CRA launches plan to help small biz

CRA has announced a plan to help small- and medium-sized businesses comply with tax rules.

Read: How to deduct business expenses

The plan features earlier support to businesses in their business cycle, better and earlier access to clear and comprehensive information, and, where required, focused interventions where the risks of non-compliance are highest. The plan includes:

• The Liaison Officer Initiative: CRA will provide in-person information to small and medium enterprises at key points in their business cycle to help them get it “right from the start.”
• The Registration of Tax Preparers Program (RTPP): this program proposes to register tax preparers so the Canada Revenue Agency (CRA) can better identify and address common and recurring errors with them before tax returns are filed. The RTPP signals real benefits for both tax preparers and taxpayers by helping them get it “right from the start,” and avoid costly and time-consuming interventions from the CRA after-the-fact.

Read: Tax cheats beware: CRA launches snitch line

• An enhanced focus on high risk files: the CRA will make better use of advanced business intelligence, specialized audit teams for specific sectors, and novel approaches such as letter writing campaigns, to supplement the CRA’s traditional audit approaches.

In the coming months, the CRA will be hosting discussions on the proposed RTPP with taxpayers, tax preparers, and organizations representing tax preparers in Halifax, Montreal, Toronto, Winnipeg, Calgary and Vancouver.

Stakeholders may also provide their input online or in writing. For more information on the RTPP and how to participate in the consultation, click here.

Read: Understanding the pension income tax credit

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.