Canada Revenue Agency

The Canada Revenue Agency (CRA; French: Agence du revenu du Canada; ARC), known as the Canada Customs and Revenue Agency previously and as Revenue Canada before that, is a Canadian federal agency that administers tax laws for the Government of Canada and for most provinces and territories, international trade legislation, and various social and economic benefit and incentive programs delivered through the tax system.[2] It also oversees the registration of charities in Canada, and tax credit programmes such as the Scientific Research and Experimental Development Tax Credit Program.

Canada Revenue Agency
Agence du revenu du Canada
Connaught Building

The Connaught Building, home of the Canada Revenue Agency
Agency overview
FormedDecember 2003
Preceding
TypeAgency responsible for administering tax, benefits, and related programs, and ensuring compliance on behalf of governments across Canada
JurisdictionCanada
HeadquartersThe Connaught Building
45°25′35″N 75°41′41″W / 45.42639°N 75.69472°W
Employees40,000[1]
Minister responsible
Websitewww.cra.gc.ca

History

The Canada Revenue Agency was known as the Canada Customs and Revenue Agency (CCRA) until a federal government reorganization in December 2003, when customs enforcement was moved into the Canada Border Services Agency, part of the Public Safety Canada portfolio.

The CCRA was short-lived, having been created in a November 1999 reorganization of the federal government, where it had been known for many years under its statutory name, the Department of National Revenue. Before 1927, it was known as the Department of Inland Revenue. It was also referred to as Revenue Canada under the Federal Identity Program of the Treasury Board of Canada.

Structure

Commissioner

The Commissioner and Chief Executive Officer is the head of the agency and its Board of Management, consisting of 15 members, 11 of whom are nominated by the provinces and territories.[3] The current Commissioner and Chief Executive Officer of CRA is Bob Hamilton, appointed on August 1, 2016.[4]

List of CRA Commissioners and Appointment Dates

Name Date Appointed
Bob Hamilton August 1, 2016
Andrew Treusch December 1, 2012

Head office

The head office is in Ottawa and is responsible for budgeting, planning, training of managers, rulings, reporting to the minister, and other high level functions. The CRA is divided into 5 regions for administrative purposes, including Atlantic, Quebec, Ontario, Prairie, and Pacific. Each region has a few tax services office, which carry out field works, such as audit and collections.

Tax services office (TSO)

TSOs are the field offices of the CRA. Their functions mainly include audit and collections.

Taxation centre (TC)

TC is responsible for processing tax returns and conduct limited reviews of the returns filed. Canada has 7 TC, including Jonquière Tax Centre, Shawinigan-Sud Tax Centre, St. John's Tax Centre, Sudbury Tax Centre, Summerside Tax Centre, Surrey Tax Centre, and Winnipeg Tax Centre.

Unions

Most of the executives and managers are not represented by unions. Many CRA employees are represented by Union of Taxation Employees, which is a component of Public Service Alliance of Canada. Auditors, investigators and computer systems employees are represented by Professional Institute of the Public Service of Canada.

Processing of tax returns

The Canadian tax system is based on mandatory compliance or self-assessment system. Every taxpayer is obligated to file their tax returns on time. Penalties are imposed if returns are filed late; any outstanding amounts owed are also subject to penalties and daily compounded interest, with no reprieve. The CRA processes most tax returns with very limited review and promptly issues a Notice of Assessment. The Notice of Assessment is a legal document and provides a summary of each entity's income, credits and deductions. If a taxpayer disagrees with an assessment, they may file an appeal which may lead to challenging the assessment in tax court. Once a tax return is assessed, it may be subject to review. In some cases, a tax return could be reviewed before being assessed.

Income tax returns

A resident of Canada is required to file an income tax return every year. Non-residents may have to file a tax return under certain circumstances. An individual files a T1 return; a corporation files a T2 return; a trust files a T3 return. A trust is not an entity in common law but treated as a taxable entity by the Income Tax Act. A legal representative of an estate of a deceased person may have to file a T3 return for the estate if it has properties that has not been distributed. Unlike US, a family can not file a joint return under the Canadian tax law. A partnership is not taxable entities for income tax purposes and its income is taxed in the hands of its partners.

An individual taxpayer can file their T1 return by paper, or using netfile. A software program, provided by commercial vendors and not the CRA, is required to netfile. Accountants and paid preparers usually use efile method, which requires registration with CRA and not available for individuals filing their own tax return.

Many benefits, such as Canada Child Benefit (CCB), are determined by the income reported on the T1 returns. If returns are not filed, benefits will be unavailable. Registered Retirement Savings Plan (RRSP) contribution room also depends on the taxpayer's reported income.

T1 returns are due April 30 for most taxpayers. If one has self-employed income, they could file the return by June 15, but the interest on their tax owing starts accruing after April 30.

A taxpayer could file the return themselves or get an accountant/paid preparer to file it for them. Every taxpayer is responsible for their tax liabilities, not the preparer. If a tax return is audited and a larger tax bill is the result, the taxpayer is responsible, not the preparer.

Employees normally have income tax withheld on each pay cheque by their employers, who remit the tax withheld together with payroll taxes to the CRA. Contractors (and most pensioners) are normally required to pay instalments for income tax to CRA during the year. Once a tax return is filed, a tax refund will be available if the tax withheld or the instalments are more than tax owing calculated on the tax return. If the tax return results in a balance due, it must be paid in full by the due date or interest will accrue daily.

GST/HST returns

GST/HST is governed by Excise Tax Act, which requires many entities to register for a GST/HST account and remit GST/HST collected. These entities include sole-proprietors, partnerships, corporations, etc. Not-for profit organizations are normally exempt for income tax purposes but not for GST/HST purposes. Even universities and hospitals are required to register for GST/HST.

GST/HST returns are due monthly, quarterly, or annually depending on the volume of sales. If sales are less than $30k per year, a business may qualify as smaller suppliers, who are not required to register for GST/HST.

Payroll tax returns

An employer is required to withhold income tax and payroll taxes, such as CPP & EI, and to remit the withheld amount to CRA monthly, quarterly, or annually depending on the amount of withholding. By the end of every February, an employer is required to file a T4 return, that is, a T4 summary for total wages paid by the business, and T4 slips for wages paid to each employees, to CRA.

Collection of taxes

CRA collects income tax, excise tax, payroll tax, etc. GST/HST is governed by Excise Tax Act. CRA does not collect provincial taxes, such as sales tax and gas tax, or municipal taxes, such as property tax. CRA does have agreements with some province to collect outstanding debts for provincial programs. For example, CRA could use personal income tax refund to offset outstanding debts to BC medical program if so requested by the Province of BC.

Income tax

The Canada Revenue Agency collects most individual income taxes in Canada. Quebec residents must file their income taxes to both the CRA and Revenu Québec. Tax collection from provincial corporations in Canada is administered by the CRA except for the provinces of Alberta and Quebec. Ontario administered corporate taxes for fiscal years up to 2008. As of January 1, 2009, the CRA collects Ontario corporate tax.[5]

Goods and Services Tax (GST)

The Canada Revenue Agency collects the Goods and Services Tax (GST) (the Canadian federal value added tax) of 5% in all provinces. In Quebec, under an agreement with the federal government, Revenu Québec administers the GST to businesses, and administers Quebec's own Quebec Sales Tax (QST). The Goods and Services Tax was introduced in 1991 at 7% added to the value of most sales of goods and services. The GST was reduced to 6% in 2006 and 5% in 2008, the current rate.

Harmonized Sales Tax (HST)

In Prince Edward Island, New Brunswick, Newfoundland and Labrador, Nova Scotia and Ontario the Goods and Services Tax (GST) has been replaced by the Harmonized Sales Tax (HST). The Harmonized Sales Tax combines the national GST and the provincial sales tax into a single tax. The HST is administered by the CRA. Each province that has Harmonized Sales Tax receives its portion of the HST from the CRA.

In 2013, British Columbia removed HST after public protests against the newly taxed items under HST that were not taxed under the PST/GST system.

Administration of benefits

CRA administers many benefit programs. Most notable benefits to Canadian families is the Canada child benefit (CCB). CRA also manages many programs on behalf of the provinces. Personal income tax returns are generally required to be filed before any benefits could be paid.

CCB

Canada child benefit (CCB) is non-taxable income for taxpayers. It ties to a taxpayer's family income, which could include the income for a taxpayer's spouse. It requires all tax returns filed for a taxpayer's family before the amount of benefits could be determined. The rationale is to pay more to low income families so that their kids could grow up healthy. A prescribed form has to be filed to get this benefit. CCB was implemented in July 2016, and combines pre-2016 benefit programs (UCCB and CCTB) as well as other child-related credits.

Compliance programs

CRA has a large army of auditors working on audit files. Most of the time, the outcome of an audit results in a reassessment, that is, a taxpayer under audit will get a tax bill. The tax bill not only includes tax payable but also could include penalties and interest. An audit may result in jail time.

A few audit files will be referred to Investigations. The outcome of an investigation would very likely result in criminal charges and possible jail time. A taxpayer under investigation is protected by Charter of Rights and could remain silent as it is up to the investigator to make the case and lay the charges.

Audits

The agency performs audits to ensure compliance with tax laws. Auditors have the right to examine the books and records of a taxpayer, examine the property in an inventory of a taxpayer, enter the taxpayer's premises or place of business, require the owner or manager of a property to give all reasonable assistance and to answer questions, and require a taxpayer or other person to provide information or documents.[6] Taxpayers must cooperate with auditors or face obstruction charges under S. 238 of the Income Tax Act.[6]

Income tax audit could be done by Tax Centres (TC) and Tax Service Offices (TSO). TC conducts some very limited reviews of the tax returns filed, such as pre-assessment review of donations and tuition fees, post-assessment review of medical expenses and moving expenses. Most audits are conducted by auditors working in TSO. Auditors working in office audit program normally restrict their audit to business expenses reviews. They conduct their audit by correspondence and do not visit business in the field. Auditors working the SME (Small and Medium Enterprises), basic file, and large file programs conduct their audits in the fields, normally at the taxpayer's place of business. The audit of these field auditors are not restricted and could cover many and any issues in a tax return.

GST/HST audits are done by TSO. Prepayment program deals only with a credit return, that is, a GST/HST return that requests a refund. The prepayment audit is a restricted audit of Input Tax Credits (ITCs). Post audit is a full audit of GST/HST returns and that covers not only ITC but also GST/HST collected.


Net Worth Audits: When an auditor feels as though they cannot rely upon the books and records of the taxpayer being audited, they can avail themselves of the Net Worth methodology. In this method, rather than auditing the actual books and records of the taxpayer, the auditor calculates the difference between the taxpayer's net worth (assets less liabilities) at the beginning of the audit period and at the end of the audit period. The auditor then adds to the change in net worth (an increase or decrease), the cost of living for the taxpayer for the period in question. The sum of these two figures will be used by the auditor to determine the taxable income for the taxpayer over the audit period. This figure is in turn compared to the figure reported by the taxpayer. While this methodology is widely used, the CRA Auditor's manual indicates that it is a method of last resort, which should only be used in limited circumstances.

Investigations

CRA operates four investigation programs: Voluntary Disclosures Program, Informant Leads Program, Special Enforcement Program and Criminal Investigations Program.[7]

  • Voluntary Disclosures Program (VDP): A program that allows taxpayers to avoid penalty or prosecution if they choose to correct inaccurate or incomplete information, or to disclose information previously withheld to CRA. In order to be accepted into this program, the taxpayer's action or omission must involve the application, or potential application of a penalty by CRA and he/she is willing to make a complete disclosure.[8][9]
  • Informant Leads Program (ILP): This program allows for citizens to report individuals or businesses who may be committing tax evasion or other tax-related offences.
  • Special Enforcement Program (SEP): As proceeds of crime are taxable,[10] this program specifically conducts audits and undertake other civil enforcement actions on individuals known or suspected of deriving income from illegal activities.[11] Collections Officers are responsible for collecting taxes owed and to seize assets under the Income Tax Act.[10] The program was eliminated after the 2012 federal budget cut.[12]
  • Criminal Investigations Program (CIP): Investigators from this program are responsible for suspected cases of tax evasion, fraud and other serious violations of tax laws.[13] Criminal Investigators are given badges and can only exercise investigative power in compliance with the Canadian Charter of Rights and Freedoms.[6][14]

CPP/EI rulings

CRA is responsible for making CPP/EI rulings, that is, to determine whether any wages or payments are insurable under Canadian Pension Program and/or Employment Insurance program. The substance of a ruling is to determine whether an individual is an employee or a self-employed contractor. An employee can get EI benefits and contractor cannot. Normally, CPP/EI rulings are requested by Service Canada when they try to determine whether EI benefits should be paid out.

Arbitrary assessments

If a taxpayer does not file a tax return on time, CRA may first send a request, like a reminder, to the taxpayer asking them to file the outstanding return. This first letter is called TX11. If the taxpayer still not file the return, CRA may send a second letter demanding that the return be filed. This second letter is called TX14. After that, a third letter, TX14D, could be issued, normally by registered mail, or could be delivered personally by a non-filer officer.

If a return is not filed after the computer generated letters, such as TX11 and TX14, a non-filer officer could arbitrarily prepare a tax return for the taxpayer, normally generating a larger tax bill than what the taxpayer would expect. A notice of assessment under subsection 152(7) of the Income Tax Act will be issued. This 152(7) assessment is commonly known as an arbitrary assessment. Collection actions may follow. The taxpayer could file an amended tax return to reduce the tax bill. Once amended returns are filed, an audit is normally triggered.

If a non-filer officer determines that insufficient info is available for issuing an arbitrary assessment, they may refer the file to Investigations, who would then take the taxpayer to court. The taxpayer maybe ordered by court to file the outstanding return, normally being imposed a court fine. If the taxpayer ignore the court order, they will be subject to contempt of court charges.

Dispute resolution

Appeal process

Taxpayers who believe the Canada Revenue Agency has not assessed the correct amount of tax may dispute the assessment by filing an objection. There are strict timelines for filing an objection. The objection will be reviewed by the Appeals program of CRA. An appeal officer will make a decision independent of audit. The appeal officer could confirm, vary, or vacate an audit. The appeal officer has the discretion to negotiate a settlement, normally under the condition that the taxpayer will not appeal further to the tax court.

If, after the objection has been assessed, the taxpayer is still dissatisfied, an appeal may be made to the Tax Court of Canada within the permitted time. The Tax Court examines the taxpayer's claim and evidence, then looks at the evidence and arguments made by the government before passing judgment. The CRA becomes a witness for the purpose of providing evidence in tax court. Like any other Canadian court, Tax Court operates by treating each side of a dispute as equals while applying tax law, administrative law, constitutional law and the laws of evidence. In the event the taxpayer feels there has been a clear error in assessment, he or she is encouraged to use the Tax Court of Canada as an accessible way of resolving disputes. In addition, the taxpayer is not responsible for costs in relation to their opponent, but only for their costs related to their own defense. In the event the appeal is successful, however, a repayment of costs from the CRA may be sought.

Tax court deals with income tax, excise tax, and CPP/EI issues. If a tax return has no tax payable, tax court could not deal with it. If it is about a provincial tax, tax court could not deal with it and it has to be resolved in a provincial court.

Tax court has two procedures, informal and general. The informal procedure is cheap and fast. A taxpayer could represent themselves or get a friend or accountant in the informal procedure. Informal procedures only deal with assessments to certain threshold and a taxpayer has to elect to take this route. Decisions from informal procedures are not precedent setting and the judge has more discretion than in general procedures. informal procedures allow limited appeal rights to a higher court. General procedures deal with all assessments and require a taxpayer either to represent themselves or get a lawyer. General procedures could drag on for years and the decisions are precedent setting.

If a taxpayer is still not happy about the tax court decision, they could take it to the federal court of appeals, or even further to the Supreme Court of Canada.

Service complaint process

Taxpayers aggrieved by the conduct of the Canada Revenue Agency may file a Service-Related Complaint with the CRA. This complaint must deal strictly with the service provided, not the legal aspect of the service. (For example, a service level complaint may be raised for unprofessional language, but not for a request for payment under the law.)

The complaint is first passed to the office that is the subject of the complaint. If the taxpayer is not satisfied with the way the first office handles it, they may escalate the complaint to the regional office, which investigates the complaint and contacts the taxpayer. If the taxpayer remains unsatisfied, a complaint may be made to the Taxpayer Ombudsman.

Taxpayer Bill of Rights

In 2007, the Government of Canada announced in Parliament the Taxpayer Bill of Rights and the Commitment to Small Business. Today, the Taxpayer Bill of Rights contains sixteen rights, including the right for taxpayers to make complaints about the service they receive from the CRA.

Taxpayers' Ombudsman

The Taxpayers' Ombudsman is appointed by order in council with a mandate to assist, advise, and inform the Minister of National Revenue about any matter relating to services provided to a taxpayer by the Canada Revenue Agency (CRA).

In fulfilling this mandate, the Ombudsman reviews complaints from taxpayers that report breaches of their service-related rights by the CRA. The Ombudsman upholds the eight taxpayer service rights in the Taxpayer Bill of Rights that are directly related to the services delivered by the CRA. To uphold these rights, the Office of the Taxpayers' Ombudsman facilitates access to the available redress mechanisms for taxpayers and raises awareness of the role of the office and the Taxpayers' Ombudsman.

In addition to individual examinations, the Ombudsman may, on its own initiative, conduct an examination of systemic service-related issues. The Minister of National Revenue may also request the Ombudsman conducts an examination.

Examinations are reported to the Minister of National Revenue and published for the public's review. Each year, the Ombudsman releases an annual report that is presented to the Minister of National Revenue for presentation to Parliament.

Remission order

Remission orders are not commonly known and rarely granted. If a taxpayers agree to a tax assessment but are unable to pay, they could request a remission order to CRA. CRA will make recommendation to the minister, who then recommend to the Governor in Council. The Governor in Council may grant a remission order where the governor thinks the collection of tax is unjust.

2016 Auditor General Report

In 2016, the Financial Post reported that Michael Ferguson, the Auditor General of Canada, criticized the Canada Revenue Agency saying that it takes too long to respond to tax complaints. The delays cost Canadian taxpayers large sums of money in interest on the amounts in dispute.[15]

Taxpayer relief provisions

Taxpayer relief used to be called fairness programs. It is governed by subsection 220(3.1) of the Income Tax Act and section 281.1 of the Excise Tax Act. It gives CRA the direction to cancel some penalties and interest, to pay out personal income tax refund after 3 years of the tax return being assessed, and to accept late-filed elections. CRA will exercise their discretion when late filing is caused by extraordinary circumstances, such as flood or earthquake, by CRA delay or error, or by financial hardship. CRA published an Income Tax Information Circular, IC07-1, on this subject.

A taxpayer may request relief on a prescribed form or may elect use a letter instead provided the points raised on the form are all covered by the letter. If the request is denied, a taxpayer could request a second review, which will be done by a higher rank official. If the request is still denied, a taxpayer could request a judicial review of the decision in the federal court, not tax court. The federal court will determine whether CRA exercises its discretion reasonably. If not, the court will send the file back to CRA for reconsideration. The court rarely will make a decision for CRA because the discretion is with CRA and not the court. If a taxpayer is not happy with the judicial review decision, they could take it to the federal court of appeals.

Call centre operations

On February 8, 2015, the Canadian Broadcasting Corporation reported that an internal survey determined that one of every four calls asking for help from the Canada Revenue Agency's call centres gets bad information in regards to business.[16]

See also

References

  1. ^ "Working with us". Cra-arc.gc.ca. 2012-04-26. Retrieved 2013-08-04.
  2. ^ "Structure and operational framework". Canada Revenue Agency. Retrieved 2019-02-08.
  3. ^ "Board of Management". Cra-arc.gc.ca. 2011-09-12. Retrieved 2013-08-04.
  4. ^ "Commissioner of the CRA - Biography". Cra-arc.gc.ca. Retrieved 2013-08-04.
  5. ^ "Single Administration of Ontario Corporate Tax". Canada Revenue Agency. 2009-03-20. Retrieved 2009-06-05.
  6. ^ a b c CRIMINAL LAW, REGULATION & ENFORCEMENT NEWSLETTER - Miller Thomson LLP
  7. ^ "Enforcement and Disclosures". Cra-arc.gc.ca. 2013-04-15. Archived from the original on 2013-08-08. Retrieved 2013-08-04.
  8. ^ Voluntary Disclosures Program Archived November 9, 2011, at the Wayback Machine
  9. ^ "Come to us, before we go to you". Cra-arc.gc.ca. 2010-01-20. Retrieved 2013-08-04.
  10. ^ a b "Proceeds of Crime Are Taxable". Cra-arc.gc.ca. 2006-11-23. Retrieved 2013-08-04.
  11. ^ Special enforcement audits Archived November 13, 2011, at the Wayback Machine
  12. ^ Revenue Canada issues run deeper than Mafia cheque: ex-staff
  13. ^ "Criminal investigations". Cra-arc.gc.ca. 2013-05-21. Archived from the original on 2013-08-09. Retrieved 2013-08-04.
  14. ^ "CRA criminal investigators given badges". Cra-arc.gc.ca. 2007-03-28. Archived from the original on 2013-08-09. Retrieved 2013-08-04.
  15. ^ http://news.nationalpost.com/news/canada/canadian-politics/auditor-general-says-canada-revenue-agency-takes-too-long-to-respond-to-tax-complaints-and-its-costing-us
  16. ^ http://www.cbc.ca/news/politics/revenue-canada-s-call-centres-giving-bad-tax-advice-report-1.2946998

External links

Alberta Agenda

The Alberta Agenda is a loosely organized political movement initiated by a letter written by prominent Albertans, including future Prime Minister Stephen Harper and 2006 Alberta PC leadership candidate Ted Morton, urging Albertan Premier Ralph Klein to fully exercise Alberta's constitutional powers. The letter was published by the National Post on January 27, 2001, in the wake of the Alberta-based Canadian Alliance's defeat in the 2000 Canadian federal election.

The letter has been referred to as the Firewall Letter from its use of the phrase "build firewalls around Alberta," a reference to the computer software programs which block unwanted intrusions from outside sources. Its main recommendations were:

Allowing the province's contract with the Royal Canadian Mounted Police to expire in 2012, establishing a provincial police force to take the RCMP's place. Alberta had a separate police force from 1917 until 1932.

Withdrawal from the Canada Pension Plan and establishing a separate Alberta Pension Plan. Many Albertans believe that given the province's youthful demographics, staying in the CPP makes little sense since a separate "APP" would provide higher benefits for a lower premium.

Separate collection of the province's income tax, as opposed to letting the Canada Revenue Agency handle tax collection. Alberta already collects its own corporate tax.Klein personally responded to the letter, but rejected implementing the authors' requests for the duration of his premiership.

The Alberta Agenda should not be confused with Alberta separatism.

Calgary Dollar

Calgary Dollars is a local currency in Calgary, Alberta, Canada. While functioning as a limited form of currency within Calgary, it is not legal tender nor is it backed by a national government. Instead, the currency is intended as a tool for community economic development as well as a focus for community building and local resiliency.

Canada Customs and Revenue Agency

Canada Customs and Revenue Agency (CCRA) (French: Agence des douanes et du revenu du Canada—ADRC) was a department of the government of Canada and existed from November 1, 1999 until December 12, 2003. It was created from the merging of Revenue Canada with Canada Customs. During the 1976 Summer Olympics in Montreal, QC, the department was called the Department of National Revenue Customs and Excise.

The CCRA was subsequently split into:

Canada Border Services Agency

Canada Revenue Agency

Canadian Centre for Policy Alternatives

The Canadian Centre for Policy Alternatives (CCPA) is an independent and non-partisan think tank policy research institute in Canada. It has been described as "left leaning".It concentrates on economic policy, international trade, environmental justice and social policy. It is especially known for publishing an alternative federal budget on an annual basis. The CCPA claims that its estimates of budgetary surpluses have consistently been more accurate than those of the government. The CCPA is a registered charity with the Canada Revenue Agency, and it reported $5.6 million in revenues in 2013. Think tanks such as the CCPA, C.D. Howe Institute, Macdonald-Laurier Institute, Fraser Institute and Montreal Economic Institute have charity status in Canada through their work in the advancement of education. The CCPA is based in Ottawa but has branch offices in Vancouver, Winnipeg, Regina, Toronto and Halifax. It is funded primarily through individual donations, but also receives research grants, and has institutional support from trade unions.

Canadian Lacrosse Association

The Canadian Lacrosse Association (CLA; French: l'Association canadienne de crosse), founded in 1867, is the governing body of lacrosse in Canada. It conducts national junior and senior championship tournaments for men and women in both field and box lacrosse. National teams also participates in the World Indoor Lacrosse Championship and World Lacrosse Championship.

In a tax law dispute, the association had its status as a registered amateur athletic association stripped by the Canada Revenue Agency on June 7, 2010.

E-file

E-file may refer to:

Canadian efile, an electronic tax filing system of Canada Revenue Agency for professional tax preparers

E-file, or electronic court filing, a system for automated transmission of legal documents

e-file.lu, a website for communication between financial institutions and regulators in Luxembourg

E-FILE, a trademark filed by Sony Corporation in 1986

IRS e-file, an electronic tax filing system of the United States Internal Revenue Service

Electronic tax filing

Electronic tax filing, or e-filing, is a system for submitting tax documents to a revenue service electronically, often without the need to submit any paper documents.

Electronic tax filing may refer to:

IRS e-file, a United States system for federal income tax

NETFILE, a Canada Revenue Agency system for consumers

EFILE, a Canada Revenue Agency system for professional tax preparers

Goods and services tax (Canada)

The Goods and Services Tax (GST) (French: taxe sur les produits et services, TPS) is a multi-level value added tax introduced in Canada on January 1, 1991, by then-Prime Minister Brian Mulroney and his finance minister Michael Wilson. The GST replaced a hidden 13.5% manufacturers' sales tax (MST); Mulroney claimed the GST was implemented because the MST was hindering the manufacturing sector's ability to export competitively. The introduction of the GST was very controversial. The GST rate is 5%, effective January 1, 2008.

The Goods and Services Tax is defined in law at Part IX of the Excise Tax Act. GST is levied on supplies of goods or services purchased in Canada and includes most products, except certain politically sensitive essentials such as groceries, residential rent, and medical services, and services such as financial services. Businesses that purchase goods and services that are consumed, used or supplied in the course of their "commercial activities" can claim "input tax credits" subject to prescribed documentation requirements (i.e., when they remit to the Canada Revenue Agency the GST they have collected in any given period of time, they are allowed to deduct the amount of GST they paid during that period). This avoids "cascading" (i.e., the application of the GST on the same good or service several times as it passes from business to business on its way to the final consumer). In this way, the tax is essentially borne by the final consumer. This system is not completely effective, as shown by criminals who defrauded the system by claiming GST input credits for non-existent sales by a fictional company. Exported goods are "zero-rated", while individuals with low incomes can receive a GST rebate calculated in conjunction with their income tax.

In 1997, the provinces of Nova Scotia, New Brunswick and Newfoundland (now Newfoundland and Labrador) and the Government of Canada merged their respective sales taxes into the Harmonized Sales Tax (HST). In all Atlantic provinces, the current HST rate is 15%. HST is administered by the Canada Revenue Agency, with revenues divided among participating governments according to a formula. Ontario and British Columbia both harmonized the GST with their provincial sales tax (PST) effective July 1, 2010. However, the British Columbia HST was defeated in an August 2011 mail-in referendum by a 55% majority vote, and was converted to the old GST/PST system effective April 1, 2013. On the same day, Prince Edward Island enacted HST at the rate of 14%. In Ontario, the HST totals 13%, however many of the pre-HST exemptions remain affecting only the provincial portion of the HST (for example, prepared food under $4.00 is not subject to the provincial portion of HST and is only taxed at 5%). On the other hand, some items that were only subjected to the PST are now charged the full HST (i.e., 13%). Although the Government of Ontario has made efforts to provide documentation as to what items are affected and how, this causes some confusion for consumers as they are often not sure what taxes to expect at the checkout. To accommodate these exemptions, many retailers simply display each tax individually as HST 1 and HST 2 (or some variant). The move to HST came about as part of Ontario's 2009 provincial budget. Only three provinces (British Columbia, Manitoba, and Saskatchewan) continue to impose a separate sales tax at the retail level only. Alberta is the exception, not imposing a provincial sales tax.

The three territories of Canada (Yukon, Northwest Territories and Nunavut) do not have territorial sales taxes. The government of Quebec administers both the federal GST and the provincial Quebec Sales Tax (QST). It is the only province to administer the federal tax.

Health and welfare trust

A Health and welfare trust (HAWT) or Health and welfare plan (HAWP) is a tax-free vehicle for financing a corporation's healthcare costs for their employees. They were introduced in 1986 by Canada Revenue Agency (CRA) in their interpretation bulletin entitled IT-85R2. Many companies offer this product to Canadian employers.

Income taxes in Canada

Income taxes in Canada

constitute the majority of the annual revenues of the Government of Canada, and of the governments of the Provinces of Canada. In the fiscal year ending 31 March 2018, the federal government collected just over three times more revenue from personal income taxes than it did from corporate income taxes.Tax collection agreements enable different governments to levy taxes through a single administration and collection agency. The federal government collects personal income taxes on behalf of all provinces and territories. It also collects corporate income taxes on behalf of all provinces and territories except Alberta. Canada's federal income tax system is administered by the Canada Revenue Agency (CRA).

Canadian federal income taxes, both personal and corporate are levied under the provisions of the Income Tax Act. Provincial and territorial income taxes are levied under various provincial statutes.

The Canadian income tax system is a self-assessment regime. Taxpayers assess their tax liability by filing a return with the CRA by the required filing deadline. CRA will then assess the return based on the return filed and on information it has obtained from employers and financial companies, correcting it for obvious errors. A taxpayer who disagrees with CRA's assessment of a particular return may appeal the assessment. The appeal process starts when a taxpayer formally objects to the CRA assessment. The objection must explain, in writing, the reasons for the appeal along with all the related facts. The objection is then reviewed by the appeals branch of CRA. An appealed assessment may either be confirmed, vacated or varied by the CRA. If the assessment is confirmed or varied, the taxpayer may appeal the decision to the Tax Court of Canada and then to the Federal Court of Appeal.

Jennifer O'Connell

Jennifer O'Connell is a Canadian Liberal politician, who was elected to represent the riding of Pickering—Uxbridge in the House of Commons of Canada in the 2015 federal election.

O'Connell attended the University of Toronto, where she earned a degree in political science. She then clerked at a law firm specializing in labour relations, and became involved in municipal politics in Pickering. In 2006, she was elected to the city council representing Ward 1. She was re-elected in 2010 and 2014, and at the time of her election to the House of Commons was serving as the city's deputy mayor. In March 2014 she had been approached by the local Liberal riding association about serving as their candidate in the upcoming federal election, and initially declined, intending to focus on her re-election at the municipal level. Following the municipal elections in October 2014, she was approached again, and agreed to seek the nomination, which she won in January 2015.During her time on Pickering and Durham Region Council, O’Connell was a member of the Durham Region Finance and Administration Committee, as well as the Chair of the Waterfront Committee and Vice-Chair of the Sustainable Pickering Committee. She supported and participated in the Great Waterfront Trail Adventure, a six-day cycling ride that spans 475 kilometers, 7 regions and 27 communities from Northumberland to Niagara.

O’Connell was also a volunteer board member at the Durham Association for Family Respite Services (DAFRS), a local organization that provides support to families with a member who has an intellectual disability or a child with a physical disability.

After her victory in the 2015 Federal Election Campaign, O’Connell became a Member of the House of Commons Standing Committee on Finance. Through her role on the committee, O’Connell works on a number of important financial issues affecting her constituents. After the release of the Panama Papers, O’Connell aggressively questioned KPMG and Canada Revenue Agency officials on their roles concerning tax evasion and aggressive tax avoidance schemes.

She claims her concerns focused on the treatment of taxpayers by CRA officials while corporations and wealthy individuals like Stephen Bronfman set up schemes to avoid paying taxes, O’Connell cited her constituents who find themselves in long and costly disputes with the Canada Revenue Agency over a relatively smaller amount of owed taxes.

On the Finance Committee, O’Connell also focuses on affordable housing, infrastructure and accessibility issues, continuing her priorities and passions from her time on Pickering Council.

Minister of Inland Revenue (Canada)

The Minister of Inland Revenue (or Controller of Inland Revenue between 1892 and 1897) was a portfolio in the Canadian Cabinet from 1867 until 1918 when it became the Minister of Customs and Inland Revenue. In 1927, the portfolio became the Minister of National Revenue.

The Department of Inland Revenue later became Department of National Revenue, renamed Revenue Canada and now referred to as Canada Revenue Agency.

Minister of National Revenue (Canada)

The Minister of National Revenue (French: Ministre du Revenu national) is the Minister of the Crown in the Canadian Cabinet who is responsible for the Canada Revenue Agency and the administration of taxation law and collection.

The Department of National Revenue was established in 1927 by expanding the former Department of Customs and Excise with a new facility for the collection of income tax, which had formerly been the responsibility of the Department of Finance.

The department became known as Revenue Canada during the 1970s. It subsequently became the Canada Customs and Revenue Agency in 1999. In 2003, the department was split into the Canada Revenue Agency and the Canada Border Services Agency, with the Minister of Public Safety and Emergency Preparedness taking responsibility for the latter agency.

The current Minister of National Revenue is Diane Lebouthillier.

Ministry of Revenue (Ontario)

The Ministry of Revenue was the ministry in Ontario, Canada responsible for administering most of the province's major tax statutes as well as a number of tax credit, incentive and benefit programs. The ministry was also responsible for managing relationships, particularly with the Canada Revenue Agency, in their administration of provincial taxes and benefit programs on behalf of Ontario. The ministry promoted the integrity of Ontario's self-assessing tax system by encouraging compliance through taxpayer education and customer service, while discouraging non-compliance through enforcement activities.Following the 2011 Ontario general election, the Ministry of Revenue was merged into the Ministry of Finance.

Private foundation

A private foundation is a charitable organization that, while serving a good cause, might not qualify as a public charity by government standards. The Bill & Melinda Gates Foundation is the largest private foundation in the U.S. with over $38 billion in assets. Most private foundations are much smaller. Approximately two-thirds of the more than 84,000 foundations which file with the IRS, in 2008, have less than $1 million in assets, and 93% have less than $10 million in assets. In aggregate, private foundations in the U.S. control over $628 billion in assets and made more than $44 billion in charitable contributions in 2007.Unlike a charitable foundation, a private foundation does not generally solicit funds from the public. And a private foundation does not have the legal requirements and reporting responsibilities of a registered, non-profit or charitable foundation. Not all foundations engage in philanthropy: some private foundations are used for estate planning purposes.

Rainbow Railroad

Rainbow Railroad is a Canadian charitable organization that helps lesbian, gay, bisexual, and transgender (LGBT) individuals escape violence and persecution in their home countries. In the past, they have helped individuals from the Caribbean, Africa, and the Middle East relocate to safer countries in Europe and North America. The organization was formed in 2006, with its name and concept inspired by the Underground Railroad. It received charitable status from the Canada Revenue Agency in 2013, and also maintains a 501(c)(3) organization based in New York City to issue tax receipts to American donors.After the revelations about the anti-gay purges and concentration camps in Chechnya, Rainbow Railroad began to mobilize emergency efforts to help LGBT people get out of the region in collaboration with the Russian LGBT Network.

Registered Retirement Income Fund

A Registered Retirement Income Fund (RRIF) is a tax-deferred retirement plan under Canadian tax law. Individuals use an RRIF to generate income from the savings accumulated under their Registered Retirement Savings Plan. As with an RRSP, an RRIF account is registered with the Canada Revenue Agency.

Social Insurance Number

A social insurance number (SIN) is a number issued in Canada to administer various government programs. The SIN was created in 1964 to serve as a client account number in the administration of the Canada Pension Plan and Canada's varied employment insurance programs. In 1967, Revenue Canada (now the Canada Revenue Agency) started using the SIN for tax reporting purposes. SINs are issued by Employment and Social Development Canada (previously Human Resources Development Canada).

The SIN is formatted as three groups of three digits (e.g., 123-456-789).

The top of the card has changed over the years as the departments that are responsible for the card have changed:

Manpower and Immigration

Employment and Immigration Canada

Human Resources Development Canada

Government of CanadaThe 2012 Canadian federal budget contained provisions to phase out the Social Insurance Number cards because they lacked modern security features and could be used for identity theft. As of 31 March 2014, Service Canada no longer issues plastic SIN cards. Instead, an individual will receive a paper "Confirmation of SIN letter".

Victorian Order of Nurses

The Victorian Order of Nurses (VON) is a non-profit charitable organization founded on January 29, 1897, and based in Ottawa, Ontario, Canada. It was created as a gift for Queen Victoria for the purposes of home care and social services. It is registered as a charity with the Canada Revenue Agency, under charity number 129482493RR0001. Since 2014, the President and CEO is Jo-Anne Poirier.

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