3A Tax Services Chartered Professional Accountant

Using an app or website to earn income? Know about the Reporting Rules for Digital Platform Operators

You may be affected by Canada's new Reporting Rules for Digital Platform Operators if you use digital platforms to earn income. These rules have been implemented to increase transparency and support compliance in the international tax community.

Under the rules, certain platform operators are now required to collect and report information on sellers considered to be reportable sellers to the Canada Revenue Agency (CRA). If you are a reportable seller, be aware of what is being reported by your platform operator(s) to ensure it’s accurate and consistent with what you report under existing tax obligations.

Click here to learn more: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/using-app-website-earn-income.html?utm_source=mediaroom&utm_medium=eml

Information source from Canada Revenue Agency (CRA)

Save for your child’s post-secondary education
Post-secondary education can be expensive. Save for your child’s future by contributing to a registered education savings plan (RESP). RESP is a tax-deferred investment designed to help people save for a child’s education after high school. The government also contributes to your plan with Canada Education Savings Grant payments, the Canada Learning Bond, and provincial incentives if the beneficiary is eligible.

Educational assistance payment limits from an RESP have been increased from $5,000 to $8,000 in the first 13 weeks of enrollment in a qualifying educational program for full-time studies, and from $2,500 to $4,000 for part-time studies.

Click here to learn more: https://www.canada.ca/en/services/benefits/education/education-savings.html

Information source from Canada Revenue Agency (CRA)

Win cash for your school: The Learn about your taxes competition is starting early this year

Tax literacy is a life skill and we know that early tax education helps empower students to understand their tax responsibilities and entitlements later in life. According to public opinion research, young Canadians find taxes daunting and expressed a need for clearer guidance from trusted sources. Tax literacy isn’t just about filing your return, it’s about accessing benefit and credit payments that help make life more affordable.

The Canada Revenue Agency (CRA) wants to help teachers by making it as easy as possible to teach taxes in the classroom. The Learn about your taxes online learning tool has everything teachers need to help students build these valuable, life-long skills.

With the Learn about your taxes competition, students could also win a share of the $5,000 prize pot for their school! This competition runs from September 3 to October 15, 2024 on ChatterHigh, a gamified content engagement platform. Kindly note that this is a third-party website and participants will be required to create a free ChatterHigh account to access the competition.

Click here to learn more: https://www.canada.ca/en/revenue-agency/services/tax/individuals/educational-programs.html

Information source from Canada Revenue Agency (CRA)

Calculate payroll deductions online

The Payroll Deductions Online Calculator (PDOC) allows you to calculate federal, provincial (except for Quebec), and territorial payroll deductions. The PDOC includes step-by-step instructions designed to assist you with the type of calculation you need.

It can be used to calculate payroll deductions for:

salaries
commissions
pensions

In addition, PDOC can also be used to verify Canada Pension Plan (CPP), additional CPP contributions (CPP2) and Employment Insurance premiums for the previous tax year.

For more information on the PDOC, go to: Help with the Payroll Deductions Online Calculator.

For information specific to payments of fees for services, go to: Calculate payroll deductions and contributions - Payments of fees for services.

Click here to learn more: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/special-payments/fees-other-amounts-services.html

Information source from Canada Revenue Agency (CRA)

New fact sheet on tax obligations for personal services businesses

Have you recently incorporated your business? Do you provide services to one other company? You might be considered to be operating a personal services business (PSB) by the CRA. This means your tax obligations are different than other corporations!

Check out the CRA’s fact sheet on PSBs! It's intended to help you better understand your reporting and filing obligations, as well as your tax rate and what you can and cannot deduct as a PSB.

Click here to learn more: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-income-tax-return/personal-services-business-pilot/fact-sheet-personal-business.html

The CRA is making it easier to access its digital services

This tax season, the Canada Revenue Agency (CRA) has introduced a new identity validation option, known as the document verification service, to make it easier to register for digital services including My Account. Using a government-issued photo identification (ID), such as a passport or driver’s licence, a user can quickly validate their identity to get immediate access to their online CRA account. This new identity validation option also applies to digital services for businesses and representatives, like My Business Account and Represent a client.

Click here to learn more: https://www.canada.ca/en/revenue-agency/news/2024/04/the-cra-is-making-it-easier-to-access-its-digital-services.html

Need to change your tax return? You can do it online!

Filing your income tax and benefit return each year is what you need to do to receive any benefit and credit payments you're entitled to. Sometimes after you file, you realize you made a mistake or forgot to include something important. If this happens to you, don’t worry. It’s easy to change your tax return.

If you need to change your tax return, you can do so after filing. Once you have your notice of assessment (NOA), you can make a change. For faster service, submit your change request online.

Click here to learn more: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/need-change-your-tax-return-you-can-online.html?utm_source=mediaroom&utm_medium=eml

Looking for the fastest and easiest way to view and manage your business taxes online? Use our digital services!

Our digital services make handling your business tax matters faster and easier. You and your authorized employees and representatives can file, pay and access detailed information about your tax accounts. Here is information about the Canada Revenue Agency’s (CRA) most used digital services, as well as information about how to access other services too.

Click here to learn more: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/looking-fastest-easiest-way-view-manage-business-taxes-online-use-our-digital-services.html?utm_source=mediaroom&utm_medium=eml

HAPPY MOTHER'S DAY!

Need to change your tax return? You can do it online!

Filing your income tax and benefit return each year is what you need to do to receive any benefit and credit payments you're entitled to. Sometimes after you file, you realize you made a mistake or forgot to include something important. If this happens to you, don’t worry. It’s easy to change your tax return.

If you need to change your tax return, you can do so after filing. Once you have your notice of assessment (NOA), you can make a change. For faster service, submit your change request online.

Click here to learn more: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/need-change-your-tax-return-you-can-online.html?utm_source=mediaroom&utm_medium=eml

Tax Free Savings Account: Watch your limit – stay within it!

Canadians have been contributing to tax-free savings accounts (TFSA) since 2009, enjoying tax-free investment growth. Did you know that it’s possible to overcontribute and be subject to penalties?

Excess contributions can occur, for example, when your TFSA is set up for pre-authorized contributions and you make additional contributions without verifying the amount of room you have available. This can also be the case when you have multiple TFSAs with different financial institutions and you are not tracking the contributions you are making to all accounts. You can avoid penalties by staying within the TFSA contribution room available to you.

Click here to learn more: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/tax-free-savings-account.html?utm_source=mediaroom&utm_medium=eml

Are you self-employed? The Canada Revenue Agency can help you understand your tax obligations

If you're self-employed, navigating your tax obligations may seem complicated. But don't worry, the Canada Revenue Agency (CRA) is here to help you! To get ready for tax-filing season, we've put together helpful tips and information for self-employed individuals.

Click here to learn more: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/are-you-self-employed-understand-tax-obligations.html

You still have time – Last-minute tips to help you file before the deadline!

Life is full of responsibilities, from school and work to family and everything in between. We understand that taxes can easily slip to the bottom of your to-do list.

Don’t worry if you haven’t filed your 2023 income tax and benefit return yet – you still have time. Use the information below to help you complete and submit your tax return before the deadline.

Click here to learn more: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/still-time-last-minute-tips-help-file-deadline.html?utm_source=mediaroom&utm_medium=eml

Top 10 tips for your platform economy tax obligations

To make it easier for you to understand your tax obligations as a platform economy participant, we made a list of the top ten tips you need to know.

Click here to learn more:https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/top-10-tips-platform-economy-tax-obligations.html?utm_source=mediaroom&utm_medium=eml

NEW – Bare trusts are exempt from trust reporting requirements for 2023

To support ongoing efforts to ensure the effectiveness and integrity of Canada’s tax system, the Government of Canada introduced new reporting requirements for trusts.
In recognition that the new reporting requirements for bare trusts have had an unintended impact on Canadians, the Canada Revenue Agency (CRA) will not require bare trusts to file a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust), for the 2023 tax year, unless the CRA makes a direct request for these filings.
Over the coming months, the CRA will work with the Department of Finance to further clarify its guidance on this filing requirement. The CRA will communicate with Canadians as further information becomes available.

Still have questions?
Find out more with our answers to frequently asked questions on the new reporting requirements for trusts.
Click here: https://www.canada.ca/en/revenue-agency/services/tax/trust-administrators/t3-return/new-trust-reporting-requirements-t3-filed-tax-years-ending-december-2023.html

Fraud Prevention Month: How to recognize fraud, scams and tax schemes / Mois de la prévention de la fraude : comment reconnaître les situations de fraude, les arnaques et les stratagèmes fiscaux
Every March, the Canada Revenue Agency (CRA) joins organizations around the world to recognize Fraud Prevention Month. Keeping your information secure is a top priority for the CRA. Learning how to identify fraud, scams and tax schemes helps keep your personal information safe.
Click here to learn more: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/fraud-prevention-month-recognize-fraud-scams-tax-schemes.html

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Ten tips if you opened a First Home Savings Account in 2023

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/ten-tips-opened-first-home-savings-account-2023.html?utm_source=mediaroom&utm_medium=eml

The Canada Pension Plan enhancement – Businesses, individuals, and self-employed: what it means for you:

The Canada Pension Plan (CPP) enhancement, which was introduced on January 1, 2019, is designed to help increase retirement income for working Canadians and their families.

The CPP is a mandatory pension plan financed by contributions from employees, employers, and self-employed individuals. It covers virtually all workers in Canada except Quebec, which administers its own plan called the Quebec Pension Plan (QPP). The CPP replaces a basic level of earnings for contributors upon retirement, disability, or death.

Once mature, the CPP enhancement will increase the maximum CPP retirement pension by about 50%. It will also increase the survivor and disability pensions.

Enhancing the CPP will significantly reduce the number of Canadian families at risk of not saving enough for retirement, particularly those who do not have a workplace pension plan.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/2023/05/the-canada-pension-plan-enhancement--businesses-individuals-and-self-employed-what-it-means-for-you.html?utm_campaign=not-applicable&utm_medium=vanity-url&utm_source=canada-ca_cpp-enhancement

Not today, scammer! Find out if it’s really the CRA contacting you:

Are you receiving emails insisting you click on a link? Text messages promising a benefit payment or refund? Phone calls threatening to send the police if you don’t pay up?

Not only are all of these really annoying, they are all signs of scams!

Scammers continue to pose as the Canada Revenue Agency (CRA) and other government departments and agencies, to trick you into giving them money or personal information. Unfortunately, they’re still having some success. The amount of money that people have lost to scams and fraud has increased over the years.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/find-out-if-really-cra-contacting-you.html

Saving for your first home? Find out how a First Home Savings Account can help:

Canadians can save for a home tax-free using the First Home Savings Account (FHSA). Prospective first-time home buyers can contribute or transfer from their RRSP up to $40,000 towards buying or building their first home.

Like an RRSP, contributions made to an FHSA are generally tax-deductible. Up to $8,000 in FHSA contributions made by December 31, 2023, can be claimed as a deduction on the 2023 income tax and benefit return. Qualifying withdrawals, including investment income on contributions and transfers, are non-taxable when withdrawn to build or buy a qualifying home.

As of December 5, 2023, more than 300,000 Canadians have opened an FHSA to save for a down payment on their first home.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/saving-first-home-find-out-how-first-home-savings-account-can-help.html

Home office expenses for employees – What you need to know for the 2023 tax-filing season:

The Canada Revenue Agency is currently updating its webpages and Form T2200 for the 2023 tax year. The updated form, which will be made available at the end of January 2024, along with other T1 related forms, will be easier to complete for employees who are only claiming a deduction for home office expenses.

Eligible employees who are looking to claim home office expenses for 2023 must use the detailed method. To do so, they need to have a completed Form T2200, Declaration of Conditions of Employment, reviewed and signed by their employer.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/home-office-expenses-employees-what-you-need-know-for-2023-tax-filing-season.html

Businesses: Here are the top changes this year that will affect business taxes in 2024:

This year, there have been many announcements about changes that will affect business taxes in 2024. CRA has pulled them together for quick reference, along with a list of resources that can help you manage these changes and your tax affairs in the new year.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/businesses-here-are-top-changes-this-year-will-affect-business-taxes-2024.html

Taxpayer relief deadline is December 31, 2023 for requests related to 2013:

The Canada Revenue Agency (CRA) would like to remind taxpayers and registrants that they have until December 31, 2023, to make a taxpayer relief request related to the 2013 tax year or reporting period.

If you want to ask for penalty and interest relief, you must send your request within ten years from the end of the calendar year or fiscal period of concern. The CRA may also cancel interest and penalties that accrued within 10 calendar years of the year you made the relief request, regardless of the tax year or reporting period in which the debt originated.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/taxpayer-relief-deadline-requests-related-to-2013.html

Get a head start on your taxes by using the CRA’s digital services:

It’s almost that time of year again: tax season. Many of us put off filing our income tax and benefit returns until the last minute or avoid filing altogether. By not filing, you might be missing out on certain benefit and credit payments, or a potential refund.

The Canada Revenue Agency (CRA) is here to help you file, so you’re not scrambling at the last minute before the deadline. You can avoid stress by getting ready early and using our digital services!

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/get-head-start-taxes-using-cra-digital-services.html

What to expect when the Canada Revenue Agency contacts you:

Fraudulent calls claiming to be from CRA is an issue that continues to impact Canadians. So what can you do to avoid being mislead by these scams? Please refer to the below article published by the Canadian Revenue Agency to help you determine the legitimacy of a CRA call.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/corporate/security/protect-yourself-against-fraud/expect-cra-contacts.html

Issuers of tax slips can now distribute T4, T4A and T5 slips more conveniently and efficiently:

Issuers of T4A and T5 slips can now distribute them by email or using an employer or payer’s secure electronic portal without obtaining written or electronic consent from the employees or recipients before distributing the slips. Previously, issuers were required to request express consent in order to provide these slips electronically, but do not need to now, under certain conditions.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/issuers-can-now-distribute-t4-t4a-t5-slips-conveniently-efficiently.html?utm_source=mediaroom&utm_medium=eml

Individuals can now receive T4A and T5 slips more conveniently and efficiently:

Recipients of T4A and T5 tax information slips no longer have to provide permission to receive them through a secure portal.

A T4A slip identifies amounts paid during the calendar year for certain types of income from many different sources, including self employed commissions and RESP educational assistance payments. T5 slips are used to report the various types of investment income that residents of Canada have to report on their income tax and benefit returns.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/individuals-can-now-receive-t4a-t5-slips-conveniently-efficiently.html?utm_source=mediaroom&utm_medium=eml

New reporting requirements for trusts as of December 31, 2023

The Government of Canada has introduced new reporting requirements for trusts. These changes were made as part of Canada’s international commitment to the transparency of beneficial ownership information as well as its continuous efforts to ensure the effectiveness and integrity of the Canadian tax system.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/new-reporting-requirements-trusts-as-december-31-2023.html

The Canada Revenue Agency continues to invest in free tax clinics

Free tax clinics made it possible for more than 649,000 Canadians with a modest income to file their taxes and receive more than $1.75 billion in benefits, credits, and refunds last year, announced the Honourable Marie-Claude Bibeau, Minister of National Revenue.

More than 3,400 community organizations, composed of over 14,700 volunteers, helped achieve these results. To support this essential work, the Canada Revenue Agency (CRA) is awarding $5.2 million in grants to organizations that participated in the Community Volunteer Income Tax Program (CVITP) or the Income Tax Assistance – Volunteer Program (ITAVP) in Quebec in 2023. These grants are part of a three-year pilot project aimed at helping organizations offset some of the costs associated with hosting a free tax clinic.

Given these impressive results, the Minister of National Revenue announced today that the grant pilot project will be extended for a fourth year, with funding up to $5.9 million.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/2023/11/the-canada-revenue-agency-continues-to-invest-in-free-tax-clinics.html?utm_source=mediaroom&utm_medium=eml

Employers and pension plan administrators: Changes coming to T4/T4A reporting

The Government of Canada is committed to improving access to dental care services to help people get the dental care they need and make life more affordable to Canadians. The Canadian Dental Care Plan will provide dental coverage for uninsured Canadians with an adjusted family net income of less than $90,000.

Beginning with the 2023 tax year, issuers (including employers and pension plan administrators) of the T4 Statement of Remuneration Paid and T4A Statement of Pension, Retirement, Annuity, and Other Income must report on a T4 or T4A slip whether, on December 31st of the taxation year to which the information return relates, a payee or any of their family members were eligible to access dental insurance, or dental coverage of any kind, including health spending and wellness accounts, due to their current or former employment.

This reporting requirement is mandatory beginning with the 2023 tax year, and will continue to be required on an annual basis. Failing to report this information may result in financial penalties.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/employers-pension-plan-administrators-changes-coming-t4-t4a-reporting.html?utm_source=mediaroom&utm_medium=eml

Canada Revenue Agency announces maximum pensionable earnings and contributions for 2024

The maximum pensionable earnings under the Canada Pension Plan (CPP) will be $68,500—up from $66,600 in 2023. The basic exemption amount for 2024 remains at $3,500.

Starting in 2024, a higher, second earnings ceiling of $73,200 will be implemented and used to determine second additional CPP contributions (CPP2). As a result, pensionable earnings between $68,500 and $73,200 are subject to CPP2 contributions.

These new ceilings were calculated in accordance with the CPP legislation and take into account the growth in average weekly wages and salaries in Canada.

Click here to learn more:
https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2023/maximum-pensionable-earnings-contributions-2024.html