Monday, February 25, 2013

Children’s fitness tax credit

Did you know?
Whether your child dreams of a career on hockey skates, racing down the slopes on a snowboard, or performing for a famous ballet company, paying for lessons to make those dreams a reality can be costly. Save your receipts to claim your children’s fitness tax credit at tax time this year.

Important facts
  • If your child participated in an eligible program of physical activity, you may be able to claim up to $500 for the fees paid in 2012 to register you or your spouse’s or common-law partner’s child. You could save up to $75 on your tax bill this year.
  • Your child must have been under 16 years of age (or under 18 years of age if eligible for the disability amount) at the beginning of the year in which the eligible fitness expenses were paid.
  • You may claim an additional amount of $500 for each eligible child who qualifies for the disability amount and for whom you paid a minimum of $100 in eligible expenses.
  • Two parents can claim eligible fees for the same child, as long as they do not claim the same fees and the combined amount is not more than $500.
  • Eligible activities include strenuous games like hockey or soccer, activities such as golf lessons, horseback riding, sailing, and bowling, as well as others that require a similar level of physical activity.
  • Fees charged for extracurricular programs that take place in school are eligible.
For more information on the children’s fitness tax credit go to: www.cra.gc.ca/fitness.


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, February 19, 2013

Minister Shea discusses red tape reduction efforts with small business owners

Toronto, Ontario, February 19, 2013... The Honourable Gail Shea, Minister of National Revenue, accompanied by Laura Jones, Executive Vice-President of the Canadian Federation of Independent Business (CFIB), took part in a round-table discussion with local businesses and CFIB members today to hear their views on improving government services to Canadian businesses.

"Our Government is committed to cutting red tape for small businesses so that they can continue to grow and create jobs. Meeting with business owners, and key national stakeholders like the Canadian Federation of Independent Business, is a valuable way for our Government to receive feedback on the quality of service delivery,” said Minister Shea. “The Canada Revenue Agency continues to enhance existing features and introduce new ones so that businesses can focus more on running and growing their business, and spend less time filling out paperwork."

As part of the Harper Government’s Red Tape Reduction efforts, the Canada Revenue Agency (CRA) has introduced a number of initiatives to lighten the burden placed on small business. These initiatives include:
  • 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 in writing.
  • A dedicated team responsible for coordinating and addressing small business issues. The team’s mandate is to ensure the CRA takes a “small business lens” approach to service improvements with a renewed and enhanced focus on cutting red tape for small businesses.
  • Agent ID for the CRA’s business enquiries telephone service. Now, when a business owner calls the CRA, an agent will provide their first name, a number, and a regional suffix (such as O-N-T for Ontario or A-T-L for the Atlantic Region) at the beginning of each call. The Agent ID number ensures a consistent experience for callers and makes it easier for business owners to provide feedback on CRA services.
  • The Group ID feature in Represent a Client. This feature lets businesses maintain employee access to business information through the CRA’s online service. This means that business owners only need to fill out the RC59, Business Consent Form, once, addressing a key irritant for the business community.
Recently, Minister Shea was awarded the CFIB Golden Scissors Award for introducing measures that improve services at the CRA as part of the Harper Government’s Red Tape Reduction Action Plan.

"The efforts of Minister Gail Shea are not going unnoticed by Canada’s small business community," said CFIB Executive Vice-President, Laura Jones. "Her dedication to accountability, and her willingness to treat business owners as customers, is helping turn the tide in the battle against red tape."

The CRA also created a one-stop-shop Web page where businesses can now easily find information and service options relevant to their tax situation. To find out more, 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.

Monday, February 18, 2013

Harper Government's Low-Tax Plan Benefits Canadian Families

Mississauga, Ontario, February 18, 2013... Today, the Honourable Gail Shea, Minister of National Revenue, joined by Brad Butt, Member of Parliament for Mississauga-Streetsville, announced that Canadian families receive substantial tax savings and increased child benefits as a result of the actions taken by the Harper Government since 2006.

“Our Government is committed to supporting hard-working Canadian families by keeping taxes low,” said Minister Shea. “We understand that reducing their taxes allows them to keep more of their hard-earned money and meet the financial challenges of raising a family.”

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, including $960 from the two‑percentage‑point reduction in the goods and services tax (GST).

“With tax-filing season already started, our Government wants to make sure Canadian families take advantage of all the tax credits they are eligible for and keep their hard-earned dollars,” said MP Butt. “Families across Canada can count on our commitment to support measures that will help reduce the cost of everyday living.”

Minister Shea and MP Butt joined many hard-working Canadian families at the Vianney Academy of Learning’s second annual Family Day Skate, where they took the opportunity to highlight the many tax‑saving measures that are available to Canadian families and to encourage all Canadians to claim the tax credits they are entitled to when filing their taxes this year.

In addition to the tax credits introduced, the Harper Government has reduced the GST rate by two percentage points, increased the amount of income that all Canadians can earn before paying federal income tax, and reduced the lowest personal income tax rate to 15% from 16%.

For more information on these and other credits, go to www.cra.gc.ca/taxsavings. For step-by-step help with filing a return, go to www.cra.gc.ca/getready.

Related documents:


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.

Top things families should know about taxes

Did you know?
There are lots of benefits and credits to help families with their expenses throughout the year and reduce the amount that they owe at tax time.

Important facts
The following tips may help you or your family:
  • Working income tax benefit (WITB) – Working individuals and families with low income may be able to claim this refundable tax credit. The WITB includes a supplement for individuals who qualify for the disability amount. Eligible individuals and families may also apply for advance payments.
  • Children's fitness tax credit – Did your children play soccer, take ballet classes, or participate in a  program of physical activity in 2012? If so, you may be able to claim up to $500, per child, of the cost of these activities for a non-refundable tax credit of up to $75 for each child. You may claim an additional $500 for each eligible child who qualifies for the disability amount and for whom you have paid a minimum of $100 in eligible expenses.
  • Children's arts tax credit – Did your children participate in a program of artistic, cultural, recreational, or developmental activity in 2012? If so, you may be able to claim up to $500 of the money spent per child on these activities for a non-refundable tax credit of up to $75 for each child. You may claim an additional $500 for each eligible child who qualifies for the disability amount and for whom you have paid a minimum of $100 on registration or membership fees for an eligible program. 
  • Child care expenses – Did your children attend daycare or a program such as a summer day camp in 2012? You or your spouse or common-law partner may be able to claim what you spent on eligible child care in 2012.
  • 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 when you claim certain non-refundable tax credits.
  • Goods and services tax/harmonized sales tax credit – The GST/HST credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the GST or HST that they pay.
  • Public transit amount – Did you or your eligible dependant use public transit in 2012? You may be able to claim the cost of certain public transit passes or electronic payment cards under this non-refundable tax credit.
  • Home buyer's amount – Did you buy a home in 2012? You may be able to claim a non-refundable tax credit of up to $750 for the purchase of a qualifying home.
  • Child disability benefit – You may be eligible for this tax-free benefit if you cared for a child under the age of 18 who is eligible for the disability tax credit.
  • Canada child tax benefit – A tax-free monthly payment that helps eligible families with the cost of raising children under the age of 18. To find out if you qualify for this benefit as well as others, use our online benefit calculator.
  • Universal child care benefit – If you have children under the age of six years, you may be eligible for this taxable benefit, which supports child care choices for families.
  • Medical expenses – You may be able to claim a non-refundable tax credit based on the medical expenses paid for you, your spouse or common-law partner, or your children for any 12-month period ending in 2012.
  • Disability amount – If you or a family member has a severe and prolonged impairment in physical or mental functions, you may be able to claim this non-refundable tax credit.
  • Registered retirement savings plan (RRSP) – If you saved for your retirement in 2012 by investing in RRSPs, you may be able to deduct your contributions to reduce your tax.
  • Registered disability savings plan (RDSP) - A RDSP is a savings plan to help Canadians with disabilities and their families save for the long-term financial security of a person who is eligible for the disability tax credit.
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, February 13, 2013

March 1, 2013, is the deadline to make your RRSP contribution for 2012

Did you know?
Registered retirement savings plans (RRSPs) are one of the most popular investment vehicles for Canadians. Contributing to an RRSP is one way to reduce the amount you owe at tax time.

Important facts
  • March 1, 2013, is the last day you can contribute to an RRSP for the 2012 tax year.
  • The amount you can contribute to your RRSPs each year without tax implications is determined by your RRSP deduction limit, or contribution room, which can be found on your 2011 notice of assessment.
  • The most recent information about your RRSP deduction limit is also available online through My Account at www.cra.gc.ca/myaccount.
  • If you are not registered to use My Account, you can get your RRSP deduction limit by using the Quick Access service at www.cra.gc.ca/quickaccess.
  • December 31 of the year you turn 71 is the last day that you can contribute to your RRSPs. For more information, see RRSP options when you turn 71.
  • Be cautious of offers that say you can make tax-free withdrawals of RRSP funds. Offers that sound too good to be true usually are. To protect yourself, read about RRSP tax-free withdrawal schemes.
 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.

Lawyer fined $3,000 for not filing tax returns

Brampton, Ontario, February 13, 2013, 2013… The Canada Revenue Agency (CRA) announced today that on February 8, 2013, Peter Neilson, of Etobicoke, Ontario, pleaded guilty in Ontario Court of Justice in Brampton, Ontario, to two counts of failing to file personal tax returns. The court ruled that Mr. Neilson, a self-employed lawyer, failed to file his T1 income tax returns for the 2009 and 2010 tax years. Mr. Neilson was fined $1,500 per count, for a total of $3,000. He has six months to pay the fine.

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.

Sunday, February 10, 2013

Harper government and City of Winnipeg cut red tape

Ottawa, Ontario, February 10, 2013… The Honourable Gail Shea, Minister of National Revenue, announced today that the Canada Revenue Agency (CRA) will implement an important partnership with the City of Winnipeg to cut red tape. In early spring 2013, Winnipeg will become the first municipality to adopt the business number (BN) as a common identifier for its programs. Enhancing business number online processes is a commitment under the Harper government’s Red Tape Reduction Action Plan.

“Our government’s top priority is creating jobs, growth, and long-term prosperity. The actions we are taking through the Red Tape Reduction Action Plan allow companies to focus on what they do best, creating jobs and growing the economy,” said Minister Shea. “I am pleased that Winnipeg has decided to streamline business dealings with government. This initiative will simplify the way that businesses interact with different levels of government, reducing the burden placed on entrepreneurs.”

The BN is a common client identifier issued by the Canada Revenue Agency (CRA) for businesses to simplify their dealings with federal, provincial, and municipal governments. There are no registration or maintenance fees, and no renewal process associated with the BN, because businesses keep their BN throughout their life cycle. The BN is based on the idea of one business, one number.

“Assigning one number to a business for federal, provincial, and municipal programs makes it easier for them to work with different levels of government,” said Peter Bjornson, Manitoba’s Minister of Entrepreneurship, Training and Trade. “The business number eliminates the need for a business to manage different identifiers for different programs, reducing red tape for companies. Manitoba remains committed to the concept of ‘one business, one number’, and we will continue to listen to Manitoba companies and introduce new ways of providing services to make doing business in the province even better.”

The main benefits of registration include reducing red tape, increasing government efficiency, and faster service from government. Because the BN makes it easier for businesses to interact with all levels of government, businesses spend less time resolving identity issues and re-entering business information when completing common registrations. The information shared safely and securely with other participating BN partners helps businesses reduce costs and be more competitive.

“Winnipeg is very proud to be positioned as the first municipality in Canada to adopt the business number concept,” said Winnipeg Mayor Sam Katz. “This process has proven to be advantageous in other jurisdictions by making it safe, easy, and efficient for businesses to complete common registrations, and I’m confident our business community will embrace this new method.”

The BN is the main business account identifier used for an ever-increasing number of provincial programs. The CRA has forged partnerships and working relationships involving the BN with the provinces of British Columbia, Ontario, Nova Scotia, New Brunswick, Saskatchewan and Manitoba.

For more information on BN registration, go to www.cra.gc.ca/bn.


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, February 8, 2013

The Canada Revenue Agency revokes the registration of The Voice of the Cerebral Palsied of Greater Vancouver as a charity

Ottawa, Ontario, February 8, 2013... The Canada Revenue Agency (CRA) will revoke the registration of The Voice of the Cerebral Palsied of Greater Vancouver. The notice of revocation will be published in the Canada Gazette with an effective date of February 9, 2013.

The CRA issued a notice of intention to revoke the charitable registration of The Voice of the Cerebral Palsied of Greater Vancouver, in accordance with subsection 168(1) of the Income Tax Act, which was subsequently appealed to the Federal Court of Appeal. The appeal was withdrawn on October 25, 2012. The documents CRA filed to court provided the following audit results:

With respect to the appellant’s failure to devote its resources the [sic] charitable activities, the audit confirmed that in the period under review approximately 93% of funds raised by a third party fundraiser remained with those fundraisers with the appellant seeing a return of only 7.5% of the amounts raised. The information returns filed indicate the appellant devotes less than 50% of its annual gross income to its own charitable activities. The audit found that the appellant has devoted less than 15% of total income and less than 20% of total tax-receipted income on its own charitable activities.

The residential building owned by the appellant has not been accounted for by the appellant. The appellant allows the building to be managed by the Voice of the Cerebral Housing Society [sic], which is not a qualified donee. The appellant’s payment of rent to that Society [sic] is a payment to a non-qualified donee.

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 have an obligation under the Income Tax Act to devote their resources to charitable purposes and activities. The CRA recognizes that charities may incur reasonable administrative and fundraising expenditures in pursuit of their charitable programs. However, when fundraising becomes a disproportionate focus rather than pursuing charitable activities, or when fundraising expenditures become unreasonable or unacceptable, charities may face consequences which could include monetary penalties, the suspension of tax-receipting privileges and/or the revocation of registered charitable status.

While most registered charities operate in a manner consistent with the law, in cases of excessive fundraising the CRA will take appropriate action. These situations are addressed on a case-by-case basis. The CRA is also committed to broader sector education, for example the CRA issued Guidance on Fundraising by Registered Charities to assist charities in understanding CRA’s expectations on fundraising activities and expenditures.

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.

Wednesday, February 6, 2013

Are you 65 or older? Claim your benefits and credits

Did you know?
There are several benefits and credits designed for seniors.

Important information for seniors
  • Age Amount – You can claim this amount if you were 65 years of age or older on December 31, 2012, and your net income is less than $78,684. The maximum amount you can claim is $6,720.
  • Pension income amount – You may be able to claim up to $2,000 if you reported eligible pension, superannuation, or annuity payments on your return.
  • Pension income splitting – If you’re receiving a pension, you may be eligible to split up to 50% of your eligible pension income with your spouse or common-law partner.
  • Registered retirement savings plan (RRSP) – Deductible RRSP contributions can reduce your tax bill. You have until December 31 of the year you turn 71 to contribute to your RRSP.
  • Registered disability savings plan – A registered disability savings plan (RDSP) is a savings plan to help families save for the financial security of a person who is eligible for the disability tax credit.
  • Goods and services tax/harmonized sales tax (GST/HST) credit – You may be eligible for the GST/HST credit, a tax-free quarterly payment that helps individuals and families with modest incomes offset all or part of the GST or HST that they pay.
  • Working income tax benefit (WITB) – Working individuals and families with low income may be able to claim this refundable tax credit. The WITB includes a supplement for individuals who qualify for the disability amount. Eligible individuals and families may also apply for advance payments.
  • Disability amount – If you have a severe and prolonged impairment in physical or mental functions, and meet certain conditions, you may be eligible to claim the disability amount.
  • Public transit amount – You can claim the cost of public transit passes, such as a monthly or annual pass, for travel within Canada on public transit in 2012.
  • Medical expenses – You may be able to claim a non-refundable tax credit based on the cost of previously unclaimed medical expenses for any 12-month period ending in 2012.
  • Canada child tax benefit (CCTB) – If you are the primary caregiver for a child under the age of 18, the CCTB may help you with the costs of raising the child.
  • Child disability benefit – You may be eligible for this tax-free benefit if you cared for a child under the age of 18 who is eligible for the disability amount.
  • Universal child care benefit (UCCB) – If you are the primary caregiver for a child under the age of 6, you may be eligible to receive the UCCB when you apply for the CCTB.
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, February 4, 2013

Children’s arts tax credit

Did you know?
Is your child a budding artist or musician? If your child attends programs that contribute to his or her development, you may be eligible for a break at tax time.

Important facts
  • If your child participated in an eligible program of artistic, cultural, recreational, or developmental activity, you may be able to claim up to $500 of the fees you paid in 2012 for registration or membership. Claiming the full $500 can save you $75 on your tax bill.
  • Your child must have been under 16 years of age at the beginning of the year in which eligible arts expenses were paid (or under 18 years of age if he or she is eligible for the disability amount).
  • You can claim this credit for your child, as well as the child of your spouse or common-law partner.
  • You may claim an additional amount of $500 for each eligible child who qualifies for the disability amount and for whom you paid a minimum of $100 for registration or membership fees.
  • Two parents can claim eligible fees for the same child, as long as they do not claim the same fees and the combined amount is not more than $500.
Organizations who offer programs are in the best position to determine if they are eligible. Make sure to get a receipt for the fees you paid. More information on eligible programs and activities can be found at www.cra.gc.ca/artscredit.

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.