Wednesday, June 26, 2013

Harper Government launches new right to ensure Canadian taxpayers are treated fairly

Scarborough, Ontario, June 26, 2013… The Honourable Gail Shea, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency, Mr. J. Paul Dubé, the Taxpayers’ Ombudsman, and Roxanne James, Member of Parliament for Scarborough Centre, today announced the addition of a new right to the Taxpayer Bill of Rights, which gives Canadian taxpayers the ability to lodge a service complaint and request a formal review without fear of reprisal. Minister Shea, Mr. Dubé and MP James also met with members of Certified General Accountants (CGA) Canada to discuss taxpayer fairness.

“Our Government is committed to ensuring that all Canadians are treated with fairness and respect by the Canada Revenue Agency,” said Minister Shea. “In our system of voluntary compliance, taxpayers must have confidence in the objectivity and fairness of CRA’s actions as a tax administrator. This new addition to the Taxpayer Bill of Rights will help reinforce public confidence in Canada’s tax system, and ensure that Canadians taxpayers feel free to speak up if they have a disagreement with the CRA.”

Under the new right added to the Taxpayers Bill of Rights, if taxpayers lodge a service complaint or request a formal review, they can be confident that they will be treated impartially, receive the benefits, credits, and refunds to which they are entitled and pay no more and no less than what is required by law.

Although there is no evidence that Canadians have been subject to reprisal by the CRA, in his work across the country, the Taxpayers’ Ombudsman heard that taxpayers would sometimes hesitate to lodge a complaint for fear of being treated differently afterward. To address this unwarranted fear and encourage Canadians to speak up if they have a disagreement with the CRA, the Ombudsman recommended that a new right be added to ensure Canadians are confident they will be treated fairly.

The Harper Government has demonstrated a firm commitment to support taxpayers in their dealings with the CRA by creating the Office of the Taxpayers' Ombudsman in 2007, which operates independently from the CRA and was established to uphold taxpayer service rights and to provide an impartial review of unresolved service complaints from taxpayers.

“We are pleased to welcome this evolution of the Taxpayer Bill of Rights,” said Mr. Dubé, who recently celebrated five years in the Office as the Taxpayers’ Ombudsman. “Although we work at arm’s-length, the CRA and our office have collaborated well to advance taxpayer fairness. The addition of this new right to the Taxpayer Bill of Rights is an important step forward in providing Canadians with assurances that they will be treated impartially, and, if they feel this is not the case, that they will have effective avenues of redress available to them.”

“The addition of this new right to the Taxpayer Bill of Rights builds on our Government’s longstanding commitment to maintaining the integrity of the tax system and, in turn, the trust of Canadians,” said MP James.

For more information on the Taxpayer Bill of Rights, please visit our Web site at www.cra.gc.ca/rights. You can also visit the Office of the Taxpayers’ Ombudsman at www.taxpayerrights.gc.ca.

Backgrounder
Taxpayer Bill of Rights Amendments

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.

Ministers Shea and Kenney announce more relief for businesses affected by flooding in Alberta


Ottawa, Ontario, June 26, 2013… The Honourable Gail Shea, Minister of National Revenue and the Minister for the Atlantic Canada Opportunities Agency, with the Honourable Jason Kenney, Minister of Citizenship, Immigration and Multiculturalism and Member of Parliament for Calgary Southeast, confirmed today that taxpayers affected by flooding in Alberta will have until August 2, 2013, to file their returns.

The Canada Revenue Agency (CRA) will proactively adjust the due date for all federal business and other returns filed in Alberta that were due during the flooding. A federal business return filed by August 2, 2013, will be considered as filed on time.

“Many Albertans are struggling during these devastating floods, and our Government is here to extend our support in any way we can,” said Minister Shea. “When disasters strike, our true priorities become clear – the protection of our families and communities. We hope that extending the filing deadline eases some of the burden of these difficult times.”

“As efforts turn to assessing the damage and rebuilding, the federal government continues to work with the Alberta government and affected municipal governments to ensure a coordinated response to damage caused by the flooding,” said Minister Kenney “This extension is one of the many ways our Government is helping those affected. For Albertans impacted by the terrible devastation of the flood, there is one less thing to worry about.”

Businesses are reminded that taxpayer relief provisions are also available for those who are unable to meet their tax obligations due to the flooding. For this situation, the CRA offers to expedite taxpayer relief requests through its general enquiries line at 1-800-959-8281 or the business enquiries line at 1-800-959-5525. Taxpayer relief requests can also be made in writing using the Form RC4288, Request for Taxpayer Relief. Requests for taxpayer relief are considered by the CRA on a case-by-case basis.

Businesses are also reminded that if they are unable to physically access the institutions they normally depend on for payments and remittances, the CRA’s e-services can provide quick access to tax payment services and account information. For more information, please visit our Web site at www.cra.gc.ca/businessonline.
 Canada Revenue Agency

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

Tuesday, June 25, 2013

Harper Government announces new requirements for Canadians with offshore property and income

Vancouver, British Columbia, June 25, 2013 … Parliamentary Secretary Cathy McLeod was in Vancouver today to announce the launch of a strengthened Foreign Income Verification Statement (Form T1135), one of the Economic Action Plan 2013 measures to crack down on international tax evasion and aggressive tax avoidance. Mrs. McLeod met with members of Certified General Accountants (CGA) Canada to discuss taxation issues, including how best to combat international tax evasion and aggressive tax avoidance.

“Our Government is committed to combating tax evasion and getting tough on tax cheats. Since 2006, we have introduced over 75 measures to improve the integrity of the tax system,” said Parliamentary Secretary McLeod. “The strengthened reporting requirements are just one example of the actions being taken by our Government to crack down on tax cheats. These measures are great news for hardworking Canadians who pay their fair share and bad news for those who may seek to cheat the system.”

Starting with the 2013 taxation year, Canadians who hold foreign property with a cost of over $100,000 will be required to provide additional information to the CRA. The criteria for those who must file a Foreign Income Verification Form (T1135) has not changed; however, the new form has been revised to include more detailed information on each specified foreign property.

Increased reporting requirements include:
  • the name of the specific foreign institution or other entity holding funds outside Canada;
  • the specific country to which the foreign property relates; and
  • the income generated from the foreign property.
The CRA will use the additional information to ensure all taxpayers comply with Canadian tax laws, through activities including education and audit. Failure to report income from domestic or foreign sources is illegal, and Canadians should know that the CRA actively pursues cases of non-compliance. Tax evasion and aggressive tax avoidance can lead to significant taxes, interest and penalties.

These measures will build on the recent commitments made by Prime Minister Stephen Harper at the G-8 Lough Erne Summit in Northern Ireland. The G-8 declaration and the Harper Government’s Action Plan on Transparency of Corporations and Trusts will uphold a high level of transparency.

Economic Action Plan 2013 also proposes to extend the reassessment period for a tax year by three years if a taxpayer has failed to report income from a foreign property on their income tax return and Foreign Income Verification Form (T1135) was not filed, late-filed, or included incorrect or incomplete information concerning a foreign property.

In addition to the new filing requirements, Economic Action Plan 2013 proposed other strong new measures to combat international tax evasion and aggressive tax avoidance. These include:
  • the new Stop International Tax Evasion Program;
  • the mandatory reporting of international electronic funds transfers over $10,000 to the CRA; and,
  • streamlining the judicial process that provides the CRA authorization to obtain information from third parties such as banks.
The Harper Government also recently announced the creation of a dedicated team to implement these measures and a $30 million investment to target international tax evasion and aggressive tax avoidance.

“We are pleased to see the Government taking action on this important issue. Increased reporting requirements of large offshore assets will help to ensure that all Canadians are operating on a level playing field when it comes to their taxes,” said Carole Presseault, Vice President of Government and Regulatory Affairs at CGA Canada. “Our members support the fight against tax evasion, as it hurts all Canadians by reducing government revenue that other law abiding taxpayers are required to make up, and providing an unfair advantage to those seeking to cheat the system.”

Canada Revenue Agency

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

Harper Government announces new requirements for Canadians with offshore property and income

Toronto, Ontario, June 25, 2013 … The Honourable Gail Shea, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency, today announced the launch of a strengthened Foreign Income Verification Statement (Form T1135), one of the Economic Action Plan 2013 measures to crack down on international tax evasion and aggressive tax avoidance. Minister Shea also met with members of the Certified General Accountants Association of Canada (CGA-Canada) to discuss taxation issues, including how best to combat international tax evasion and aggressive tax avoidance.

“Our Government is committed to combating tax evasion and getting tough on tax cheats. We have introduced important new measures to strengthen the Canada Revenue Agency’s ability to audit and investigate taxpayers who may be hiding offshore property,” said Minister Shea. “Stronger reporting requirements will provide the CRA with more information to crack down on those who attempt to cheat the system.”

Starting with the 2013 taxation year, Canadians who hold foreign property with a cost of over $100,000 will be required to provide additional information to the Canada Revenue Agency (CRA). The criteria for those who must file a Foreign Income Verification Statement (Form T1135) has not changed; however, the new form has been revised to include more detailed information on foreign property.

Increased reporting requirements include:
  • the name of the specific foreign institution or other entity holding funds outside Canada;
  • the specific country to which the foreign property relates; and
  • the income generated from the foreign property.
The CRA will use the additional information to ensure all taxpayers comply with Canadian tax laws, through activities including education and audit. Failure to report income from domestic or foreign sources is illegal, and Canadians should know that the CRA actively pursues cases of non-compliance. Tax evasion and aggressive tax avoidance can lead to significant taxes, interest and penalties.

These measures will build on the recent commitments made by Prime Minister Stephen Harper at the G-8 Lough Erne Summit in Northern Ireland. The G-8 declaration and the Harper Government’s Action Plan on Transparency of Corporations and Trusts will uphold a high level of transparency.

“I am proud that our Government is protecting law-abiding Canadians by providing the CRA with the tools necessary to go after tax evaders. Since 2006, we have introduced over 75 measures to improve the integrity of the tax system,” said Mark Adler, Member of Parliament for York Centre. “New measures outlined in Economic Action Plan 2013 to tackle international tax evasion and aggressive tax avoidance will result in concrete benefits for all hardworking Canadians. I am pleased that our Government is engaged with stakeholders about this serious and pressing issue.”

Economic Action Plan 2013 also proposes to extend the reassessment period for a tax year by three years if a taxpayer has failed to report income from a foreign property on their income tax return and Foreign Income Verification Statement (Form T1135) was not filed, late-filed, or included incorrect or incomplete information concerning a foreign property.

“We are pleased to see the Government taking action on this important issue. Increased reporting requirements of large offshore assets will help to ensure that all Canadians are operating on a level playing field when it comes to their taxes,” said Carole Presseault, Vice President of Government and Regulatory Affairs at CGA Canada. “Our members support the fight against tax evasion, as it hurts all Canadians by reducing government revenue that other law abiding taxpayers are required to make up, and providing an unfair advantage to those seeking to cheat the system.”

In addition to the new filing requirements, Economic Action Plan 2013 proposed other strong new measures to combat international tax evasion and aggressive tax avoidance. These include:
  • the new Stop International Tax Evasion Program;
  • the mandatory reporting of international electronic funds transfers over $10,000 to the CRA; and,
  • streamlining the judicial process that provides the CRA authorization to obtain information from third parties such as banks.
Minister Shea also recently announced the creation of a dedicated team to implement these measures and a $30 million investment to target international tax evasion and aggressive tax avoidance.

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, June 24, 2013

Minister Shea encourages Canadians to support great local charities and receive tax benefits

June 24, 2013... The Honourable Gail Shea, Minister of National Revenue and Minister for the Atlantic Canada Opportunities Agency, today encouraged Canadians to take advantage of the Harper Government’s new First Time Donor’s Super Credit and make a difference in their communities by giving to a registered Canadian charity. Minister Shea highlighted the new tax credit from Economic Action Plan 2013 while touring a home under construction by Habitat for Humanity in PEI.

"Canadians have a long and proud history of supporting those in need,” said Minister Shea. “We want to continue to foster and promote Canada’s culture of giving. That’s why our Government has introduced this new tax credit to encourage Canadians to give generously to charities that do so much good work in our communities.”

Economic Action Plan 2013 responded to the report by the Standing Committee of Finance on tax incentives for charitable giving by proposing a new temporary First-Time Donor’s Super Credit designed to encourage new donors to give to charity.

This new credit will significantly enhance the attractiveness of donating to a charity for Canadians who are in a position to make donations for the first time.

Cash donations made by first-time donors after March 20, 2013 now qualify for the first-time donor’s super credit. An individual qualifies as a first-time donor if neither they nor their spouse or common-law partner has claimed the charitable donation tax credit since 2007.

“We hope that this credit will encourage Canadians to get involved in giving to our country’s great charities, expanding the donor base for the charitable sector. Our goal is a healthy, vibrant charitable sector that can continue to make an essential contribution to the well-being of our communities.” added Minister Shea.

The first-time donor’s super credit gives you an extra 25% credit when you claim your charitable donation tax credit. This means that you can get a 40% credit for donations of $200 or less, and a 54% credit for the portion of donations that are over $200 up to $1,000.

“We are very pleased that the Government has introduced this new tax credit,” said Susan Zambonin, Executive Director of Habitat for Humanity PEI. “It will make giving to charities like ours even more attractive to Canadians who’ve been considering a donation. Getting more Islanders to donate will help us to get even more families into affordable housing.”

More information about the first-time donor’s super credit is available on the CRA Web site or the Government of Canada’s Economic Action Plan Web site.

Donate wisely by researching 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.

Saturday, June 22, 2013

Taxpayer relief measures available to Canadians affected by flooding in Alberta

Ottawa, Ontario, June 22, 2013... The Canada Revenue Agency (CRA) would like to advise taxpayers who have been affected by flooding in Alberta that they will have access to the CRA’s taxpayer relief provisions if they are unable to meet their tax obligations.

Corporations who are unable to file their T2 returns by July 2 due to flooding can apply to have interest and/or penalties waived or cancelled using Form RC4288, Request for Taxpayer Relief.

The CRA understands that natural disasters may cause great difficulties for affected taxpayers whose primary concerns during this time are their families, homes, and communities. The CRA can provide relief to these taxpayers if they are unable to file their returns by July 2, 2013, due to flooding or because of other circumstances beyond their control. Business owners and self‑employed individuals who were unable to meet their filing and payment obligations are also eligible for relief.

The CRA’s taxpayer relief provisions use a balanced approach to assist taxpayers in resolving tax issues that arise due to circumstances beyond their control. Under these provisions, taxpayers can apply to the CRA to have interest and/or penalties waived or cancelled in situations where they are unable to file a tax return and/or make payments on time because of a natural disaster. The CRA will consider these requests on a case-by-case basis.

All Canadians have access to the CRA's taxpayer relief measures and will be considered for relief if they miss a filing deadline because their lives were disrupted by natural disasters, including tornadoes, flooding, landslides, hurricanes, and forest fires.

For more information, go to www.cra.gc.ca/taxpayerrelief, or call the CRA at 1-800-959-8281 for individual enquiries, and at 1-800-959-5525 for business enquiries.

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, June 18, 2013

Taxpayer relief measures available to Canadians affected by flooding

Ottawa, Ontario, June 18, 2013... The Canada Revenue Agency (CRA) would like to advise taxpayers who have been affected by flooding in Fort McMurray, Alberta, and other affected areas, that they will have access to the CRA’s taxpayer relief provisions if they were unable to meet their tax obligations.

Self-employed individuals and their spouses or common-law partners who were unable to file their income tax returns by June 17 due to flooding can apply to have interest and/or penalties waived or cancelled using Form RC4288, Request for Taxpayer Relief.

The CRA understands that natural disasters may cause great difficulties for affected taxpayers whose primary concerns during this time are their families, homes, and communities. The CRA can provide relief to these taxpayers if they were unable to file their personal income tax returns by June 17, 2013, due to flooding or because of other circumstances beyond their control.

The CRA’s taxpayer relief provisions use a balanced approach to assist taxpayers in resolving tax issues that arise due to circumstances beyond their control. Under these provisions, taxpayers can apply to the CRA to have interest and/or penalties waived or cancelled in situations where they are unable to file a tax return and/or make payments on time because of a natural disaster. The CRA will consider these requests on a case-by-case basis.

All Canadians have access to the CRA's taxpayer relief measures and will be considered for relief if they miss a filing deadline because their lives were disrupted by natural disasters, including tornadoes, flooding, landslides, hurricanes, and forest fires.

For more information, go to www.cra.gc.ca/taxpayerrelief, or call the CRA at 1-800-959-8281 for individual enquiries, and at 1-800-959-5525 for business enquiries.

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.