CRA Corner 

FROM: MAY-JUN 2009 ISSUE

Non-resident Taxes

The CRA’s new online calculator helps determine tax payable on amounts paid or credited to non-residents of Canada. To find the current rate of non-resident tax for existing tax treaties, visit www.cra.gc.ca/partxiii-calculator.

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Registered Disability Savings Plan (RDSP)

An RDSP can be created to provide long-term financial security for a beneficiary who is eligible for the disability tax credit. Contributions are not tax deductible, but the earnings generated on contributions are tax-exempt while in the plan. When earnings are withdrawn, they are taxable in the hands of the beneficiary. www.cra.gc.ca/disability.

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Benefits for Seniors

The CRA offers a number of benefits to seniors, from tax preparation assistance from the Community Volunteer Income Tax Program, to newer measures such as a 25 per cent decrease in the minimum withdrawal amount from an RRIF. Other benefits include non-refundable tax credits for age, disability, pension income, public transit, and medical expenses. www.cra.gc.ca/seniors.

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Free Parking?

Employers can use an online CRA questionnaire to determine whether or not parking provided to employees is a taxable benefit. A calculator is available to determine the taxable benefit attributable to employees who use the employer’s vehicle for personal driving. These and other online tools can be accessed at www.cra.gc.ca/payroll.

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