CRA Corner
Tax Changes
FROM:
MAY-JUN 2007 ISSUE
Last month, the CRA implemented new standardized accounting measures to harmonize tax administration. The following changes came into effect April 1, 2007:
Excise Tax Instalments (non-GST)
Registrants are now required to pay the outstanding balance for a fiscal month at the end of the following month.
Penalties and Interest
Failure-to-file penalties for GST and Air Travellers Security Charge (ATSC) are now one per cent of the overdue return amount, plus 0.25 per cent of the amount per month the return was overdue, to a maximum of 12 months. The interest rate charged on amounts owing is now four per cent plus the 90-day Treasury bill rate, adjusted quarterly. And, interest and penalty payments are no longer deductible for income tax purposes.
Refunds and Collections
The CRA will no longer pay out refunds owed unless all overdue returns have been filed and amounts owing have been paid. This applies to GST/HST, excise tax, ATSC, and income tax returns. Also, the 90-day wait period on collections action has been removed.
Information compiled by Deloitte & Touche LLP
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