STEINBACH, MANITOBA--(Marketwired - March 21, 2014) - Canada Revenue Agency
The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, accompanied by Ted Falk, Member of Parliament for Provencher, today met with members of the local business community to discuss the Government of Canada's progress on reducing red tape, and the recent improvements that have been made to the Canada Revenue Agency's (CRA) online services. These discussions follow Minister Findlay's meeting with the Winnipeg Chamber of Commerce yesterday, where she was accompanied by Joyce Bateman, Member of Parliament for Winnipeg South Centre.
As part of our Government's Red Tape Reduction Action Plan, the Government of Canada has launched a number of service enhancements and measures to reduce red tape for businesses, including several introduced in Economic Action Plan 2014, which the CRA will implement over the next year:
- In April 2014, the CRA's electronic filing services will be expanded to allow businesses to file amended T2 corporate income tax returns online and representatives for businesses will be able to submit an electronic authorization request to the CRA instead of filing paper forms.
- In October 2014, businesses will be able to update their banking and direct deposit information online, and the first free online option for paying taxes will be available for business owners registered with My Business Account. A detailed payment history for all of their accounts will also be available in one secure and convenient place.
- Our Government is revising remittance thresholds for employer source deductions to reduce the maximum number of payments that businesses are required to prepare and submit to the CRA.
- Economic Action Plan 2014 will simplify tax rules for the lifetime capital gains exemption when certain individuals operate both farming and fishing businesses to allow for more consistent treatment.
- Our Government will continue to build partnerships with the small business community as well as provincial and municipal governments on initiatives such as the CRA's Business Number, the recently announced Liaison Officer Initiative (LOI) pilot project and the proposed Registration of Tax Preparers Program (RTPP), all intended to support taxpayers to more easily manage their tax affairs and "get it right from the start."
In addition, Minister Findlay noted that the recently signed Canada-Korea Free Trade Agreement (CKFTA) will allow Canadian businesses to focus on what they do best: creating jobs and generating wealth in communities across Canada. The CKFTA will create thousands of new jobs in Canada and provide Canadian businesses and workers with a gateway to Asia. It will also level the playing field for Canadian companies competing with Korea's other trading partners, including the United States and the European Union, who already have free trade agreements with Korea.
- Approximately 70 percent of individuals and small businesses use tax preparers to file their taxes. The CRA estimates that there are approximately 100,000 tax preparers in Canada. The CRA's research shows that there continues to be a significant incidence of errors in tax returns. The Registered Tax Preparers Program (RTPP) will help businesses and taxpayers get it right from the start.
- 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 non-compliant tax returns and work with them to correct problems and avoid errors in the future before a tax return is filed.
- In Economic Action Plan 2014, the government renewed its commitment to reduce the tax compliance burden for small and medium businesses and other tax filers by introducing many enhancements to the CRA's online services. Among other new features, businesses will soon be able to manage their banking information online, sign up for pre-authorized debit services through My Business Account, and file amended T2 corporate returns.
- Close to 2.7 million logins were made to My Business Account between April 2012 and March 2013. The number of businesses that are enrolled in My Business Account and have a business number has more than doubled in the last three years.
- Tariff elimination under the CKFTA will be particularly advantageous for Canadian businesses, as average Korean tariffs are three times higher than those in Canada. In Manitoba, this will be particularly beneficial for agricultural and agri-food products, including wheat and pork; industrial products, including nickel, aircraft parts and scientific instruments; improved access for professional services; predictable, non-discriminatory rules for Canadian investors; improved access to South Korea's government procurement market; and strong provisions on non-tariff measures, backed up by fast and effective dispute settlement provisions.
"Small businesses are a cornerstone of our economy, and our government has made it a priority to cut red tape for them so they can focus on growing their business instead of working through paperwork. Meetings with chambers of commerce across the country, and other key stakeholders, gives us better insight into how business owners work and how we can better tailor our services."
The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue
"The Government of Canada has taken significant steps to reduce the tax burden on small and medium-sized businesses, which plays an important role in the long-term economic growth of our region. I am pleased representatives of the local business community had a chance to discuss these important issues with Minister Findlay today, and I look forward to the implementation of the CRA's new service enhancements for businesses."
Ted Falk, Member of Parliament for Provencher
Economic Action Plan 2014
Red Tape Reduction
My Business Account
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