Canada Revenue Agency

Canada Revenue Agency

June 04, 2015 12:50 ET

Minister Findlay Highlights Government of Canada Collaboration with Business and Payroll Administrators

Minister Findlay promotes Economic Action Plan 2015 measures during keynote address at the Canadian Payroll Association's 33rd Annual Conference and Trade Show

QUÉBEC CITY, QUEBEC--(Marketwired - June 4, 2015) - Canada Revenue Agency

The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, highlighted Economic Action Plan 2015 measures to reduce red tape and support small businesses during a keynote address at the Canadian Payroll Association's (CPA) 33rd Annual Conference and Trade Show.

The CPA is also an active member of the Underground Economy Advisory Committee established by Minister Findlay in 2014. Minister Findlay announced a revised three-year strategy to combat the underground economy in November 2014. Building on this strategy, Economic Action Plan 2015 proposes an additional $118.2 million over five years to expand the Canada Revenue Agency's (CRA) Underground Economy Specialist Teams.

The CPA is an important and longstanding partner of the Government of Canada. It serves as co-chair of the Federal Government Relations Advisory Council, which has been very successful in helping the Government cut red tape, saving tens of millions of dollars, including the increase in payroll remittance thresholds in 2014, which saves employers 800,000 transactions per year.

Minister Findlay also highlighted the increase to the Tax-Free Savings Account (TFSA) annual contribution limit, from $5,500 to $10,000 effective January 1, 2015, proposed as part of Economic Action Plan 2015. While the TFSA increase is subject to parliamentary approval, the CRA, as is its standard practice, is administering the proposed change on the basis of the Ways and Means Motion.

Quick Facts

  • The Government of Canada has introduced over 90 measures, including measures introduced in Economic Action Plan 2015, to improve the integrity of the tax system.
  • For a small business with taxable income of $500,000, the reduction in the small business income tax rate and other tax relief measures introduced since 2006 will result in a federal tax reduction of 46%.
  • Partnerships like the one with the Canadian Payroll Association provide valuable feedback on CRA services, and the CRA consults regularly with the business community. Last fall, the Agency held more than 45 consultation sessions in more than 20 cities across Canada to identify opportunities for further red tape reduction. A report on these consultations is expected in the spring of 2015.
  • According to the Canadian Payroll Association, Canada's 1.5 million employers count on payroll professionals to annually pay $865 billion in wages and taxable benefits, $290 billion in federal and provincial statutory remittances, and $163 billion in health and retirement benefits, as well as produce 26 million T4s, 9 million T4As, and 7 million RL-1s - all while complying with over 190 regulatory requirements. (Source: Canadian Payroll Association).
  • The Canadian Payroll Association influences the payroll compliance processes of 20,000 members with 40,000 payroll staff, who manage the payrolls of some 500,000 small, medium, and large employers.

Quotes

"Our Government recognizes that a well-functioning tax system is essential to keep Canada positioned as an attractive place to work, invest, and do business. Ongoing collaboration with organizations like the Canadian Payroll Association is key to ensuring we meet our goals to protect the integrity of the tax system, cut red tape, and keep taxes low for businesses and for all Canadians."

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

"Economic Action Plan 2015 introduced important investments to combat the underground economy, offshore tax evasion, and aggressive tax avoidance to ensure a level playing field for all Canadians. It also proposes further tax cuts for small business and other support measures to help businesses remain competitive, focus on growing their business, employing Canadians, and supporting our economy."

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

"Collaborating with the CRA, through our Federal Government Relations Advisory Council, provides a two-way forum for more efficient and effective payroll compliance for all stakeholders: employers, government and employees. We provide our authoritative regulatory knowledge to identify ways to increase employer compliance and reduce red tape. I look forward to the continued cooperation between the Canadian Payroll Association and the CRA."

Patrick Culhane, President, Canadian Payroll Association

Associated Links

Canadian Payroll Association

Economic Action Plan 2015

Reducing Participation in the Underground Economy - Canada Revenue Agency 2014-2015 to 2017-2018.

Underground Economy

Red Tape Reduction

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    Canada Revenue Agency
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