How does the CRA (Canada Revenue Agency) view the need for you to request information from your clients? You might be curious about a campaign the CRA is launching to increase the number of PSBs (Public Service Business Companies) registered to represent Canadian taxpaying clients. Or you might be interested in the recent changes to the CERS online calculator.
Changes to the CERS online calculator
The Canada Revenue Agency has recently introduced changes to its CERS online calculator. The information you enter on the calculator is no longer saved for future reference. You may have to enter the same data again to verify an application.
The CERS program is one of the federal assistance programs which provides financial support to eligible fixed property expenses. These expenses include rent, interest on commercial mortgages, municipal taxes, and property insurance. However, some restrictions apply to the eligible costs.
For instance, residential property expenses are excluded from the program. Also, sales tax components are usually excluded. Furthermore, you will only be able to claim a maximum of $75,000 per location for eligible expenses. Similarly, affiliated groups will also be capped.
CRA has developed validation processes to ensure minimal administrative burden associated with processing claims. Additionally, the agency has launched web pages that detail the subsidy calculation process and payment periods.
CRA’s views on requesting information from lawyers and notaries
The CRA has been a busy bee of late with a new breed of tax hounds and their fair share of shiny new toys. A new dedicated GST/HST hotline and a plethora of dedicated tax staff and consultants have boosted the tally by a few notches. A few tidbits are to keep your head in the game. Please take the time to read through them. Besides, you might find yourself a star in the company of one such luminary. Hey, you never know. The clout might land you a job in the big leagues! Luckily, there are a few savvy CPAs in the house. You’ll need to be on your game to make it, but the rewards are well deserved. If you haven’t already, check out their new digs in Ottawa. There are even more apps in the works if you still need to read up on them!
CRA’s campaign focused on PSBs
The Canada Revenue Agency (CRA) is stepping up its campaign to educate Canadians about Personal Service Businesses. It targets industries like trucking, construction, accounting, and IT consulting, which usually hire PSBs.
According to a CRA bulletin, the CRA has also launched an educational outreach project to promote compliance with the Income Tax Act. In addition, CRA officials are contacting Canadian businesses in industries that often hire personal service businesses to advise them of their tax obligations and ask for documentation on the payer/payee relationship.
Generally speaking, a personal service business is a corporation that operates like an employee. However, there are differences in how the company is regulated and the taxes owed by the organization.
One of the most important things you can do is learn the legal requirements for incorporating a personal service business. If you do not, you may be in trouble with the CRA. You will be asked to pay an additional 5 percent tax on the income earned from your business. Also, the CRA will inform you of any errors you have made in your tax reporting.