FIN to BN Conversion Process – CRA Press Release from October 2009.

FIN to BN conversion process If you filed a T5, T5007, T5008, T5013, or Registered Retirement Savings Plan (RRSP) Contribution Receipts information return in 2008 or 2009, the CRA will automatically convert your Filer Identification Number (FIN). A successful conversion will result in an RZ account number being added to your existing BN.

Note:
Filers of the T5018 information return will have the RZ account number added to their existing BN.  

The Contract Payment Reporting System (CPRS) requires construction businesses to record payments they make to subcontractors for construction services and to report these payments to the Canada Revenue Agency (CRA).  The CPRS was also developed to require contract reporting by Crown corporations (since 1998) and federal departments and agencies (since 1999).

The conversion will occur throughout November and December 2009. You may have been mailed a letter advising you of your new RZ account number once it has been created.  If you did not receive one you will need to have the authorized representative contact the CRA at the general enquiries line, 1.800.959.5525 to set one up. 

Note:
If your filing is done by a branch office or a third party, such as an accountant or service bureau, advise them of your new account number.

Some FINs may not convert due to discrepancies between the FIN and the BN account information. If you do not receive notification by mail of your RZ account number by the end of December 2009, or you require an additional account to suit your business needs, contact the CRA.

If you have received notification of your RZ account number, but you are no longer required to file any of these information returns, you can have the account closed by contacting the CRA.

Note:
If you will be filing a TFSA return, you will not be part of this conversion. Go to TFSA Annual Information Return for more information.

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New Electronic Filing Requirements for GST Coming…

With the implementation of the Harmonized Sales Tax (HST), effective July 1, 2010, some registrants will be required to file their GST/HST returns electronically.

This will differ from the current paper filing system that most registrants use and will affect registrants currently filing their returns quarterly or monthly.

For reporting periods ending after June 30, 2010, GST/HST registrants will be required to file their returns electronically if they:

  • have annual taxable supplies (on an associated group basis) exceeding $1.5 million (charities excepted);
  • are referred to as “large businesses” and are required to recapture input tax credits (ITCs) for the provincial portion of the HST on certain expense categories; or
  • are builders that must report:

– transitional tax adjustments;

– transitional new housing rebates (provincial portion of HST);

– sales of grandparented housing (i.e., ownership and possession transferred to purchaser after June 30, 2010, under written agreements of purchase and sale entered into before June 19, 2009) if the purchaser is not entitled to claim GST/HST new housing or new residential rental property rebates; or

– housing sales that are subject to HST, if the builder purchased housing on a grandparented basis.
The recapture of ITCs and the transitional taxes applicable to builders will be reported in separate information fields on a schedule that accompanies the GST/HST return. For registrants affected by the ITC restrictions, the restricted or recaptured ITCs will be calculated as:

Failure to file GST/HST returns electronically may result in penalties being imposed by the Canada Revenue Agency.