Canada Revenue Agency Information
The Canada Revenue Agency (CRA) (formerly Revenue Canada and the Canada Customs and Revenue Agency) is a federal agency that administers tax laws for the Government of Canada and for most provinces and territories, international trade legislation, and various social and economic benefit and incentive programs delivered through the tax system. It also oversees the registration of charities in Canada, and tax credit programmes such as the Scientific Research and Experimental Development Tax Credit Program.
The Canada Revenue Agency was previously known as the Canada Customs and Revenue Agency (CCRA) until a federal government reorganization in December 2003 when it was decided to split the organization's customs and revenue responsibilities into separate organizations. Since then, Canada Border Services Agency is part of the Public Safety Canada portfolio to handle customs responsibilities.
The CCRA was short-lived, having been created in a November 1999 reorganization of the federal government where it had been known for many years under its statutory name the Department of National Revenue. It was also referred to as Revenue Canada under the Federal Identity Program of the Treasury Board of Canada. To this day, most Canadians have continued to refer to the agency as "Revenue Canada" through its CCRA and CRA official designation periods.
Commissioner and Chief Executive Officer
The Commissioner and Chief Executive Officer is the head of the agency and its Board of Management, consisting of 15 members, 11 of whom are nominated by the provinces and territories.[3]The current Commissioner and Chief Executive Officer is Linda Lizotte-MacPherson, appointed on October 13, 2009.[4]
Income tax
The Canada Revenue Agency administers most individual income taxes in Canada except those for residents of Quebec. The taxation of corporations in Canada is administered by the CRA except for the provinces of Alberta and Quebec. Ontario administered corporate taxes for fiscal years up to 2008. The CRA administers Ontario corporate tax from January 1, 2009 except for a few tax credits Ontario continues to manage. Ontario is transferring the remainder of its corporate tax administration to the CRA.[5]
Personal and trust taxes
The Canada Revenue Agency administers all personal and trust tax returns in Canada.
Goods and Services Tax (GST)
The Canada Revenue Agency collects the Goods and Services Tax (GST) (the Canadian federal value added tax) of 5% in all provinces except Quebec. Revenu Québec administers its own Quebec Sales Tax (QST)and the GST on behalf of the CRA. The Goods and Services Tax was introduced in 1991 at 7% added to the value of most sales of goods and services. The GST was reduced to 6% in 2006 and 5% in 2008, the current rate.
Harmonized Sales Tax (HST)
In British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia and Ontario the Goods and Services Tax (GST) has been replaced by the Harmonized Sales Tax (HST). The Harmonized Sales Tax combines the national GST and the provincial sales tax into a single transaction. HST is administered by the CRA. Each province that has Harmonized Sales Tax receives their portion of the HST from the CRA.
Tax Court of Canada
Taxpayers that believe the Canada Revenue Agency has not assessed the correct amount of tax can dispute the amount by filing an objection with the CRA. If the taxpayer is still dissatisfied after the CRA objection is resolved, an appeal can be made to the Tax Court of Canada. The Tax Court examines the taxpayer's claim and evidence, then looks at the evidence and arguments made by the government before passing judgment. The CRA becomes a witness for the purpose of providing evidence in tax court. The CRA is ,in fact, NOT the government, as the Appellant(The Taxpayer) appeals to the court against Her Majesty the Queen (The Respondent). The role of the Canada Revenue Agency in tax court is that of a witness for the government,not the government itself. Like any other Canadian court, Tax Court operates by treating each side of a dispute as equals while applying tax law, administrative law, constitutional law and the laws of evidence.In the event the taxpayer feels there has been a clear error in assessment,he is encouraged to use The Tax Court of Canada as an accessible way of resolving disputes. In addition,the taxpayer is not responsible for costs in relation to their opponent, but only for their costs related to their own defense.In the event the taxpayer is successful, however, they can seek their costs from the CRA for erroneous assessments.
Taxpayer Bill of Rights
In 2007 the Government of Canada announced in Parliament the adoption of Taxpayer Bill of Rights and the Commitment to Small Business. Fifteen rights were listed as guarantees on how the Canada Revenue Agency will treat taxpayers while administering all tax law. A way for taxpayers to make complaints about the service they received from the CRA was established as part of one of the rights.
Taxpayer Ombudsman
The Taxpayer Bill of Rights was accompanied by the appointment of the Taxpayer Ombudsman to act as an advocate for taxpayers. The Ombudsman investigates complaints from taxpayers reporting breaches of their rights as a taxpayer by the CRA. Investigations are reported to the Minister of National Revenue and the public. Besides looking at matters reported by taxpayers, the Ombudsman has been given the power to investigate the causes of widespread rights violations by the CRA, (called systemic problems).
Service Complaint Process
Taxpayers aggrieved by the conduct of the Canada Revenue Agency may file a Service-Related Complaint with the CRA. The complaint is handed to the office where the complaint originated to be looked into and get in touch with the taxpayer. If the taxpayer is not satisfied with the way the first office handles it, they may take their complaint to a higher level. The Regional office looks into the taxpayer's complaint and contacts the taxpayer. If the taxpayer remains unsatisfied, they may take their complaint to the Taxpayer Ombudsman.
Enforcement
Audits
CRA performs audits (or reviews) to ensure compliance of tax laws. Auditors have the right to inspect, audit, or examine the books and records of a taxpayer; examine the property in an inventory of a taxpayer; enter the taxpayer's premises or place of business; require the owner or manager of a property to give all reasonable assistance and to answer questions; and, require a taxpayer or other person to provide information or documents.[6] Taxpayers must cooperate with auditors or face obstruction charges under S. 238 of the Income Tax Act.[6]
Investigations
CRA operates four investigation program: Voluntary Disclosures Program, Informant Leads Program, Special Enforcement Program and Criminal Investigations Program.[7]
- Voluntary Disclosures Program (VDP): A program that allows taxpayers to avoid penalty or prosecution if they choose to correct inaccurate or incomplete information, or to disclose information previously withheld to CRA. In order to be accepted into this program, the taxpayer's action or omission must involve the application, or potential application of a penalty by CRA and he/she is willing to make a complete disclosure.[8][9]
- Informant Leads Program (ILP): This program allows for citizens to report individuals or businesses who may be committing tax evasion or other tax-related offences.
- Special Enforcement Program (SEP): As proceeds of crime are taxable,[10] this program specifically conducts audits and undertake other civil enforcement actions on individuals known or suspected of deriving income from illegal activities.[11] Collections Officers are responsible for collecting taxes owed and to seize assets under the Income Tax Act.[10]
- Criminial Investigations Program (CIP): Investigators from this program are responsible for suspected cases of tax evasion, fraud and other serious violations of tax laws.[12] Criminal Investigators are given badges and can only exercise investigative power in compliance with the Canadian Charter of Rights and Freedoms.[6][13]
Criticism
The Canada Revenue Agency is inconsistent in regard to breaks for delinquent taxpayers, so much that there is a risk that taxpayers could begin to "shop around" to other tax offices for the best deal.[14]
The Canada Revenue Agency is also inconsistent when compensating taxpayers for mistakes. A recent case being Irvin Leroux who alleges he lost $4.5 million in assets due to a Canada Revenue Agency mistake.[15]
See also
References
- ^ http://www.cra-arc.gc.ca/gncy/mnstr/bgrphy-eng.html
- ^ http://www.cra-arc.gc.ca/crrs/wrkng/menu-eng.html
- ^ http://www.cra-arc.gc.ca/gncy/brd/rls-eng.html
- ^ http://www.cra-arc.gc.ca/gncy/cmmssnr/menu-eng.html
- ^ "Single Administration of Ontario Corporate Tax". Canada Revenue Agency. 2009-03-20. http://www.cra-arc.gc.ca/whtsnw/tms/ctao-eng.html. Retrieved 2009-06-05.
- ^ a b c CRIMINAL LAW, REGULATION & ENFORCEMENT NEWSLETTER - Miller Thomson LLP
- ^ Enforcement and Disclosures
- ^ Voluntary Disclosures Program
- ^ Come to us, before we go to you
- ^ a b Proceeds of Crime Are Taxable
- ^ Special enforcement audits
- ^ Criminal investigations
- ^ CRA criminal investigators given badges
- ^ "Tax breaks for Canadians inconsistent: poll". CTV News. 2009-01-17. http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20090117/canada_revenue_090117/20090117?hub=Canada. Retrieved 2009-01-18.
- ^ "Revenue Canada refuses to pay for million-dollar mistake: poll". CBC News. 2009-04-23. http://www.cbc.ca/canada/british-columbia/story/2009/04/22/bc-taxmistake.html. Retrieved 2009-06-12.
External links
- Canada Revenue Agency
- Canadian Federation of Independent Business
- Taxpayer Ombudsman
- Taxwiki
- CRA Claims Form
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Categories:
- Canadian federal departments and agencies
- Government agencies established in 2003
- Revenue services
- Canadian taxation government bodies
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