growth and long-term prosperity," said Minister Shea. "When we consult directly with businesses, we gain first-hand knowledge of their needs. That allows us to improve government services to help them meet their business objectives."

These consultations add to the Canada Revenue Agency’s (CRA) ongoing dialogue with businesses across the country. In October 2012, Minister Shea announced new measures to cut red tape at CRA as part of the Harper Government’s Red Tape Reduction Action Plan. Progress to date, based on feedback from businesses coast to coast, includes the creation of a dedicated team that is responsible for coordinating and addressing small business issues, such as making filing easier and eliminating barriers to voluntary compliance with the tax system.

Other measures the CRA has taken to reduce red tape include the creation of a "one-stop" Web page where businesses can now easily find information and service options relevant to their tax situation: www.cra.gc.ca/businessonline. Businesses, or their representatives, can also now ask the CRA a tax question related to their account using the My Business Account online enquiries service. Businesses then receive answers they can rely on in the secure online portal.

In order to ensure that all Canadians can participate in the pre-budget consultation process, the federal government has launched online consultations through the Department of Finance Canada Web site. Those interested in participating can find more information at www.fin.gc.ca.

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.

Toronto tax preparer fined for tax evasion

Toronto, Ontario, January 14, 2013 … The Canada Revenue Agency (CRA) announced today that on January 8, 2013, Joseph Wijeyesekere of North York, Ontario, pleaded guilty in the Ontario Court of Justice in Toronto, Ontario to four counts of tax evasion. A fine of $21,027.50 was imposed by the court which represents 125% of the total amount evaded.

Mr. Wijeyesekere is self-employed and provides income tax preparation and accounting services. From 2005 to 2008 Wijeyesekere understated his total taxable income by $95,406. As a result, the total federal tax he evaded was $16,822.

The preceding information was obtained from the court records.

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.

The Canada Revenue Agency revokes the registration of International Fellowship Mission Inc.

Ottawa, Ontario, January 11, 2013... The Canada Revenue Agency (CRA) will revoke the registration of International Fellowship Mission Inc., a Saskatoon-based charity. The notice of revocation will be published in the Canada Gazette with an effective date of January 12, 2013.

On November 19, 2012, and in accordance with subsection 168(1) of the Income Tax Act, the CRA issued a notice of intention to revoke the registration of International Fellowship Mission Inc. The letter stated, in part, that:

“The Canada Revenue Agency’s (CRA) audit revealed that the Organization failed to devote its resources exclusively to its own charitable activities by participating in the Universal Barter Group, a registered tax shelter. Our audit indicated that, for the period from January 1, 2007 to December 31, 2008, the Organization issued $1.1 million in donation receipts for transactions that do not qualify as gifts and did so at the direction of the tax shelter promoter. Our audit also revealed that the Organization failed to maintain or provide adequate books and records as required by section 230 of the Act to demonstrate that the pharmaceuticals it purportedly acquired were distributed under the direction of the Organization.”

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.

The CRA is reviewing all tax shelter-related donation arrangements (for example, schemes that typically promise donors a tax receipt worth more than the actual amount of the donation), and it plans to audit every participating charity, promoter, and investor. For more information about tax shelters, go to the CRA’s Tax alert Web page at www.cra.gc.ca/alert.

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.

The Canada Revenue Agency revokes the registration of Trinity Divine Outreach Ministries as a charity

Ottawa, Ontario, January 11, 2013... The Canada Revenue Agency (CRA) will revoke the registration of Trinity Divine Outreach Ministries, a Scarborough-based charity. The notice of revocation will be published in the Canada Gazette with an effective date of January 12, 2013.

On November 30, 2012, and in accordance with subsection 168(1) of the Income Tax Act, the CRA issued a notice of intention to revoke the registration of Trinity Divine Outreach Ministries as a charity. The letter stated, in part, that:

The Canada Revenue Agency’s (CRA) audit has revealed that the Organization has not complied with the requirements of the Income Tax Act through its participation in a donation arrangement promoted by Innovative Gifting Inc. As a direct result, the Organization issued 40 donation receipts for a total exceeding $1.1 million for shares purportedly traded on the Frankfurt Stock Exchange. It is the view of the CRA that the shares for which the tax receipts were issued did not legally qualify as gifts; that the Organization failed to demonstrate that it had actually received the tax-receipted shares; and that the Organization failed to report the fair market value of the shares purportedly gifted.

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 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.

The CRA is reviewing all tax shelter-related donation arrangements (for example, schemes that typically promise donors a tax receipt worth more than the actual amount of the donation), and it plans to audit every participating charity, promoter, and investor. For more information about tax shelters, go to the CRA’s Tax alert Web page at www.cra.gc.ca/alert.

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.

House arrest and fine for couple involved in tax evasion scheme

Ottawa, Ontario, January 10, 2013... The Canada Revenue Agency (CRA) announced today that Clarke and Mary Margaret Webster of Ottawa, Ontario, pleaded guilty in the Superior Court of Justice in Ottawa on January 7, 2013 to one count each of tax evasion. Clarke Webster was sentenced to a one-year conditional sentence, including six months of house arrest and fined $263,811. Mary Margaret Webster was sentenced to a six-month conditional sentence, including three months of house arrest, and fined $78,596. Both fines represent 100% of the total federal income tax evaded, and are due paid in full by January 7, 2014.

A CRA investigation found that Mr. Clarke Webster failed to report $791,410 in income he earned from 2004 to 2009 during which time he followed a tax evasion scheme promoted by Russ Porisky through the Paradigm Education Group (Paradigm). 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. Mary Margaret Webster, who also followed the Paradigm scheme, failed to report the $370,500 in income she earned from working at her husband’s dental practice for tax years 2004 to 2008.

Both Clarke and Mary Margaret Webster now renounce their previously held views under Paradigm. They acknowledge that the Paradigm scheme was preposterous, taught principles that were contemptuous of the rule of law and was aimed solely at the evasion of the payment of taxes. They both acknowledge that they were mistaken in following the scheme and would warn others of the personal and professional perils of taking part in such schemes.

The preceding information was obtained from the court records.

"The overwhelming majority of Canadians pay their taxes in full and on time," said Vince Pranjivan, Deputy Assistant Commissioner of the Ontario Region of the Canada Revenue Agency. "In fairness to them, the Canada Revenue Agency makes sure that people who try to avoid paying taxes are held to account."

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 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 provides continued tax relief in 2013

Ottawa, Ontario, January 2, 2013... The Honourable Gail Shea, Minister of National Revenue, today highlighted the tax relief measures that the Harper Government has made available to Canadians through Canada's Economic Action Plan. As Canadians prepare to file their 2012 taxes, they will be able to claim the Family Caregiver Tax Credit for the first time. This new tax relief measure is only one of many introduced since 2006 to keep taxes low for Canadian families and businesses.

"Our Government is committed to supporting hardworking Canadians and their families," said Minister Shea. "We will continue to provide tax relief so that Canadians can keep more of their hard-earned dollars and invest in the economy."

Claiming these credits by filing online and using direct deposit will, in most cases, help individuals receive a refund in as little as eight days, compared to four to six weeks for a paper return.

The Harper Government has introduced or improved a number of tax relief measures for Canadians, including:

• The Family Caregiver Tax Credit – Is a 15 per cent non-refundable tax credit on an amount of $2,000 that provides tax relief to caregivers of infirm dependant relatives. This includes, for the first time, infirm spouses, common-law partners, and minor children. Canadians can claim this new, non-refundable tax credit for the first time when filing their 2012 taxes.
• The Medical Expense Tax Credit – In order to fully recognize the medical and disability-related costs incurred by caregivers, the Harper Government has removed the $10,000 limit on the amount of eligible expenses a caregiver can claim in respect of financially dependent relatives.
• The First-Time Home Buyers' Tax Credit – Assists first-time home buyers with the costs associated with the purchase of a home, such as legal fees. More than 550,000 Canadians have taken advantage of the First-Time Home Buyers' Tax Credit.
• The Children's Fitness Tax Credit – Canadian families can claim a 15 per cent non-refundable tax credit on an amount up to $500 for the cost of registering a child in eligible physical activity programs, such as soccer or hockey teams. For the 2011 tax year, over 1.5 million families took advantage of the Children's Fitness Tax Credit.
• The Hiring Credit for Small Business – Small businesses that meet certain criteria and paid more in Employment Insurance premiums in 2012 over 2011 are eligible for the credit, which puts up to $1,000 back into the accounts of job creators. As of September 30, 2012, over $200 million has been credited to over 500,000 eligible employers.
• The Children's Arts Tax Credit – Canadian families can claim a 15 per cent non-refundable tax credit on an amount up to $500 for the cost of registering a child in eligible artistic, cultural, or other programs, such as music lessons or tutoring. Over 460,000 families claimed the Children's Arts Tax Credit in the 2011 tax year.
• The Apprenticeship Job Creation Tax Credit – Provides employers with a tax credit of up to 10 per cent of the eligible wages payable to eligible apprentices. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice. For the 2011 tax year, more than 10,000 employers across Canada used the Apprenticeship Job Creation Tax Credit.
• The Tradesperson's Tool Deduction – Allows tradespeople to deduct from their income part of the cost of tools purchased throughout the year.
• The Textbook Tax Credit – In order to better recognize the cost of textbooks, this credit provides increased tax relief to students in addition to the Tuition and Education Tax Credits. Students must first claim their credit on their own returns, but may be able to transfer unused amounts to a parent, grandparent, spouse or common-law partner.
• The Universal Child Care Benefit (UCCB) – Gives families with young children more choice in child care by providing $100 per month for each child under age six. Canadians received almost $2.7 billion in UCCB payments in 2011.
• The Tax-Free Savings Account (TFSA) – Allows all Canadians to earn tax-free income through a range of investment products. TFSAs have become increasingly popular, with approximately 8.2 million Canadians having opened an account and roughly 2.5 million Canadians contributing the maximum in 2011. Starting on January 1, 2013, Canadians will be able to contribute $5,500 to their TFSAs annually.
• The Registered Disability Savings Plan – A long-term savings plan to help Canadians with disabilities and their families save for the future. Since being introduced by the Harper Government in 2008, over 60,000 plans have been opened.
• The Canada Employment Credit (CEC) – A 15 per cent non-refundable tax credit on an amount of $1,095 in employment income, the CEC was introduced by the Harper Government to recognize employees' work expenses for items such as home computers, uniforms and supplies.
• The Public Transit Tax Credit – Allows Canadians to claim the full amount they spend on eligible transit passes for the year. In 2011, more than 1.6 million Canadians claimed this credit.
• The Volunteer Firefighters' Tax Credit – Available to any volunteer firefighter who serves at least 200 hours per year at one or more fire departments in their community. In 2011, more than 37,000 Canadian volunteer firefighters took advantage of this new tax credit.

"Our Government is proud of the tax relief we have put in place over the last number of years to reduce the tax burden on Canadians families and businesses," said Minister Shea. "We encourage all Canadians to claim the credits to which they are entitled when they file their 2012 taxes."

As a direct result of the Harper Government's strong record of providing tax relief to Canadians, the average family of four now receives more than $3,100 in extra tax savings. The federal tax burden for all Canadians is now the lowest it has been in half a century.

For more information on the various tax measures supporting working Canadians and their families, go to http://www.cra-arc.gc.ca/taxsavings/.

The Canada Revenue Agency encourages Canadians to take advantage of its fast, easy, and secure online services to file their tax and benefit returns.


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.