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The following is now available on the CRA Web site:

The Canada Revenue Agency (CRA) reminds Canadians that they must report all of their income. Individuals working in industries where cash transactions are prevalent must take extra care to accurately report their income and to maintain the documentation they need to support the income they report.

The CRA continues to vigorously enforce the provisions of the tax laws to ensure that all Canadians pay their taxes. This provides a level playing field for all taxpayers and protects the social and economic well-being of all Canadians.

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The following is now available on the CRA Web site:

Ottawa, Ontario, January 21, 2008…The Canada Revenue Agency (CRA) wants to remind Canadians who earn tips and gratuities of the rules for reporting this income on their annual income tax returns. Restaurant servers, hairdressers, valets, taxi drivers and others who earn tips may not have all of their income recorded by the employer and therefore not included on their T4 slips.

The Income Tax Act is clear regarding the treatment of income from tips and gratuities: all tips are taxable and it is your responsibility to report any you receive. The CRA is committed to administering and enforcing the Income Tax Act in a fair and equitable manner, ensuring that the requirements under the law are met while respecting the rights of the individuals involved.

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The following Economy In Brief has just been posted on the Finance Canada Site.

Overview
* In the third quarter of 2007 real gross domestic product (GDP) grew 2.9%, down from a 3.8% pace in the second quarter.
* Domestic demand growth remained solid. Real final domestic demand rose 4.6% compared to 4.9% in the second quarter. Business inventory accumulation was $15.4 billion after a smaller buildup of $4.5 billion in the second quarter.
* Real imports grew more than real exports, moderating real GDP growth and narrowing the nominal trade surplus and the current account surplus (the amount that receipts from non-residents exceed payments to them). The current account surplus decreased by $21.2 billion to $4.2 billion, falling to 0.3% of nominal GDP from 1.7% in the previous quarter.
* A healthy labour market has underpinned domestic demand growth. Employment rose 1.7% in the third quarter, up from 1.3% in the second quarter. In November, the unemployment rate was 5.9%, up slightly from 5.8% in October when it was at its lowest level in nearly 33 years.

Additional: Economy In Brief / PDF Version

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The following News Release or Speech has just been posted on the Finance Canada Site.

Ottawa, January 14, 2008
2008-004

The Honourable Jim Flaherty, Minister of Finance, today launched online consultations, giving all Canadians an opportunity to provide input into the development of Budget 2008. This year, the Government is asking people to focus on specific issues and questions of national significance.

“This year, we are taking a different approach to pre-budget consultations,” said Minister Flaherty. “Although our economic fundamentals are solid, we need to focus on the various risks and challenges that confront us. These include the impact of an economic slowdown in the U.S. and ongoing turmoil in financial markets, the continuing need to adjust to a higher Canadian dollar and increasing global competition, as well as the aging of the Canadian population.”

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The following is now available on the CRA Web site:

Did you know…

That you could benefit from the new pension income splitting tax measure? When you and your spouse or common-law partner file your 2007 income tax returns, new tax rules allow eligible taxpayers to allocate up to half of their eligible pension income (income that qualifies for the pension income tax credit) to their lower-earning spouse or common-law partner.

To make this election, you and your spouse or common-law partner must each complete Form T1032, Joint election to split pension income.

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The following is now available on the CRA Web site:

Ottawa, Ontario, January 8, 2008… You cannot avoid paying the taxes you owe by not filing a tax return, or by not reporting all of your income.

The Canada Revenue Agency (CRA) uses a variety of tools to identify non-compliance and take action to address mistakes or tax cheating.

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The following is available on the Canada News Site

Begin the New Year with a clean slate and a clear conscience!

Ottawa, Ontario, January 3, 2008… Did you fail to file an accurate tax return or not file at all, but should have? The Canada Revenue Agency’s (CRA) Voluntary Disclosures Program may be able to help. The program allows people to come forward and correct their tax information and avoid being penalized, criminally investigated and prosecuted.

Last year the CRA processed 8,244 disclosures for taxpayers who used the Voluntary Disclosures Program and got a second chance to comply with their tax obligations. Coming clean saved these taxpayers from an audit or a criminal investigation, which can result in penalties, fines, and even jail time. Their valid disclosures involved more than $525 million in taxes.

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The following is available on the Canada News Site …

Image and Article Source: Canada Newsroom

Conservative government fulfills commitment to reduce GST to 5%

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The following News Release or Speech has just been posted on the Finance Canada Site

Ottawa, December 28, 2007
2007-112

Canadian families, students, workers, seniors, and businesses large and small will continue to keep more of their hard-earned money in 2007 and 2008 thanks to substantial new tax reduction measures introduced in 2007 by the Government of Canada. Since coming to office in 2006, the Government has taken action that will by 2012-13, reduce the overall tax burden for Canadians and businesses by about $200 billion, to its lowest level in nearly 50 years.

“Since coming to office, we have reduced taxes in every way we collect revenues,” said the Honourable Jim Flaherty, Minister of Finance. “The measures introduced just in the last year show how our Government is putting Canadians first by keeping our promise to reduce taxes. Together, we are building a legacy of tax relief we can all be proud of.”

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The following news was released on the Canada News site …

December 20, 2007

Ottawa - Canada Post wishes to advise Canadians that advertisements recently published in various newspapers and on the Internet, offering employment opportunities with the corporation, are fraudulent.
An investigation by Canada Post’s Security and Investigation Services has revealed that these fraudulent ads direct applicants to a “Mystery Shopping Application Form” where unsuspecting individuals are asked to complete the form and provide personal information. The form suggests that the employer is Canada Post and displays Canada Post’s corporate trade-mark logo. It is believed that the advertisements are being used in an attempt to obtain personal information including banking details.

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