Are you self-employed?

Did you know?
As a self-employed individual, you have until midnight on June 17, 2013 to file your 2012 income tax and benefit return. Don’t forget -- you must pay any balance owing for 2012 on or before April 30, 2013, regardless of your filing date.

Important facts

• If you earned self-employment income from a business you operate yourself or with a partner, you must report it. For more information, go to www.cra.gc.ca/selfemployed.
• Keep thorough records if you own a business or are engaged in a commercial activity. The records have to provide enough detail to determine the taxes you owe and support the benefits you are claiming, and must be supported by original documents.
• If you receive income that has no tax withheld or does not have enough tax withheld for more than one year, you may have to pay tax by instalments. This can happen if you receive rental, investment, or self-employment income, certain pension payments, or income from more than one job. For more information, go to www.cra.gc.ca/instalments.

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.

Landscaper fined $2,000 for not filing tax returns

Brampton, Ontario, March 26, 2013… The Canada Revenue Agency (CRA) announced today that on March 15, 2013, Tuccio Zita, of Mississauga, Ontario, pleaded guilty in Ontario Court of Justice in Brampton, Ontario, to one count of failing to file a corporate tax return and one count of failing to file a GST return. The court ruled that as the director of 2257235 Ontario Inc., Mr. Zita failed to file a corporate T2 income tax return for the 2010 tax year and a GST return for the year ending December 31, 2010. Mr. Zita was fined $1,000 per count, for a total of $2,000. He has 6 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.

Caring for dependants? Depend on the new family caregiver amount

Did you know?
The new family caregiver credit (FCA) helps Canadians with the costs of caring for a dependant with a mental or physical impairment.

Important facts
Introduced in the 2011 federal budget, the FCA is a 15% non-refundable tax credit on an amount of $2,000 that provides tax relief for caregivers of dependant relatives who have a mental or physical impairment. This includes, for the first time, spouses, common-law partners, and minor children.
The dependant must be:

• An individual 18 years of age or older and dependant on you because of a physical or mental impairment; or
• A child under 18 years of age, with a physical or mental impairment. The impairment must be prolonged and indefinite, and the child must be dependent on you for assistance in attending to personal needs and care when compared to children of the same age.

You may be asked to provide a signed statement from a medical doctor that provides information on the nature, commencement, and duration of the dependant's impairment. You can claim the family caregiver amount for more than one eligible dependant.

Please note that the maximum amount for eligible dependants age 18 or older already includes the additional amount of $2,000 for the family caregiver amount.

For more information, go to www.cra.gc.ca/familycaregiver.

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 Marketplace Ministries International as a charity

Ottawa, Ontario, March 15, 2013... The Canada Revenue Agency (CRA) will revoke the registration of Marketplace Ministries International, a Scarborough-based charity. The notice of revocation will be published in the Canada Gazette with an effective date of March 16, 2013.

On January 31, 2013, and in accordance with subsection 168(1) of the Income Tax Act, the CRA issued a notice of intention to revoke the registration of Marketplace Ministries International as a charity. The letter stated, in part, that:

“Our audit revealed that the Organization has devoted a significant portion of its resources to the promotion of the Insured Giving Donation Program tax shelter gifting arrangement. Our audit has concluded that from January 1, 2009 to December 31, 2010, the Organization issued in excess of $23 million in receipts for cash and non-cash gifts received through this tax shelter arrangement. Of this amount, $19 million consisted of non-cash gifts that the Organization reports to have distributed as part of its own activities. However, the Organization’s records fail to substantiate that the property actually existed, that the property was in the Organization’s possession, that the values recorded on the receipts were accurate or that the property was distributed for charitable purposes.

The remaining $3.9 million was reported as tax-receipted cash donations. Of this amount, the Organization directed $3.8 million to fundraising expenses and retained only $125,370 over the two years for use in its own charitable activities. The Organization’s earnings represent 3% of the gross cash donations received or 0.5% of the gross tax-receipted donations reported.

It is our position that the Organization has operated for the non-charitable purpose of promoting a tax shelter arrangement and for the private benefit of the tax shelter promoters. The Organization has issued receipts for: transactions that do not qualify as gifts; issued receipts otherwise than in accordance with the Income Tax Act and its Regulations; failed to maintain sufficient books and records; and failed to file an accurate T3010, Registered Charity Information Return.”

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 gifting tax shelter schemes (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.

Interest rates for the second calendar quarter

Ottawa, Ontario, March 15, 2013… The Canada Revenue Agency (CRA) today announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations. These rates are calculated quarterly in accordance with applicable legislation and will be in effect from April 1, 2013 to June 30, 2013. The rates below remain unchanged from the previous quarter.

Income tax

• The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums will be 5%.
• The interest rate to be paid on corporate taxpayer overpayments will be 1%.
• The interest rate to be paid on non-corporate taxpayer overpayments will be 3%.
• The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 1%.

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

Tax and Duty	Overdue remittances	Overpaid remittances
		Corporate taxpayers	Non corporate taxpayers
Goods and Services Tax (GST)	5%	1%	3%
Harmonized Sales Tax	5%	1%	3%
Air Travellers Security Charge	5%	1%	3%
Excise Tax (non GST)	5%	1%	3%
Excise Duty (except Brewer Licensees)	5%	1%	3%
Excise Duty (Brewer Licensees)	3%	N/A	N/A
Softwood Lumber Products Export Charge	5%	1%	3%

For information on the prescribed interest rates of previous calendar quarters, go to www.cra.gc.ca/interestrates.

Canada Revenue Agency

This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.

Enjoy the benefits of filing on time and online!

Did you know?
Filing your tax return and paying what you owe on time helps you avoid possible interest and penalty charges, and ensures that your benefits won’t be delayed. Filing online is the fastest and easiest way to send your return and get your refund and benefit payments even faster.

What happens if I don’t file on time?
When you file your yearly tax return, you are letting the CRA know your current tax situation. Without that information, the CRA can’t be sure that you are still eligible to receive certain benefit payments. If you don’t file on time, your benefit payments (for example, Canada child tax benefit and GST/HST credit) may be interrupted.

Also, if you have a balance owing and don’t file your return on time, you will be charged a late-filing penalty. The penalty is 5% of your 2012 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. If we charged a late-filing penalty on your return for 2009, 2010, or 2011, your late-filing penalty for 2012 may be 10% of your 2012 balance owing, plus 2% of your 2012 balance owing for each full month that your return is late, to a maximum of 20 months.

In addition to the late-filing penalty, if you have a balance owing for 2012 you will be charged compound daily interest beginning May 1, 2013, on any unpaid amounts owing for 2012.

Even if you cannot pay all of your balance owing right away, you should still file your return on time and call us at 1-888-863-8657 to make a payment arrangement. By filing on time, you will avoid the late-filing penalty.

Important Facts

• You have until midnight on April 30, 2013, to file your 2012 income tax and benefit return.
• If you or your spouse or common-law partner is self-employed, you have until midnight on June 17, 2013 to file your return. Any balance owing must be paid by April 30, 2013—even if your return is due June 17, 2013.

Why should I file online?
When you file your return online, you’ll get your refund faster. When you file online and sign up for direct deposit, you may receive your refund in as little as eight days! For information on how to request direct deposit, go to www.cra.gc.ca/directdeposit.


If you are already filing your return online, you no longer need a web access code. Instead, all you need is your social insurance number and date of birth.


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.

Public Transit users—claim your tax credit!

Did you know?
If you use public transit, you can claim the cost of certain public transit passes to reduce the taxes you owe.

Important information
You can claim the cost of monthly or annual passes for unlimited travel within Canada on any of the following: buses, streetcars, subways, commuter trains, or ferries. You may also be able to claim the cost of shorter duration passes and electronic payment cards in certain circumstances.
When claiming the public transit amount, keep your transit pass in case the Canada Revenue Agency (CRA) asks you to verify your claim. If you do not have your passes, you can also provide your receipts, cancelled cheques, or credit card statements to support your claim.

For information about the public transit amount, go to www.cra.gc.ca/transitpass and watch the video.

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 mortgage broker fined $4,000 for not filing tax returns

Toronto, Ontario, March 7, 2013… The Canada Revenue Agency (CRA) announced today that on March 5, 2013, Christopher Humeniuk, of Toronto, Ontario, pleaded guilty in Ontario Court of Justice to four counts of failing to file personal tax returns. Mr. Humeniuk, a self-employed mortgage broker, failed to file T1 returns for the 2001-2004 taxation years. The court imposed a fine of $1,000 per count, for a total of $4,000. He has six months to pay the fine and all outstanding returns have since been filed.

The preceding information was obtained from the court records.

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

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

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


Canada Revenue Agency

This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.

March is Fraud Prevention Month—the Canada Revenue Agency reminds Canadians to protect themselves against fraud

Ottawa, Ontario, March 6, 2013… March is Fraud Prevention Month across Canada and around the world, and the Canada Revenue Agency (CRA) is reminding Canadians to protect themselves against fraud.

Fraud comes in many different forms and it is important that Canadians are aware of fraudulent schemes out there to best protect themselves against fraud. Remember that the CRA will not send information about your personal refunds or benefit payments by email, will not ask for personal information by email, and will not leave any personal information on an answering machine. Canadians who receive an email or a phone call of this nature should not respond to it and should call the CRA right away.

If you think you have been a victim of fraud, the CRA urges you to notify your financial institution and the local police.

Fraud Prevention Month also offers an opportunity for the CRA to remind Canadians that some individuals are selling tax scams that have serious legal consequences. No matter how tempting it might be to believe that you don’t have to pay any taxes, Canadians are urged to remember the old adage: “If it sounds too good to be true, it probably is.”

While Canadians do their part to protect themselves against fraud, the CRA will continue to provide the highest level of security to protect Canadian taxpayers’ information and to build on our proud tradition of employee integrity and professionalism.

The Harper Government remains focused on four priorities, as outlined by the Prime Minister, that Canadians care most about: their families, the safety of our streets and communities, their pride in being a citizen of this country, and their personal financial security. Ensuring that Canadians are well informed to prevent fraud supports Canadian families and their personal financial security.

For more information on how to protect yourself against fraud, please visit our Web site at www.cra.gc.ca/fraudprevention.

FRAUD: Recognize It. Report It. Stop It.


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.

Paying your tax by instalments

Did you know…?
You may have to pay tax by instalments if you earn income for more than one year from which no tax was withheld. You may also have to pay tax by instalments if not enough tax was withheld. This can happen if you earn rental, investment, or self-employment income, certain pension payments, or income from more than one job.

Important facts
What are instalments?

• Instalments are quarterly income tax payments that some individuals have to pay to the Canada Revenue Agency (CRA) on or before March 15, June 15, September 15, and December 15.
• Instalments are made regularly through the calendar year as income is being earned. This is similar to when employees have taxes withheld from their pay.
• You may have to pay interest and possibly penalties if your instalment payments are late or less than the required amount.

Who pays income tax by instalment?
You have to pay your income tax by instalments for 2013 if your net tax owing (the amount you owe on your income tax and benefit return) is more than $3,000*:

• in 2013; and
• in either 2012 or 2011.

*Use a limit of $1,800 instead for any year you lived in Quebec on December 31.
Farmers and fishers – If you meet the above criteria, but your main source of income in 2013 is self-employment income from farming or fishing, you pay only one instalment payment by December 31^st.

Making instalment payments

• For more information about paying by instalment, go to www.cra.gc.ca/instalments or consult Pamphlet P110, Paying your income tax by instalments.
• To find out how much you need to pay each quarter, you can view your instalment reminders online using the CRA’s online My Account service. To access or sign up, go to www.cra.gc.ca/myaccount.
• You can make your payment using your financial institution’s online or telephone banking services. For other options, go to www.cra.gc.ca/payments.
• If you are an employee or pensioner, you can reduce the amount of your instalment payments, or eliminate them, if you reduce your net tax owing. You can do this by having tax withheld, or by increasing the amount of tax withheld, by your employer or pension administrator. For more information, go to www.cra.gc.ca/deductmore.

Let the CRA remind you by email when your payment is due
To receive an email each quarter reminding you of your payment due date, sign up for the Individuals - Quarterly instalment payment reminder electronic mailing list. Go to www.cra.gc.ca/lists.


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.

Brampton tax preparer sentenced to house arrest for tax fraud scheme

Brampton, Ontario, March 5, 2013...The Canada Revenue Agency (CRA) announced today that Mr. Adegboyega Adenekanad Adebukunola pleaded guilty on March 1, 2013 in the Ontario Court of Justice in Brampton, to one count of fraud over $5,000 under the Criminal Code. He was sentenced to a six-month conditional sentence of house arrest, not including time already served in custody, and an additional three years’ probation. A condition of Adebukunola’s sentence and probation is that he is not to assist in preparing or filing income tax returns.

Mr. Adebukunola operated KAAL Associates Limited, providing tax preparation services, financial planning and accounting related services from 2005 to 2010. A CRA investigation discovered that false charitable donation claims totalling $858,897 were made on 129 income tax returns prepared by Mr. Adebukunola for clients for the 2004 to 2009 tax years. The false claims were supported by fraudulent charity receipts that appropriated the names of two charities without their permission or knowledge. The false claims reduced the amount of federal taxes owed by $245,602.

Mr. Adebukunola was arrested in the United States on an international warrant and returned to Canada at the request of Canadian authorities. He remained in custody during the process.

The information in this news release was obtained from the court records.

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

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

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

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

Canada Revenue Agency

This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.

Top tips you should know about your taxes

Did you know?
The Canada Revenue Agency (CRA) is here to help you during tax season. Here is a list of tips you should know about your taxes, including many ways to help you save money at tax time.

For individuals

1. Plan ahead – Register for My Account and sign up for direct deposit so you’ll be ready when you file your return. Also be sure to file on time to avoid late-filing penalties and fees and to make sure there are no interruptions to your benefit and credit payments.
2. Tax-free savings account (TFSA) – Using a TFSA is a great way to save money. Generally, interest, dividends, and capital gains earned on investments in a TFSA are not subject to tax---either while held in the account or when withdrawn.
3. Registered retirement savings plan (RRSP) – You can save on your taxes and save for your retirement at the same time. Contributions to your RRSP are tax-deductible, and any income that you earn in your RRSP accumulates tax-free as long as the funds stay in the plan.
4. Charitable donations – Donations of cash, goods, land, or listed securities made to a registered charity or other qualified donees may be eligible for a charitable tax credit.
5. Families – There are many ways families can save at tax time. The activities you signed your kids up for may save you money on your taxes---save those receipts! If you care for dependants 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 related to the new family caregiver amount.
6. Students – Were you a student during 2012? You may be able to claim tuition, textbook, and education amounts, as well as the interest you paid on your student loan.
7. Public transit amount – If you use public transit, you may be able to save by claiming the cost of your transit passes.
8. Seniors – If you receive a pension, you may be able to split up to 50% of eligible pension income with your spouse or common-law partner to reduce the taxes that you pay. You may also be eligible to claim the age amount, medical expenses, and the disability amount.
9. Homebuyers – You may be able to save up to $750 if you bought your first home in 2012.

For more information, visit our Web site at www.cra.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.