Noteworthy - Sept 19.2010: All About Tax

Tax Cows-Pigs.jpg

CRA Targets Tax Shelters:

The CRA is auditing "gifting tax shelters" ,which mainly target middle income earners.  It seems that the tax shelters have been falsifying charitable donation amounts eg. a donation of $30 will turn into a donation receipt of $100 resulting in a tax credit up to $45.   It is estimated that 170,000 taxpayers will be assessed for about $2.5 Billion.

CRA Voluntary Disclosure Program

The CRA provides Canadian taxpayers who may have "forgotten" to file their tax returns with a voluntary disclosure program.  Subject to certiain criteria, the program waives penalties (which can be quite significant) that are incurred when a tax filing is late. 

New Filing Requirements for Partnerships

For all fiscal periods ending in 2011, the filing requirements for partnerships will be based on financial activity rather than number  or type of partners. Included in the updated requirements will be an exemption for partnerships with simple structures and less financial activity from filing an information return.  More detailsto come.