The upcoming inter-generational wealth transfer, often called "The Great Wealth Transfer," is set to be…
What the CRA Said
Enhancing Tax Literacy for Teachers and Parents – Join the Movement
What the CRA Said
On September 5, 2024, the Canada Revenue Agency (CRA) launched a new initiative to promote tax literacy among students, teachers, and parents. Tax literacy is a crucial life skill, and this back-to-school season, the CRA is offering a range of resources to help educators and parents equip young people with the knowledge they need to make informed decisions about taxes.
Be a Tax Literacy Influencer
Teachers are encouraged to participate in the “Learn about your taxes” competition, running from September 3rd to October 15th, with a chance for schools to win a share of a $5,000 prize pot. The CRA also offers a free online learning tool, complete with lesson plans and videos, to help students understand key tax concepts, such as reading a pay stub and filing a tax return.
Parents can also benefit from these resources, including webinars designed for students and international students. Additionally, the “Get ready to do your taxes” page provides a step-by-step guide to help your child prepare for tax season.
Save for Your Child’s Post-Secondary Education
Post-secondary education is a significant financial commitment. The CRA highlights the benefits of contributing to a Registered Education Savings Plan (RESP), a tax-deferred investment to help save for your child’s future education. Recent changes have increased the educational assistance payment limits from an RESP, making it even more valuable for families.
Teachers’ Corner: Make Your Claim
Educators can take advantage of specific tax credits and deductions, such as:
- Supply Purchases: Claim a 25% refundable tax credit on up to $1,000 of supply purchases each year. Be sure to keep receipts and obtain a certificate from your employer.
- Moving Expenses: If you moved at least 40 kilometers closer to a new work location, you can claim moving expenses, including transportation and storage costs.
Conclusion
This initiative by the CRA is a valuable opportunity for teachers and parents to enhance tax literacy in the next generation. By taking advantage of these resources and tax benefits, you can help ensure that your students and children are well-prepared to manage their financial futures.
Understanding the New Appointments to the Independent Advisory Board on Journalism Tax Measures
What the CRA Said
On September 4, 2024, the Canada Revenue Agency (CRA) announced the appointment of new members to the Independent Advisory Board on Eligibility for Journalism Tax Measures. These appointments include Brenda O’Farrell from Quebec, Michael Eric Cooke from Ontario, Ravindra N. Mohabeer from Ontario, and Margo Marian Goodhand from British Columbia, who will serve as the upcoming Vice-Chairperson.
The Advisory Board’s role is to provide independent assessments and recommendations to the Minister of National Revenue on whether organizations qualify as Canadian journalism organizations (QCJOs) under the Income Tax Act. This designation is crucial for accessing tax incentives aimed at supporting Canadian journalism.
The government emphasizes that the appointment process is open, transparent, and merit-based, reflecting Canada’s diversity. The Board now has full representation from across the country, ensuring a broad perspective on the challenges faced by journalism organizations in different regions.
Why This Matters for Family-Owned Enterprises
For family-owned enterprises in the media sector, understanding the criteria for qualifying as a QCJO is vital. The Advisory Board’s decisions can significantly impact access to tax credits and incentives. Staying informed and working with a tax advisor familiar with these measures can help ensure compliance and maximize benefits.
With a diverse Advisory Board in place, businesses can expect more balanced recommendations that consider regional differences in the media landscape. This could lead to a fairer application of journalism tax measures nationwide.
Conclusion
These new appointments highlight the government’s ongoing commitment to supporting Canadian journalism through careful evaluation and fair processes. For family-owned media businesses, staying updated on these developments is crucial to taking full advantage of available tax incentives.
What You Need to Know About the New Reporting Rules for Digital Platform Operators
What the CRA Said
On September 11, 2024, the Canada Revenue Agency (CRA) announced new Reporting Rules for Digital Platform Operators, aimed at increasing transparency and supporting tax compliance. If you earn income through apps or websites, you may be affected by these rules.
Under the new regulations, digital platform operators must collect and report specific information about sellers who meet the criteria of a “reportable seller.” This includes identification details such as your name, address, tax identification number, and activity details like payments received and any fees charged by the platform.
Are You a Reportable Seller?
You’re considered a reportable seller if you use a digital platform to sell goods, offer services, or rent out property, and you reside in Canada or another country that has implemented these rules. It’s crucial to ensure that the information your platform operator reports to the CRA is accurate and matches what you declare on your tax returns.
Your Responsibilities as a Reportable Seller
As a reportable seller, you may need to provide additional information to your platform operator to help them meet their reporting obligations. Failure to provide your tax identification number, for example, could result in a $500 penalty for each instance.
If you haven’t been reporting income from digital platforms, now is the time to correct that. The CRA offers resources like the Voluntary Disclosures Program to help you adjust past returns and avoid penalties.
Protect Yourself from Scams
Be aware of potential scams targeting digital platform users. Only share your personal and financial information with trusted, reputable platforms, and stay alert to common signs of fraud.
Conclusion
These new reporting rules underscore the CRA’s focus on transparency and compliance in the digital economy. If you’re earning income through digital platforms, make sure you’re aware of your obligations and take steps to ensure your reporting is accurate and up to date.
New Reporting Rules for Digital Platform Operators – What You Need to Know
What the CRA Said
On September 10, 2024, the Canada Revenue Agency (CRA) introduced new Reporting Rules for Digital Platform Operators to enhance transparency and compliance in the international tax community. If you operate a digital platform that allows sellers to transact in Canada, these rules may apply to you.
Are You a Reporting Platform Operator?
You’re considered a reporting platform operator if your platform is resident in Canada or operates in a way that allows sellers to sell goods or offer services, including rental properties, in Canada. Non-resident platforms may also fall under these rules if they facilitate sales or services in Canada. However, if your business model doesn’t allow sellers to derive a profit or if you have no reportable sellers, you may be exempt from these reporting obligations.
What Information Must You Report?
If you’re a reporting platform operator, you must collect and report specific identification and activity information on each reportable seller. This includes the seller’s name, primary address, tax identification number, financial account identifiers, and details about transactions, such as payments received and fees charged.
Key Compliance Deadlines
Your first information return, covering the 2024 calendar year, is due by January 31, 2025. You’ll need to obtain a business number and an RZ program account to file this return. The filing must be done using an XML Schema, and the process varies depending on whether you’re a Canadian resident or not.
Conclusion
The new CRA reporting requirements are designed to ensure greater transparency and tax compliance for digital platforms operating in Canada. If you operate such a platform, it’s crucial to understand these rules and prepare for the upcoming filing deadlines to avoid penalties.
Calgary Woman Convicted for Filing False Tax Returns – What You Need to Know
What the CRA Said
On December 22, 2023, the Canada Revenue Agency (CRA) announced that Monique Van Dijk from Calgary, Alberta, pleaded guilty to making false or deceptive statements in over 50 tax filings. Van Dijk was fined $116,000 and sentenced to 12 months of house arrest, followed by 12 months of probation.
Details of the Case
Between March 2016 and July 2019, Van Dijk filed over 200 tax returns and “change my return” requests for more than 50 individuals. In many of these filings, she made false claims to secure refunds and the Working Income Tax Benefit for her clients. These fraudulent actions led to the CRA issuing refunds that the individuals were not entitled to receive.
The Impact of Tax Fraud
Tax fraud undermines the integrity of Canada’s tax system, affecting the services and programs that benefit all Canadians. The CRA publicizes cases like this to deter others from committing similar offenses and to maintain public confidence in the tax system.
Beyond fines and sentences, those convicted of tax fraud are required to repay the full amount of taxes owed, plus interest and penalties. The CRA remains committed to pursuing tax evasion and false claims to ensure that everyone pays their fair share and only claims benefits they are entitled to.
Conclusion
This case serves as a stark reminder of the serious consequences of tax fraud. The CRA’s enforcement efforts help maintain the integrity of Canada’s tax system, ensuring that vital public services can continue to support those who need them most. Stay informed about the CRA’s actions by subscribing to their updates.
Trois-Rivières Resident Sentenced for Fraudulent Tax Claims – Key Takeaways
What the CRA Said
On October 20, 2023, the Canada Revenue Agency (CRA) announced that Wayne Kendall Jr. of Trois-Rivières, Quebec, was sentenced to 18 months in prison, followed by two years of probation. Kendall Jr. pleaded guilty to making false statements and forgery after a CRA investigation revealed he had fraudulently obtained over $377,000 between 2015 and 2018.
Details of the Fraud
Kendall Jr. exploited his previous employment with the CRA to access personal data, which he used to impersonate 18 individuals and claim tax credits and benefits for 61 fictitious children. The fraudulent refunds were deposited into multiple bank accounts that he had set up using false identities.
The Consequences of Tax Evasion
Tax evasion, as this case demonstrates, is a serious crime with severe consequences. The CRA continues to pursue those who commit fraud, emphasizing that convicted individuals not only face fines and prison time but are also required to repay the full amount of tax owing, plus interest and penalties.
Conclusion
This case highlights the CRA’s commitment to maintaining the integrity of Canada’s tax system. Fraudulent activities like those committed by Kendall Jr. undermine public trust and divert resources away from essential services. Staying informed about CRA enforcement efforts helps ensure compliance and supports the social and economic well-being of all Canadians.
Thornhill Director Convicted of Tax Fraud – What You Should Know
What the CRA Said
On September 14, 2023, the Canada Revenue Agency (CRA) announced that Sung Oh Chung of Thornhill, Ontario, was sentenced for tax fraud in the Toronto Courthouse. Chung received a conditional sentence of two years less a day and was fined $681,235 after pleading guilty to fraud over $5,000.
Details of the Case
A CRA investigation uncovered that Chung failed to report over $2.3 million in personal income from 2012 to 2016. As a director of Sovereign Staffing Inc. (SSI) and Talent Savvies Inc. (TSI), Chung appropriated unreported funds from business sales and Goods and Services Tax/Harmonized Sales Tax (GST/HST) that were not disclosed to the CRA. By hiding these funds across multiple bank accounts, Chung evaded $681,325 in taxes.
Chung was ordered to pay $500,000 within 24 hours of sentencing, with the remaining balance due by September 11, 2025.
The Consequences of Tax Evasion
This case highlights the serious consequences of tax evasion. Those convicted face not only fines and sentences but are also required to repay the full amount of taxes owed, plus interest and penalties. Tax evasion undermines public trust and deprives Canadians of essential services funded by tax revenues.
Conclusion
The CRA’s commitment to pursuing tax evasion is crucial for maintaining the integrity of Canada’s tax system. Businesses and individuals must ensure they report all income and taxes accurately to avoid severe penalties. Staying informed about CRA enforcement efforts can help you stay compliant and support the social and economic well-being of Canadians.
This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. ©2024 Shajani CPA.
Shajani CPA is a CPA Calgary, Edmonton and Red Deer firm and provides Accountant, Bookkeeping, Tax Advice and Tax Planning service.
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