The following information is now available on the CRA Web site:

Prince George, British Columbia, January 20, 2012… The Honourable Gail Shea, Minister of National Revenue, accompanied by Bob Zimmer, Member of Parliament for Prince George – Peace River and Dick Harris, Member of Parliament for Cariboo – Prince George, today visited the Pineview Firehall in Prince George to promote a new non-refundable tax credit for volunteer firefighters.

“Every day in Canada, almost 85,000 brave men and women are ready to put their own lives at risk to protect the lives and property of their friends, neighbours, and even perfect strangers. Our Government recognizes these efforts and is proud to have introduced the Volunteer Firefighter Tax Credit,” said Minister Shea.

“Our volunteer firefighters are important members of our community and we can’t thank them enough for the invaluable work they do for the residents of Prince George,” said Bob Zimmer.

“I am delighted that our government is acknowledging the work of these courageous Canadians by offering this new credit,” added Dick Harris.

The non-refundable tax credit is available to any volunteer firefighter who serves at least 200 hours per year at one or more fire departments beginning on January 1, 2011. Services that make up those 200 hours include responding to and being on call for firefighting and other emergencies, attending meetings at the fire department, and taking courses in preventing and putting out fires. When an eligible firefighter claims the credit, they can reduce income taxes they have paid or will owe at tax time by as much as $450.

“This credit is one of several measures announced in Budget 2011 that will help Canadians and their families to keep hard-earned dollars in their pockets. I encourage all volunteer firefighters to learn more about the credit and to claim it when they file their 2011 income tax and benefit returns,” added Minister Shea.

For more information about the volunteer firefighter’s tax credit, go to www.cra.gc.ca/firefighter.

On Friday, January 20, 2012, the Honourable Gail Shea, Minister of National Revenue, accompanied by Mr. Bob Zimmer (MP for Prince George – Peace River) (far right), and members of the Prince George Volunteer Firefighters Association visited the Pineview Fire Hall to promote the new tax credit for volunteer firefighters. This new tax credit, announced in the 2011 Federal Budget, is available to volunteer firefighters who dedicate over 200 hours of service per year to their communities.

National Revenue Minister Gail Shea, accompanied by Bob Zimmer, Member of Parliament for Prince George – Peace River and Dick Harris, Member of Parliament for Cariboo – Prince George, today visited the Pineview Firehall in Prince George to promote the new volunteer firefighter’s tax credit. When an eligible volunteer firefighter claims the credit on their tax return, they can reduce their tax bill by as much as $450.

The following information is now available on the CRA Web site:

Vancouver, British Columbia, January 18, 2012… The Honourable Gail Shea, Minister of National Revenue, today visited the University of British Columbia 4-H Community Club to promote the children’s arts tax credit, a new non-refundable credit passed in the 2011 federal budget.

“Parents whose children participate in paid artistic, cultural, recreational, and developmental programs will now enjoy the same benefit as parents whose children participate in paid programs of physical activity. Our Government believes whether a child is inspired by Justin Bieber, Hedley, Ryan Reynolds, Trevor Linden or Maelle Ricker, parents should receive a tax credit to help pay for the programs that will help their children live out those dreams,” said Minister Shea.

“The children’s arts tax credit will help Vancouver families enroll their kids in programs that contribute not only to their love of the arts, but also to the development of their intellectual and interpersonal skills,” added Minister Shea.

In addition to fitness programs covered by the children’s fitness tax credit, parents can now claim money spent on programs that focus on fine arts, music, performing arts, outdoor wilderness training, learning a language, studying a culture, tutoring, and more. When parents claim the children’s arts tax credit-up to a maximum of $500 of the cost of programs-they save as much as $75 at tax time per child claimed.

To find out if your child’s program is eligible for the children’s arts tax credit, go to http://www.cra.gc.ca/artscredit.

On Wednesday, January 18, 2012, the Honourable Gail Shea, Minister of National Revenue, visited the University of British Columbia 4-H club, to promote the Children’s Arts Tax Credit. This new tax credit, passed in Budget 2011, is available to parents whose children participate in artistic, cultural, recreational, and developmental programs.

Source: CRA Newsroom

The new Automobile Benefits Online Calculator effective January 1, 2012 is now available on the CRA Web site.

The Automobile Benefits Online Calculator allows you to calculate the estimated automobile benefit for withholding purposes based on the information you provide that would be added to an employee’s T4 for 2012.

T4130 – Employers’ Guide Taxable Benefits and Allowances

Check out Chapter 2 – Automobile and Motor Vehicle Allowances and Taxable Benefits section.

Under new legislation that passed in December 2011, payments from an uninsured Wage Loss Replacement Plan (WLRP) are considered employment income and therefore, are subject to Canada Pension Plan (CPP) contributions.

What’s new for Wage Loss Replacement Plans (WLRP) in 2012

The treatment of wage loss replacement plans (WLRP) payments for Canada Pension Plan (CPP) purposes changed over the years. For a period, payments made from certain types of uninsured WLRP plans were not considered pensionable. In December 2011, new CPP legislation clarified that all payments made from uninsured WLRPs are considered to be remuneration from pensionable employment.

This legislation is retroactive to January 1, 2006.

Employers who have not deducted CPP on uninsured WLRP payments in the past, whether those plans follow insurance principles or not, should start doing so effective January 1, 2012. Employers who deducted CPP on these WLRP will not be refunded those deductions. However, the Canada Revenue Agency will consider any request it receives from employees to review their particular situation on a case-by-case basis.

Forms:
* IT-428, Wage Loss Replacement Plans
* T4130, Employer’s Guide – Taxable Benefits and Allowances

Source: CRA Newsroom

The following information is now available on the CRA Web site:

Did you know…?

Significant changes to the Canada Pension Plan (CPP) will occur in January 2012 to reflect the way Canadians are living, working, and retiring. The changes will affect both employees and self-employed workers aged 60 to 70. The changes will not affect you if you are already receiving a CPP or Quebec Pension Plan (QPP) retirement pension and you remain out of the workforce. Employees working in Quebec and other workers not subject to the CPP will also not be affected by these changes.

What’s new?

Contribution changes (what you will pay):

* All workers aged 60 to 65 will be required to make CPP contributions—even if they are receiving a CPP or QPP retirement pension.

* Workers who are 65 to 70 years of age and who are receiving a CPP or QPP retirement pension will be required to contribute unless they have elected to stop their CPP contributions. To elect to stop contributing to the CPP, workers will have to be at least 65 years of age and do the following:

** Employees (who may also have self-employment income) will have to complete Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election and give a copy to their employer. In addition, employees should send the original to the Canada Revenue Agency (CRA). The election will take effect on the first day of the month after the employee gives the form to their employer.

*** Note: The CRA has been accepting Form CPT30 since December 1, 2011, but only from those employees who as of December 31, 2011 are at least 65 years of age and in receipt of a CPP or QPP retirement pension.

* Self-employed workers will have to complete Schedule 8, CPP Contributions on Self-Employment and Other Earnings, when they file their income tax and benefit return for 2012 or any subsequent year. The election will be effective on the first day of the month referred to in Schedule 8.

Benefit changes (what you will receive):

Changes to CPP retirement pension benefits began in 2011 and will continue to be phased in until 2016. If you are retired, or are planning your retirement, go to www.servicecanada.gc.ca/cppchanges for tools and information on how the changes to CPP retirement pension benefits may affect you.

Statistics

* Since 1998, Canada’s average retirement age has been increasing.
* From a low of 22% in 1996, the employment rate of individuals 55 and older climbed steadily to 34% in 2010.

According to Statistics Canada’s Labour Force Survey, the average retirement age was 60.9 in 1998, and it rose to 62.1 in 2010.

Source: CRA Newsroom

Did you know…?

If you file your GST/HST return using NETFILE, or if you want to file a public service bodies’ rebate electronically with your GST/HST return, you can now get your Web access code online. You don’t have to wait for it to arrive in the mail.

Important facts

You can ask for a new Web access code by going to GST/HST access code online. To ask for a new access code you’ll need your business number and the reporting period of the return for which you need the code, along with either:

* the reporting period and the net tax amount (cannot be zero) on line 109 from a previously filed return; or
* the reporting period and the confirmation number from a return filed using GST/HST NETFILE, TELEFILE, or Internet File Transfer.

With your new access code, you can file your GST/HST return online using NETFILE. You can also use it to file certain rebates with your GST/HST NETFILE return. But did you know that the CRA’s online services offer an even better way to file?

Businesses and their representatives can file GST/HST returns electronically without an access code using the CRA online secure portals. And that’s just the beginning. Once you log in, you’ll be able to adjust previously filed GST/HST returns, review account information, transfer payments, and much more. If your business also has payroll or corporate tax accounts, you’ll be able to view information and perform transactions for those accounts as well. To sign up as a business owner, go to http://www.cra.gc.ca/mybusinessaccount. If you’re an authorized representative, or an employee acting for your organization, you can access these services at http://www.cra.gc.ca/representatives.

Statistics

So far this year, almost three million GST/HST returns have been filed electronically.
In 2011, 54% of GST/HST returns have been filed electronically.
Over 45% of all business establishments are enrolled for My Business Account.

For media information:

Noël Carisse
Canada Revenue Agency
Media Relations
Telephone: 613-952-9184

Source: CRA Newsroom – Tax Tips

The following information is available on the CRA Web site:

Each year, certain personal income tax and benefit amounts are indexed to inflation using the Consumer Price Index data as reported by Statistics Canada.

Increases to tax bracket thresholds, amounts relating to non‑refundable credits, and most other amounts will take effect on January 1, 2012. However, increases to the Canada Child Tax Benefit (including the National Child Benefit Supplement and the Child Disability Benefit) and the goods and services tax credit will take effect on July 1, 2012, to coincide with the beginning of the program year for payment of these benefits.

The following chart compares the indexed amounts for the 2011 and 2012 tax years. It reflects an indexation increase of 2.8% for 2012.

	2012 ($)	2011 ($)
Tax bracket thresholds
Taxable income above which the 22% bracket begins	42,707	41,544
Taxable income above which the 26% bracket begins	85,414	83,088
Taxable income above which the 29% bracket begins	132,406	128,800
Amounts relating to non-refundable tax credits
Basic personal amount	10,822	10,527
Age amount	6,720	6,537
Net income threshold	33,884	32,961
Spouse or common-law partner amount (max.)	10,822	10,527
Spouse or common-law partner amount (max. if eligible for the family caregiver amount)	12,822	N/A
Amount for an eligible dependant (max.)	10,822	10,527
Amount for an eligible dependant (max. if dependant eligible for the family caregiver amount)	12,822	N/A
Amount for children under age 18 (max. per child)	2,191	2,131
Amount for children under age 18 (max. per child eligible for the family caregiver amount)	4,191	N/A
Canada employment amount (max.)	1,095	1,065
Infirm dependant amount (max. per dependant)	6,402[Footnote 1]	4,282
Net income threshold	6,420	6,076
Caregiver amount (max. per dependant)	4,402	4,282
Caregiver amount (max. per dependant eligible for the family caregiver amount)	6,402	N/A
Net income threshold	15,033	14,624
Disability amount	7,546	7,341
Supplement for children with disabilities (max.)	4,402	4,282
Threshold relating to allowable child care and attendant care expenses	2,578	2,508
Adoption expenses (max. per adoption)	11,440	11,128
Medical expense tax credit—3% of net income ceiling	2,109	2,052
Refundable medical expense supplement
Maximum supplement	1,119	1,089
Minimum earnings threshold	3,268	3,179
Family net income threshold	24,783	24,108
Old Age Security repayment threshold	69,562	67,668
Certain board and lodging allowances paid to players on sports teams or members of recreation programs
Income exclusion (max. per month)	329	320
Tradesperson’s tools deduction
Threshold amount relating to cost of eligible tools	1,095	1,065
Goods and Services Tax/Harmonized Sales Tax credit
Adult maximum	260	253
Child maximum	137	133
Single supplement	137	133
Phase-in threshold for the single supplement	8,439	8,209
Family net income at which credit begins to phase out	33,884	32,961
Canada Child Tax Benefit
Base benefit	1,405	1,367
Additional benefit for third child	98	95
Family net income at which base benefit begins to phase out	42,707	41,544
National Child Benefit (NCB) supplement
First child	2,177	2,118
Second child	1,926	1,873
Third child	1,832	1,782
Family net income at which NCB supplement begins to phase out	24,863	24,183
Family net income at which NCB supplement phase-out is complete	42,707	41,544
Canada Disability Benefit (CDB)
Maximum benefit	2,575	2,504
Family net income at which CDB supplement begins to phase out	42,707	41,544
Children’s Special Allowances (CSA)
CSA Base Amount	3,582	3,485

Footnotes

[Footnote 1]
Includes family caregiver amount of $2,000.

Source: CRA Newsroom

The following information is available on the CRA Web site

The Canada Revenue Agency (CRA) warns all Canadians to beware of individuals that try to convince you that Canadians do not have to pay tax on the income they earn. These individuals, also known as tax protesters, not only fail to report their own earnings, but they also conspire, counsel, and promote these tax schemes.

Natural vs Legal Person

One of the most common false arguments tax protesters use is the natural vs. legal person argument, in which they treat themselves as two separate people for income tax purposes. They define the natural person as the individual that performs the labour required to earn income, and the legal person as the legal entity that the federal government creates through the issuance and use of the social insurance number (SIN). Tax protesters allege that the legal person has to file an income tax and benefit return, and that income received belongs to the natural person and is therefore not subject to Canadian income tax.

Canadian courts have repeatedly and consistently rejected all arguments made in these tax protester schemes.

Serious Consequences

For those involved in tax protester schemes, the CRA will reassess income tax and interest, and charge penalties. In some cases these individuals will be prosecuted for tax evasion. If convicted, they could face significant fines and possibly jail time.

For example, the courts fined an Ontario tax protester approximately $522,000, which represented 150% of the federal taxes evaded. In addition, the individual was given a one year conditional sentence, and was ordered to pay the fine imposed prior to the expiry of the conditional sentence; ordered to remain in Ontario and surrender his passport; and ordered to perform 180 hours of community service.

Correcting your tax affairs

Individuals who would like to correct their tax affairs can voluntarily come forward, and they may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being taken by the CRA against them. These individuals may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program can be found on the CRA Web site at http://www.cra.gc.ca/voluntarydisclosures.

The CRA reminds Canadians that, when it comes to their tax affairs, they should get independent advice from a reputable professional.

More information

More information on tax protester schemes is available at http://www.cra.gc.ca/alert under Tax Protesters.

Source: CRA Newsroom

The following information is now available on the CRA Web site:

News Release:

Ottawa, Ontario, May 31, 2011. . . Following the announcement by the Canadian Union of Postal Workers (CUPW) of a possible postal strike, the Canada Revenue Agency (CRA) is reminding taxpayers and businesses to sign up for the direct deposit of their benefit payments and tax refunds. The CRA administers several federal, provincial and territorial benefit programs. For a list of which cheques will and will not be delivered during a strike, and for all other strike-related CRA updates, please go to http://www.cra.gc.ca/postalstrike. This page will be updated periodically as new information or instructions become available.

Complete your direct deposit enrollment request as per the instructions below, and then drop it off at any of our tax centres or tax services offices. For a list of offices nearest you, go to http://www.cra.gc.ca/tso. You can also fax your completed form to one of our tax centres. For those fax numbers, go to http://www.cra.gc.ca/taxcentre.

Individuals

Request direct deposit using the My Account service (http://www.cra.gc.ca/myaccount), or complete form T1-DD(1) Direct Deposit Request- Individuals.

Businesses

Request direct deposit of your GST/HST refunds and rebates using form GST469 Direct Deposit Request (Non-Personalized), and form T2- DD Direct Deposit Request Form for Corporations for direct deposit of your corporation’s income tax refund.

The following information is now available on the CRA Web site:

News Release

Ottawa, Ontario, April 28, 2011… The Canada Revenue Agency (CRA) would like to advise taxpayers who have been affected by spring flooding that they will have access to the CRA’s taxpayer relief provisions if they were unable to meet their tax obligations.

The CRA understands that natural disasters may cause great difficulties for affected taxpayers whose primary concerns during this time are their families, homes, and communities. The CRA can provide relief to these taxpayers if they were unable to file their personal income tax returns and pay any balances owing before midnight May 2nd due to flooding. Business owners and self‑employed individuals who were unable to meet their filing and payment obligations are also eligible for relief.

The CRA’s taxpayer relief provisions use a balanced approach to assist taxpayers in resolving tax issues that arise due to circumstances beyond their control. Under these provisions, taxpayers can apply to the CRA to have interest and/or penalties waived or cancelled in situations where they are unable to file a tax return and/or make payments on time because of a natural disaster. Taxpayers should submit their request in writing using form RC4288, Request for Taxpayer Relief. The CRA will consider these requests on a case‑by‑case basis.

If taxpayers are unable to physically access the financial institutions they normally depend on, the CRA’s e-Services, which include direct deposit, can provide quick access to tax payment and account information. The CRA encourages all taxpayers to sign up for e-Services at http://www.cra.gc.ca/electronicservices.

Taxpayers who have been affected by spring flooding and who have questions or concerns regarding the taxpayer relief provisions can access additional information on the CRA website at http://www.cra-arc.gc.ca/gncy/prgrms_srvcs/txpyrrlf/menu-eng.html or can call the CRA at 1‑800‑959‑8281. Business owners and self‑employed taxpayers with questions/concerns should call the CRA’s Business Enquiries line at 1-800-959-5525.