Ontario Archives

CRA News Release: CRA succeeds in reducing the Paperwork Burden for Businesses

According to a news release available on the Canada Revenue Agency web site, the CRA is making it easier on business by reducing paperwork burden on busineses.

In 2007, the Government announced the 20 percent Paperwork Burden Reduction Initiative as part of a coordinated plan across the federal government. Through this initiative, the CRA has identified over 8,000 obsolete or non-essential information obligations imposed on business. The elimination of these obligations, when implemented, will reduce the paperwork burden on business by 24.2 percent.

The CRA has committed to making it easier to do business by reducing the frequency of tax remittance and filing requirements and by allowing Ontario corporate taxpayers to file harmonized federal and provincial corporation tax returns. As part of this continued commitment, CRA introduced My Business Account to allow business owners secure and convenient online access to their accounts, and developed indicators to measure the small business compliance burden.

Through its own burden reduction measures and in support of the Paper Burden Reduction Initiative, the CRA continues to liaise with key stakeholders to continue to find innovative ways of making complying with Income‑ and Excise‑related legislation easier for businesses.

For more information on this news release, please see:
http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m03/nr090331-eng.html

Government of Canada delivers on the promise of the Softwood Lumber Agreement

$467 million in export charges paid to 6 provinces

In a Canada Revenue Agency News Release, Minister of National Revenue Gordon O'Connor has announced that the CRA has distributed close to $470 million in revenue to six provinces from charges on exports of softwood lumber products destined for the U.S.

According to the release:

"The six provinces whose products may be subject to the export charge under the September 2006 Canada-U.S. Softwood Lumber Agreement (SLA) are: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec. Exports of softwood lumber products from the Atlantic provinces are not subject to the export charge."

For more information, see:
http://www.cra-arc.gc.ca/newsroom/releases/2008/jan/nr080111-e.html

AGREEMENT REACHED FOR HARMONIZATION OF ONTARIO CORPORATIONS TAX WITH FEDERAL REGIME

The following news release is avaialable on the Canada Revenue Agency web site:

HUMAN RESOURCES AGREEMENT REACHED FOR HARMONIZATION OF ONTARIO CORPORATIONS TAX WITH FEDERAL REGIME Streamlining will save Ontario businesses up to $190 million a year

Ottawa, Ontario, July 31, 2007…The Canada Revenue Agency (CRA) and the Ontario Ministry of Revenue have signed a Human Resources Agreement that represents a significant step in the move to federal administration of Ontario's corporate taxes.

The agreement outlines employment opportunities at the CRA for Ontario staff currently involved in corporation tax audit, appeals and advisory roles, and describes how the two organizations will manage the movement of employees who accept job offers from the CRA. It provides for these employees to begin working at the Agency on April 3, 2008.

“In Budget 2007, the Government of Canada made a commitment to reduce the federal paper burden and tax compliance costs for small businesses,” said the Honourable Carol Skelton, Minister of National Revenue. “Single administration of Ontario's corporate tax will reduce the compliance burden on the province's businesses by an estimated $100 million a year in administrative costs alone.”

“Ontario's business community will begin to experience the tangible benefits of CRA administration in February of 2008, when they start to remit single instalment payments to the Agency,” added Minister Skelton. “The hiring of the Ontario employees at the CRA means that corporations will see integrated audit and objections processes in April of next year. The single return will follow in 2009 for tax years ending after December 31, 2008.”

“This is a good deal for Ontario and it protects Ontario revenues,” said Ontario Minister of Revenue Michael Chan. “This agreement recognizes that Ontario's corporate tax professionals are skilled and experienced and the CRA has recognized their value.”

“This agreement also demonstrates the ongoing commitment to the partnership between our province and the federal government,” added Minister Chan. “The streamlining of tax administration will improve efficiency and help businesses free up resources that can be invested in new jobs and help build a stronger, more productive economy for all Ontarians.”

The single administration of Ontario's corporate tax by the CRA will lead to one set of rules, one form, one audit, one appeals process and one point of contact. For tax years ending after December 31, 2008, businesses will also save $90 million a year in lower Ontario corporate income taxes as a result of harmonization with the federal corporate income tax base.

For more information, see:
http://www.cra-arc.gc.ca/newsroom/releases/2007/july/nr070731-e.html

Important Update to the Voluntary Disclosures Program in Ontario and

The Canada Revenue Agency has issued the following news release regarding an important update to the Voluntary Disclosures Program in Ontario and Nunavut.

Toronto, Ontario, March 5, 2007... As of March 5, 2007, the St. Catharines Tax Services Office, Enforcement Division will be the initial point of contact and intake centre for all Ontario and Nunavut disclosures and related enquiries. The Voluntary Disclosures Program promotes compliance by encouraging taxpayers to voluntarily correct previous omissions in their dealings with the Canada Revenue Agency.

Overall, the Voluntary Disclosures Program for Ontario and Nunavut will be handled by the St. Catharines, London and Peterborough-Kingston-Belleville Tax Services Offices - Enforcement Divisions.

The Canada Revenue Agency's Voluntary Disclosures Program policies, procedures and guidelines are not changing. What has changed is the arrangement for submitting a disclosure for Ontario and Nunavut's taxpayers. The purpose of this arrangement in Ontario and Nunavut is to facilitate better access to expertise and to enhance the efficient review of complex disclosures. The Canada Revenue Agency is committed to continue providing taxpayers with timely and excellent service in managing the Voluntary Disclosures Program.

For information on disclosures made before February 5, 2007, please contact the respective Enforcement Division of the Tax Services Office where the disclosure was submitted.

For information on disclosures submitted on or after February 5, 2007, please contact us by phone at 1-888-592-6869, by fax at 905-322-3133 or in writing: Voluntary Disclosures Program, St. Catharines Tax Services Office, 32 Church Street, P.O. Box 3038, St. Catharines, ON, L2R 3B9.

For more information about the Voluntary Disclosures Program visit our website at www.cra-arc.gc.ca or contact 1-888-592-6869.

For more information on this or other CRA news releases, please visit the CRA web site:
http://www.cra-arc.gc.ca/newsroom/releases/2007/march/nr070305-e.html

Ontario deficit $1.6 billion

In a news release from the Government of Ontario, September 27, 2005, the Ontario government released its financial statements for 2004-05 indicating that it has reduced its deficit to $1.6 billion, down from $5.5 billion in 2003-04.

The news release can be found at:
http://www.fin.gov.on.ca/english/media/2005/nr09-pa.html

Ontario Budget 2005

Yesterday the McGuinty Liberal government unveiled its second budget. The Budget contains no new taxes but delays balancing the provincial budget to 2008-09 although the deficit may be eliminated a year earlier if the reserve is not required. Highlights of the Ontario Budget 2005 include:

- $6.2 billion more will be spent on postsecondary education and training between now and 2009-10 including:

-- increased financial aid for low- and middle-income students;
-- increasing the number of college and university students enrolled in postsecondary education;
-- expanding new first-year medical education spaces by 15 per cent; and
-- increasing the number of new apprentices to 26,000 annually by 2007-08.

- more doctors and nurses, reducing wait times and keeping people healthy

- strengthening Ontario's economy through critical investments in infrastructure and innovation, including a five-year, $30 billion infrastructure plan for roads, transit, hospitals, schools, colleges and universities, more affordable housing and a proposed Research Council of Ontario.

More information on the Ontario budget can be found at the Ontario Budget 2005 Home

Farmer ID & Retail Sales Tax Exemption

The Government of Ontario has release information regarding the use of a Farmer ID Card to Claim an Exemption from Retail Sales Tax.

"This notice explains how farmers may, effective April 1, 2005, use a Farmer Identification (ID) card issued by a general farm organization (GFO) in lieu of a Purchase Exemption Certificate (PEC) to make eligible purchases exempt from Retail Sales Tax (RST)."

For more information, see:
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_41514_1.html

Ontario Small Business Guide

The Government of Ontario has announced an updated Small Business Guide which will guide you through various aspects of Retail Sales Tax, Corporations Tax, and Employer Health Tax.

Information about this guide is available at:
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_24414_1.html

Rae Review Gets a Failing Grade from CTF

According to the Canadian Taxpayers Federation's Provincial Director, Tasha Kheiriddin, taxpayers should be worried by former Premier Bob Rae's recommendations for a substantial hike in spending on post-secondary education.

As the Ontario government forecasts a deficit of over $2 billion, the CTF asks where the extra $1.8 billion over the next two years will come from: higher taxes or higher debt?

Read more at:
http://www.taxpayer.ca/main/news.php?news_id=1912