In a March 3, 2022 CPA Canada Post (released publicly on March 8), new guidance was provided in respect of claiming certain credits and deductions for items included in Bill C-8 that have not yet received Royal Assent. They include:
Northern Residents Deduction - Taxpayers can file based on proposed legislation without the return processing being delayed by CRA.
Eligible Educator School Supplies Tax Credit - Previously CRA indicated that they cannot process claims based on the proposed legislation until it is passed. CRA has now confirmed that this means that returns including such enhanced claims will be held and not processed until C-8 has passed.
Farmers Tax Credit (returns of carbon tax) - Previously CRA indicated that they cannot process claims based on the proposed legislation until it is passed. CRA has now confirmed that this means that returns including such enhanced claims will be held and not processed until C-8 has passed.
For details on CRA’s original announcement, see this web tip.
Also, comments were provided in respect of the February 4, 2022 proposals for penalties relating to prescribed information returns (such as T4s and T5s) not being filed electronically (if more than 5 of one type of prescribed information return are required to be filed in a calendar year). Although the draft legislation states that the rules would be effective January 1, 2022, penalties on these proposals will not be assessed for returns filed in 2022 since legislation has not yet passed.