webtip

CRA RELEASES

April 6, 2016 – CRA released a Tax Tip highlighting what to do if taxpayers have uncashed cheques. They note that Government of Canada cheques never expire and can be cashed at any time, cheques for deceased taxpayers should be deposited into the Estate or returned to CRA, and, CRA can issue replacement cheques if the original was lost, destroyed, stolen or missing.

For further information see VTN Monthly Tax Update Seminar, Issue No. 417

 

WATCH! MAJOR TAX CHANGES FOR MANY SMALL BUSINESSES (16 min)

There are major tax changes impacting many small businesses that you need to know about.

Watch Hugh Neilson FCPA, FCA, TEP, Joseph Devaney CPA, CA and Caitlin Butler CPA, CA discuss Bill C-29 and the changes to Small Business Deductions.

Sources (linked)

  1. http://www.parl.gc.ca/LegisInfo/BillDetails.aspx?Language=E&Mode=1&billId=8519336

Video Tax News permits and encourages sharing this video. Use the following link to share this important video - https://vimeo.com/189665527

To learn more, register for the "Small Business Deduction: What You Need To Know" Online Course. Click here for the details.

CRA REPORT TO PARLIAMENT

In early 2016, CRA released its 2014-2015 Annual Report to Parliament. The Report includes the following selected statistics and comments:

  • 305,667 individual returns were reviewed. 28.8 million returns were filed for the 2014 year. (Approximately 1% of returns were reviewed.)
  • $469 billion in taxes and duties were processed, $255 billion was collected through source deductions.
  • $1 billion in additional taxes were assessed by verifying claims for errors.
  • 6,392 responses were made to online business enquiries.
  • The ratio of average dollar value assessed for targeted vs. random reviews is 2.54:1.
  • 76% of risk-assessed audit activities resulted in detection of non-compliance by individuals and corporations.
  • Over 585,361 payroll accounts were reviewed and 744 employer compliance audits were completed.
  • CRA received 2,628 CPP/EI disputes and resolved 2,576.
  • 95.9% of taxpayer service complaints were resolved within 30 business days.

For further information see VTN Monthly Tax Update Seminar, Issue No. 417

ASSOCIATION – MINOR OBTAINING AGE OF MAJORITY

In a December 8, 2015 French Technical Interpretation (2015- 0610921E5, Labarre, Sylvie, CPA, CA), CRA commented on whether association would apply to a situation where the controlling shareholder turns 18 years of age in the corporation’s fiscal year.

In the situation where the child does not manage the business, CRA opined that Subsection 256(1.3) would apply in the corporate fiscal year where the age of 18 is obtained because the child would have been under 18 at some point in that fiscal year. Being associated at any time in the year means the consequences of association apply for the entire fiscal year.

For further information see VTN Monthly Tax Update Seminar, Issue No. 417

CREDIT CARD COMPARISONS

Rate Hub provides an array of calculators and tools at www.ratehub.ca/credit-cards to help individuals and businesses select the most appropriate credit card for their needs.

In particular, it quantifies the dollar value of benefits (such as sign-up bonuses and annual spend rewards) as well as considers annual fees. This tracking can be fine-tuned by inputting an individual’s or business’ different types of spending (such as groceries, gas, travel, etc.). Beyond the strict dollar value of reward programs and costs, the service compares ancillary benefits such as travel and baggage insurance offered.

For further information see VTN Monthly Tax Update Seminar, Issue No. 416