CRA’s tips for tax pros

There are a number of new CRA features and rules for tax professionals introduced by the federal tax collector this year.

Read: This app could make taxes a snap

Starting in 2013, tax preparers filing more than 10 returns must do so electronically. If a client gets a request from CRA for documents related to his return, these can now be scanned and sent to the tax agency through its website.

There’s also a one-year pilot project where CRA’s Income Tax Rulings Directorate has started offering a pre-ruling consultation. The pre-ruling consultation will allow taxpayers to tell the CRA about “any unique, new technical issue that is critical to the structuring of seriously proposed transactions in advance of submitting a ruling request.” The pre-ruling consultation is meant to reduce costs to the taxpayer.

Read: 12 days of tax tips

For corporations, CRA has eliminated the option to defer tax if the corporation has a significant interest in a partnership that has a different fiscal year.

CRA has also started producing income tax folios, which have updated information on tax preparation. These will replace tax interpretation bulletins, which are being phased out.

Read: 8 great year-end tax tips

Staff

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