Effective January 2015, the Government is proposing to increase the UCCB amount for children under six years of age from $100 monthly to $160 monthly, and to expand the program to include a benefit of $60 monthly for children aged six through 17. Once the Government approves these changes, the first enhanced payment will be issued July 2015 and will include a retroactive payment for the period of January to June 2015. You will automatically receive the enhanced UCCB if you currently receive the CCTB or UCCB, or if you previously received the UCCB. Universal Child Care Benefit Program For [More]
Good news from CRA for late filers who still want the opportunity to E-file instead of Paper-filing their late 2012 income tax return! Extension of the electronic filing season As part of our ongoing efforts to improve electronic filing processes, the Canada Revenue Agency (CRA) is pleased to announce the extension of the electronic filing season for 2012 T1 tax returns. The electronic filing systems, EFILE Online, EFILE Online Plus and SEND, will be available until January 17, 2014 instead of November 30, 2013. Source: CRA News
The following information is now available on the CRA Web site: Did you know? If you were an employed tradesperson in 2012 (including an eligible apprentice mechanic), you may be able to deduct up to $500 of the cost of eligible tools bought to earn your employment income. Important facts An eligible tool is a tool (including associated equipment such as a toolbox) that: * you bought to use in your job as a tradesperson and was not used for any purpose before you bought it; * your employer certified as being necessary for you to provide as a condition [More]
The following information is now available on the CRA Web site: Did you know? The Government of Canada has extended the Hiring Credit for Small Business (HCSB) for 2012. The 2011 federal budget created the HCSB to create jobs, grow the economy and support small businesses. If you are self-employed, you may be eligible for the hiring credit for small business. This credit gives small businesses relief from the employer’s share of employment insurance premiums paid in 2012. The credit of up to $1,000 will be automatically credited to your payroll account. Facts about the HCSB * The HCSB is [More]
The 2013 Automobile Benefits Online Calculator is now available on the Canada Revenue Agency Web site. Automobile Benefits Online Calculator – Disclaimer The Automobile Benefits Online Calculator allows you to calculate the estimated automobile benefit for employees (including shareholders) based on the information you provide. The Canada Revenue Agency (CRA) does not keep any of the data you provide to complete your calculation. The CRA suggests that you clear your browser cache after you have completed your calculations. That is because information may be stored in the browser cache and could be compromised by others if you do not clear [More]
The following information is now available on the CRA Web site: Did you know? You may be eligible for new or improved tax relief measures and services when filing your 2012 income tax and benefit return. Important facts * Family caregiver amount – If you have a dependant with a physical or mental impairment, you may be able to claim up to an additional $2,000 in the calculation of certain non-refundable tax credits. Go to http://www.cra.gc.ca/familycaregiver for more information. * Medical expenses – Prescribed blood coagulation monitors for individuals who need anti-coagulation therapy are now eligible as medical expenses. Go [More]
Note: This affects me … Did you know? If you are an individual, a corporation, or a partnership, and you accept payment to prepare more than 10 income tax returns per year, you are considered a tax preparer and you have to file those returns electronically. T1 and T2 returns Effective January 1, 2013, mandatory electronic filing applies to both T1 General (income tax and benefit returns) and T2 corporation income tax returns for 2012 and later tax years. To file T1 returns electronically, you must first register with the Canada Revenue Agency (CRA) through its Web site. If you [More]
The following is now available on the CRA Web site: Ottawa, Ontario, January 2, 2013… The Honourable Gail Shea, Minister of National Revenue, today highlighted the tax relief measures that the Harper Government has made available to Canadians through Canada’s Economic Action Plan. As Canadians prepare to file their 2012 taxes, they will be able to claim the Family Caregiver Tax Credit for the first time. This new tax relief measure is only one of many introduced since 2006 to keep taxes low for Canadian families and businesses. “Our Government is committed to supporting hardworking Canadians and their families,” said [More]
The following information is now available on the CRA Web site: Each year, certain personal income tax and benefit amounts are indexed to inflation using the Consumer Price Index data as reported by Statistics Canada. Increases to tax bracket thresholds, amounts relating to non‑refundable credits, the annual TFSA dollar limit, and most other amounts will take effect on January 1, 2013. However, increases to the Canada child tax benefit (including the national child benefit supplement and the child disability benefit) and the goods and services tax credit will take effect on July 1, 2013, to coincide with the beginning of [More]
Ottawa, Ontario, December 6, 2012… 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 January 1, 2013 to March 31, 2013. The rates below remain unchanged from the previous quarter. Income tax The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums will be 5%. The interest rate to be paid on corporate taxpayer overpayments [More]
The following information is now available on the CRA Web site: Ottawa, Ontario, November 1, 2012… The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2013 will be $51,100—up from $50,100 in 2012. 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 $51,100 in 2013 are not required or permitted to make additional contributions to the CPP. The basic exemption amount for 2013 remains $3,500. The employee and employer contribution [More]
In the 2012 Manitoba Budget (April 17, 2012), the government basically added this blurb to the top of their “Business and Innovation” list … – Cut red tape for businesses by reducing how often small businesses have to file sales tax. What Does That Mean? Basically, you can see from the Retail Sales Tax (RST) Bulletin No. 004 – originally issued April 2000 – was updated with the highlighted change in yellow in April 2012: Vendors must file a tax return and remit the RST collectable to the Taxation Division. The tax return filing frequency is based on the average [More]
Line 369 – Home buyers’ amount You can claim an amount of $5,000 for the purchase of a qualifying home made in 2011, if both of the following apply: * You or your spouse or common-law partner acquired a qualifying home. * You did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer). * Persons with disabilities do not have to be a first-time home buyer. Source: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/369/menu-eng.html
The following information is now available on the CRA Web site: Prince George, British Columbia, January 20, 2012… The Honourable Gail Shea, Minister of National Revenue, accompanied by Bob Zimmer, Member of Parliament for Prince George – Peace River and Dick Harris, Member of Parliament for Cariboo – Prince George, today visited the Pineview Firehall in Prince George to promote a new non-refundable tax credit for volunteer firefighters. “Every day in Canada, almost 85,000 brave men and women are ready to put their own lives at risk to protect the lives and property of their friends, neighbours, and even perfect [More]
The following information is now available on the CRA Web site: Vancouver, British Columbia, January 18, 2012… The Honourable Gail Shea, Minister of National Revenue, today visited the University of British Columbia 4-H Community Club to promote the children’s arts tax credit, a new non-refundable credit passed in the 2011 federal budget. “Parents whose children participate in paid artistic, cultural, recreational, and developmental programs will now enjoy the same benefit as parents whose children participate in paid programs of physical activity. Our Government believes whether a child is inspired by Justin Bieber, Hedley, Ryan Reynolds, Trevor Linden or Maelle Ricker, [More]
The new Automobile Benefits Online Calculator effective January 1, 2012 is now available on the CRA Web site. The Automobile Benefits Online Calculator allows you to calculate the estimated automobile benefit for withholding purposes based on the information you provide that would be added to an employee’s T4 for 2012. T4130 – Employers’ Guide Taxable Benefits and Allowances Check out Chapter 2 – Automobile and Motor Vehicle Allowances and Taxable Benefits section.
Under new legislation that passed in December 2011, payments from an uninsured Wage Loss Replacement Plan (WLRP) are considered employment income and therefore, are subject to Canada Pension Plan (CPP) contributions. What’s new for Wage Loss Replacement Plans (WLRP) in 2012 The treatment of wage loss replacement plans (WLRP) payments for Canada Pension Plan (CPP) purposes changed over the years. For a period, payments made from certain types of uninsured WLRP plans were not considered pensionable. In December 2011, new CPP legislation clarified that all payments made from uninsured WLRPs are considered to be remuneration from pensionable employment. This legislation [More]
The following information is now available on the CRA Web site: Did you know…? Significant changes to the Canada Pension Plan (CPP) will occur in January 2012 to reflect the way Canadians are living, working, and retiring. The changes will affect both employees and self-employed workers aged 60 to 70. The changes will not affect you if you are already receiving a CPP or Quebec Pension Plan (QPP) retirement pension and you remain out of the workforce. Employees working in Quebec and other workers not subject to the CPP will also not be affected by these changes. What’s new? Contribution [More]
Did you know…? If you file your GST/HST return using NETFILE, or if you want to file a public service bodies’ rebate electronically with your GST/HST return, you can now get your Web access code online. You don’t have to wait for it to arrive in the mail. Important facts You can ask for a new Web access code by going to GST/HST access code online. To ask for a new access code you’ll need your business number and the reporting period of the return for which you need the code, along with either: * the reporting period and the [More]
The following information is available on the CRA Web site: Each year, certain personal income tax and benefit amounts are indexed to inflation using the Consumer Price Index data as reported by Statistics Canada. Increases to tax bracket thresholds, amounts relating to non‑refundable credits, and most other amounts will take effect on January 1, 2012. However, increases to the Canada Child Tax Benefit (including the National Child Benefit Supplement and the Child Disability Benefit) and the goods and services tax credit will take effect on July 1, 2012, to coincide with the beginning of the program year for payment of [More]
The following information is available on the CRA Web site The Canada Revenue Agency (CRA) warns all Canadians to beware of individuals that try to convince you that Canadians do not have to pay tax on the income they earn. These individuals, also known as tax protesters, not only fail to report their own earnings, but they also conspire, counsel, and promote these tax schemes. Natural vs Legal Person One of the most common false arguments tax protesters use is the natural vs. legal person argument, in which they treat themselves as two separate people for income tax purposes. They [More]
The following information is now available on the CRA Web site: News Release: Ottawa, Ontario, May 31, 2011. . . Following the announcement by the Canadian Union of Postal Workers (CUPW) of a possible postal strike, the Canada Revenue Agency (CRA) is reminding taxpayers and businesses to sign up for the direct deposit of their benefit payments and tax refunds. The CRA administers several federal, provincial and territorial benefit programs. For a list of which cheques will and will not be delivered during a strike, and for all other strike-related CRA updates, please go to http://www.cra.gc.ca/postalstrike. This page will be [More]
The following information is now available on the CRA Web site: News Release Ottawa, Ontario, April 28, 2011… The Canada Revenue Agency (CRA) would like to advise taxpayers who have been affected by spring flooding that they will have access to the CRA’s taxpayer relief provisions if they were unable to meet their tax obligations. 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 and [More]
The following News Releases or Speeches has just been posted on the Finance Canada Site. Ottawa, December 29, 2010 The Honourable Jim Flaherty, Minister of Finance, today announced that the automobile expense deduction limits and the prescribed rates for the automobile operating expense benefit will remain unchanged for 2011. The Government reviews these rates and limits annually. Specifically: * The ceiling on the capital cost of passenger vehicles for capital cost allowance (CCA) purposes will remain at $30,000 (plus applicable federal and provincial sales taxes) for purchases after 2010. This ceiling restricts the cost of a vehicle on which CCA [More]
The following is available on the CRA Web site: Ottawa, Ontario, November 5, 2010… The Canada Revenue Agency (CRA) reminds taxpayers and all tax registrants that they have until December 31, 2010 to file requests under the taxpayer relief provisions for the 2000 tax year and any reporting period that ended during the 2000 calendar year. The taxpayer relief provisions of the Income Tax Act limit the discretion of the Minister of National Revenue to cancel or waive penalties and interest, accept certain late-filed, amended, or revoked income tax elections; and issue income tax refunds beyond the normal three-year period [More]
The following information is now available on the CRA Web site: Fact Sheet: Each year, certain personal income tax and benefit amounts are indexed to inflation using the Consumer Price Index data as reported by Statistics Canada. Increases to tax bracket thresholds, amounts relating to non‑refundable credits, and most other amounts will take effect on January 1, 2011. However, increases to the Canada Child Tax Benefit (including the National Child Benefit Supplement and the Child Disability Benefit) and the goods and services tax credit will take effect on July 1, 2011, to coincide with the beginning of the program year [More]
The following is now available on the CRA Web site: News release Ottawa, Ontario, November 1, 2010… The Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2011 will be $48,300—up from $47,200 in 2010. 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 $48,300 in 2011 are not required or permitted to make additional contributions to the CPP. The basic exemption amount for 2011 remains $3,500. Individuals who earn less [More]
The following is now available on the CRA Web site: News release Minister Keith Ashfield launches ad campaign promoting tax relief for businesses Ottawa, Ontario, October 20, 2010… The Honourable Keith Ashfield, Minister of National Revenue, Minister of the Atlantic Canada Opportunities Agency, and Minister for the Atlantic Gateway, is pleased to announce the launch of the Government of Canada’s advertising campaign promoting the 100% capital cost allowance rate for computers. Minister Ashfield reminds Canadian business owners that they have until January 31, 2011, to acquire new eligible computer hardware, including systems software, in order to claim 100% of the [More]
The following information is now available on the CRA Web site: News Release Ottawa, Ontario, September 30, 2010 … The Honourable Keith Ashfield, Minister of National Revenue, Minister of the Atlantic Canada Opportunities Agency and Minister for the Atlantic Gateway, today announced that the Canada Revenue Agency (CRA) has recently received information from the government of France about HSBC account holders. Since receiving the information, the CRA has continued to analyze account data to ensure that the Canadian holders are declaring all their income for tax purposes. The CRA has begun a series of audits. “This is just another example [More]
The following information is now available on the CRA Web site: News Release: Ottawa, Ontario, September 23, 2010… The Honourable Keith Ashfield, Minister of National Revenue, Minister of the Atlantic Canada Opportunities Agency and Minister for the Atlantic Gateway, stated today that the Canada Revenue Agency’s (CRA) tax relief measures are available to taxpayers affected by Hurricane Igor in Newfoundland and Labrador. “The CRA is sensitive to the fact that some individuals and businesses in Newfoundland and Labrador may encounter financial difficulties as a result of Hurricane Igor,” said Minister Ashfield. “We know that people are primarily concerned with protecting [More]
The following is now available on the CRA Web site .. News release Ottawa, Ontario, September 7, 2010… 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, 2010 to December 31, 2010. Income tax * The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums will be 5%. * The interest rate to [More]
The following is now available on the CRA Web site: Ottawa, Ontario, August 6, 2010. . . The Honourable Keith Ashfield, Minister of National Revenue, Minister of the Atlantic Canada Opportunities Agency and Minister for the Atlantic Gateway, is pleased to announce the winners of the Canada Revenue Agency (CRA) “The Underground Economy: Not Your Problem?” video contest on YouTube. The award for best English language video was given to David Hall, Steven Shanahan, Trevor Kai, and Shaun Axani from Toronto for their video called It could be you! The award for best French language video was given to Joëlle [More]