Canada Revenue Agency

Canada Revenue Agency

January 22, 2014 15:30 ET

Harper Government Highlights New Measures to Support Small Business Tax Compliance and Cut Red Tape

SQUAMISH, BRITISH COLUMBIA--(Marketwired - Jan. 22, 2014) - Canada Revenue Agency (CRA)

The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, today addressed local business leaders at the Squamish Chamber of Commerce, highlighting some of the actions the Federal Government has taken to ease the red tape burden on businesses and make tax compliance easier.

Minister Findlay outlined the recently announced three-point plan to improve small and medium-sized business compliance. The three-point plan includes public consultations on a proposed Registration of Tax Preparers Program (RTPP), a pilot of a Liaison Officer Initiative to provide earlier support and clear information to businesses at key points as their business grows, and, when required, focused interventions where the risks of non-compliance are highest.

Building on the recently announced three-point plan, Minister Findlay also reiterated the CRA's red tape reduction commitments to clarify and simplify the information it provides, to communicate more effectively by telephone, and to make it easier for businesses to deal with the CRA electronically.

Quick Facts

  • The number of small and medium-sized businesses in Canada has steadily increased over the past five years to reach approximately five million individual and corporate taxpayers.
  • Approximately seventy percent of individuals and small businesses use tax preparers to prepare and file their tax returns. Tax preparers play a crucial role in Canada's self-assessment system.
  • CRA's research shows that there continues to be a significant incidence of errors in tax returns filed.
  • Under the proposed RTPP, the CRA would register tax preparers who are paid a fee for their services so that the CRA can identify those who are preparing tax returns with errors and work with them, using a strategic compliance approach, to correct problems and avoid errors in the future before a tax return is filed.
  • CRA will be consulting with tax preparers and the tax preparer community until May 2014 on the proposed RTPP.
  • The CRA recently introduced a new online mail service for Canadian businesses, called Manage Online Mail. Canadian businesses can choose to receive their notices of assessment and reassessment electronically, as well as some letters for their corporate and GST/HST accounts.
  • Businesses and their representatives can also ask the CRA specific, tax-related questions online. The CRA will answer them online and in writing, within clearly defined timelines, through the My Business Account enquiries service.
  • The CRA has improved its telephone enquiries services for the business community. All CRA business enquiries agents now identify themselves to the caller, using their first name, a number, and a regional suffix.

Quotes

"The Harper Government is committed to reducing red tape so that businesses can focus on what they do best: growing their business, creating jobs, and stimulating economic growth in communities across the country."

"We firmly believe that promoting a voluntary approach to tax compliance is the most cost-effective way to administer taxes in Canada. It's clear that we need to address the problem by providing better support.
This includes new approaches that emphasize helping taxpayers avoid costly and time-consuming reviews and audits by getting it "right from the start," that is, before a tax return is filed."

- The Honourable Kerry-Lynne D. Findlay P.C., Q.C., M.P., Minister of National Revenue

Associated Links

www.cra.gc.ca/rtpp

http://www.cra-arc.gc.ca/gncy/rdtprdctn/menu-eng.html

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Contact Information

  • Carter Mann
    Press Secretary
    Office of the Minister of National Revenue
    613-995-2960

    Noel Carisse
    Media Relations
    Canada Revenue Agency
    613-952-9184