Mandatory Internet Filing For Business Mandatory Internet filing is a new filing requirement that applies to certain corporations with annual gross revenues that exceed $1 million and information return filers who file over 50 information slips. Mandatory Internet filing was proposed in the federal government’s 2009 budget and is intended to increase the efficiency of government while improving service and value to taxpayers. These new filing requirements will increase the use of the Internet for filing T2 corporation income tax returns and information slips. It will also further streamline the Canada Revenue Agency’s (CRA) services, lower costs and reduce paper waste. Internet filing is a fast, secure and easy filing option. It helps to eliminate delays and traditional delivery expenses, while reducing printing costs, and providing filers with immediate confirmation of filing. With increased filing by Internet, the administrative burden on the CRA is reduced, allowing the Agency to commit more resources to better meet the priorities of Canadians through excellent, cost-effective programs and services. Corporation Income Tax Returns Starting with the 2010 tax year, Internet filing will be mandatory for certain corporations with annual gross revenues that exceed $1 million. Internet filing for T2 corporation income tax returns has been available since 2002. Currently, more than 90% of corporations use software to prepare their T2 returns, and 22% of corporations file through the Internet. With the introduction of mandatory Internet filing for corporations with gross revenues of more than $1 million, the CRA expects an additional 200,000 corporations (out of 1.8 million) to file online. Corporations can use the CRA's Corporation Internet Filing service or My Business Account to Internet file. Both are easy to use, convenient, secure, and confidential. While there are no fees associated with Internet filing, corporations are required to use CRA-approved software to file tax returns through the Internet. Exemptions Some corporations filing T2 returns with gross revenues in excess of $1 million will be exempt from the new Internet filing requirements. These include insurance corporations; non-resident corporations; corporations reporting in functional currency, and corporations that are exempt from tax payable under section 149 of the Income Tax Act.Penalties for filing in other formats The CRA is providing a one-year transitional period to allow filers time to adapt to these changes. Beginning with the 2011 tax year, corporations that are required to file tax returns through the Internet, but file using paper, will be subject to a non-compliance penalty. Fact Sheet Information Returns Starting in January 2010, mandatory Internet filing applies to filers of information returns who submit more than 50 information slips. Filing information returns electronically (through the Internet or on electronic media such as a CD, DVD, or diskette) is already mandatory for filers submitting more than 500 information slips. Starting in January 2010, filers that submit more than 50 information slips such as T3, T4 and T5 will be required to file using the Internet only. Information slip filers can electronically submit slips using the CRA’s Internet file transfer (XML). To submit T4 slips, filers can also use the T4 Desktop Application (up to 70 slips) or My Business Account. Penalties for filing in other formats The CRA is providing a one-year transitional period to allow filers time to adapt to these changes. Penalties for not filing through the Internet, if required to do so, may be assessed starting January 1, 2011. Assistance with Internet filing The CRA offers business owners and their authorized representatives help with Internet filing and electronic services. Assistance with Corporation Internet Filing is available Monday to Friday by calling: • Corporation Internet Filing Helpdesk: 1-800-959-2803Assistance with other electronic services including My Business Account and Internet file transfer is available Monday to Friday by calling: • e-service Helpdesk for businesses: 1-877-322-7849• TTY e-service Helpdesk for businesses: 1-888-768-0951• collect, outside of Canada and the United States: 709-772-8371For more information on mandatory Internet filing, go to www.cra.gc.ca/corporation-internet(corporations) or www.cra.gc.ca/iref (information returns).-30- |
2010 indexation adjustment for personal income tax and benefit amounts Each year, certain personal income tax and benefit amounts are indexed to inflation using the Consumer Price Index data as reported by Statistics Canada. Increases to tax bracket thresholds, amounts relating to non-refundable credits, and most other amounts will take effect on January 1, 2010. However, increases to the Canada Child Tax Benefit (including the National Child Benefit Supplement and the Child Disability Benefit) and the goods and services tax credit will take effect on July 1, 2010, to coincide with the beginning of the program year for payment of these benefits. The following chart compares the indexed amounts for the 2009 and 2010 tax years. It reflects an indexation increase of 0.6% for 2010. Tax bracket thresholds Taxable income above which the 22% bracket begins Taxable income above which the 26% bracket begins 81,941 81,4521 Taxable income above which the 29% bracket begins 127,021 126,264 Amounts relating to non-refundable tax credits Basic personal amount 10,382 10,3201 Age amount 6,446 6,4081 Net income threshold 32,506 32,312 Spouse or common-law partner amount (max.) 10,382 10,3201 Amount for an eligible dependant (max.) 10,382 10,3201 Amount for children under age 18 (max. per child) 2,101 2,089 Canada employment amount (max.) 1,051 1,044 Infirm dependant amount (max. per dependant) 4,223 4,198 Net income threshold 5,992 5,956 Fact Sheet Caregiver amount (max. per dependant) 4,223 4,198 Net income threshold 14,422 14,336 Disability amount 7,239 7,196 Supplement for children with disabilities (max.) 4,223 4,198 Threshold relating to allowable child care and attendant care expenses 2,473 2,459 Adoption expenses (max. per adoption) 10,975 10,909 Medical expense tax credit—3% of net income ceiling 2,024 2,011 Refundable medical expense supplement Maximum supplement 1,074 1,067 Minimum earnings threshold 3,135 3,116 Family net income threshold 23,775 23,633 Old Age Security repayment threshold 66,733 66,335 Certain board and lodging allowances paid to players on sports teams or members of recreation programs Income exclusion (max. per month) 315 313 Tradesperson’s tools deduction Threshold amount relating to cost of eligible tools 1,051 1,044 Goods and services tax credit Adult maximum 250 248 Child maximum 131 130 Single supplement 131 130 Phase-in threshold for the single supplement 8,096 8,047 Family net income at which credit begins to phase out 32,506 32,312 Canada Child Tax Benefit Base benefit 1,348 1,340 Additional benefit for third child 94 93 Family net income at which base benefit begins to phase out 40,970 40,7261 National Child Benefit (NCB) supplement First child 2,088 2,076 Second child 1,848 1,837 Third child 1,758 1,747 Family net income at which NCB supplement begins to phase out 23,855 23,7102 Family net income at which NCB supplement phase-out is complete 40,970 40,7261 Canada Disability Benefit (CDB) Maximum benefit 2,470 2,455 Family net income at which CDB supplement begins to phase out 40,970 40,7261 Children’s Special Allowances (CSA) CSA Base Amount 3,436 3,416 Notes: 1 Under changes announced in the January 27, 2009 Federal Budget, certain values changed for 2009 as follows:• The upper taxable income threshold of the 15% tax bracket was increased to $40,726.• The upper taxable income threshold of the 22% tax bracket was increased to $81,452.• The basic personal amount, the maximum spouse or common-law partner amount, and the maximum amountfor an eligible dependant were increased to $10,320. • The maximum age amount was increased to $6,408.• The family net income at which the CCTB and CDB begins to be phased out and at which the NCBsupplement phase-out is complete for most families, changed to $40,726. 2 The 2009 value increased to $23,710 as a result of changes to the federal tax bracket threshold amounts as notedin Note 1, above. |
My Payment – a new service for businesses and individuals My Payment is an electronic payment service, accessed through the CRA website, that allows individuals and businesses to send payments directly to the Canada Revenue Agency (CRA) from an account at a participating financial institution*. My Payment is fast and easy to use. The service is provided through Interac® Online.
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