We often hear from members about the difficulties they are having when it comes to dealing with the CRA. In recent years, and due in no small part to CFIB lobbying, CRA has added tools and resources aimed specifically at small businesses like yours:
- Payroll guides updated to clarify rules around family members and EI
- Steps for understanding payroll deductions and contributions.
- Improving the audit experience and ensuring consistency through better auditor training and getting feedback directly from small business owners through a post-audit survey.
- Podcasts on topics such as payroll, taxable benefits and CPP
- CRA Business Tax Reminders – is a tool for businesses to create custom reminders and alerts for key due dates related to instalment payments, tax returns, and remittances.
- CRA BizApp – a web app for small business owners and sole proprietors
- A series of “how-to” videos covering everything from the small business deduction to GST to avoiding penalties.
- Allowing T4 information slips to be provided to employees in electronic format.
Here are some of the initiatives they’ve launched to help small businesses deal with the tax man.
My Business Account
My Business Account is an online portal that allows businesses to communicate with the CRA. Getting written advice though My Business account will be honoured by CRA even if it’s incorrect - meaning you won’t be charged penalties/fees for tax mistakes caused by bad information provided by CRA.
My Business Account also allows you to:
- View activity in your account – balances, transactions, remitting requirements, etc.
- Pay accounts
- Request EI Rulings
- Register an objection or appeal
You can access My Business Account by using your CRA user ID and password, and your business number, or you can use a sign-in partner, such as your banking institution’s online banking service.
Liaison Officer Service
Through the Liaison Officer Service, CRA aims to help small, unincorporated businesses understand their tax obligations right from the start. By helping avoid mistakes early on, small business owners will face fewer audits, reassessments and fines in the future.
A Liaison Officer can offer a voluntary face-to-face visit to focus on educational and preventive measures, and will:
- Answer your company’s tax-related questions and share general information of unintentional or recurring errors made by businesses in your industry
- Review your company’s books and records, providing advice and guidance on accuracy and completeness
- Provide information on various tools and services offered by the CRA
For more information, please review the Liaison Officer Service FAQ or contact your Counsellor. The Liaison Officer service is expected to be expanded to small incorporated businesses (T2) in the 2018-2019 fiscal year.
Represent a Client
Represent a Client is an online portal, similar to My Business Account, which allows authorized representatives (accountant, lawyer, payroll administrator) access to tax information on behalf of businesses and individuals.
Representatives with an active RepID from CRA can log into Represent a Client to send an electronic authorization request along with a certificate page from your client. CRA will review, validate and process the information within five business days.
Business owners can set up authorization for themselves, a group, or all employees through the My Business Account portal.
If you prefer not to have online access, then the form RC59 can be used to request access to a business’s information via telephone or through the mail.
Dedicated telephone service for tax professionals (Pilot Project)
Under a three-year pilot project that began in July 2017, tax professionals can speak with experienced CRA officials in the Income Tax Rulings Directorate to find answers to complex technical questions that arise when completing income tax returns on behalf of clients.
The service is available:
- Across Canada for the 2018 filing season.
- To those who are sole proprietors, partners, or shareholders in a CPA firm with up to three partners or shareholders, and/or
- Prepare income tax returns for clients (both Chartered Professional Accountants (CPAs) and non-CPAs)
There is no cost to the program, but if you meet the eligibility requirements, then you can e-mail a registration form to the Dedicated Telephone Service team.
Following consultations in late 2016, CRA issued a report entitled Serving You Better, which contains more in-depth information on the positive changes CRA is looking to make. You can also contact your Counsellor if you have any questions.