Ottawa, Ontario, December 13, 2013 -- Today, the Canada Revenue
Agency (CRA) released the summary findings of an internal investigation
into a cheque issued in 2007 by the CRA to Nicolo Rizzuto.
The CRA investigation found there is no evidence to support the
allegation that the cheque was issued due to fraud, collusion or
corruption by CRA employees. The conclusions of the investigation have
been independently validated by Ernst & Young LLP, who found that
the review was conducted in an impartial manner and with due diligence.
The CRA has revised procedures to ensure that files are clearly
flagged and reviewed thoroughly before refunds are issued. An action
plan is in place which includes additional process improvements to be
completed by March 31, 2014. The action plan will be reviewed in six
months to ensure the new controls are effective.
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.
Showing posts with label Tax News. Show all posts
Showing posts with label Tax News. Show all posts
Friday, December 13, 2013
Interest rates for the first calendar quarter
Ottawa, Ontario, December 13, 2013... The Canada Revenue Agency (CRA)
today announced the prescribed annual interest rates that will apply to
any amounts owed to the CRA and to any amounts the CRA owes to
individuals and corporations. These rates are calculated quarterly according to the laws that apply and will be in effect from January 1, 2014 to March 31, 2014. All interest rates have decreased by 1% since last quarter, except for the rate for pertinent loans or indebtedness.
Income tax
The interest rates on overdue and overpaid remittances will be as follows:
For information on the prescribed interest rates for other 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.
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%.
- The interest rate for corporate taxpayers’ pertinent loans or indebtedness will be 4.94%.
The interest rates on overdue and overpaid remittances will be as follows:
| Tax, duty, or other charges | Overdue remittances | Overpaid remittances – Corporate taxpayers | Overpaid remittances – Non- corporate taxpayers |
|---|---|---|---|
| Goods and services tax (GST) | 5% | 1% | 3% |
| Harmonized sales tax (HST) | 5% | 1% | 3% |
| Air travellers security charge | 5% | 1% | 3% |
| Excise tax (non-GST/HST) | 5% | 1% | 3% |
| Excise duty except brewer licensees (amounts due after June 30, 2003) | 5% | 1% | 3% |
| Excise duty except brewer licensees (amounts due before July 1, 2003) | 3% | N/A | N/A |
| Excise duty (brewer licensees) | 3% | N/A | N/A |
| Softwood lumber products export charge | 5% | 1% | 3% |
For information on the prescribed interest rates for other 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.
Tuesday, December 10, 2013
Harper Government encourages Canadians to take advantage of the first-time donor’s super credit this holiday season
Ottawa, Ontario, December 10, 2013 - The Honourable Kerry-Lynne D.
Findlay, P.C., Q.C., M.P., Minister of National Revenue, today met with
representatives from the United Way Ottawa to encourage Canadians to
take advantage of the first-time donor's super credit and to make a
difference in their communities during the holiday season by giving to a
registered Canadian charity.
“Canadians are well known for supporting those in need and the holiday season offers the perfect opportunity to donate to a favourite charity or cause”, said Minister Findlay. “The first-time donor's super credit is designed to support families and communities, including Canada's charitable sector. We want to continue to foster and promote Canada's culture of giving and to encourage everyone to donate generously to charities that do so much good work in our communities.”
Individuals qualify as first-time donors if neither they nor their spouse or common-law partner has claimed the charitable donation tax credit since 2007. Monetary donations made by first-time donors after March 20, 2013, qualify for the first-time donor's super credit. The credit can be claimed starting in 2013 and will continue through to 2017. Canadians must donate by December 31st to qualify for a tax credit for the 2013 tax year.
“On behalf of United Way and the more than 100 other charities that we work with, I want to acknowledge the government for its role in encouraging a culture of philanthropy across our country”, said Michael Allen, President and Chief Executive Officer. "In many ways the charitable sector and government need to work together to find creative ways to enable donors to think both with their head and heart about their charitable giving. The holiday season is a great time for first-time donors to consider leveraging this new tax credit while building a better tomorrow for all Canadians."
In 2012, federal tax assistance for charitable donations was more than $2.9 billion. The first-time donor's super credit was introduced in the Economic Action Plan 2013 to encourage new donors to give generously to charities. It provides an extra 25% credit in addition to federal and provincial charitable donation tax credits. This means that donors can get a 40% federal credit for monetary donations of $200 or less, and a 54% federal credit for the part of donations over $200 and up to $1,000.
For more information on the first-time donor's super credit, go to www.cra.gc.ca/fdsc.
For more information on donating wisely, go to www.cra.gc.ca/donors.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
“Canadians are well known for supporting those in need and the holiday season offers the perfect opportunity to donate to a favourite charity or cause”, said Minister Findlay. “The first-time donor's super credit is designed to support families and communities, including Canada's charitable sector. We want to continue to foster and promote Canada's culture of giving and to encourage everyone to donate generously to charities that do so much good work in our communities.”
Individuals qualify as first-time donors if neither they nor their spouse or common-law partner has claimed the charitable donation tax credit since 2007. Monetary donations made by first-time donors after March 20, 2013, qualify for the first-time donor's super credit. The credit can be claimed starting in 2013 and will continue through to 2017. Canadians must donate by December 31st to qualify for a tax credit for the 2013 tax year.
“On behalf of United Way and the more than 100 other charities that we work with, I want to acknowledge the government for its role in encouraging a culture of philanthropy across our country”, said Michael Allen, President and Chief Executive Officer. "In many ways the charitable sector and government need to work together to find creative ways to enable donors to think both with their head and heart about their charitable giving. The holiday season is a great time for first-time donors to consider leveraging this new tax credit while building a better tomorrow for all Canadians."
In 2012, federal tax assistance for charitable donations was more than $2.9 billion. The first-time donor's super credit was introduced in the Economic Action Plan 2013 to encourage new donors to give generously to charities. It provides an extra 25% credit in addition to federal and provincial charitable donation tax credits. This means that donors can get a 40% federal credit for monetary donations of $200 or less, and a 54% federal credit for the part of donations over $200 and up to $1,000.
For more information on the first-time donor's super credit, go to www.cra.gc.ca/fdsc.
For more information on donating wisely, go to www.cra.gc.ca/donors.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
Tuesday, December 3, 2013
Minister Kerry-Lynne Findlay marks International Day of Persons with Disabilities
Ottawa, Ontario, December 3, 2013... The Honourable
Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue
and Member of Parliament for Delta-Richmond East, marked the
International Day of Persons with Disabilities today by reminding
Canadians that the Harper Government has introduced a number of tax
measures and programs to support persons with disabilities, as well as
opportunities to save money for the future.
“Our Government is committed to ensuring that persons with disabilities have access to all the information and help they need to receive the tax credits they are entitled to,” said Minister Findlay. “Persons with disabilities and their supporting family members can sometimes shoulder a significant financial burden, and programs such as the disability tax credit help to alleviate that burden.”
The disability tax credit (DTC) helps to reduce the amount of income tax paid by a person with a severe and prolonged impairment in physical or mental functions. This credit can also be transferred to reduce the income tax payable of a supporting family member or spouse of a person with a disability.
“We appreciate the important role that persons with disabilities play in shaping and growing our country. We will continue to strengthen our Economic Action Plan to ensure that persons with disabilities and all Canadians can contribute meaningfully to Canada’s future,” added Minister Findlay.
Once a person with a disability has applied for and is deemed eligible for the DTC, the following credits and programs may be available to them:
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.
“Our Government is committed to ensuring that persons with disabilities have access to all the information and help they need to receive the tax credits they are entitled to,” said Minister Findlay. “Persons with disabilities and their supporting family members can sometimes shoulder a significant financial burden, and programs such as the disability tax credit help to alleviate that burden.”
The disability tax credit (DTC) helps to reduce the amount of income tax paid by a person with a severe and prolonged impairment in physical or mental functions. This credit can also be transferred to reduce the income tax payable of a supporting family member or spouse of a person with a disability.
“We appreciate the important role that persons with disabilities play in shaping and growing our country. We will continue to strengthen our Economic Action Plan to ensure that persons with disabilities and all Canadians can contribute meaningfully to Canada’s future,” added Minister Findlay.
Once a person with a disability has applied for and is deemed eligible for the DTC, the following credits and programs may be available to them:
- Registered disability savings plan (RDSP) – An RDSP is a savings plan to help save for the long-term financial security of a person with a disability. Grants and bonds provided by the Government of Canada can help them and their families save for the future.
- Children’s arts tax credit and children’s fitness tax credit – For each credit, families caring for a child who is eligible for the DTC and is under 18 years of age at the start of the year, can claim up to $1,000 per year, as long as a minimum of $100 was paid for registration or membership fees in eligible programs.
- Caregiver amount – The caregiver amount may be claimed by a person who maintains and lives in a dwelling together with one or more dependants. Each dependant (other than a parent or grandparent) must have been 18 years of age or older and dependent on the supporting person due to an impairment in physical or mental functions.
- Amount for infirm dependants age 18 or older – This amount may be claimed for dependants who are 18 years of age or older and dependent on a supporting person due to an impairment in physical or mental functions. The dependant does not have to live with the supporting person. The amount for infirm dependants age 18 or older and the caregiver amount cannot both be claimed for the same dependant.
- Family caregiver amount (FCA) – The FCA may be
claimed for a dependant with an impairment in physical or mental
functions, and provides an additional amount of $2,000 in calculating
each of the following tax credits:
- spouse or common-law partner amount;
- amount for an eligible dependant;
- amount for children under age 18 at the end of the year; and
- caregiver amount.
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, November 29, 2013
Taxpayer relief deadline is December 31, 2013 for requests related to 2003
Ottawa, Ontario, November 29, 2013...The Canada Revenue Agency (CRA)
reminds taxpayers and registrants (for both GST/HST and non-GST/HST
purposes) that they have until December 31, 2013, to make a taxpayer
relief request related to 2003.
The deadline applies to taxpayer relief requests for:
The various laws that the CRA administers allow for the cancellation or waiver of penalties and interest when taxpayers and registrants are unable to meet their tax obligations due to circumstances beyond their control. The CRA may also accept certain late-filed, amended, or revoked income tax elections, and issue income tax refunds or reduce income tax payable beyond the normal three-year period.
The 10-year limitation period for taxpayer relief
Taxpayer relief provisions are limited to a 10-year period. This means that the CRA may grant relief related to any tax year or reporting period that ended within 10 calendar years of the year the taxpayer relief request is made.
The CRA may also cancel or waive interest and certain penalties that accrued within 10 calendar years of the year the taxpayer relief request is made, regardless of the tax year or reporting period in which the debt originated.
If you are a taxpayer or registrant involved in a tax process
Some taxpayers and registrants may be involved in a tax process with the CRA, such as an audit, objection, or appeal, for the 2003 tax year, or a reporting period that ended in 2003. If you are involved in a tax process and are not sure if you need to make a taxpayer relief request, you should make a request before the noted deadline of December 31, 2013.
Taxpayers and registrants or their authorized representatives can make a taxpayer relief request by completing Form RC4288, Request for Taxpayer Relief.
For more information about the taxpayer relief provisions, go to www.cra.gc.ca/taxpayerrelief.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
The deadline applies to taxpayer relief requests for:
- the 2003 tax year;
- any reporting period that ended during the 2003 calendar year; or
- any interest and certain penalties that accrued during the 2003 calendar year, for any tax year or reporting period.
The various laws that the CRA administers allow for the cancellation or waiver of penalties and interest when taxpayers and registrants are unable to meet their tax obligations due to circumstances beyond their control. The CRA may also accept certain late-filed, amended, or revoked income tax elections, and issue income tax refunds or reduce income tax payable beyond the normal three-year period.
The 10-year limitation period for taxpayer relief
Taxpayer relief provisions are limited to a 10-year period. This means that the CRA may grant relief related to any tax year or reporting period that ended within 10 calendar years of the year the taxpayer relief request is made.
The CRA may also cancel or waive interest and certain penalties that accrued within 10 calendar years of the year the taxpayer relief request is made, regardless of the tax year or reporting period in which the debt originated.
If you are a taxpayer or registrant involved in a tax process
Some taxpayers and registrants may be involved in a tax process with the CRA, such as an audit, objection, or appeal, for the 2003 tax year, or a reporting period that ended in 2003. If you are involved in a tax process and are not sure if you need to make a taxpayer relief request, you should make a request before the noted deadline of December 31, 2013.
Taxpayers and registrants or their authorized representatives can make a taxpayer relief request by completing Form RC4288, Request for Taxpayer Relief.
For more information about the taxpayer relief provisions, go to www.cra.gc.ca/taxpayerrelief.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
Tuesday, November 26, 2013
Statement by the Honourable Kerry-Lynne D. Findlay on the release of the Auditor General's Report
Today, I am pleased that the Auditor General's audit has confirmed
that the Canada Revenue Agency (CRA) appropriately managed the
information it received in 2007 on potentially undeclared income in
offshore accounts in Liechtenstein.
The audit also recognizes that the CRA, through its management approach, gained valuable intelligence about the workings of these types of complicated offshore banking schemes to enhance its detection and audit procedures for cases of international tax evasion and aggressive tax avoidance.
The Liechtenstein list was the first such list received by the CRA, and limited information was available on the use of offshore accounts. I am pleased to report that, through dedicated efforts, the CRA has completed all 46 audits based on information from the list, and has to date assessed over $24 million in taxes owed.
The CRA accepts all recommendations made by the Auditor General to further strengthen its capacity to address non-compliance by taxpayers who have offshore holdings. Action plans to address the recommendations are currently underway.
Budget 2013 also announced new tools and legislative measures that will complement this effort, including:
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 audit also recognizes that the CRA, through its management approach, gained valuable intelligence about the workings of these types of complicated offshore banking schemes to enhance its detection and audit procedures for cases of international tax evasion and aggressive tax avoidance.
The Liechtenstein list was the first such list received by the CRA, and limited information was available on the use of offshore accounts. I am pleased to report that, through dedicated efforts, the CRA has completed all 46 audits based on information from the list, and has to date assessed over $24 million in taxes owed.
The CRA accepts all recommendations made by the Auditor General to further strengthen its capacity to address non-compliance by taxpayers who have offshore holdings. Action plans to address the recommendations are currently underway.
Budget 2013 also announced new tools and legislative measures that will complement this effort, including:
- the new Stop International Tax Evasion Program;
- the mandatory reporting of international electronic funds transfers over $10,000 to the CRA;
- enhanced reporting requirements for Canadian taxpayers with foreign income or assets - Foreign Income Verification Statement (Form T1135);
- streamlining the judicial process in which the CRA seeks authorization to obtain information on unnamed persons from third parties such as banks; and
- extending the normal reassessment period by three years for taxpayers who have failed to report income from a specified foreign property on their annual income tax return and failed to properly file the Foreign Income Verification Statement (Form T1135).
Canada 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, November 13, 2013
Minister Kerry-Lynne Findlay highlights red tape reduction measures to help small businesses thrive
Delta, British Columbia, November 13, 2013 The Honourable Kerry-Lynne
D. Findlay, P.C., Q.C., M.P., Minister of National Revenue and Member
of Parliament for Delta-Richmond East, today met with local business
community leaders at a roundtable event in Delta, B.C., to highlight
measures introduced by the Harper Government to reduce red tape for
small business.
“Our government is keenly aware that small businesses are fundamental to great economies, job creation, community confidence, and supporting local economic activities,” said Minister Findlay. “We have consulted with small business owners who have provided valuable insight into what would make running their businesses easier and what improvements to our services they wanted to see. Their feedback has allowed us to implement significant and focussed red tape reduction measures. There are now fewer regulations and the cost of red tape has been reduced by nearly $20 million annually.”
The CRA’s Red Tape Reduction Action Plan lays out 12 commitments by the CRA to address the irritants businesses identified during the Red Tape Reduction Commission’s consultations in 2010, and further refined by the CRA’s own consultations in 2012.
Some highlights for 2013 are:
For opportunities to participate in further consultations, please go to the CRA’s Red Tape Reduction webpage regularly, and stay connected by subscribing to our mailing lists and joining the conversation on Twitter. The CRA’s next consultation period will be in 2014.
Minister Findlay also discussed the Harper Government’s recent announcement of an agreement-in-principle between Canada and the European Union (EU) on a comprehensive economic and trade agreement, seizing a historic opportunity to gain preferential access to the largest market in the world—a market with over 500 million consumers and a gross domestic product of $17 trillion.
The Minister noted that the Canada–EU trade agreement will generate prosperity and growth for all Canadian businesses, including small and medium-sized businesses, in every region of the country. It will help them to succeed abroad by making it easier and less costly for them to do business in the EU. The Canada–EU trade agreement will also help level the playing field in the EU, making Canadian small and medium-sized businesses more competitive, giving them a significant advantage over most third-party competitors.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
“Our government is keenly aware that small businesses are fundamental to great economies, job creation, community confidence, and supporting local economic activities,” said Minister Findlay. “We have consulted with small business owners who have provided valuable insight into what would make running their businesses easier and what improvements to our services they wanted to see. Their feedback has allowed us to implement significant and focussed red tape reduction measures. There are now fewer regulations and the cost of red tape has been reduced by nearly $20 million annually.”
The CRA’s Red Tape Reduction Action Plan lays out 12 commitments by the CRA to address the irritants businesses identified during the Red Tape Reduction Commission’s consultations in 2010, and further refined by the CRA’s own consultations in 2012.
Some highlights for 2013 are:
- A new CRA Red Tape Reduction Action plan webpage that gives businesses up-to-date information on the CRA’s progress.
- A new online mail service for Canadian small businesses. Businesses can now communicate with the CRA online, which will help streamline their interactions with the CRA.
- The My Business Account online enquiries service. Businesses or their representatives can ask the CRA tax-related questions about their accounts online and they will receive answers online and in writing.
- A one-stop-shop webpage for business services. Businesses can now easily find information and service options relevant to their tax situation.
- Agent ID for the CRA’s business enquiries telephone service. Now, when a business owner calls the CRA, the agent who answers provides an ID at the beginning of the call. The Agent ID number provides increased accountability for business calls to the CRA, ensures a consistent experience for callers, and makes it easier for business owners to give feedback on CRA services.
For opportunities to participate in further consultations, please go to the CRA’s Red Tape Reduction webpage regularly, and stay connected by subscribing to our mailing lists and joining the conversation on Twitter. The CRA’s next consultation period will be in 2014.
Minister Findlay also discussed the Harper Government’s recent announcement of an agreement-in-principle between Canada and the European Union (EU) on a comprehensive economic and trade agreement, seizing a historic opportunity to gain preferential access to the largest market in the world—a market with over 500 million consumers and a gross domestic product of $17 trillion.
The Minister noted that the Canada–EU trade agreement will generate prosperity and growth for all Canadian businesses, including small and medium-sized businesses, in every region of the country. It will help them to succeed abroad by making it easier and less costly for them to do business in the EU. The Canada–EU trade agreement will also help level the playing field in the EU, making Canadian small and medium-sized businesses more competitive, giving them a significant advantage over most third-party competitors.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
Tuesday, November 12, 2013
The Harper Government continues to help small businesses with red tape reduction measures
Vancouver, British Columbia, November 12, 2013 The Honourable
Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue
and Member of Parliament for Delta-Richmond East, today met with
business community leaders at a roundtable event in Vancouver to
highlight the Canada Revenue Agency’s (CRA) many red tape reduction
initiatives undertaken as part of its Red Tape Reduction Action Plan.
“Our government remains focused on the actions that have carried us through tough economic times: protecting jobs and the economy and keeping taxes low,” said Minister Findlay. “Talking to small businesses allows us to highlight significant changes we have made to reduce red tape and we are working hard to improve the CRA’s services, so that small and medium-sized businesses can more easily fulfill their tax obligations while saving time and money.”
The CRA’s Red Tape Reduction Action Plan lays out 12 commitments by the CRA to address the irritants businesses identified during the Red Tape Reduction Commission’s consultations in 2010, and further refined by the CRA’s own consultations in 2012.
Some highlights for 2013 are:
For opportunities to participate in further consultations, please go to the CRA’s Red Tape Reduction webpage regularly, and stay connected by subscribing to our mailing lists and joining the conversation on Twitter. The CRA’s next consultation period will be in 2014.
Additionally, the Harper Government continues to help create jobs across all sectors of the economy, finalizing an agreement-in-principle between Canada and the European Union (EU) on a comprehensive economic and trade agreement, seizing a historic opportunity to gain preferential access to the largest market in the world—a market with over 500 million consumers and a gross domestic product of $17 trillion.
Minister Findlay noted that the Canada–EU trade agreement will generate prosperity and growth for all Canadian businesses, including small and medium-sized businesses, in every region of the country. It will help them to succeed abroad by making it easier and less costly for them to do business in the EU. The Canada–EU trade agreement will also help level the playing field in the EU, making Canadian small and medium-sized businesses more competitive, giving them a significant advantage over most third-party competitors.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
“Our government remains focused on the actions that have carried us through tough economic times: protecting jobs and the economy and keeping taxes low,” said Minister Findlay. “Talking to small businesses allows us to highlight significant changes we have made to reduce red tape and we are working hard to improve the CRA’s services, so that small and medium-sized businesses can more easily fulfill their tax obligations while saving time and money.”
The CRA’s Red Tape Reduction Action Plan lays out 12 commitments by the CRA to address the irritants businesses identified during the Red Tape Reduction Commission’s consultations in 2010, and further refined by the CRA’s own consultations in 2012.
Some highlights for 2013 are:
- A new CRA Red Tape Reduction Action plan webpage that gives businesses up-to-date information on the CRA’s progress.
- A new online mail service for Canadian small businesses. Businesses can now communicate with the CRA online, which will help streamline their interactions with the CRA.
- The My Business Account online enquiries service. Businesses or their representatives can ask the CRA tax-related questions about their accounts online and they will receive answers online and in writing.
- A one-stop-shop webpage for business services. Businesses can now easily find information and service options relevant to their tax situation.
- Agent ID for the CRA’s business enquiries telephone service. Now, when a business owner calls the CRA, the agent who answers provides an ID at the beginning of the call. The Agent ID number provides increased accountability for business calls to the CRA, ensures a consistent experience for callers, and makes it easier for business owners to give feedback on CRA services.
For opportunities to participate in further consultations, please go to the CRA’s Red Tape Reduction webpage regularly, and stay connected by subscribing to our mailing lists and joining the conversation on Twitter. The CRA’s next consultation period will be in 2014.
Additionally, the Harper Government continues to help create jobs across all sectors of the economy, finalizing an agreement-in-principle between Canada and the European Union (EU) on a comprehensive economic and trade agreement, seizing a historic opportunity to gain preferential access to the largest market in the world—a market with over 500 million consumers and a gross domestic product of $17 trillion.
Minister Findlay noted that the Canada–EU trade agreement will generate prosperity and growth for all Canadian businesses, including small and medium-sized businesses, in every region of the country. It will help them to succeed abroad by making it easier and less costly for them to do business in the EU. The Canada–EU trade agreement will also help level the playing field in the EU, making Canadian small and medium-sized businesses more competitive, giving them a significant advantage over most third-party competitors.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
Friday, November 1, 2013
Canada Revenue Agency announces maximum pensionable earnings for 2014
Ottawa, Ontario, November 1, 2013... The Canada Revenue Agency
announced today that the maximum pensionable earnings under the Canada
Pension Plan (CPP) for 2014 will be $52,500—up from $51,100 in 2013. The
new ceiling was calculated according to a CPP legislated formula that
takes into account the growth in average weekly wages and salaries in
Canada.
Contributors who earn more than $52,500 in 2014 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2014 remains $3,500.
The employee and employer contribution rates for 2014 will remain unchanged at 4.95%, and the self‑employed contribution rate will remain unchanged at 9.9%.
The maximum employer and employee contributions to the plan for 2014 will be $2,425.50 each, and the maximum self-employed contribution will be $4,851.00. The maximums in 2013 were $2,356.20 and $4,712.40.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
Contributors who earn more than $52,500 in 2014 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2014 remains $3,500.
The employee and employer contribution rates for 2014 will remain unchanged at 4.95%, and the self‑employed contribution rate will remain unchanged at 9.9%.
The maximum employer and employee contributions to the plan for 2014 will be $2,425.50 each, and the maximum self-employed contribution will be $4,851.00. The maximums in 2013 were $2,356.20 and $4,712.40.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
Friday, October 25, 2013
Harper Government red tape reduction measures help small businesses seize the moment
Toronto, Ontario, October 25, 2013 The Honourable
Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue,
today met with business community leaders at a roundtable event in
Toronto to highlight many of the initiatives that the Canada Revenue
Agency (CRA) has implemented as a result of its Red Tape Reduction
Action Plan and consultations with small businesses.
“Our Government recognizes the vital role small businesses play in creating jobs and supporting the economy, especially during this week as this is Small Business Week,” said Minister Findlay. “Small businesses provided input with suggested improvements to our services and what they shared helped us as we implemented significant red-tape reduction measures. There are now fewer regulations and the cost of red tape has been reduced by nearly 20 million dollars annually.”
The CRA’s Red Tape Reduction Action Plan webpage, launched today by Minister Findlay, lays out the 12 commitments that the CRA has made, based on the irritants businesses identified during the Red Tape Reduction Commission’s consultations in 2010, and further refined by the CRA’s own consultations in 2012.
“We have already made many improvements to services so that business owners can more easily meet their tax obligations, saving them time and money, and creating jobs in local communities,” said Minister Findlay. “As we continue to implement action plan commitments, and promote and support Canadian businesses large and small through the historic Canada-EU Trade Agreement, we want to make sure that small businesses are informed. Our government is listening and taking action, building on a tradition of service, integrity, and professionalism.”
Some highlights for 2013 are:
For opportunities to participate in further consultations, please visit the CRA’s Red Tape Reduction webpage regularly, and stay connected by subscribing to our mailing lists and joining the conversation on Twitter. The CRA’s next consultation period will be in 2014.
Meanwhile, the Harper Government continues to help create jobs across all sectors of the economy, finalizing an agreement in principle between Canada and the European Union (EU) on a Comprehensive Economic and Trade Agreement, seizing an historic opportunity to gain preferential access to the largest market in the world—a market with over 500 million consumers and a Gross Domestic Product of $17 trillion.
Minister Findlay noted that the Canada-EU Trade Agreement will generate prosperity and growth for all Canadian businesses, including small and medium sized businesses, in every region of the country. It will help them to succeed abroad by making it easier and less costly for them to do business in the EU. The Canada-EU Trade Agreement will also help level the playing field in the EU, making Canadian small and medium-sized businesses more competitive, giving them a significant advantage over most third-party competitors.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
“Our Government recognizes the vital role small businesses play in creating jobs and supporting the economy, especially during this week as this is Small Business Week,” said Minister Findlay. “Small businesses provided input with suggested improvements to our services and what they shared helped us as we implemented significant red-tape reduction measures. There are now fewer regulations and the cost of red tape has been reduced by nearly 20 million dollars annually.”
The CRA’s Red Tape Reduction Action Plan webpage, launched today by Minister Findlay, lays out the 12 commitments that the CRA has made, based on the irritants businesses identified during the Red Tape Reduction Commission’s consultations in 2010, and further refined by the CRA’s own consultations in 2012.
“We have already made many improvements to services so that business owners can more easily meet their tax obligations, saving them time and money, and creating jobs in local communities,” said Minister Findlay. “As we continue to implement action plan commitments, and promote and support Canadian businesses large and small through the historic Canada-EU Trade Agreement, we want to make sure that small businesses are informed. Our government is listening and taking action, building on a tradition of service, integrity, and professionalism.”
Some highlights for 2013 are:
- A new CRA Red Tape Reduction Action plan webpage that gives businesses up-to-date information on the CRA’s progress.
- A new online mail service for Canadian small businesses. Businesses can now communicate with the CRA online which will help streamline their interactions with the CRA.
- The My Business Account online enquiries service. Businesses or their representatives can ask the CRA tax-related questions about their accounts online and they will receive answers online and in writing.
- A one-stop-shop webpage for business services. Businesses can now easily find information and service options relevant to their tax situation.
- Agent ID for the CRA’s business enquiries telephone service. Now, when a business owner calls the CRA, the agent who answers provides an ID at the beginning of the call. The Agent ID number provides increased accountability for business calls to the CRA, ensures a consistent experience for callers, and makes it easier for business owners to give feedback on CRA services.
For opportunities to participate in further consultations, please visit the CRA’s Red Tape Reduction webpage regularly, and stay connected by subscribing to our mailing lists and joining the conversation on Twitter. The CRA’s next consultation period will be in 2014.
Meanwhile, the Harper Government continues to help create jobs across all sectors of the economy, finalizing an agreement in principle between Canada and the European Union (EU) on a Comprehensive Economic and Trade Agreement, seizing an historic opportunity to gain preferential access to the largest market in the world—a market with over 500 million consumers and a Gross Domestic Product of $17 trillion.
Minister Findlay noted that the Canada-EU Trade Agreement will generate prosperity and growth for all Canadian businesses, including small and medium sized businesses, in every region of the country. It will help them to succeed abroad by making it easier and less costly for them to do business in the EU. The Canada-EU Trade Agreement will also help level the playing field in the EU, making Canadian small and medium-sized businesses more competitive, giving them a significant advantage over most third-party competitors.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
Thursday, October 3, 2013
Appointment of a new chair to the Canada Revenue Agency Board of Management
Ottawa, Ontario, October 3, 2013 The
Honourable Kerry-Lynne D. Findlay, Minister of National Revenue, P.C.,
Q.C., M.P, is pleased to announce the appointment of Richard Thorpe as
chair of the Canada Revenue Agency (CRA) Board of Management for a
four-year term.
Mr. Thorpe is a former member of the British Columbia Legislative Assembly with a portfolio that included various business and tax issues. He has served on the CRA Board of Management since December 2011.
“His extensive experience in the public and private sectors as well as his recent experience as a member of the CRA’s Board will not only provide continuity and strength to the management of the CRA, but will also benefit the CRA’s overall strategic direction,” said Minister Findlay.
The Board of Management consists of 15 members appointed by the Governor in Council. Board members bring an external and diverse business perspective in overseeing the organization and management of the CRA. The Board’s responsibilities include the development of the Corporate Business Plan and the management of policies related to resources, services, property, personnel, and contracts.
The CRA administers tax laws for the Government of Canada and most provinces and territories and various social and economic benefit and incentive programs delivered through the tax system. The CRA plays a key role in achieving government objectives and delivering results for Canadians.
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.
Mr. Thorpe is a former member of the British Columbia Legislative Assembly with a portfolio that included various business and tax issues. He has served on the CRA Board of Management since December 2011.
“His extensive experience in the public and private sectors as well as his recent experience as a member of the CRA’s Board will not only provide continuity and strength to the management of the CRA, but will also benefit the CRA’s overall strategic direction,” said Minister Findlay.
The Board of Management consists of 15 members appointed by the Governor in Council. Board members bring an external and diverse business perspective in overseeing the organization and management of the CRA. The Board’s responsibilities include the development of the Corporate Business Plan and the management of policies related to resources, services, property, personnel, and contracts.
The CRA administers tax laws for the Government of Canada and most provinces and territories and various social and economic benefit and incentive programs delivered through the tax system. The CRA plays a key role in achieving government objectives and delivering results for Canadians.
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, October 1, 2013
The Harper Government highlights support for seniors and pensioners on National Seniors Day
Ottawa, Ontario, October 1, 2013... The Honourable
Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue,
and Royal Galipeau, Member of Parliament for Ottawa-Orleans,
participated in an event to celebrate National Seniors Day and to
promote the many tax relief measures and benefits available to seniors
in Canada. Seniors are now receiving approximately $2.7 billion in
additional tax relief as a result of these benefits.
“Our Government is proud to pay tribute to the seniors who have helped build our country and continue to make valuable contributions to Canadian communities, workplaces, and society. We also want to ensure seniors are aware of the credits and benefits they are entitled to,” said Minister Findlay. “I am happy to see that the number of Canadian seniors claiming credits and benefits designed specifically for them is increasing year after year.”
Tax savings and services for seniors include:
The Government of Canada officially established National Seniors Day in 2010 to provide an occasion for all Canadians to celebrate and appreciate seniors. It coincides with the United Nations International Day of Older Persons.
“Canadian seniors have made, and continue to make, significant contributions to our country. They have played a primary role in shaping the way of life we all enjoy today,” said M.P.Galipeau. “On behalf of all Canadians, our Government is proud to show its appreciation by introducing measures that improve seniors’ quality of life. It is very important that we communicate with Canadian seniors about the credits and benefits available to them at tax time.”
For more information on the age amount, pension income splitting, and other credits and benefits available to seniors, go to www.cra.gc.ca/seniors.
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.
“Our Government is proud to pay tribute to the seniors who have helped build our country and continue to make valuable contributions to Canadian communities, workplaces, and society. We also want to ensure seniors are aware of the credits and benefits they are entitled to,” said Minister Findlay. “I am happy to see that the number of Canadian seniors claiming credits and benefits designed specifically for them is increasing year after year.”
Tax savings and services for seniors include:
- Canadians aged 65 or older can claim the age amount, a non-refundable tax credit to help seniors. The age amount has increased by $1,654 since 2006, and was claimed by almost 5 million seniors in 2012.
- In 2012, more than 4.5 million people claimed the non-refundable pension income amount. The maximum amount of pension income that may be claimed in calculating the 15% non-refundable credit doubled in 2006 from $1,000 to $2,000.
- Pension income splitting was introduced by the Harper Government in 2007 and provides a means for seniors to save money. It gives eligible Canadians the opportunity to split up to 50% of their eligible pension income with their spouse or common-law partner, reducing their overall family tax burden. More than 1 million couples took advantage of pension income splitting in 2012.
- Seniors with low-to-modest incomes can also claim the Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit to help reduce the cost of making GST and HST payments.
- Seniors who use public transit might be able to claim the Public Transit Amount on their income tax and benefit return to increase their savings at tax time.
- Seniors can claim medical expenses, such as hearing aids, pacemakers, hospital services, and nursing home costs, on their income tax and benefit return to get tax relief.
- Introduced in 2009, the Tax-Free Savings Account (TFSA) provides seniors with a tax-efficient savings vehicle to help meet ongoing savings needs. The Harper Government has also increased the age limit for contributing to a Registered Retirement Savings Plans (RRSPs) from 69 to 71.
- Seniors may also be eligible to take advantage of the Community Volunteer Income Tax Program (CVITP), a collaboration between community organizations and the Canada Revenue Agency. The CVITP helps prepare tax returns for individuals who have low income and a simple tax situation. Individuals who file a return may be entitled to certain credits and benefits. Volunteer tax preparation clinics are generally offered from February to April across Canada.
The Government of Canada officially established National Seniors Day in 2010 to provide an occasion for all Canadians to celebrate and appreciate seniors. It coincides with the United Nations International Day of Older Persons.
“Canadian seniors have made, and continue to make, significant contributions to our country. They have played a primary role in shaping the way of life we all enjoy today,” said M.P.Galipeau. “On behalf of all Canadians, our Government is proud to show its appreciation by introducing measures that improve seniors’ quality of life. It is very important that we communicate with Canadian seniors about the credits and benefits available to them at tax time.”
For more information on the age amount, pension income splitting, and other credits and benefits available to seniors, go to www.cra.gc.ca/seniors.
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, September 23, 2013
Interest rates for the fourth calendar quarter
Ottawa, Ontario, September 23, 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 October 1, 2013 to December 31, 2013. All interest rates have increased by 1% since last quarter, except for the rate for corporate taxpayers pertaining to interest on loans and indebtedness.
Income tax
The interest rates on overdue and overpaid remittances are as follows:
For information on the prescribed interest rates of other calendar quarters, visit www.cra.gc.ca/interestrates.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
Income tax
- The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums will be 6%.
- The interest rate to be paid on corporate taxpayers overpayments will be 2%.
- The interest rate to be paid on non-corporate taxpayers overpayments will be 4%.
- The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 2%.
- The interest rate used to calculate corporate taxpayers loans or indebtedness will be 5.02%.
The interest rates on overdue and overpaid remittances are as follows:
| Tax, duty, or other charges | Overdue remittances | Overpaid remittances – Corporate taxpayers | Overpaid remittances – Non corporate taxpayers |
|---|---|---|---|
| Goods and Services Tax (GST) | 6% | 2% | 4% |
| Harmonized Sales Tax (HST) | 6% | 2% | 4% |
| Air Travellers Security Charge | 6% | 2% | 4% |
| Excise Tax (non GST/HST) | 6% | 2% | 4% |
|
Excise Duty except Brewer Licensees (amounts payable after June 30, 2003) |
6% | 2% | 4% |
|
Excise Duty except Brewer Licensees (amounts payable before July 1, 2003) |
4% | N/A | N/A |
| Excise Duty (Brewer Licensees) | 4% | N/A | N/A |
| Softwood Lumber Products Export Charge | 6% | 2% | 4% |
For information on the prescribed interest rates of other calendar quarters, visit www.cra.gc.ca/interestrates.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
Friday, September 20, 2013
The Canada Revenue Agency revokes the registration of the ISNA Development Foundation as a charity
Ottawa, Ontario, September 20, 2013. . . The Canada Revenue Agency
(CRA) will revoke the registration of the ISNA Development Foundation, a
Mississauga-based charity. The notice of revocation will be published
in the Canada Gazette with an effective date of September 21, 2013.
On August 20, 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 the ISNA Development Foundation as a charity. The letter stated, in part, that:
“On the basis of our audit, we have concluded that the Organization has: ceased to comply with the requirements of the Act for its continued registration; failed to comply with or contravened any of sections 230 to 231.5 of the Act; issued a receipt for a gift or donation otherwise than in accordance with the Act and its Regulations; and failed to file an information return as required under the Act.
Our analysis of the information obtained during the course of the audit has led the CRA to believe that the Organization had entered into a funding arrangement with the Kashmiri Canadian Council/Kashmiri Relief Fund of Canada (KCC/KRFC), non-qualified donees under the Act, with the ultimate goal of sending the raised funds to a Pakistan-based non-governmental organization named the Relief Organization for Kashmiri Muslims (ROKM) without maintaining direction and control. Under the arrangement, KCC/KRFC raised funds for “relief work” in Kashmir, and the Organization supplied official donation receipts to the donors and disbursed over $281,696 to ROKM, either directly, or via KCC/KRFC.
Our research indicates that ROKM is the charitable arm of Jamaat-e-Islami, a political organization that actively contests the legitimacy of India’s governance over the state of Jammu and Kashmir, including reportedly through the activities of its armed wing Hizbul Mujahideen. Hizbul Mujahideen is listed as a terrorist entity by the Council of the European Union and is declared a banned terrorist organization by the Government of India, Ministry of Home Affairs, under the Unlawful Activities (Prevention) Act of 1967.
Given the commonalities in directorship between ROKM and Jamaat-e-Islami, concerns exist that the Organization’s resources may have been used to support the political efforts of Jamaat-e-Islami and/or its armed wing, Hizbul Mujahideen.”
The Government of Canada has made it clear that it will not tolerate the abuse of the registration system for charities to provide any means of support to terrorism. Canada’s public policy recognizes that the tax advantages of charitable registration should not be extended to organizations whose resources may have been made available, knowingly or unknowingly, to a terrorist entity, whether such financing is direct or indirect through organizations that claim to have nominally “charitable,” social, or cultural aims.
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.
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.
On August 20, 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 the ISNA Development Foundation as a charity. The letter stated, in part, that:
“On the basis of our audit, we have concluded that the Organization has: ceased to comply with the requirements of the Act for its continued registration; failed to comply with or contravened any of sections 230 to 231.5 of the Act; issued a receipt for a gift or donation otherwise than in accordance with the Act and its Regulations; and failed to file an information return as required under the Act.
Our analysis of the information obtained during the course of the audit has led the CRA to believe that the Organization had entered into a funding arrangement with the Kashmiri Canadian Council/Kashmiri Relief Fund of Canada (KCC/KRFC), non-qualified donees under the Act, with the ultimate goal of sending the raised funds to a Pakistan-based non-governmental organization named the Relief Organization for Kashmiri Muslims (ROKM) without maintaining direction and control. Under the arrangement, KCC/KRFC raised funds for “relief work” in Kashmir, and the Organization supplied official donation receipts to the donors and disbursed over $281,696 to ROKM, either directly, or via KCC/KRFC.
Our research indicates that ROKM is the charitable arm of Jamaat-e-Islami, a political organization that actively contests the legitimacy of India’s governance over the state of Jammu and Kashmir, including reportedly through the activities of its armed wing Hizbul Mujahideen. Hizbul Mujahideen is listed as a terrorist entity by the Council of the European Union and is declared a banned terrorist organization by the Government of India, Ministry of Home Affairs, under the Unlawful Activities (Prevention) Act of 1967.
Given the commonalities in directorship between ROKM and Jamaat-e-Islami, concerns exist that the Organization’s resources may have been used to support the political efforts of Jamaat-e-Islami and/or its armed wing, Hizbul Mujahideen.”
The Government of Canada has made it clear that it will not tolerate the abuse of the registration system for charities to provide any means of support to terrorism. Canada’s public policy recognizes that the tax advantages of charitable registration should not be extended to organizations whose resources may have been made available, knowingly or unknowingly, to a terrorist entity, whether such financing is direct or indirect through organizations that claim to have nominally “charitable,” social, or cultural aims.
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.
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, September 11, 2013
Harper Government cracks down on businesses using electronic sales suppression software to hide sales
Edmonton, Alberta, September 11, 2013 The Honourable Kerry-Lynne D.
Findlay, Minister of National Revenue, P.C., Q.C., M.P., was joined by
the Honourable Laurie Hawn, Member of Parliament for Edmonton Centre,
and Garth Whyte of the Canadian Restaurant and Foodservices Association
(CRFA) today to announce new measures to combat the underground economy
and the use of electronic suppression of sales (ESS) software.
“Our Government is committed to cracking down those who attempt to cheat the system and ensuring a level playing field for honest businesses,” said Minister Findlay. “All Canadians must meet their tax obligations. Businesses that use ESS software to underreport their revenues and avoid paying taxes are on notice. We will continue to support Canadians who work hard, play by the rules, and pay their taxes.”
Taxpayers are required to maintain adequate books and records as well as all of their electronic data files. ESS software (commonly known as “zapper” software) selectively deletes or modifies sales transactions in point-of-sale systems (for example, electronic cash registers) and business accounting systems, leaving no record of the original transaction. The use of ESS software undermines the competitiveness of businesses that abide by the rules, as it offers an unfair advantage to those who fail to comply with Canada’s tax laws.
“When some businesses cheat, we all lose. These new measures are an important piece of our Government’s plan to help Canada continue on its path to economic growth,” added M.P. Hawn.
Economic Action Plan 2013 proposed new administrative monetary penalties and criminal offences under both the Excise Tax Act and Income Tax Act to specifically address software that can suppress sales records. These measures will strengthen existing penalties and offences for making false statements or omissions under each of the Excise Tax Act and the Income Tax Act, as well as existing sanctions under the Criminal Code.
Under the new proposals, businesses that use, possess, or acquire ESS software will face monetary penalties of $5,000 on a first infraction, and $50,000 on any subsequent infraction. Anyone who manufactures, develops, sells, possesses for sale, offers for sale or otherwise makes available ESS software will face monetary penalties of $10,000 on a first infraction, and $100,000 on any subsequent infraction.
Businesses or others found guilty of a criminal offence of using, possessing, acquiring, manufacturing, developing, selling, offering for sale, or otherwise making available ESS software will face:
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.
“Our Government is committed to cracking down those who attempt to cheat the system and ensuring a level playing field for honest businesses,” said Minister Findlay. “All Canadians must meet their tax obligations. Businesses that use ESS software to underreport their revenues and avoid paying taxes are on notice. We will continue to support Canadians who work hard, play by the rules, and pay their taxes.”
Taxpayers are required to maintain adequate books and records as well as all of their electronic data files. ESS software (commonly known as “zapper” software) selectively deletes or modifies sales transactions in point-of-sale systems (for example, electronic cash registers) and business accounting systems, leaving no record of the original transaction. The use of ESS software undermines the competitiveness of businesses that abide by the rules, as it offers an unfair advantage to those who fail to comply with Canada’s tax laws.
“When some businesses cheat, we all lose. These new measures are an important piece of our Government’s plan to help Canada continue on its path to economic growth,” added M.P. Hawn.
Economic Action Plan 2013 proposed new administrative monetary penalties and criminal offences under both the Excise Tax Act and Income Tax Act to specifically address software that can suppress sales records. These measures will strengthen existing penalties and offences for making false statements or omissions under each of the Excise Tax Act and the Income Tax Act, as well as existing sanctions under the Criminal Code.
Under the new proposals, businesses that use, possess, or acquire ESS software will face monetary penalties of $5,000 on a first infraction, and $50,000 on any subsequent infraction. Anyone who manufactures, develops, sells, possesses for sale, offers for sale or otherwise makes available ESS software will face monetary penalties of $10,000 on a first infraction, and $100,000 on any subsequent infraction.
Businesses or others found guilty of a criminal offence of using, possessing, acquiring, manufacturing, developing, selling, offering for sale, or otherwise making available ESS software will face:
- on summary conviction, a fine of not less than $10,000 and not more than $500,000, or imprisonment for a term of not more than two years, or both; or
- on conviction by indictment, a fine of not less than $50,000 and not more than $1 million or imprisonment for a term of not more than five years, or both.
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, September 10, 2013
Harper Government encourages Canadians to support their communities and take full advantage of tax benefits
Saskatoon, Saskatchewan, September 10, 2013....The Honourable
Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue,
accompanied by Kelly Block, Member of Parliament for
Saskatoon—Rosetown—Biggar, today encouraged Canadians to support their
local communities and take advantage of the Harper Government’s tax
relief measures, including the Volunteer Firefighters’ Tax Credit, and
the newly introduced First-time Donor’s Super Credit.
"Our Government wants to foster and promote Canada’s culture of giving and we hope that these tax relief measures will encourage Canadians, especially youth, to get involved in giving to great charities in Canada,” said Minister Findlay. “These tax credits show our Government’s commitment to supporting hard-working Canadians, helping them save money wherever they can.”
Volunteer firefighters play an essential role in their communities, ensuring the health and safety of their fellow citizens. In 2011, the Harper Government introduced the Volunteer Firefighters’ Tax Credit to recognize their dedication and service to Canadian communities.
The Volunteer Firefighters’ Tax Credit is a non-refundable tax credit available to certain volunteer firefighters who serve at least 200 hours per year at one or more fire departments beginning on January 1, 2011. Services that make up those 200 hours include responding to and being on call for firefighting and other emergencies, attending meetings at the fire department, and taking courses in preventing and putting out fires. When eligible firefighters claim the credit, they can reduce the amount of income tax they have to pay by as much as $450.
In response to the Tax Incentives for Charitable Giving in Canada, a report of the Standing Committee on Finance, the First-time Donor’s Super Credit was introduced as part of Economic Action Plan 2013 to encourage new donors to give to charity. This new credit makes donating to a charity more attractive for Canadians who are making donations for the first time.
“I am pleased that our Government has introduced these tax relief measures, which will support those who are volunteer firefighters and make giving to charities in our community more attractive to those who have been considering a donation,” said M.P. Block. “We will continue to find ways to support generous individuals who take the time and make the effort to support their communities.”
Donations made by first-time donors after March 20, 2013, now qualify for the First-time Donor’s Super Credit. Individuals qualify as first-time donors if neither they nor their spouse or common-law partner has claimed the charitable donation tax credit since 2007. The First-time Donor’s Super Credit provides an extra 25% credit in addition to the Charitable Donation Tax Credit. This means that donors can get a 40% federal credit for monetary donations of $200 or less, and a 54% federal credit for the portion of donations that are over $200, up to $1,000. This is in addition to the provincial credit.
The Volunteer Firefighters’ Tax Credit and the First-time Donor’s Super Credit are part of the Harper Government’s strong record of providing tax relief to Canadians. Thanks to these efforts the average family of four now receives more than $3,200 annually in extra tax savings. The federal tax burden for all Canadians is now the lowest it’s been in half a century.
For more information about the Volunteer Firefighters’ Tax Credit, go to www.cra.gc.ca/firefighter
More information about the First-time Donor’s Super Credit is available on the Canada Revenue Agency (CRA) Web site or the Government of Canada’s Economic Action Plan Web site.
Donate wisely by researching registered Canadian charities using the CRA’s Charities Listings before you donate. For more information about donating to charities, go to www.cra.gc.ca/donors.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
"Our Government wants to foster and promote Canada’s culture of giving and we hope that these tax relief measures will encourage Canadians, especially youth, to get involved in giving to great charities in Canada,” said Minister Findlay. “These tax credits show our Government’s commitment to supporting hard-working Canadians, helping them save money wherever they can.”
Volunteer firefighters play an essential role in their communities, ensuring the health and safety of their fellow citizens. In 2011, the Harper Government introduced the Volunteer Firefighters’ Tax Credit to recognize their dedication and service to Canadian communities.
The Volunteer Firefighters’ Tax Credit is a non-refundable tax credit available to certain volunteer firefighters who serve at least 200 hours per year at one or more fire departments beginning on January 1, 2011. Services that make up those 200 hours include responding to and being on call for firefighting and other emergencies, attending meetings at the fire department, and taking courses in preventing and putting out fires. When eligible firefighters claim the credit, they can reduce the amount of income tax they have to pay by as much as $450.
In response to the Tax Incentives for Charitable Giving in Canada, a report of the Standing Committee on Finance, the First-time Donor’s Super Credit was introduced as part of Economic Action Plan 2013 to encourage new donors to give to charity. This new credit makes donating to a charity more attractive for Canadians who are making donations for the first time.
“I am pleased that our Government has introduced these tax relief measures, which will support those who are volunteer firefighters and make giving to charities in our community more attractive to those who have been considering a donation,” said M.P. Block. “We will continue to find ways to support generous individuals who take the time and make the effort to support their communities.”
Donations made by first-time donors after March 20, 2013, now qualify for the First-time Donor’s Super Credit. Individuals qualify as first-time donors if neither they nor their spouse or common-law partner has claimed the charitable donation tax credit since 2007. The First-time Donor’s Super Credit provides an extra 25% credit in addition to the Charitable Donation Tax Credit. This means that donors can get a 40% federal credit for monetary donations of $200 or less, and a 54% federal credit for the portion of donations that are over $200, up to $1,000. This is in addition to the provincial credit.
The Volunteer Firefighters’ Tax Credit and the First-time Donor’s Super Credit are part of the Harper Government’s strong record of providing tax relief to Canadians. Thanks to these efforts the average family of four now receives more than $3,200 annually in extra tax savings. The federal tax burden for all Canadians is now the lowest it’s been in half a century.
For more information about the Volunteer Firefighters’ Tax Credit, go to www.cra.gc.ca/firefighter
More information about the First-time Donor’s Super Credit is available on the Canada Revenue Agency (CRA) Web site or the Government of Canada’s Economic Action Plan Web site.
Donate wisely by researching registered Canadian charities using the CRA’s Charities Listings before you donate. For more information about donating to charities, go to www.cra.gc.ca/donors.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
Monday, September 9, 2013
The Harper Government’s Low-Tax Plan is Benefitting Canadian Families
Winnipeg, Manitoba, September 9, 2013 The Honourable
Kerry‑Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue,
and M.P. Joyce Bateman (Winnipeg South Centre) today highlighted the
benefits of the family tax measures introduced by the Harper Government,
including the Children’s Arts and Fitness Tax Credits, the First-Time
Home Buyers’ Tax Credit, the Family Caregiver Tax Credit, and the
Tax-Free Savings Account.
“Our Government is committed to supporting Canadian families by keeping taxes low,” said Minister Findlay. “These tax relief measures continue to help Canadian families keep more of their hard-earned money.”
The Harper Government’s strong record of providing tax relief to Canadians is delivering real results. The average family of four now saves more than $3,200 annually in taxes, including an average of $1,000 from reducing the Goods and Services Tax (GST) rate by two percentage points.
These tax relief measures include:
To find out if your child’s program is eligible for the Children’s Fitness Tax Credit, go to www.cra.gc.ca/fitness. For the Children’s Arts Tax Credit, go to www.cra.gc.ca/artscredit.
To find out if you are eligible for the First-Time Home Buyers’ Tax Credit, go to www.cra.gc.ca/hbtc.
For more information on the Family Caregiver Tax Credit, go to www.cra.gc.ca/familycaregiver.
To find out how to open a Tax-Free Savings Account, go to www.cra.gc.ca/tfsa.
The Canada Revenue Agency encourages Canadians to sign up for direct deposit, since the Government of Canada will phase out cheques by April 2016. Sign up now at www.cra.gc.ca/directdeposit.
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.
“Our Government is committed to supporting Canadian families by keeping taxes low,” said Minister Findlay. “These tax relief measures continue to help Canadian families keep more of their hard-earned money.”
The Harper Government’s strong record of providing tax relief to Canadians is delivering real results. The average family of four now saves more than $3,200 annually in taxes, including an average of $1,000 from reducing the Goods and Services Tax (GST) rate by two percentage points.
These tax relief measures include:
- The Children's Fitness Tax Credit allows eligible Canadian families to 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 Children's Arts Tax Credit allows eligible Canadian families to 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 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 dependent relatives. This includes, for the first time, infirm spouses, common-law partners, and minor children. Canadians were able to claim this new, non-refundable tax credit for the first time when filing their 2012 taxes.
- 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 and other costs. Canadians can claim $5,000 for the purchase of a qualifying home.
- 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 more than 9 million Canadians having opened an account and roughly 2.5 million Canadians contributing the maximum in 2011. Canadians can contribute $5,500 to their TFSAs annually.
To find out if your child’s program is eligible for the Children’s Fitness Tax Credit, go to www.cra.gc.ca/fitness. For the Children’s Arts Tax Credit, go to www.cra.gc.ca/artscredit.
To find out if you are eligible for the First-Time Home Buyers’ Tax Credit, go to www.cra.gc.ca/hbtc.
For more information on the Family Caregiver Tax Credit, go to www.cra.gc.ca/familycaregiver.
To find out how to open a Tax-Free Savings Account, go to www.cra.gc.ca/tfsa.
The Canada Revenue Agency encourages Canadians to sign up for direct deposit, since the Government of Canada will phase out cheques by April 2016. Sign up now at www.cra.gc.ca/directdeposit.
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, September 6, 2013
Harper Government announces new measure to reduce red tape for small businesses
Whitehorse, Yukon, September 6, 2013… The Honourable Kerry-Lynne D.
Findlay, P.C., Q.C., M.P., Minister of National Revenue, and Ryan Leef,
Member of Parliament for Whitehorse, today announced a new online mail
service for Canadian small businesses that will help streamline their
interactions with the Canada Revenue Agency (CRA). The new mail service
uses the CRA’s secure online service, My Business Account, and is just
one of many CRA initiatives to reduce red tape for Canada’s job
creators.
“Our Government continues to cut red tape for businesses so they can focus on what they do best: creating jobs and generating wealth in communities across Canada,” said Minister Findlay. “This initiative will allow businesses to eliminate unnecessary paperwork and introduces time-saving measures for managing CRA correspondence. This is one more step toward faster, more efficient, and less costly paperless transactions with the CRA.”
The CRA’s new online mail service is faster and easier than managing paper correspondence from the CRA. By signing up, Canadian businesses can receive their notices of assessment and reassessment, and some letters online for the accounts they select such as, the corporation income tax and goods and services tax/harmonized sales tax accounts. Since the service saves time and reduces the volume of paper, it is a cost-effective way to do business.
“Cutting red tape and making the regulatory process as simple as possible are important steps our Government is taking to help Canadian businesses thrive, particularly during global economic uncertainty,” said Mr. Leef. “We will continue to stand up for small and medium sized businesses and will remain focused on jobs, economic growth and long-term prosperity.”
The CRA uses the same high level of security financial institutions use to protect your banking information. Signing up for online services can ease the paperwork burden of doing business, and help you do more in less time.
To find out more about services for businesses, go to the CRA’s one-stop shop for businesses: www.cra.gc.ca/businessonline.
To learn more about the CRA’s commitment to red tape reduction, go to www.cra.gc.ca/redtapereduction.
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.
“Our Government continues to cut red tape for businesses so they can focus on what they do best: creating jobs and generating wealth in communities across Canada,” said Minister Findlay. “This initiative will allow businesses to eliminate unnecessary paperwork and introduces time-saving measures for managing CRA correspondence. This is one more step toward faster, more efficient, and less costly paperless transactions with the CRA.”
The CRA’s new online mail service is faster and easier than managing paper correspondence from the CRA. By signing up, Canadian businesses can receive their notices of assessment and reassessment, and some letters online for the accounts they select such as, the corporation income tax and goods and services tax/harmonized sales tax accounts. Since the service saves time and reduces the volume of paper, it is a cost-effective way to do business.
“Cutting red tape and making the regulatory process as simple as possible are important steps our Government is taking to help Canadian businesses thrive, particularly during global economic uncertainty,” said Mr. Leef. “We will continue to stand up for small and medium sized businesses and will remain focused on jobs, economic growth and long-term prosperity.”
The CRA uses the same high level of security financial institutions use to protect your banking information. Signing up for online services can ease the paperwork burden of doing business, and help you do more in less time.
To find out more about services for businesses, go to the CRA’s one-stop shop for businesses: www.cra.gc.ca/businessonline.
To learn more about the CRA’s commitment to red tape reduction, go to www.cra.gc.ca/redtapereduction.
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, August 30, 2013
New reporting requirements: reportable transactions
On June 26, 2013, the Government of Canada passed legislation
requiring disclosure of reportable transactions to the Canada Revenue
Agency (CRA). The legislation addresses concerns about how aggressive
tax avoidance transactions affect the fairness of the income tax system –
everyone must pay the correct amount of taxes.
The new legislative requirements apply to reportable transactions entered into after December 31, 2010 and reportable transactions that are part of a series of transactions entered into before January 1, 2011 and completed after December 31, 2010.
If one or more promoters or advisors are entitled to fees as described in the hallmarks for a particular transaction, each of these promoters or advisors must also file an information return with the CRA.
For information returns that must be filed before July 1, 2012, (that is, for the 2010 and 2011 calendar years), Form RC312 must be filed before October 23, 2013. For the 2012 calendar year, the CRA will administratively extend the filing due date of the RC312 to October 23, 2013.
Disclosing a reportable transaction will have no bearing on whether the tax benefit is allowed under the Income Tax Act. Form RC312 is filed for administrative purposes and is not an admission that the General Anti-Avoidance Rule (GAAR) applies to any transaction or that any transaction is part of a series of transactions. Similarly, it does not mean that the CRA agrees with the intended tax consequences or benefits of the transaction.
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 is a reportable transaction?
A reportable transaction is a specific type of tax avoidance transaction Footnote 1 or, in other words, any transaction undertaken alone or as part of a series of transactions, in order to avoid paying taxes. Reportable transactions are entered into by, or for the benefit of, a person and they have at least two of the following three features or “hallmarks”:- The promoter or advisor, including any non-arm's-length party
(referred to collectively as “promoter or advisor”), is entitled to a
fee that is:
- based on the amount of the tax benefit from the transaction;
- contingent upon obtaining a tax benefit that results from the transaction; or
- attributable to the number of persons participating in the transaction (or similar transaction) or who have been provided access to advice from the promoter or advisor about the tax consequences of the transaction (or similar transaction).
- The promoter or advisor of the transaction obtains “confidential protection” Footnote 2 for the transaction.
- The taxpayer, the person who entered into the transaction on behalf of the taxpayer (including any non-arm's-length party), or the promoter or advisor has or had “contractual protection” Footnote 3 for the transaction (other than as a result of a fee described in the first hallmark).
The new legislative requirements apply to reportable transactions entered into after December 31, 2010 and reportable transactions that are part of a series of transactions entered into before January 1, 2011 and completed after December 31, 2010.
To whom do the new reporting requirements apply?
Under the new legislation, a person (including an individual, corporation, trust, or partnership) must disclose a reportable transaction by filing an information return with the CRA. This reporting requirement also applies to any person who enters into such a transaction for the benefit of another person.If one or more promoters or advisors are entitled to fees as described in the hallmarks for a particular transaction, each of these promoters or advisors must also file an information return with the CRA.
What is the process for reporting a reportable transaction?
Form RC312, Reportable Transaction Information Return, must be filed on or before June 30 of the calendar year following the calendar year in which the transaction first became a reportable transaction. It must be filed separately from any information return, including an income tax return.For information returns that must be filed before July 1, 2012, (that is, for the 2010 and 2011 calendar years), Form RC312 must be filed before October 23, 2013. For the 2012 calendar year, the CRA will administratively extend the filing due date of the RC312 to October 23, 2013.
Disclosing a reportable transaction will have no bearing on whether the tax benefit is allowed under the Income Tax Act. Form RC312 is filed for administrative purposes and is not an admission that the General Anti-Avoidance Rule (GAAR) applies to any transaction or that any transaction is part of a series of transactions. Similarly, it does not mean that the CRA agrees with the intended tax consequences or benefits of the transaction.
What are the consequences of not reporting a reportable transaction?
Penalty for not reporting
If a Form RC312 for a reportable transaction is not filed when required, each person who has to file this form will be liable to pay a penalty, notwithstanding any agreement between the parties as to who is going to file the return. The amount of the penalty is equal to the total of all the fees for the transaction that the promoter or advisor is entitled to receive (these fees are described in the first and third hallmarks under “What is a reportable transaction” on the previous page). A promoter or advisor is liable to pay a penalty only to the extent of the fees to which he or she is entitled.Suspension of the tax benefit
In addition to the penalty, the tax benefit is denied until the obligation to file Form RC312 has been satisfied and the penalty and interest have been paid.Due diligence
A person required to file a Form RC312 for a reportable transaction will not be liable for a penalty for not filing that information return if that person has exercised the degree of care, due diligence, and skill that a reasonably prudent person would have exercised in similar circumstances.Extended reassessment period
For taxation years ending after March 20, 2013, new legislation, introduced in Economic Action Plan 2013, requires that:- where Form RC312 has not been filed as required, the reassessment period is extended by three years after the date, if any, that the information return has been filed; and
- a waiver of this extended reassessment period may be filed with the CRA within this additional three-year period.
More information
Form RC312, Reportable Transaction Information Return, is also available on the CRA's Web site.Footnotes
- Footnote 1
- A “tax avoidance transaction” means any transaction
that would result, directly or indirectly, in a tax benefit, unless the
transaction may reasonably be considered to have been undertaken or
arranged primarily for bona fide purposes other than to obtain the tax benefit (section 245 of the Income Tax Act).
- Footnote 2
- “Confidential protection,” in respect of a
transaction or series of transactions, means anything that prohibits the
disclosure, to any person or to the Minister, the details or structure
of the transaction or series under which a tax benefit results (not the
same as client-solicitor privilege).
- Footnote 3
- “Contractual protection” refers to any form of
insurance (other than standard professional liability insurance) or
other protection, including, without limiting the generality of the
foregoing, an indemnity, compensation, or a guarantee that, either
immediately or in the future and either absolutely or contingently:
(i) protects a person against a failure of the transaction or series to achieve any tax benefit from the transaction or series; or
(ii) pays for or reimburses any expense, fee, tax, interest, penalty, or similar amount that may be incurred by a person in the course of a dispute about a tax benefit from the transaction or series; and
any form of undertaking provided by a promoter, or by any person who does not deal at arm's length with a promoter that provides, either immediately or in the future and either absolutely or contingently, assistance, directly or indirectly in any way, to a person in the course of a dispute about a tax benefit from the transaction or series.
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, August 28, 2013
Harper Government highlights continued support for Canadian small businesses
Kitchener, Ontario, August 28, 2013... The
Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of
National Revenue, and Peter Braid, Member of Parliament for Kitchener,
participated in an event and roundtable discussion with high-tech
industry business owners at Communitech Hub to highlight the important
tax relief and other measures available to Canadian small businesses.
These incentives help small businesses across Canada to create jobs and
economic growth.
The Apprenticeship Job Creation Tax Credit (AJCTC) is one of the Harper Government’s key measures aimed at providing support to Canadians, including programs and services for those entering the labour market and those looking to upgrade their skills and training. The AJCTC provides businesses a maximum credit of $2,000 per year for the first two year term of hire for each eligible apprentice. The Government also recognizes the importance of supporting the job creation capacity of small businesses by giving them additional incentives to hire new apprentices in eligible trades. As of October 1, 2012, approximately 13,250 employers used the credit to deduct more than $108 million on their income tax returns for the last tax year.
“Our Government has made real progress in offering tax relief measures that support a more skilled and educated workforce. These initiatives are helping Canada build a strong foundation for future economic growth and job creation,” said Minister Findlay. “Through tax relief measures, grants and support for training programs, we are encouraging apprenticeships and careers in the skilled trades.”
Economic Action Plan 2011 introduced the Hiring Credit for Small Business (HCSB).The HCSB stimulates new employment and supports small businesses, while providing relief from the employer’s share of employment insurance (EI) premiums by crediting up to $1,000 on their payroll account. As of August 2, 2013, over $209 million has been credited to over 549,000 eligible employers.
“Our Government is continually working to improve business conditions in Canada, and one of the ways to do this is by keeping taxes low for job-creating businesses,” said Mr. Braid. “Measures like the Apprenticeship Job Creation Tax Credit and the Hiring Credit for Small Businesses help reduce the tax burden on employers and make it easier for companies to grow. In an uncertain global economy, our Government’s tax initiatives for jobs and growth is working and serving Canadians well.”
This tax relief builds on the support provided to apprentices through the Apprentice Incentive Grant provided in Budget 2006 and the Apprenticeship Completion Grant, which was introduced in Budget 2009.
The Scientific Research and Experimental Development (SR&ED) Program is a federal tax incentive program administered by the Canada Revenue Agency (CRA) that encourages Canadian businesses of all sizes and in all sectors to conduct research and development in Canada.
The SR&ED program allows Canadian-controlled private corporations, to earn a refundable Investment Tax Credit (ITC) of 35% on up to $3 million in qualified SR&ED expenditures for SR&ED carried out in Canada. The ITC is fully refundable on qualified SR&ED current expenditures and 40% refundable on qualified SR&ED capital expenditures.
For more information on the Hiring Credit for Small Business, go to www.cra.gc.ca/hiringcredit.
For more information on the Apprenticeship Job Creation Tax Credit, and other investment tax credits, go to www.cra.gc.ca/smallbusiness and select “Investment Tax Credit.”
For more information on SR&ED, go to www.cra.gc.ca/sred.
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 Apprenticeship Job Creation Tax Credit (AJCTC) is one of the Harper Government’s key measures aimed at providing support to Canadians, including programs and services for those entering the labour market and those looking to upgrade their skills and training. The AJCTC provides businesses a maximum credit of $2,000 per year for the first two year term of hire for each eligible apprentice. The Government also recognizes the importance of supporting the job creation capacity of small businesses by giving them additional incentives to hire new apprentices in eligible trades. As of October 1, 2012, approximately 13,250 employers used the credit to deduct more than $108 million on their income tax returns for the last tax year.
“Our Government has made real progress in offering tax relief measures that support a more skilled and educated workforce. These initiatives are helping Canada build a strong foundation for future economic growth and job creation,” said Minister Findlay. “Through tax relief measures, grants and support for training programs, we are encouraging apprenticeships and careers in the skilled trades.”
Economic Action Plan 2011 introduced the Hiring Credit for Small Business (HCSB).The HCSB stimulates new employment and supports small businesses, while providing relief from the employer’s share of employment insurance (EI) premiums by crediting up to $1,000 on their payroll account. As of August 2, 2013, over $209 million has been credited to over 549,000 eligible employers.
“Our Government is continually working to improve business conditions in Canada, and one of the ways to do this is by keeping taxes low for job-creating businesses,” said Mr. Braid. “Measures like the Apprenticeship Job Creation Tax Credit and the Hiring Credit for Small Businesses help reduce the tax burden on employers and make it easier for companies to grow. In an uncertain global economy, our Government’s tax initiatives for jobs and growth is working and serving Canadians well.”
This tax relief builds on the support provided to apprentices through the Apprentice Incentive Grant provided in Budget 2006 and the Apprenticeship Completion Grant, which was introduced in Budget 2009.
The Scientific Research and Experimental Development (SR&ED) Program is a federal tax incentive program administered by the Canada Revenue Agency (CRA) that encourages Canadian businesses of all sizes and in all sectors to conduct research and development in Canada.
The SR&ED program allows Canadian-controlled private corporations, to earn a refundable Investment Tax Credit (ITC) of 35% on up to $3 million in qualified SR&ED expenditures for SR&ED carried out in Canada. The ITC is fully refundable on qualified SR&ED current expenditures and 40% refundable on qualified SR&ED capital expenditures.
For more information on the Hiring Credit for Small Business, go to www.cra.gc.ca/hiringcredit.
For more information on the Apprenticeship Job Creation Tax Credit, and other investment tax credits, go to www.cra.gc.ca/smallbusiness and select “Investment Tax Credit.”
For more information on SR&ED, go to www.cra.gc.ca/sred.
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.
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