cra-assistent

Reading list

The CRA publications this curriculum says it needs — derived from the claims themselves, not hand-maintained. The tutorials were drafted without any source documents, so this is the inverse job: they name what they should have been written from, and this is that list.

  1. 1

    Read the list below

    It is generated from the claims themselves — every CRA publication the curriculum names, and which claims depend on it. Guides come first: they carry the most claims.

  2. 2

    Find each publication on canada.ca and save it

    By hand, into corpus/raw. There is no crawler and there will not be one — canada.ca is behind bot protection, and fetching by hand is the better provenance story anyway.

  3. 3

    Walk each one through intake

    Claude reports what it found; you approve it with its public source URL before anything is stored or embedded.

  4. 4

    Confirm the claims against the loaded documents

    A claim confirmed against a document in the corpus is provably backed by a public CRA page, rather than by a URL someone typed in.

41 publications named 0 loaded into the corpus 95 of 901 claims name one 9 name one in words only

Guides

0 of 7 loaded

Income tax folio

0 of 1 loaded

Forms and slips

0 of 31 loaded

T1 schedules

0 of 2 loaded

Named in words, not by number

These claims point at a CRA publication without giving its number, so this page cannot tell you which one to fetch. A human has to identify it — and the claim is worth rewriting to name it, so that it lands on the list above next time the tutorial is redrafted.

Claims naming no publication at all

797 claims cite nothing checkable. That is not automatically wrong — plenty of statements are general enough not to need a publication number — but a specific with no source named is the hardest kind to verify, so these are grouped with the riskiest type first. Annual limits lead because they change every year and are the likeliest thing here to be stale.

Annual limits — 46 claims
  • CPP contributions and EI premiums are subject to annual maximums, and an employee with more than one employer in a year may over-contribute and recover the excess through the return. Employment income
  • The basic personal amount is claimed by every individual and is indexed annually. Common non-refundable tax credits
  • The basic personal amount is subject to a reduction for individuals with income above a threshold. Common non-refundable tax credits
  • The age amount is available to individuals who reach 65 years of age by the end of the year and is reduced as net income rises above a threshold. Common non-refundable tax credits
  • The spouse or common-law partner amount is available where the partner's net income is below a threshold and is reduced by that income. Common non-refundable tax credits
  • The medical expense threshold is the lesser of a fixed indexed amount and a percentage of the individual's net income. Common non-refundable tax credits
  • A student may transfer a limited maximum amount of tuition to a parent, grandparent, spouse or common-law partner in the year it arises. Common non-refundable tax credits
  • Federal tax bracket thresholds are indexed annually. Deductions versus credits
  • The RRSP dollar limit is set annually and changes every year; the current value must be taken from CRA's published limits table. RRSP contributions and the deduction limit
  • The Home Buyers' Plan permits a withdrawal from an RRSP to buy or build a qualifying home without immediate tax, subject to a maximum and to repayment over a defined period. RRSP contributions and the deduction limit
  • The lifetime capital gains exemption applies to qualified small business corporation shares and qualified farm or fishing property, is a cumulative lifetime amount, and is indexed. Capital gains and losses
  • The Tax Court of Canada operates an informal procedure for disputes below defined monetary thresholds or where elected, and a general procedure for larger disputes. Objections and appeals
  • An emigrant may be required to file a list of properties owned on departure where their total value exceeds a threshold. Newcomers, emigrants and part-year residents
  • The Canada child benefit is calculated from a maximum annual amount per child, reduced as adjusted family net income rises above thresholds, with the maximum differing by the child's age band. Canada child benefit
  • Canada child benefit maximum amounts, income thresholds and reduction rates are indexed and change annually. Canada child benefit
  • The GST/HST credit is built from a base amount, an amount for a spouse or common-law partner, an amount per child and a supplement for lower-income single individuals, reduced as adjusted family net income rises above a threshold. GST/HST credit
  • GST/HST credit amounts and thresholds are indexed and change annually. GST/HST credit
  • Benefit amounts and income thresholds are indexed annually, generally producing an increase at the start of the benefit year. Recalculations and why amounts change
  • Canada workers benefit entitlement rises with working income above a threshold, reaches a maximum, and then falls as adjusted family net income rises above a second threshold. Canada workers benefit
  • A disability supplement is available in addition to the basic amount for an individual eligible for the disability tax credit, with its own phase-in and phase-out thresholds. Canada workers benefit
  • Canada workers benefit amounts and thresholds are indexed annually and are varied by agreement for some provinces and territories. Canada workers benefit
  • The lifetime retirement benefit that may accrue for a year of service is also capped at the defined benefit limit for the year, which is set annually and changes every year. RPP — Defined Benefit provision
  • Total contributions credited to a member under all money purchase provisions for a year are limited to the money purchase limit for that year. RPP — Money Purchase provision
  • The money purchase limit is set annually and changes every year; the current value must be taken from CRA's published limits table. RPP — Money Purchase provision
  • A member's pension adjustment for a year is capped at the lesser of the money purchase limit for that year and a percentage of the member's compensation for the year. Pension Adjustment (PA)
  • The money purchase limit is set annually and changes every year; the current year's value must be taken from CRA's published limits table. Pension Adjustment (PA)
  • The defined benefit limit, the RRSP dollar limit, the DPSP limit and the year's maximum pensionable earnings (YMPE) are all set annually and change every year. Pension Adjustment (PA)
  • Employer contributions and reallocated forfeitures credited to an employee under a DPSP for a year are limited to the lesser of the DPSP limit for the year and 18% of the employee's compensation for the year. Deferred Profit Sharing Plan (DPSP)
  • The DPSP limit for a year is one half of the money purchase limit for that year. Deferred Profit Sharing Plan (DPSP)
  • The DPSP limit is set annually and changes every year; the current value must be taken from CRA's published limits table. Deferred Profit Sharing Plan (DPSP)
  • A member's own PRPP contributions are limited by their RRSP deduction limit. Pooled Registered Pension Plan (PRPP)
  • Any annual contribution limit specific to a specified pension plan is subject to change and must be confirmed from CRA's current-year guidance. Specified Pension Plan (SPP)
  • The lifetime retirement benefit accruing under an individual pension plan for a year of service is capped at the lesser of 2% of the member's compensation and the defined benefit limit for the year. Individual Pension Plan (IPP)
  • The defined benefit limit is set annually and changes every year; the current value must be taken from CRA's published limits table. Individual Pension Plan (IPP)
  • The annual limits applying to registered plans, including the defined benefit limit and the money purchase limit, do not constrain what a retirement compensation arrangement may fund. Retirement Compensation Arrangement (RCA)
  • The annual cap on a pension adjustment — the lesser of the money purchase limit for the year and 18% of compensation — applies to specified multi-employer plan members. Specified Multi-Employer Plan (SMEP)
  • The CPP contribution rate applied to an employee's pensionable earnings is set annually and published by CRA. What must be withheld
  • The CPP basic exemption, being the amount of earnings on which no contribution is made, is set annually and published by CRA. What must be withheld
  • The maximum pensionable earnings for CPP purposes are set annually and published by CRA. What must be withheld
  • A second, higher earnings ceiling applies for CPP purposes with its own contribution rate on earnings between the first and second ceilings; both the ceiling and the rate are set annually and published by CRA. What must be withheld
  • The EI premium rate is set annually and published by CRA. What must be withheld
  • The maximum insurable earnings for EI purposes are set annually and published by CRA. What must be withheld
  • The average monthly withholding amount thresholds that determine an employer's remitter type are published by CRA. The remittance obligation
  • The per-kilometre rates used in calculating an automobile operating expense benefit are set annually and published by CRA. Taxable benefits and allowances
  • CRA's administrative policy on gifts and awards sets conditions and thresholds under which certain gifts and awards are not treated as taxable benefits. Taxable benefits and allowances
  • CRA requires information returns to be filed electronically above a threshold number of slips, and that threshold has been lowered. T4 slips and the T4 Summary
Fixed dollar figures — 9 claims
Percentages — 26 claims
Form references — 2 claims
Deadlines — 79 claims
Other statements — 635 claims
  • The Income Tax Act is federal legislation enacted by Parliament; CRA administers it and does not have authority to change or waive it. How Canada's tax system is structured
  • The Department of Finance Canada develops tax policy and drafts tax legislation; CRA administers it. How Canada's tax system is structured
  • The Canada Revenue Agency is headed by the Commissioner of Revenue and reports to the Minister of National Revenue. How Canada's tax system is structured
  • Tax disputes that are not resolved through the objection process may be appealed to the Tax Court of Canada. How Canada's tax system is structured
  • Canada's income tax system is self-assessing: the taxpayer reports their income and calculates their tax, and CRA then assesses the return. How Canada's tax system is structured
  • CRA administers personal income tax for all provinces and territories except Quebec, under tax collection agreements. How Canada's tax system is structured
  • Quebec administers its own personal income tax through Revenu Québec, and Quebec residents file a separate provincial return. How Canada's tax system is structured
  • CRA also administers the GST/HST, payroll deductions, excise duties and levies, and registrations including charities and registered plans. How Canada's tax system is structured
  • Entitlement to the Canada child benefit and the GST/HST credit depends on filing an income tax return, even where the individual has no income and no tax payable. How Canada's tax system is structured
  • Taxpayer information is confidential under section 241 of the Income Tax Act, which restricts disclosure by CRA officials. How Canada's tax system is structured
  • A spouse, parent, adult child or employer has no automatic right to a taxpayer's information; authorisation is required. How Canada's tax system is structured
  • CRA publishes a Taxpayer Bill of Rights setting out what taxpayers can expect in their dealings with the agency. How Canada's tax system is structured
  • The Office of the Taxpayers' Ombudsperson reviews service complaints about CRA and is independent of it; it does not decide whether an assessment is correct. How Canada's tax system is structured
  • Taxpayer relief provisions permitting cancellation or waiver of penalties and interest exist in the Income Tax Act; relief not provided for in the Act is not available. How Canada's tax system is structured
  • A resident of Canada is taxed on worldwide income; a non-resident is taxed only on certain Canadian-source income. Residency for tax purposes
  • Residency for tax purposes is a factual determination based on residential ties, not on citizenship or immigration status. Residency for tax purposes
  • The significant residential ties are a dwelling place in Canada, a spouse or common-law partner in Canada, and dependants in Canada. Residency for tax purposes
  • Secondary residential ties include personal property in Canada, social and economic ties, a Canadian driver's licence, provincial health insurance coverage, and Canadian bank accounts, and are weighed collectively rather than individually. Residency for tax purposes
  • An individual who is not a factual resident but sojourns in Canada for 183 days or more in a calendar year is deemed to be a resident of Canada for the entire year. Residency for tax purposes
  • Certain government employees posted abroad, and certain of their family members, are deemed residents of Canada regardless of residential ties. Residency for tax purposes
  • Where an individual is resident in Canada under domestic rules and also resident in a treaty country, and the treaty tie-breaker resolves residency to the other country, the individual is a deemed non-resident of Canada. Residency for tax purposes
  • An individual who becomes or ceases to be a resident during a year is a part-year resident, taxed on worldwide income only for the period of residency. Residency for tax purposes
  • Certain credits and amounts are prorated for a part-year resident according to the period of residency. Residency for tax purposes
  • Ceasing Canadian residency can give rise to a deemed disposition of certain property. Residency for tax purposes
  • Entitlement to benefits administered by CRA generally requires residence in Canada. Residency for tax purposes
  • Interest on an unpaid balance is charged at a prescribed rate set quarterly and compounded daily, running from the payment deadline. The tax year, deadlines, and what "assessed" means
  • There is no time limit on reassessment where the taxpayer has made a misrepresentation attributable to neglect, carelessness or wilful default, or has committed fraud. The tax year, deadlines, and what "assessed" means
  • A taxpayer may sign a waiver to extend the normal reassessment period for a year. The tax year, deadlines, and what "assessed" means
  • Taxpayer relief provisions permit CRA to cancel or waive penalties and interest, but not the underlying tax. The tax year, deadlines, and what "assessed" means
  • Filing late does not attract a late-filing penalty where no balance is owing, but benefit payments depend on the return being filed. The tax year, deadlines, and what "assessed" means
  • The Income Tax Act is the governing federal statute for income tax in Canada. Where the rules live
  • The Income Tax Regulations are made under the authority of the Income Tax Act and have the force of law. Where the rules live
  • Tax treaties implemented in Canadian law can override domestic income tax rules in the situations they cover. Where the rules live
  • An advance income tax ruling binds CRA in respect of the taxpayer who requested it and the facts presented; a technical interpretation is general and does not bind CRA. Where the rules live
  • Provisions of the Income Tax Act are cited by section, subsection, paragraph and subparagraph. Where the rules live
  • The Income Tax Act and Regulations are published on the Justice Laws website. Where the rules live
  • Amendments to the Income Tax Act can apply retroactively, so a question about an earlier tax year is answered by the law as it applied to that year. Where the rules live
  • The Department of Finance publishes explanatory notes accompanying legislative amendments. Where the rules live
  • CRA issues a notice of assessment for every return it assesses, including returns with no tax payable. Reading a notice of assessment
  • A notice of assessment states what CRA assessed, which may differ from what the taxpayer reported on the return. Reading a notice of assessment
  • A notice of assessment includes an explanation of any changes CRA made to the return as filed. Reading a notice of assessment
  • The RRSP deduction limit shown on a notice of assessment applies to the following tax year, not the year being assessed. Reading a notice of assessment
  • The RRSP deduction limit on a notice is calculated from the assessed year's earned income and reduced by any pension adjustment reported for that year. Reading a notice of assessment
  • Net income is the figure used to compute benefit entitlement and to reduce several income-tested credits. Reading a notice of assessment
  • A refund may be applied against a balance owing from another tax year or another debt. Reading a notice of assessment
  • When CRA changes an assessment after issuing it, it issues a notice of reassessment. Reading a notice of assessment
  • Filing an objection does not automatically stop interest from accruing on an amount ultimately upheld. Reading a notice of assessment
  • Notices of assessment are available through CRA's online portal as well as by mail, and taxpayers registered for electronic delivery do not receive paper notices. Reading a notice of assessment
  • Taxpayer information is confidential and may not be disclosed to a third party without authorisation, regardless of the third party's relationship to the taxpayer. Authorising a representative
  • Representative authorisation is granted at levels, where a lower level permits disclosure of information and a higher level permits making changes to the account. Authorising a representative
  • A representative authorisation may be limited to specified tax years and may be given an expiry date. Authorising a representative
  • A taxpayer may cancel a representative authorisation at any time. Authorising a representative
  • Business authorisations use a separate process from individual authorisations, and an individual authorisation does not extend to a business. Authorising a representative
  • A legal representative — an executor, estate administrator, attorney under a power of attorney, or court-appointed guardian or trustee — holds authority by operation of law rather than by taxpayer authorisation to CRA. Authorising a representative
  • CRA requires the legal documents establishing a legal representative's authority before acting on that authority. Authorising a representative
  • A power of attorney is not automatically effective for tax purposes; its scope determines what it authorises and CRA must review it. Authorising a representative
  • The tax affairs of a deceased taxpayer and the tax obligations of their estate are separate filings. Authorising a representative
  • Identity must be confirmed before any taxpayer information is disclosed, including to an authorised representative. Authorising a representative
  • Confirming information back to a caller constitutes disclosure of that information. Authorising a representative
  • My Account is CRA's online portal for an individual to view and manage their own tax and benefit information. The digital channels and what each is for
  • My Business Account is CRA's online portal through which an owner, partner, director or officer manages a business's program accounts. The digital channels and what each is for
  • Represent a Client is CRA's online portal through which an authorised representative accesses another taxpayer's information. The digital channels and what each is for
  • A business number is a nine-digit number identifying a business. The digital channels and what each is for
  • A CRA program account number consists of the nine-digit business number, a two-letter program identifier, and a four-digit reference number. The digital channels and what each is for
  • A single business number can have multiple program accounts attached to it, one for each program the business is registered for. The digital channels and what each is for
  • CRA accepts a CRA user ID and password as a sign-in credential for its online portals. The digital channels and what each is for
  • CRA accepts a Sign-In Partner, which uses the credentials a person already holds with a participating financial institution, as an alternative to a CRA user ID. The digital channels and what each is for
  • Access to My Business Account is granted to an individual person rather than to the business itself. The digital channels and what each is for
  • A sole proprietor's personal income tax information and their business program accounts are held in separate portals. The digital channels and what each is for
  • An information slip does not appear in My Account until the issuer has filed it with CRA. The digital channels and what each is for
  • A return that has been transmitted to CRA has not necessarily been assessed. The digital channels and what each is for
  • Registering for My Account requires the individual's social insurance number. Registering for and signing in to My Account
  • Registering for My Account requires the individual's date of birth. Registering for and signing in to My Account
  • Registering for My Account requires the postal code or address CRA currently holds for the individual. Registering for and signing in to My Account
  • Registering for My Account requires an amount from a specified line of a return the individual has filed and CRA has assessed. Registering for and signing in to My Account
  • The amount used to verify registration is checked against CRA's assessed figure, not against the figure the taxpayer originally filed. Registering for and signing in to My Account
  • An individual who has never filed a return that CRA has assessed cannot complete My Account registration, because there is no assessed amount to verify against. Registering for and signing in to My Account
  • CRA has offered a document verification option that confirms identity using government-issued identification instead of a mailed security code. Registering for and signing in to My Account
  • An individual has limited access to My Account while full access is pending verification. Registering for and signing in to My Account
  • A Sign-In Partner credential is issued by a participating financial institution, and CRA cannot reset or recover it. Registering for and signing in to My Account
  • Using a Sign-In Partner does not disclose the individual's banking information to CRA or their tax information to the financial institution. Registering for and signing in to My Account
  • CRA accepts certain provincial digital identity services as sign-in credentials where those services are available. Registering for and signing in to My Account
  • My Account displays notices of assessment and reassessment for the individual. What a taxpayer can do in My Account
  • My Account displays the information slips that issuers have filed with CRA for the individual. What a taxpayer can do in My Account
  • My Account displays the RRSP deduction limit CRA has calculated for the individual. What a taxpayer can do in My Account
  • My Account displays the TFSA contribution room CRA has calculated for the individual, as at a stated date. What a taxpayer can do in My Account
  • CRA calculates TFSA contribution room from information filed by TFSA issuers, which is filed periodically rather than in real time. What a taxpayer can do in My Account
  • A TFSA contribution room figure displayed by CRA may not reflect contributions or withdrawals made recently. What a taxpayer can do in My Account
  • An excess TFSA contribution attracts a tax charged for each month the excess remains in the account. What a taxpayer can do in My Account
  • An individual can change their address through My Account. What a taxpayer can do in My Account
  • An individual can add or update direct deposit information through My Account. What a taxpayer can do in My Account
  • An individual can report a change in marital status through My Account. What a taxpayer can do in My Account
  • An individual can request a change to an already-filed return through My Account. What a taxpayer can do in My Account
  • An individual can view and cancel authorised representatives through My Account. What a taxpayer can do in My Account
  • A pension adjustment reported by an employer reduces the individual's RRSP deduction limit for the following year. What a taxpayer can do in My Account
  • CRA does not disclose taxpayer information until the person requesting it has been verified as entitled to receive it. Account security and verifying who you are speaking to
  • Confirming that an individual is a CRA client, or that a name matches a social insurance number, is itself a disclosure of taxpayer information. Account security and verifying who you are speaking to
  • Multi-factor authentication requires a second proof of identity in addition to the password when signing in to a CRA portal. Account security and verifying who you are speaking to
  • CRA has offered a one-time passcode sent to a registered telephone number as a multi-factor authentication option. Account security and verifying who you are speaking to
  • CRA has offered a passcode generated by an authenticator application as a multi-factor authentication option. Account security and verifying who you are speaking to
  • CRA does not ask a taxpayer to disclose a one-time passcode to an agent. Account security and verifying who you are speaking to
  • Receiving a multi-factor authentication passcode that was not requested indicates that another party may hold the account password. Account security and verifying who you are speaking to
  • A representative must be verified for identity and separately confirmed as authorised on the account before information is disclosed to them. Account security and verifying who you are speaking to
  • An authorisation for a representative carries a level of access that determines whether the representative may view information only or also make changes. Account security and verifying who you are speaking to
  • An authorisation for a representative applies to specified accounts and does not automatically extend to every account of the taxpayer. Account security and verifying who you are speaking to
  • CRA publishes guidance describing how it makes contact with taxpayers and what it will not ask for, for use in identifying fraudulent contact. Account security and verifying who you are speaking to
  • CRA's confidentiality obligations in respect of taxpayer information arise under the Income Tax Act. Account security and verifying who you are speaking to
  • NETFILE is the CRA service through which an individual transmits their own income tax return electronically. NETFILE and certified software
  • EFILE is the CRA service through which a registered electronic filer transmits a return on behalf of another person. NETFILE and certified software
  • A return transmitted through NETFILE must be prepared using software CRA has certified for the relevant tax year. NETFILE and certified software
  • CRA certification of tax software confirms compatibility with CRA's systems and does not constitute an endorsement of the product or CRA support for it. NETFILE and certified software
  • CRA publishes its list of NETFILE-certified software by tax year, and certification for one year does not carry to another. NETFILE and certified software
  • CRA publishes a list of restrictions and exclusions setting out returns that cannot be filed through NETFILE. NETFILE and certified software
  • A return for a deceased person cannot be filed through NETFILE. NETFILE and certified software
  • A confirmation number issued on a NETFILE transmission confirms that CRA received the return and does not confirm that the return has been assessed or accepted as correct. NETFILE and certified software
  • An individual does not register separately for NETFILE; access is through certified software. NETFILE and certified software
  • NETFILE accepts returns only for the tax years CRA specifies for the service. NETFILE and certified software
  • Direct deposit sends CRA refund and benefit payments into a Canadian bank account instead of issuing a cheque. Direct deposit and paying online
  • An individual can enrol in or update direct deposit information through My Account. Direct deposit and paying online
  • An individual can enrol in or update CRA direct deposit information through a participating Canadian financial institution. Direct deposit and paying online
  • A taxpayer can pay CRA through their financial institution's online banking by adding CRA as a payee. Direct deposit and paying online
  • CRA offers an online payment service through which a taxpayer can pay directly. Direct deposit and paying online
  • A taxpayer can arrange a pre-authorised debit through My Account, authorising CRA to withdraw an agreed amount on an agreed date. Direct deposit and paying online
  • Paying CRA through a third-party service provider generally attracts a fee charged by that provider. Direct deposit and paying online
  • Paying at a financial institution in person requires a remittance voucher. Direct deposit and paying online
  • A payment directed to the wrong CRA program account is applied to that account and does not reduce the balance the taxpayer intended to pay. Direct deposit and paying online
  • Correcting a payment applied to the wrong account requires a request to CRA to transfer it. Direct deposit and paying online
  • A refund may be applied against an outstanding balance owing rather than paid to the taxpayer. Direct deposit and paying online
  • Relief from interest arising from a misdirected payment is discretionary and is sought through the taxpayer relief provisions. Direct deposit and paying online
  • Under CRA's electronic correspondence service, specified correspondence is made available in the taxpayer's online account instead of being mailed. Online mail and electronic correspondence
  • CRA sends an email notification advising that correspondence is available online, and the notification does not contain the correspondence itself. Online mail and electronic correspondence
  • CRA's email notifications do not contain taxpayer information. Online mail and electronic correspondence
  • Not all CRA correspondence is delivered electronically; some items continue to be issued on paper regardless of the taxpayer's setting. Online mail and electronic correspondence
  • CRA sends email notifications to the address the taxpayer has on file, and the taxpayer is responsible for keeping that address current. Online mail and electronic correspondence
  • A taxpayer can change between electronic and paper correspondence through CRA's online portal. Online mail and electronic correspondence
  • Changing from electronic to paper correspondence does not reissue correspondence already made available online. Online mail and electronic correspondence
  • An application may be made to extend the time for filing a notice of objection, and such an extension is not automatic. Online mail and electronic correspondence
  • Represent a Client is the CRA portal through which an authorised representative accesses a taxpayer's information. Represent a Client — authorisation online
  • A representative must register for Represent a Client and is issued an identifier of their own. Represent a Client — authorisation online
  • A representative can request authorisation for a client, which the taxpayer then confirms. Represent a Client — authorisation online
  • A taxpayer can authorise a representative from their own CRA online account. Represent a Client — authorisation online
  • An authorisation carries a level of access that determines whether the representative may only view information or may also make changes. Represent a Client — authorisation online
  • Authorisation for a business is granted per program account, so a representative authorised on one program account is not thereby authorised on another. Represent a Client — authorisation online
  • An authorisation may be given an expiry date, after which it ends automatically. Represent a Client — authorisation online
  • A taxpayer can cancel a representative's authorisation at any time without the representative's agreement. Represent a Client — authorisation online
  • A representative's authorisation continues until it expires or is cancelled, and does not lapse merely because the engagement ended. Represent a Client — authorisation online
  • A legal representative acting under a power of attorney, for an estate, or as a trustee in bankruptcy establishes authority through documentation rather than through an online authorisation request. Represent a Client — authorisation online
  • A firm can be authorised as a representative, allowing its employees to act under the firm's identifier. Represent a Client — authorisation online
  • A business number identifies a business, and program accounts attached to it identify each program the business is registered for. My Business Account and program accounts
  • A business can hold more than one program account of the same type, distinguished by the four-digit reference number. My Business Account and program accounts
  • Registration for one CRA program account does not register the business for any other program. My Business Account and program accounts
  • Access to My Business Account is held by an individual person signing in with their own credential, not by the business. My Business Account and program accounts
  • An owner, partner, director or officer can obtain access to My Business Account on the basis of that relationship to the business. My Business Account and program accounts
  • CRA validates a person's claimed relationship to a business against the information CRA holds about that business. My Business Account and program accounts
  • A person with access to My Business Account can authorise employees and set what each may do on each program account. My Business Account and program accounts
  • Delegated access to a business account can be limited to viewing information, or can permit changes. My Business Account and program accounts
  • Delegated access can include the authority to manage other users' access to the business's accounts. My Business Account and program accounts
  • Access to My Business Account does not transfer automatically when a director, officer or owner changes. My Business Account and program accounts
  • A business can register for additional program accounts through My Business Account. My Business Account and program accounts
  • A business's filing and remittance obligations continue regardless of whether anyone currently has access to My Business Account. My Business Account and program accounts
  • CRA cannot reset or recover a Sign-In Partner credential, because it is issued by the financial institution rather than by CRA. Locked accounts, revoked access and suspected identity theft
  • Repeated failed sign-in attempts can cause CRA to restrict access to an account temporarily. Locked accounts, revoked access and suspected identity theft
  • CRA has restricted access to online accounts as a precaution where it had reason to believe the accounts may have been compromised. Locked accounts, revoked access and suspected identity theft
  • A protective restriction placed on a CRA account is not resolved by resetting the account password. Locked accounts, revoked access and suspected identity theft
  • Being unable to file electronically because a return has already been filed for that year and taxpayer is a possible indicator of identity theft. Locked accounts, revoked access and suspected identity theft
  • A change to an account's address or direct deposit information that the taxpayer did not make is a possible indicator of unauthorised access. Locked accounts, revoked access and suspected identity theft
  • Receiving a multi-factor authentication passcode that was not requested is a possible indicator that another party holds the account credentials. Locked accounts, revoked access and suspected identity theft
  • CRA publishes guidance on what a taxpayer should do if they suspect their CRA account has been accessed without authorisation. Locked accounts, revoked access and suspected identity theft
  • CRA directs taxpayers to the Canadian Anti-Fraud Centre in connection with identity theft and fraud reporting. Locked accounts, revoked access and suspected identity theft
  • Restoring access to an account restricted for security reasons requires verification beyond that used for an ordinary enquiry. Locked accounts, revoked access and suspected identity theft
  • EFILE is the CRA service through which a registered electronic filer transmits income tax returns on behalf of other taxpayers. EFILE and electronic filers
  • A person or firm must apply to CRA for EFILE privileges and pass a screening process before transmitting returns for others. EFILE and electronic filers
  • EFILE privileges must be renewed on the cycle CRA publishes, and a filer who has not renewed cannot transmit. EFILE and electronic filers
  • The authorisation an electronic filer obtains to transmit a return is separate from an authorisation to access the taxpayer's account information. EFILE and electronic filers
  • An electronic filer must retain the signed authorisation and supporting documents for the period CRA specifies and produce them on request. EFILE and electronic filers
  • CRA can suspend or revoke a filer's EFILE privileges on published grounds. EFILE and electronic filers
  • Holding EFILE privileges does not entitle a preparer to discuss a client's account information with CRA. EFILE and electronic filers
  • CRA publishes a list of software certified for EFILE, separately from its NETFILE certified software list. EFILE and electronic filers
  • A preparer who completes returns for clients to file themselves does not require EFILE privileges. EFILE and electronic filers
  • An individual served with a demand to file must file a return regardless of whether tax is payable. Who must file a T1 return
  • An individual who disposed of capital property in the year is required to file a return. Who must file a T1 return
  • There is no obligation to file solely because a refund is owed to the taxpayer. Who must file a T1 return
  • Entitlement to the Canada child benefit and the GST/HST credit requires a return to be filed for each year, and where the individual has a spouse or common-law partner, both must generally file. Who must file a T1 return
  • RRSP contribution room is built from earned income reported on a filed return. Who must file a T1 return
  • Tuition amounts and capital losses must be reported on the return for the year they arose in order to be carried forward. Who must file a T1 return
  • Optional additional returns may be filed for a deceased individual in certain circumstances and can reduce total tax payable. Who must file a T1 return
  • Where a required return is not filed, CRA may assess the taxpayer on the information available to it under its authority to do so. Who must file a T1 return
  • The Voluntary Disclosures Program allows taxpayers to come forward about unreported income or incorrect filings on defined conditions, and is not a general amnesty and does not eliminate tax owing. Who must file a T1 return
  • A bankruptcy divides the tax year and involves a trustee in the filing. Who must file a T1 return
  • Information slips report amounts paid to a recipient during a calendar year, with a copy filed with CRA by the payer. Information slips
  • The obligation to report income does not depend on receiving an information slip. Information slips
  • Information slips filed by payers are visible to taxpayers through CRA's online services once the payer has filed them. Information slips
  • The repeated failure to report income penalty applies where a taxpayer omits income in a year and also omitted income in any of the three preceding years. Information slips
  • A slip that reports an incorrect amount must be corrected by the issuer, who files an amended slip with CRA. Information slips
  • An amended information slip replaces the original rather than adding to it. Information slips
  • CRA matches amounts reported on returns against the information slips it holds, and this matching commonly occurs after the return has been assessed. Information slips
  • Employment income includes salary, wages, commissions, bonuses, gratuities, honoraria and vacation pay. Employment income
  • Employment income is taxed in the year it is received rather than the year it is earned. Employment income
  • Employers withhold income tax, Canada Pension Plan contributions (or Quebec Pension Plan contributions for Quebec employment) and Employment Insurance premiums from employment income. Employment income
  • Annual union dues and professional membership dues are deductible against employment income. Employment income
  • Employment expenses are deductible only where the employee was required by the contract of employment to incur them and was not reimbursed. Employment income
  • Commuting costs between home and a regular place of work are not deductible for an employee. Employment income
  • Retiring allowances and severance are not ordinary employment income and may in defined circumstances be transferred to an RRSP based on years of service. Employment income
  • Whether an individual is an employee or self-employed is determined by defined criteria and not by how the parties describe the arrangement. Employment income
  • The taxability of wage-loss replacement benefits depends on who paid the premiums for the plan. Employment income
  • A non-refundable tax credit reduces tax payable but cannot reduce it below zero and cannot by itself generate a refund. Common non-refundable tax credits
  • The Canada employment amount is available to individuals with employment income. Common non-refundable tax credits
  • The pension income amount is available against eligible pension income, and what qualifies depends on the type of income and the recipient's age. Common non-refundable tax credits
  • Unused tuition amounts carry forward indefinitely to the student and must be claimed in the earliest year in which the student has tax payable. Common non-refundable tax credits
  • Certain unused credits, including the age amount, pension income amount, disability amount and tuition, may be transferred to a spouse or common-law partner only after the individual has used what they can. Common non-refundable tax credits
  • The disability amount may be transferred to a supporting person where the individual entitled to it cannot use it. Common non-refundable tax credits
  • A deduction reduces income subject to tax, so its value to a taxpayer depends on their marginal tax rate. Deductions versus credits
  • The return proceeds from total income, to net income after certain deductions, to taxable income after further deductions, with tax then calculated and credits applied against it. Deductions versus credits
  • Net income is the figure used to determine benefit entitlement, to reduce income-tested credits, and to compute the medical expense threshold. Deductions versus credits
  • A deduction applied before net income can increase entitlement to income-tested benefits; a credit does not affect benefit entitlement. Deductions versus credits
  • RRSP contributions, child care expenses, union and professional dues, moving expenses in defined circumstances, and carrying charges on money borrowed to earn income are deductions. Deductions versus credits
  • The basic personal amount, age amount, disability amount, tuition, medical expenses and charitable donations are non-refundable credits. Deductions versus credits
  • The GST/HST credit and the Canada workers benefit are refundable credits and are paid whether or not the individual has tax payable. Deductions versus credits
  • Benefits calculated from a tax year's family net income are paid over the following benefit year. Deductions versus credits
  • Provincial and territorial tax has its own rate brackets and its own credits, separate from the federal ones. Deductions versus credits
  • RRSP contributions are deducted from income when claimed, growth inside the plan is not taxed annually, and withdrawals are taxed as income when received. RRSP contributions and the deduction limit
  • Earned income for RRSP purposes is a defined term that generally includes employment and business income and generally excludes investment income. RRSP contributions and the deduction limit
  • A pension adjustment for the previous year reduces the RRSP deduction limit, and a pension adjustment reversal increases it. RRSP contributions and the deduction limit
  • Unused RRSP deduction room carries forward indefinitely. RRSP contributions and the deduction limit
  • CRA states an individual's RRSP deduction limit on their notice of assessment. RRSP contributions and the deduction limit
  • A contribution may be deducted in the year made or carried forward and deducted in a later year, but must be reported on the return for the year it was made. RRSP contributions and the deduction limit
  • The $2,000 over-contribution buffer is available only to individuals who are 19 years of age or older. RRSP contributions and the deduction limit
  • Where an amount is withdrawn from a spousal RRSP within a defined period after a spousal contribution was made, the withdrawal may be taxed in the contributor's hands rather than the annuitant's. RRSP contributions and the deduction limit
  • A missed Home Buyers' Plan or Lifelong Learning Plan repayment is included in the individual's income for the year the repayment was due. RRSP contributions and the deduction limit
  • Withholding tax on an RRSP withdrawal is an instalment against the liability determined on the return, not the final tax on the withdrawal. RRSP contributions and the deduction limit
  • Interest income is included in income in full, with no gross-up, partial inclusion or offsetting credit. Investment income
  • Interest on many investments must be reported as it accrues, on at least an annual basis, even where no payment has been received. Investment income
  • Dividends from taxable Canadian corporations are grossed up on the return and offset by a dividend tax credit, so the reported amount exceeds the amount received. Investment income
  • Dividends from foreign corporations do not receive the gross-up or the dividend tax credit and are taxed as ordinary income. Investment income
  • Foreign investment income must be converted to Canadian dollars, using a transaction-date rate or an annual average rate as appropriate. Investment income
  • A foreign tax credit is generally limited to the Canadian tax otherwise payable on the foreign income. Investment income
  • Interest on money borrowed to earn income from a business or property is deductible as a carrying charge; interest on money borrowed to contribute to a registered plan is not. Investment income
  • Fees charged inside a registered plan are not deductible as carrying charges. Investment income
  • Income from property transferred or loaned to a spouse or common-law partner is generally attributed back to the transferor. Investment income
  • Income from property transferred to a related minor is generally attributed back to the transferor, but capital gains are not. Investment income
  • Income earned inside an RRSP, RRIF or TFSA is not reported as investment income on the return. Investment income
  • Foreign withholding tax may apply to foreign dividends held inside a registered plan, and no foreign tax credit is available for it. Investment income
  • Provincial tax is not prorated for an individual who moved between provinces during the year. Provincial and territorial tax
  • Where an individual died during the year, the relevant date for determining province of residence is the date of death. Provincial and territorial tax
  • CRA administers provincial and territorial personal income tax for all jurisdictions except Quebec under tax collection agreements. Provincial and territorial tax
  • Quebec residents file a separate provincial return with Revenu Québec in addition to the federal return. Provincial and territorial tax
  • Quebec residents pay Quebec Pension Plan contributions rather than Canada Pension Plan contributions, and pay Quebec parental insurance plan premiums. Provincial and territorial tax
  • A federal tax abatement applies to Quebec residents. Provincial and territorial tax
  • Provincial tax is calculated on taxable income determined under federal rules, applying provincial rates and provincial credits. Provincial and territorial tax
  • A deduction reduces both federal and provincial tax, since both are calculated from the same taxable income. Provincial and territorial tax
  • The multi-jurisdiction allocation applies to business income only; employment, investment and pension income follow the province of residence. Provincial and territorial tax
  • An employee resident in one province and working in another pays provincial tax entirely to their province of residence. Provincial and territorial tax
  • Several provinces and territories deliver refundable credits and benefit programs through the income tax return, many administered by CRA on the province's behalf. Provincial and territorial tax
  • Individuals resident in Canada but not resident in any province may be subject to a federal surtax in place of provincial tax. Provincial and territorial tax
  • Instalments are required for a year where net tax owing exceeds the threshold in that year and also exceeded it in either of the two preceding years. Tax instalments
  • Net tax owing is broadly tax payable less amounts already withheld at source. Tax instalments
  • There are three instalment calculation options: the no-calculation option using CRA's reminder amount, the prior-year option, and the current-year option. Tax instalments
  • A taxpayer who pays the amounts stated on CRA's instalment reminders in full and on time is not charged instalment interest, even if those amounts prove to be too low. Tax instalments
  • CRA sends instalment reminders twice a year. Tax instalments
  • An instalment reminder is not an assessment or a bill, and a taxpayer may use a different calculation option than the amount stated. Tax instalments
  • An instalment obligation arises from the Income Tax Act and can exist even where CRA has not issued a reminder. Tax instalments
  • Instalment interest is charged at the prescribed rate, compounded daily, and is calculated by netting across the year so that an early or larger payment can offset a late or short one. Tax instalments
  • Instalments represent the same tax paid earlier and are not an additional tax or a penalty. Tax instalments
  • A self-employed individual is taxed on profit — business revenue less reasonable expenses incurred to earn it. Self-employment and business income
  • An activity carried on with a view to profit is a business; losses from a hobby are not deductible. Self-employment and business income
  • Whether an individual is an employee or self-employed is determined on the substance of the relationship using criteria including control, ownership of tools, chance of profit and risk of loss, and either party may request a CRA ruling on the status. Self-employment and business income
  • Business income is generally reported on an accrual basis, recognising revenue when earned and receivable rather than when received. Self-employment and business income
  • Expenses with both a business and a personal element must be apportioned, and only the business portion is deductible. Self-employment and business income
  • A capital expenditure is not deducted in full in the year but is depreciated through capital cost allowance according to prescribed classes and rates set in the Income Tax Regulations. Self-employment and business income
  • Capital cost allowance is optional, cannot be used to create or increase a business loss, and unclaimed amounts remain available in later years. Self-employment and business income
  • Disposing of a depreciable asset can produce a recapture of capital cost allowance included in income, or a terminal loss. Self-employment and business income
  • A business-use-of-home deduction cannot create or increase a business loss; the unused portion carries forward to future years. Self-employment and business income
  • Vehicle expense claims must be supported by a logbook recording business and total kilometres, and commuting between home and a regular place of business is personal. Self-employment and business income
  • A self-employed individual pays both the employee and employer portions of Canada Pension Plan contributions on net business income. Self-employment and business income
  • Self-employed individuals do not pay Employment Insurance premiums on business income and are not covered for regular EI benefits, but may elect into coverage for certain special benefits. Self-employment and business income
  • The fiscal period for an individual's business is generally the calendar year. Self-employment and business income
  • A capital gain is proceeds of disposition less the adjusted cost base less outlays and expenses of disposing. Capital gains and losses
  • A disposition includes a gift, transfer, exchange, redemption, or destruction of property, not only a sale. Capital gains and losses
  • Where property is gifted or transferred to a non-arm's-length person for less than fair market value, proceeds of disposition are deemed to be fair market value. Capital gains and losses
  • Property acquired with the intention of resale at a profit may produce business income, which is fully included, rather than a capital gain. Capital gains and losses
  • Reinvested distributions from a fund increase the adjusted cost base, and returns of capital reduce it. Capital gains and losses
  • Where identical properties are acquired at different times, the adjusted cost base is averaged across the entire holding. Capital gains and losses
  • An allowable capital loss may only be applied against taxable capital gains and not against other types of income. Capital gains and losses
  • A loss denied by the superficial loss rule is added to the adjusted cost base of the repurchased property, except where the repurchase is inside a registered plan, in which case the loss is permanently denied. Capital gains and losses
  • The disposition of a principal residence must be reported on the return even where the gain is fully exempt, and reporting is required to make the designation. Capital gains and losses
  • Only one property per family unit may be designated as a principal residence for a given year. Capital gains and losses
  • A penalty may apply for failing to report the disposition of a principal residence. Capital gains and losses
  • On death an individual is generally deemed to have disposed of capital property at fair market value immediately before death, with a rollover at cost available for property passing to a spouse, common-law partner or qualifying spousal trust. Capital gains and losses
  • Ceasing Canadian residency triggers a deemed disposition of certain property at fair market value. Capital gains and losses
  • A change in use of property between personal use and income-producing use is a deemed disposition at fair market value, subject to available elections. Capital gains and losses
  • A taxpayer corrects a previously assessed return by requesting a change, not by filing a second return for the same year. Adjusting a return already filed
  • A request to change a return should be made only after the original return has been assessed. Adjusting a return already filed
  • Acceptance of a late adjustment request under the taxpayer relief provisions is discretionary. Adjusting a return already filed
  • The period within which a taxpayer may request a change in their own favour is longer than CRA's normal reassessment period. Adjusting a return already filed
  • An adjustment request is the appropriate route for correcting the taxpayer's own error or omission; an objection is the appropriate route for disputing a decision CRA made. Adjusting a return already filed
  • A request to change a return can result in an increase in tax as well as a decrease. Adjusting a return already filed
  • Where CRA adjusts a return, it issues a notice of reassessment, which starts a new objection period for the matters it deals with. Adjusting a return already filed
  • An adjustment to one year can cascade into other years through carryforward amounts, and can change benefit entitlement by changing net income. Adjusting a return already filed
  • A representative must hold authorisation permitting changes, not merely disclosure, in order to submit an adjustment request. Adjusting a return already filed
  • The Voluntary Disclosures Program requires that a disclosure be voluntary, meaning CRA has not already commenced compliance action on the matter, and complete. Adjusting a return already filed
  • The Voluntary Disclosures Program may provide relief from penalties and partial relief from interest, but the tax itself remains payable. Adjusting a return already filed
  • Objections are reviewed by CRA's Appeals branch, which is separate from the area that made the assessment. Objections and appeals
  • A valid notice of objection is a precondition to appealing to the Tax Court of Canada. Objections and appeals
  • A taxpayer who missed the objection deadline may apply for an extension of time, first to CRA and then to the Tax Court if refused. Objections and appeals
  • A discretionary decision under the taxpayer relief provisions is not an assessment and cannot be objected to; it is challenged by second-level review and then judicial review in the Federal Court. Objections and appeals
  • A nil assessment generally cannot be objected to. Objections and appeals
  • For income tax amounts under objection, collection action is generally restricted while the objection is outstanding, but this does not apply to all amount types. Objections and appeals
  • Interest continues to accrue during an objection on any amount ultimately upheld. Objections and appeals
  • Appeals from the Tax Court of Canada go to the Federal Court of Appeal, and from there to the Supreme Court of Canada with leave. Objections and appeals
  • A part-year resident is taxed on worldwide income for the period of residency and on certain Canadian-source income only for the non-resident period. Newcomers, emigrants and part-year residents
  • Residency begins or ends when significant residential ties are established or severed, not on the date of a flight, visa, work permit or landing document. Newcomers, emigrants and part-year residents
  • Canadian-source amounts paid to a non-resident such as dividends, rents and pensions are generally subject to withholding at source, which is often a final tax. Newcomers, emigrants and part-year residents
  • Elections are available permitting a non-resident to file a Canadian return in respect of certain income types including rental income and some pensions. Newcomers, emigrants and part-year residents
  • Non-refundable personal credits are generally prorated by the number of days of residency in the year for a part-year resident. Newcomers, emigrants and part-year residents
  • Benefit entitlement requires residence in Canada and begins on becoming resident and ends on ceasing residency. Newcomers, emigrants and part-year residents
  • A newcomer may apply for benefits on arrival without waiting to file a first return, and must report income earned before coming to Canada for entitlement to be calculated correctly. Newcomers, emigrants and part-year residents
  • Ceasing Canadian residency triggers a deemed disposition of certain property at fair market value, with Canadian real property and certain pension interests excluded. Newcomers, emigrants and part-year residents
  • Security may be posted with CRA to defer payment of tax arising on the deemed disposition on emigration until the property is actually disposed of. Newcomers, emigrants and part-year residents
  • An individual becoming a resident of Canada is generally deemed to have acquired their property at fair market value on the date residency began. Newcomers, emigrants and part-year residents
  • A newcomer is generally not subject to the foreign property reporting obligation for the first year of Canadian residency. Newcomers, emigrants and part-year residents
  • A taxpayer should report the date of departure from Canada on the return for the year of emigration. Newcomers, emigrants and part-year residents
  • A refund returns tax the taxpayer overpaid through withholding or instalments; a benefit is a payment made regardless of whether the recipient paid tax. How benefits differ from refunds
  • A refundable credit is paid whether or not the individual has tax payable; a non-refundable credit only reduces tax payable. How benefits differ from refunds
  • Benefit entitlement is calculated from the previous year's family net income. How benefits differ from refunds
  • Where an individual has a spouse or common-law partner, both must file returns for family net income to be determined and benefits to continue. How benefits differ from refunds
  • Benefit payments stop where a return has not been filed, and are generally paid retroactively once the outstanding return is filed and assessed. How benefits differ from refunds
  • Changes in marital status, number of children in care, custody arrangements and residency must be reported promptly rather than at the next return. How benefits differ from refunds
  • Benefits are paid in advance of final determination, so a change reported late results in an overpayment that must be repaid. How benefits differ from refunds
  • The Canada child benefit is paid monthly to eligible families with children under 18 and is income-tested on family net income. How benefits differ from refunds
  • The GST/HST credit is paid quarterly and requires no application beyond filing a return. How benefits differ from refunds
  • The Canada workers benefit is a refundable credit for low-income workers with an advance payment mechanism. How benefits differ from refunds
  • The disability tax credit is non-refundable but certification gates entitlement to other programs. How benefits differ from refunds
  • Provincial and territorial benefit programs are frequently administered by CRA on a province's behalf and may be combined with federal amounts in a single payment. How benefits differ from refunds
  • The Canada child benefit is a tax-free monthly payment and is not included in the recipient's income. Canada child benefit
  • A child must be under 18 years of age for the Canada child benefit to be payable in respect of them. Canada child benefit
  • The applicant must be primarily responsible for the care and upbringing of the child, which is determined by actual responsibility rather than legal custody. Canada child benefit
  • The applicant must be a resident of Canada for tax purposes and must be a Canadian citizen, permanent resident, protected person, a temporary resident who has lived in Canada for the preceding 18 months with a valid permit in the 19th month, or registered under the Indian Act. Canada child benefit
  • Where a child lives with a female parent, that parent is presumed under the Income Tax Act to be the primarily responsible person. Canada child benefit
  • The female-parent presumption may be displaced by a signed statement from the female parent confirming that the other parent is primarily responsible. Canada child benefit
  • Both the applicant and their spouse or common-law partner must file a return each year for the Canada child benefit to continue. Canada child benefit
  • Children may be registered for the benefit automatically through the automated benefits application at birth registration in participating provinces and territories. Canada child benefit
  • The child disability benefit is a supplement paid with the Canada child benefit for a child eligible for the disability tax credit. Canada child benefit
  • In a shared custody arrangement the Canada child benefit is split between the two caregivers rather than paid to one. Canada child benefit
  • An overpayment of the Canada child benefit may be recovered from ongoing benefit payments. Canada child benefit
  • A small annual benefit entitlement may be paid as a single lump sum rather than monthly. Canada child benefit
  • The GST/HST credit is a tax-free quarterly payment that is not included in the recipient's income. GST/HST credit
  • The GST/HST credit is a refundable credit and is paid whether or not the recipient has tax payable. GST/HST credit
  • An individual is generally eligible for the GST/HST credit if resident in Canada for income tax purposes and either at least 19 years of age, or has or had a spouse or common-law partner, or is or was a parent living with their child. GST/HST credit
  • Individuals who are non-resident, confined to a prison or similar institution for a period of at least 90 consecutive days, or exempt from Canadian tax by reason of diplomatic status are not eligible for the GST/HST credit. GST/HST credit
  • There is no separate application form for the GST/HST credit; filing an income tax return is the application. GST/HST credit
  • Where there is a spouse or common-law partner, only one of them receives the GST/HST credit for the family, and it is paid to whichever return is assessed first. GST/HST credit
  • Both partners must file returns for the GST/HST credit to be calculated and continue. GST/HST credit
  • Entitlement arising on reaching the qualifying age generally begins with the quarterly payment following the birthday. GST/HST credit
  • In a shared custody arrangement the child component of the GST/HST credit is split between the two caregivers. GST/HST credit
  • A small total annual GST/HST credit entitlement may be paid as a single lump sum rather than quarterly. GST/HST credit
  • The GST/HST credit may be applied against amounts the recipient owes, under rules that differ from those applying to the Canada child benefit. GST/HST credit
  • Quebec administers its own solidarity tax credit through Revenu Québec. GST/HST credit
  • Benefit entitlement is income-tested on adjusted family net income, which combines the incomes of both partners. Eligibility, marital status and shared custody
  • A common-law partner for tax purposes is a person living with the individual in a conjugal relationship who has cohabited for at least 12 continuous months, or who is a parent of the individual's child, or who has custody and control of the individual's wholly dependent child. Eligibility, marital status and shared custody
  • Where a couple have a child together, they are common-law partners without any waiting period. Eligibility, marital status and shared custody
  • Living apart for reasons other than relationship breakdown, such as work, study, health or immigration, does not constitute a separation. Eligibility, marital status and shared custody
  • A couple may be considered separated while living at the same address where they genuinely live separate and apart. Eligibility, marital status and shared custody
  • Once the required separation period has elapsed, the status change is effective from the date of separation and entitlement is recalculated retroactively. Eligibility, marital status and shared custody
  • A marital status change is generally effective for benefit purposes from the month following the month in which it occurred. Eligibility, marital status and shared custody
  • Each shared custody caregiver's entitlement is computed from their own adjusted family net income, so the two halves are usually different amounts. Eligibility, marital status and shared custody
  • Parents in a shared custody arrangement cannot agree that one of them will receive the entire benefit. Eligibility, marital status and shared custody
  • Benefit payments issued after the death of a recipient are generally recoverable. Eligibility, marital status and shared custody
  • CRA has specific provisions for benefit recipients in situations involving family violence. Eligibility, marital status and shared custody
  • Benefit entitlement is computed from assessed income, so a reassessment of either partner's return changes entitlement retroactively. Recalculations and why amounts change
  • Where a return is filed late, benefit payments stop and are generally paid retroactively as a lump sum once the return is assessed. Recalculations and why amounts change
  • CRA may withhold some or all of ongoing benefit payments to recover a previous overpayment. Recalculations and why amounts change
  • Where federal and provincial benefit programs are combined into a single payment, a change in the provincial component changes the total deposit. Recalculations and why amounts change
  • Provincial benefit programs change on provincial budget cycles independently of federal programs. Recalculations and why amounts change
  • Benefit entitlement uses income from the tax year before the benefit year begins, so a change in current income does not affect the current benefit year's payments. Recalculations and why amounts change
  • A change in circumstances takes effect from the month following the change rather than at the annual recalculation. Recalculations and why amounts change
  • CRA publishes a child and family benefits calculator that recipients can use to estimate entitlement. Recalculations and why amounts change
  • Recipients can view their benefit calculations, payment history and the income figures used through CRA's online services. Recalculations and why amounts change
  • A benefit payment may stop where a payment cannot be delivered, separately from any change in entitlement. Recalculations and why amounts change
  • The Canada workers benefit is a refundable credit for low-income individuals and families with working income. Canada workers benefit
  • Working income for the Canada workers benefit means income from employment and business, and does not include investment or pension income. Canada workers benefit
  • An individual must be a resident of Canada throughout the year and be at least 19 years of age at the end of the year, or have a spouse, common-law partner or eligible dependant, to be eligible. Canada workers benefit
  • A full-time student enrolled for more than 13 weeks in the year is excluded from the Canada workers benefit unless they have an eligible dependant. Canada workers benefit
  • Individuals confined to a prison or similar institution for at least 90 days in the year, and individuals exempt from Canadian tax by reason of diplomatic status, are excluded. Canada workers benefit
  • Where an individual has a spouse or common-law partner, only one of them may claim the basic Canada workers benefit amount for the family. Canada workers benefit
  • Where both partners in a couple are eligible for the disability tax credit, each may claim a disability supplement even though only one claims the basic amount. Canada workers benefit
  • Advance payments of the Canada workers benefit are issued automatically to individuals who qualified in the previous year, with no separate application. Canada workers benefit
  • Advance payments are reconciled on the return for the year, and advances exceeding actual entitlement are recovered through the return. Canada workers benefit
  • The Canada workers benefit is not taxable and is not included in income. Canada workers benefit
  • Benefits are paid in advance of final determination of entitlement, so overpayments arise structurally rather than only from error. Overpayments and recovery
  • A benefit overpayment may be recovered by withholding some or all of ongoing benefit payments. Overpayments and recovery
  • Where there are no ongoing benefit payments, an overpayment becomes a debt that may be set off against a tax refund or other amounts payable. Overpayments and recovery
  • The rate at which an overpayment is withheld from ongoing payments may be reduced where full recovery would cause hardship. Overpayments and recovery
  • Taxpayer relief provisions may cancel or waive penalties and interest but do not cancel an overpaid benefit amount itself. Overpayments and recovery
  • Benefit payments issued after the death of a recipient are generally recoverable from the estate. Overpayments and recovery
  • Excess advance payments of the Canada workers benefit are recovered through the return for the year. Overpayments and recovery
  • An upward reassessment of either partner's return increases family net income and can create a benefit overpayment for months already paid. Overpayments and recovery
  • A change in circumstances reported late creates an overpayment running from the effective date of the change. Overpayments and recovery
  • CRA notifies a recipient of an overpayment and the reason for it. Overpayments and recovery
  • CRA has specific provisions for benefit recipients in situations involving family violence. Overpayments and recovery
  • Interest treatment on benefit overpayments differs between programs and from the treatment of tax debt. Overpayments and recovery
  • The disability tax credit is a non-refundable credit for an individual with a severe and prolonged impairment in physical or mental functions. Disability tax credit
  • The categories assessed are walking, speaking, hearing, vision, feeding, dressing, eliminating, mental functions necessary for everyday life, and life-sustaining therapy. Disability tax credit
  • An individual generally qualifies where they are markedly restricted in one category all or substantially all of the time, even with appropriate therapy, medication and devices. Disability tax credit
  • A cumulative effect provision allows an individual significantly restricted in two or more categories to qualify where the combined effect is equivalent to a marked restriction in one. Disability tax credit
  • A medical doctor or nurse practitioner may certify any category; optometrists, audiologists, occupational therapists, physiotherapists, psychologists and speech-language pathologists may certify within their own scope. Disability tax credit
  • Eligibility turns on the functional effect of the impairment rather than on the diagnosis. Disability tax credit
  • A disability tax credit approval may be granted for a limited period, after which recertification is required. Disability tax credit
  • A supplement is available for an individual under 18 years of age, reduced by certain child care and attendant care expenses claimed for the child. Disability tax credit
  • Where the individual cannot use the full disability amount, the unused portion may be transferred to a spouse, common-law partner or other supporting individual, after the individual has used what they can. Disability tax credit
  • Disability tax credit approval is required to open a registered disability savings plan, which attracts government grants and bonds. Disability tax credit
  • Disability tax credit approval gates the child disability benefit and the Canada workers benefit disability supplement. Disability tax credit
  • The child disability benefit generally follows automatically from disability tax credit approval without a separate application. Disability tax credit
  • Disability tax credit approval may be granted retroactively for earlier years, but claiming the credit for those years requires adjustment requests. Disability tax credit
  • A fee charged by a medical practitioner for completing the disability tax credit certificate may be claimable as a medical expense. Disability tax credit
  • Benefits are paid on the basis of self-reported information without verification at the time of payment, and validation reviews verify entitlement afterwards. Benefit validation reviews
  • Recipients may be selected for a validation review at random as part of routine sampling, or because information in the file prompted a check. Benefit validation reviews
  • A validation review verifies benefit entitlement conditions and is distinct from an audit of a tax return. Benefit validation reviews
  • Documentation requested in a validation review commonly includes letters from a school, daycare, medical practitioner or other authority confirming a child's address and the recipient's relationship to them. Benefit validation reviews
  • Where a validation review receives no response by the deadline, entitlement is treated as not established, payments stop, and amounts already paid for the period become an overpayment. Benefit validation reviews
  • A concluded validation review may be reopened where the recipient subsequently provides the requested documentation. Benefit validation reviews
  • A validation review may result in entitlement being confirmed, adjusted, or not established, and an adjustment may increase entitlement as well as reduce it. Benefit validation reviews
  • A recipient whose entitlement was confirmed in a validation review may be selected for review again in a later year. Benefit validation reviews
  • CRA has specific provisions for recipients in situations involving family violence who cannot safely obtain requested documentation. Benefit validation reviews
  • A defined benefit provision of a registered pension plan is registered under section 147.1 of the Income Tax Act, administered by CRA's Registered Plans Directorate. RPP — Defined Benefit provision
  • A registered pension plan must have as its primary purpose the provision of lifetime retirement benefits to employees in respect of their service. RPP — Defined Benefit provision
  • Registration of a pension plan can be revoked where the plan ceases to comply with the registration conditions. RPP — Defined Benefit provision
  • The Registered Plans Directorate publishes newsletters setting out its administrative positions on registered plan matters. RPP — Defined Benefit provision
  • Crediting benefits for service in an earlier year gives rise to a past service pension adjustment, which may require CRA certification before the benefit can be credited. RPP — Defined Benefit provision
  • A single registered pension plan may contain both a defined benefit provision and a money purchase provision, with each provision following its own rules. RPP — Defined Benefit provision
  • A money purchase provision of a registered pension plan is registered under section 147.1 of the Income Tax Act, administered by CRA's Registered Plans Directorate. RPP — Money Purchase provision
  • The money purchase contribution limit applies per member across all money purchase provisions, not per plan. RPP — Money Purchase provision
  • The pension adjustment under a money purchase provision is the total of employer contributions, required member contributions, and reallocated forfeitures credited to the member for the year. RPP — Money Purchase provision
  • Investment earnings credited to a member's money purchase account are not contributions: they do not count against the money purchase limit and are not part of the pension adjustment. RPP — Money Purchase provision
  • A money purchase provision does not require a periodic actuarial valuation, unlike a defined benefit provision. RPP — Money Purchase provision
  • A money purchase provision may permit variable benefit payments made directly from the plan, subject to prescribed conditions including minimum annual payment requirements. RPP — Money Purchase provision
  • A pension adjustment reversal may arise when a member terminates from a money purchase provision and receives less than the total pension adjustments reported for them. RPP — Money Purchase provision
  • A nil pension adjustment must still be reported. RPP — Money Purchase provision
  • Under a defined benefit provision, the pension adjustment is nine times the member's benefit entitlement for the year, less the PA offset. Pension Adjustment (PA)
  • The multiplier applied to benefit entitlement under a defined benefit provision is 9, and it does not vary by member age, plan funding or interest rates. Pension Adjustment (PA)
  • A pension adjustment cannot be negative; where the determination would produce a negative amount the PA is nil. Pension Adjustment (PA)
  • Under a money purchase provision, the pension adjustment is the total of employer contributions, member required contributions, and reallocated forfeitures credited to the member for the year. Pension Adjustment (PA)
  • Investment income and market gains credited to a money purchase account are not included in the pension adjustment. Pension Adjustment (PA)
  • Under a deferred profit sharing plan, the pension adjustment is the employer contributions allocated to the member for the year plus reallocated forfeitures; employees cannot contribute to a DPSP. Pension Adjustment (PA)
  • For a specified multi-employer plan, the pension adjustment is determined on a contribution basis rather than by the defined benefit method, despite the plan being a defined benefit arrangement. Pension Adjustment (PA)
  • Compensation, for the purpose of the pension adjustment cap, is defined for tax purposes and is not necessarily the same as the pensionable earnings used in a plan's benefit formula. Pension Adjustment (PA)
  • A pension adjustment for one calendar year reduces the member's RRSP deduction limit for the following year, not for the year the PA relates to. Pension Adjustment (PA)
  • The pension adjustment relates to the calendar year in which the benefit accrued or the contributions were made, even where the plan year is not the calendar year. Pension Adjustment (PA)
  • The obligation to determine and report a pension adjustment rests with the employer or plan administrator, not the member. Pension Adjustment (PA)
  • A nil pension adjustment must still be reported. Pension Adjustment (PA)
  • Pension adjustments are reported in whole dollars. Pension Adjustment (PA)
  • An error in a previously reported pension adjustment is corrected by amending the original slip for that year, not by adjusting a later year's PA. Pension Adjustment (PA)
  • A deferred profit sharing plan is registered under section 147 of the Income Tax Act. Deferred Profit Sharing Plan (DPSP)
  • Only the employer may contribute to a deferred profit sharing plan; employees cannot contribute. Deferred Profit Sharing Plan (DPSP)
  • A DPSP may not benefit a relative of a connected person, or a relative of the employer where the employer is an individual. Deferred Profit Sharing Plan (DPSP)
  • The pension adjustment for a DPSP member is the employer contributions allocated to them for the year plus any reallocated forfeitures. Deferred Profit Sharing Plan (DPSP)
  • A pension adjustment reversal arises where a DPSP member terminates and receives less than the total pension adjustments reported for them, commonly on a termination before full vesting. Deferred Profit Sharing Plan (DPSP)
  • Employer contributions to a DPSP are deductible to the employer within the prescribed limits. Deferred Profit Sharing Plan (DPSP)
  • Compensation, for the purpose of the DPSP percentage limit, is a tax definition and is not necessarily the same as the earnings measure the plan uses to determine contributions. Deferred Profit Sharing Plan (DPSP)
  • A past service pension adjustment arises when a defined benefit provision credits a member with additional lifetime retirement benefits for a year after 1989 that has already passed. Past Service Pension Adjustment (PSPA)
  • Where certification is required, the past service benefit cannot be credited to the member until CRA has certified the provisional PSPA. Past Service Pension Adjustment (PSPA)
  • A qualifying transfer from the member's RRSP or another registered vehicle to the plan reduces the PSPA. Past Service Pension Adjustment (PSPA)
  • A PSPA reduces the member's RRSP deduction limit in the year it arises, unlike a pension adjustment which reduces it for the following year. Past Service Pension Adjustment (PSPA)
  • A member's ordinary pension adjustment for the current year continues to be determined and reported alongside any PSPA. Past Service Pension Adjustment (PSPA)
  • Service before 1990 is treated differently from post-1989 service and does not give rise to a PSPA in the same way. Past Service Pension Adjustment (PSPA)
  • A money purchase provision does not give rise to past service pension adjustments. Past Service Pension Adjustment (PSPA)
  • A retroactive improvement to a defined benefit formula applied to past service gives rise to a PSPA for each affected member. Past Service Pension Adjustment (PSPA)
  • Recognition of service with a former employer, including under a reciprocal transfer agreement, can give rise to a PSPA. Past Service Pension Adjustment (PSPA)
  • Additional restrictions apply to crediting past service benefits for connected persons. Past Service Pension Adjustment (PSPA)
  • A pension adjustment reversal arises when a member terminates membership in a plan before retirement and the value they become entitled to is less than the total pension adjustments reported for their post-1989 service. Pension Adjustment Reversal (PAR)
  • Retirement does not give rise to a pension adjustment reversal. Pension Adjustment Reversal (PAR)
  • A pension adjustment reversal restores RRSP deduction room to the member in the year the PAR arises, rather than in the following year. Pension Adjustment Reversal (PAR)
  • A pension adjustment reversal cannot be negative; where the member received at least what their pension adjustments assumed, the PAR is nil. Pension Adjustment Reversal (PAR)
  • Defined benefit provisions, money purchase provisions and deferred profit sharing plans can all give rise to pension adjustment reversals. Pension Adjustment Reversal (PAR)
  • For a money purchase provision or DPSP, the PAR corresponds broadly to the unvested amount forfeited on termination. Pension Adjustment Reversal (PAR)
  • Past service pension adjustments and qualifying transfers enter the determination of a pension adjustment reversal. Pension Adjustment Reversal (PAR)
  • Determining and filing a pension adjustment reversal is the plan administrator's obligation, not the member's. Pension Adjustment Reversal (PAR)
  • A pension adjustment reversal restores RRSP contribution room and does not create a payment or refund to the member. Pension Adjustment Reversal (PAR)
  • A PAR filed after its deadline still restores the member's RRSP room when CRA processes it. Pension Adjustment Reversal (PAR)
  • A pooled registered pension plan is governed by section 147.5 of the Income Tax Act. Pooled Registered Pension Plan (PRPP)
  • A PRPP is administered by a licensed administrator, typically a financial institution, and not by the participating employer. Pooled Registered Pension Plan (PRPP)
  • A participating employer in a PRPP does not register the plan and does not file a plan-level annual return. Pooled Registered Pension Plan (PRPP)
  • Self-employed individuals may participate in a PRPP directly. Pooled Registered Pension Plan (PRPP)
  • Employer contributions to a member's PRPP account are not a taxable benefit to the employee. Pooled Registered Pension Plan (PRPP)
  • A member's own contributions to a PRPP are deductible by the member and reduce their RRSP deduction limit directly, rather than through a pension adjustment. Pooled Registered Pension Plan (PRPP)
  • The PRPP administrator issues contribution receipts to members for their own contributions. Pooled Registered Pension Plan (PRPP)
  • PRPP funds are generally locked in, with access governed by the applicable federal or provincial pension legislation rather than by tax rules. Pooled Registered Pension Plan (PRPP)
  • Employer contributions to a PRPP are not mandatory; an employer may participate without contributing. Pooled Registered Pension Plan (PRPP)
  • PRPPs operate under federal legislation for federally regulated employment, with provincial equivalents elsewhere, including Quebec's voluntary retirement savings plan (VRSP) regime. Pooled Registered Pension Plan (PRPP)
  • A specified pension plan is a pension plan prescribed as such in the Income Tax Regulations, and the category is defined by the plan being named rather than by meeting general conditions. Specified Pension Plan (SPP)
  • The Saskatchewan Pension Plan is the plan prescribed as a specified pension plan. Specified Pension Plan (SPP)
  • Contributions to a specified pension plan are deducted by the individual and consume their RRSP deduction limit, rather than providing additional room. Specified Pension Plan (SPP)
  • A specified pension plan does not give rise to a pension adjustment. Specified Pension Plan (SPP)
  • A specified pension plan does not give rise to a past service pension adjustment or a pension adjustment reversal. Specified Pension Plan (SPP)
  • Funds may be transferred on a tax-deferred basis between a specified pension plan and an RRSP or a RRIF. Specified Pension Plan (SPP)
  • An individual may make spousal or common-law partner contributions to a specified pension plan, claiming the deduction against their own RRSP deduction limit. Specified Pension Plan (SPP)
  • The spousal RRSP attribution rules apply to spousal contributions to a specified pension plan, so a withdrawal by the spouse within a specified period after a contribution can be attributed back to the contributor. Specified Pension Plan (SPP)
  • Payments out of a specified pension plan are income to the recipient when received and are reported on a slip issued by the plan. Specified Pension Plan (SPP)
  • An individual pension plan is a defined benefit registered pension plan registered under section 147.1 of the Income Tax Act, subject to the same registration conditions as any other registered pension plan. Individual Pension Plan (IPP)
  • A pension plan with few members, where a member is connected to the employer or is a high earner, is a designated plan subject to additional funding restrictions. Individual Pension Plan (IPP)
  • A designated plan must be funded on a prescribed maximum funding basis, which caps the contributions that may be made and deducted. Individual Pension Plan (IPP)
  • An individual pension plan is subject to a minimum annual payment requirement, broadly parallel to the RRIF minimum withdrawal rules, once the member reaches the applicable age. Individual Pension Plan (IPP)
  • Crediting past service under an individual pension plan gives rise to a past service pension adjustment, which requires CRA certification unless it falls within an exempt category. Individual Pension Plan (IPP)
  • A qualifying transfer from the member's RRSP to the plan reduces a past service pension adjustment, and is commonly used where an IPP member lacks sufficient RRSP room for certification. Individual Pension Plan (IPP)
  • Additional restrictions apply to past service benefits credited to connected persons. Individual Pension Plan (IPP)
  • Retirement compensation arrangements are governed by Part XI.3 of the Income Tax Act, sections 207.5 to 207.7. Retirement Compensation Arrangement (RCA)
  • A retirement compensation arrangement is not a registered plan and does not give rise to a pension adjustment. Retirement Compensation Arrangement (RCA)
  • A retirement compensation arrangement does not give rise to a past service pension adjustment or a pension adjustment reversal. Retirement Compensation Arrangement (RCA)
  • Refundable tax held by CRA for an RCA does not earn interest. Retirement Compensation Arrangement (RCA)
  • Employer contributions to a retirement compensation arrangement are generally deductible to the employer. Retirement Compensation Arrangement (RCA)
  • Employee contributions to a retirement compensation arrangement are deductible only in limited circumstances. Retirement Compensation Arrangement (RCA)
  • The RCA definition catches arrangements where an employer contributes to another party in connection with benefits to be received on or after retirement, on a loss of office, or on a substantial change in services rendered. Retirement Compensation Arrangement (RCA)
  • Registered plans and salary deferral arrangements are excluded from the definition of a retirement compensation arrangement. Retirement Compensation Arrangement (RCA)
  • The conditions for a multi-employer pension plan to be a specified multi-employer plan are prescribed in the Income Tax Regulations, in section 8510. Specified Multi-Employer Plan (SMEP)
  • A specified multi-employer plan requires that employer contributions be determined under a collective agreement rather than by the plan's funding requirements. Specified Multi-Employer Plan (SMEP)
  • The pension adjustment for a member of a specified multi-employer plan is determined on a contribution basis, in the same manner as a money purchase provision, even where the plan provides a defined benefit. Specified Multi-Employer Plan (SMEP)
  • The defined benefit pension adjustment method — benefit entitlement multiplied by 9, less the PA offset — does not apply to a specified multi-employer plan. Specified Multi-Employer Plan (SMEP)
  • A specified multi-employer plan member's pension adjustment reflects contributions from all participating employers for whom the member worked during the year. Specified Multi-Employer Plan (SMEP)
  • Specified multi-employer plans are subject to exemptions from the past service pension adjustment rules that apply to ordinary defined benefit provisions. Specified Multi-Employer Plan (SMEP)
  • A member moving between participating employers within a specified multi-employer plan has not terminated membership in the plan. Specified Multi-Employer Plan (SMEP)
  • A plan can cease to meet the specified multi-employer plan conditions over time, including through changes in the distribution of members among participating employers. Specified Multi-Employer Plan (SMEP)
  • A deferred salary leave plan is excluded from the salary deferral arrangement rules under paragraph 6801(a) of the Income Tax Regulations. Deferred Salary Leave Plan (DSLP)
  • The employee must return to work for the employer after the leave for a period at least as long as the leave. Deferred Salary Leave Plan (DSLP)
  • The employee must not receive salary or wages from the employer during the leave other than the deferred amounts and certain permitted amounts. Deferred Salary Leave Plan (DSLP)
  • The deferred salary leave plan must be in writing and established before deferrals begin. Deferred Salary Leave Plan (DSLP)
  • Interest or other income earned on deferred amounts under a deferred salary leave plan is included in the employee's income annually as it is earned, not deferred to the leave. Deferred Salary Leave Plan (DSLP)
  • A deferred salary leave plan is not a registered plan and does not give rise to a pension adjustment. Deferred Salary Leave Plan (DSLP)
  • Deferred amounts under a deferred salary leave plan are held by the employer, and the employee is an unsecured creditor for them. Deferred Salary Leave Plan (DSLP)
  • Where a deferred salary leave plan ceases to meet the prescribed conditions, it is treated as a salary deferral arrangement and the deferred amounts become taxable in the years they were earned. Deferred Salary Leave Plan (DSLP)
  • Whether a worker is an employee or self-employed is determined on the facts of the working relationship, not on how the parties have described it in a contract. Employee or self-employed?
  • CRA's determination of worker status considers control, ownership of tools, ability to subcontract or hire helpers, financial risk, responsibility for investment and management, and opportunity for profit. Employee or self-employed?
  • CRA considers the parties' intent as part of the determination, and then examines whether the actual working relationship reflects that intent. Employee or self-employed?
  • The analysis of worker status in Quebec differs from that in the rest of Canada because different civil law applies. Employee or self-employed?
  • A worker or a payer may request a CRA ruling on whether an employment is pensionable under the Canada Pension Plan and insurable under the Employment Insurance Act. Employee or self-employed?
  • A CRA ruling on pensionable and insurable employment may be appealed by either party. Employee or self-employed?
  • An employer who fails to withhold required source deductions is liable for the amounts that should have been withheld, together with the employer's own share. Employee or self-employed?
  • A self-employed individual pays both the employee and employer portions of CPP contributions on their self-employment earnings. Employee or self-employed?
  • A self-employed individual is generally not insurable for Employment Insurance purposes unless they have entered into an agreement for the special benefits available to self-employed persons. Employee or self-employed?
  • A person can be an employee in one working relationship and self-employed in another at the same time. Employee or self-employed?
  • An employer must open a payroll program account with CRA before remitting source deductions for employees. The payroll program account
  • A payroll program account attaches to the employer's business number with a two-letter program identifier and a four-digit reference number. The payroll program account
  • A business that already has a business number adds a payroll program account to it rather than obtaining a second business number. The payroll program account
  • An employer may hold more than one payroll program account, distinguished by the four-digit reference number. The payroll program account
  • An individual who employs a person in their household, such as a nanny or caregiver, is an employer for payroll purposes. The payroll program account
  • A social insurance number beginning with a specified digit indicates that the holder is authorised to work only for a designated employer. The payroll program account
  • A sole proprietor does not pay themselves employment income and does not withhold source deductions on amounts they draw from the business. The payroll program account
  • A corporation can employ its shareholder, in which case ordinary payroll obligations apply to that employment. The payroll program account
  • An employer withholds income tax, Canada Pension Plan contributions and Employment Insurance premiums from an employee's remuneration. What must be withheld
  • Income tax withheld from employment income is a payment on account of the employee's eventual tax liability and is reconciled when the employee files a return. What must be withheld
  • An employer matches the employee's CPP contribution. What must be withheld
  • There is no basic exemption for EI premiums equivalent to the CPP basic exemption. What must be withheld
  • An employer's EI premium is a multiple of the employee's premium rather than an equal match. What must be withheld
  • An employer with a qualifying wage-loss replacement plan may apply for a reduced EI employer premium rate. What must be withheld
  • CPP contributions do not begin before a minimum age specified in the Canada Pension Plan, and cease at a specified maximum age. What must be withheld
  • Employment in Quebec is subject to the Quebec Pension Plan rather than the Canada Pension Plan. What must be withheld
  • Employment by a corporation controlled by a person related to the employee is generally not insurable for Employment Insurance purposes. What must be withheld
  • The province of employment for withholding purposes is determined by the employer's establishment at which the employee reports for work, not by the employee's province of residence. What must be withheld
  • An employee may request that additional income tax be withheld from their pay. What must be withheld
  • A reduction in income tax withheld below the calculated amount requires authorisation from CRA and cannot be granted by the employer. What must be withheld
  • An employer's obligation to remit source deductions is not conditional on having actually withheld them from the employee's pay. The remittance obligation
  • Amounts withheld from employees as source deductions are held for the Receiver General. The remittance obligation
  • A payroll remittance includes income tax withheld, CPP contributions withheld together with the employer's share, and EI premiums withheld together with the employer's share. The remittance obligation
  • CRA assigns an employer's remitter type based on the employer's average monthly withholding amount over a period CRA specifies. The remittance obligation
  • An employer's remitter type changes as their average monthly withholding amount changes, and CRA notifies the employer of the change. The remittance obligation
  • New and small employers may be eligible to remit quarterly if they meet CRA's conditions. The remittance obligation
  • A remittance must be directed to the correct payroll program account and identified with the correct period. The remittance obligation
  • An employer with an open payroll account and no remittance due for a period must inform CRA by filing a nil remittance. The remittance obligation
  • An employer that will have no payroll for an extended period can notify CRA of the inactive period so that remittances are not expected. The remittance obligation
  • Employers with Quebec employees remit some amounts to Revenu Québec rather than to CRA. The remittance obligation
  • CRA publishes payroll deductions tables by jurisdiction and pay period, formulas for computer programs, and an online payroll deductions calculator. Calculating what to withhold
  • CRA's payroll deductions tables are published for a specific year, and more than one edition may be issued in a year where rates change part way through. Calculating what to withhold
  • The province of employment for withholding purposes is determined by reference to the employer's establishment at which the employee reports for work. Calculating what to withhold
  • CRA has revised its guidance on determining the province of employment for employees who do not physically report to an employer establishment. Calculating what to withhold
  • CRA publishes a separate method for calculating income tax to withhold from bonuses and retroactive pay increases. Calculating what to withhold
  • Running a bonus through the ordinary periodic withholding tables over-withholds income tax because the tables treat the amount as recurring each period. Calculating what to withhold
  • CPP contributions and EI premiums cease for the remainder of a year once the employee reaches the annual maximum for each. Calculating what to withhold
  • An employee with more than one employer may have CPP or EI over-contributions across the year, which are resolved when the employee files their return rather than by the employers. Calculating what to withhold
  • An employer who fails to withhold sufficient CPP or EI is liable for the amounts including the employee portion, and their ability to recover the employee portion from later pay is limited by CRA's rules. Calculating what to withhold
  • A benefit an employee receives by virtue of their employment is generally employment income whether it is provided in cash or in another form. Taxable benefits and allowances
  • An employer must withhold source deductions on the value of a taxable benefit even though no cash is paid to the employee in respect of it. Taxable benefits and allowances
  • An allowance paid to an employee without any requirement to account for actual amounts spent is generally taxable, subject to specific exceptions. Taxable benefits and allowances
  • A reimbursement of an amount an employee actually spent on a business expense and substantiated is generally not employment income. Taxable benefits and allowances
  • A reasonable per-kilometre motor vehicle allowance is not taxable where CRA's conditions are met. Taxable benefits and allowances
  • Non-cash taxable benefits are generally not insurable for Employment Insurance purposes, even where they are taxable and pensionable. Taxable benefits and allowances
  • Personal use of an employer-provided automobile is a taxable benefit calculated under a prescribed method. Taxable benefits and allowances
  • An employee loan at a rate below the prescribed rate gives rise to a taxable interest benefit. Taxable benefits and allowances
  • The prescribed interest rate used in calculating an employee loan benefit is set quarterly by CRA. Taxable benefits and allowances
  • The value of many taxable benefits must include the GST/HST that would apply, and the employer has a corresponding remittance obligation in respect of that component. Taxable benefits and allowances
  • The penalty for filing an information return late is based on the number of slips, is subject to a minimum, and increases in bands as the number of slips rises. T4 slips and the T4 Summary
  • A payroll year is the calendar year, and remuneration is generally assigned to the year in which it is paid rather than the year in which the work was performed. The payroll year end
  • A biweekly payroll produces an additional pay period in some years, affecting periodic calculations and the annual maximums. The payroll year end
  • Taxable benefits provided during the year must be included in the employee's employment income for the year even if no withholding was made on them at the time. The payroll year end
  • Amounts paid to a former employee after they have left the employment are reported for the year in which they are paid. The payroll year end
  • An employer reconciles the total source deductions withheld per its payroll records against the total remitted per CRA's records for the year. The payroll year end
  • A difference between reported withholding and remittances received results in a balance owing or a credit on the employer's payroll account. The payroll year end
  • An employer who has over-remitted recovers the excess through the route CRA publishes and not by reducing a subsequent remittance. The payroll year end
  • Filing an information return late attracts a penalty regardless of whether the underlying amounts have been corrected. The payroll year end
  • A pensionable and insurable earnings review arises from CRA comparing the CPP and EI reported on an employer's information return against the earnings reported on it. The payroll year end
  • Failing to deduct source deductions and failing to remit them are separate failures with separate consequences. Failing to deduct, and failing to remit
  • An employer who fails to withhold required CPP contributions or EI premiums is liable for the amounts including the employee's portion as well as the employer's portion. Failing to deduct, and failing to remit
  • An employer's ability to recover from an employee's later pay an employee portion that was not withheld is limited in amount and in time by CRA's rules. Failing to deduct, and failing to remit
  • Where an employer under-withheld income tax, the employee remains liable for their own tax and accounts for it on their return. Failing to deduct, and failing to remit
  • The late-remitting penalty applies in respect of each late remittance rather than once for the year. Failing to deduct, and failing to remit
  • Interest on unremitted source deductions compounds daily and runs from the day after the amount was due. Failing to deduct, and failing to remit
  • A remittance paid on time but applied to the wrong program account, reference number or period is corrected by transferring the credit rather than by requesting relief. Failing to deduct, and failing to remit
  • Taxpayer relief applies to penalties and interest and does not cancel the underlying tax, CPP contributions or EI premiums owing. Failing to deduct, and failing to remit
  • The Voluntary Disclosures Program may provide relief from penalties and partial interest, and is unavailable once CRA has commenced compliance action in respect of the matter. Failing to deduct, and failing to remit
  • Amounts withheld from an employee's pay as source deductions are deemed to be held in trust for the Crown, separate and apart from the employer's own property. Amounts held in trust and director's liability
  • The employer's own share of CPP contributions and EI premiums is a debt of the employer, while amounts withheld from employees are trust amounts. Amounts held in trust and director's liability
  • Where source deductions have not been remitted, property of the employer and property held by a secured creditor that would otherwise be the employer's is deemed held in trust for the Crown to the extent of the unremitted amount. Amounts held in trust and director's liability
  • Directors of a corporation may be held jointly and severally liable for source deductions the corporation failed to deduct or remit, together with the interest and penalties on those amounts. Amounts held in trust and director's liability
  • Director's liability also applies to unremitted GST/HST. Amounts held in trust and director's liability
  • CRA must generally have exhausted collection against the corporation before assessing a director, by registering a certificate with execution returned unsatisfied or by filing a claim in the corporation's liquidation, dissolution or bankruptcy. Amounts held in trust and director's liability
  • A director is not liable where they exercised the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would have exercised in comparable circumstances. Amounts held in trust and director's liability
  • The due diligence defence concerns steps taken to prevent the failure to remit rather than efforts made to remedy it afterwards. Amounts held in trust and director's liability
  • A person who was never formally appointed may be treated as a de facto director where they perform the functions of a director. Amounts held in trust and director's liability
  • A resignation must be effective under the corporate law governing the corporation before it starts the two-year limitation period on assessing a director. Amounts held in trust and director's liability
  • A director assessed for a corporation's unremitted source deductions may object and appeal, disputing both the underlying amount and their liability for it. Amounts held in trust and director's liability
  • A pensionable and insurable earnings review is generated automatically from an employer's filed information return and is not an audit. Pensionable and insurable earnings reviews
  • An employer who does not respond to a review report by the date given may have the deficiency assessed, with interest, and penalties may apply. Pensionable and insurable earnings reviews
  • A deficiency arising from a pensionable and insurable earnings review is payable by the employer and includes both the employee's portion and the employer's portion. Pensionable and insurable earnings reviews
  • Interest on a deficiency identified by a review runs from the date the amounts should have been remitted rather than from the date of the report. Pensionable and insurable earnings reviews
  • The CPP basic exemption is applied per pay period, so the number of pay periods in the year affects the total exemption applied. Pensionable and insurable earnings reviews
  • Employment in which the employer and employee do not deal at arm's length may be excluded from insurable employment for Employment Insurance purposes. Pensionable and insurable earnings reviews
  • Non-cash taxable benefits are generally pensionable but not insurable, so an employee's insurable earnings may legitimately be lower than their pensionable earnings. Pensionable and insurable earnings reviews
  • Where the earnings reported on a slip were themselves wrong, responding to a review also requires filing an amended slip. Pensionable and insurable earnings reviews
  • An under-contribution of CPP corrected after a review increases the employee's contributions for the year, which affects their eventual CPP entitlement. Pensionable and insurable earnings reviews
  • Quebec's provincial pension and parental insurance regimes mean the amounts reported for a Quebec employee do not reconcile in the same way as elsewhere in Canada. Pensionable and insurable earnings reviews
  • Taxable benefits provided during a part-year must be included in the final pay run, since there is no later payroll in which to withhold on them. Closing a payroll account
  • Vacation pay, severance amounts and retiring allowances are not all subject to the same withholding and reporting treatment. Closing a payroll account
  • Closing a payroll program account does not close the other program accounts on the same business number, and the business number itself generally persists. Closing a payroll account
  • An employer with no employees in a period may keep the payroll account open and report that no remittance is due rather than closing the account. Closing a payroll account
  • On a sale of the business's assets the vendor's employment relationships generally end and the purchaser is a new employer, whereas on a sale of shares the same corporation generally continues as the employer. Closing a payroll account
  • CRA's permission is required to destroy business records before the end of the retention period. Closing a payroll account
  • A pensionable and insurable earnings review may be issued on the final information return of a business that has ceased to operate. Closing a payroll account
  • Liability for unremitted source deductions, including director's liability, survives the ending of the business and the closing of the payroll account. Closing a payroll account