CRA Corner 

FROM: JUL-AUG 2008 ISSUE

Winning the Lotto

The CRA recently issued a reminder that winners of sweepstakes and lotteries do not have to pay fees and taxes in order to claim their prizes. No taxes or fees of any kind have to be paid on lottery or sweepstakes winnings in Canada. Any e-mail, letter, or telephone call indicating otherwise is a scam. Advise your clients to visit www.cra.gc.ca/myths for more information on ways to protect themselves from fraud.

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Compliance Refund Holds

As of April 1, 2008, the CRA is applying the compliance refund hold legislation to corporate entities that are exempt from paying federal income tax under subsection 149(1) of the Income Tax Act. Failure to file T2 returns by their due dates for taxation years ending April 1, 2008 and forward will result in a compliance refund hold on refunds or rebates. Visit www.cra.gc.ca/t2return.

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Tied to More Than One Province?

Given Western Canada’s current economic boom, many workers in Alberta and Saskatchewan officially reside in other provinces. The CRA is reminding Canadians to properly indicate their province or territory of residence on tax returns. Factors used to determine a taxpayer’s province or territory of residence include: where the taxpayer maintains a home, where the taxpayer’s spouse or common-law partner lives, and where the taxpayer’s dependent children live.

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