Canadian Tax News 2005
The following is new for the tax filing year of 2005.My Account
The CRA announced the opening of its My Account service. This service allows Canadian taxpayers to conveniently monitor and manage their personal income tax, Canada Child Tax Benefit (CCTB) and GST/HST credit accounts on a secure website 7 days a week, 21 hours a day.
Budget Amendments
These amendments were drafted for Finance Minister, Ralph Goodale's 2004 budget.
- Tax relief for Canadian forces personnel and police deployed to international high-risk operational missions - including the extension to additional missions announced on April 14, 2004.
- Improve tax fairness for persons with disabilities and those who care for them.
- The increase in the small business deduction limit to $300,000.
- Extend the carry-forward period for business losses to 10 years.
- Eliminate the deductibility of fines and penalties.
- Introduce a new regulatory regime for registered charities.
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The federal government extended its deadline for charitable donations to January 11th. This extension applied only to donations in support of victims of the December 26th tsunami, in Southern Asia, to qualify for tax relief for the 2004 taxation year.
Tax Evasion
There were several high profile convictions for tax evasion in the year 2004. In one case, a Certified General Accountant from Calgary was fined $100,000 and given a 6 month conditional sentence. In several other cases, fines in the hundreds of thousands and even millions were levied against delinquent taxpayers. Be sure that you are filing with a legitimate tax preparer.
Voluntary Disclosure Program
The Voluntary Disclosure program allows you to own-up to back-taxes owed. Under the program, individuals or corporations who have not filed tax returns for previous years or have not reported all their income can correct their tax affairs free of penalization and prosecution.
Any delinquent taxpayers who come forth under the Voluntary Disclosure Program will only have to pay taxes owed plus interest due. In 2003, more than 5,000 Canadians took advantage of the voluntary disclosure program and repaid $288 million in back taxes to the CRA.
