CRA Electronic Filing Guidelines for 2009

The majority of common information returns (original and additional) must be filed electronically in 2009 if there are more than 50 information returns for each type—such as;

  • T4 Statement of Remuneration Paid
  • T5 Statement of Investment Income
  • T3 Statement of Trust Income Allocations and Designations

The following information returns must be filed electronically using the Internet;

  • T3 Statement of Trust Income Allocations and Designations
  • T4 Statement of Remuneration Paid
  • T4A Statement of Pension, Retirement, Annuity, and Other Income
  • T4A-NR Statement of Fees, Commissions, or Other Amounts Paid to Non-Residents for Services Rendered in Canada
  • T4E Statement of Employment Insurance Benefits
  • T4RIF Statement of Income From a Registered Retirement Income Fund
  • T4RSP Statement of Registered Retirement Savings Plan Income
  • T5 Statement of Investment Income
  • T5007 Statement of Benefits
  • T5008 Statement of Securities Transactions
  • T5018 Statement of Contract Payments
  • NR4 Statement of Amounts Paid or Credited to Non-Residents of Canada

The following information returns must be filed electronically as this is the only way they can be accepted by the CRA:

Originals only:

  • AGR-1 Statement of Farm-Support Payments
  • SAFER Manitoba Shelter Benefits
  • T4A(OAS) Statement of Old Age Security
  • T4A(P) Statement of Canada Pension Plan Benefits

Originals and amended:

  • T4E Statement of Employment Insurance Benefits
  • T1204 Government Service Contract Payments
  • RRSP Contribution Receipt Filing
  • TFSA, Tax Free Savings Account

Information returns can be filed electronically using Internet File Transfer (XML). The CRA can accept files of up to 150 megabytes. If your file is more than 150 megabytes, you can still file using the Internet File Transfer application by either compressing or dividing each submission so that it is no more than 150 megabytes. For T4 returns, this means that filers can send approximately 160,000 returns in an uncompressed file and 1.6 million returns in a compressed file. For T5 returns, this means that filers can send approximately 260,000 returns in an uncompressed file and 2.6 million returns in a compressed file. For T4 returns, filers can use T4 Web forms (up to 3 returns) and T4 Desktop Application (up to 70 returns), in addition to Internet file transfer (XML). For more information on Internet filing, go to Filing T4/T5 information returns electronically.

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Are you management material?

I found an article online written by F. John Reh, entitled “How to Tell If You Are Management Material” and I read it hoping to see if it would shed some clues into why I have always thought I was.  The article, however, was a little more on the comical side then I had hoped for. 

The author presents a top ten list, David Letterman style, of clues that you are management material.  Read it as there is some truth mixed into the humour, then we’ll have a real discussion about what I think are clues;

  • 10. You like not doing anything.
  • 9. You have no trouble telling others what to do
  • 8. Work fascinates you – you can sit and watch it for hours
  • 7. You like ‘sweating the small stuff’
  • 6. You have always been something of a loner
  • 5. You don’t think ‘plan’ is a four-letter word
  • 4. Your favorite cocktail is milk of magnesia
  • 3. On Halloween you dress up as Alex P. Keating
  • 2. Your favorite horror writer is Tom PetersAnd the number one clue you are management material –
  • You enjoy having people despise you just for doing your job.

There is some truth to a few items on his list, but I think they can all be managed through perception.  Being aware of how others perceive you goes a long way towards you being able to manage that perception.  Even if you have no one else to help you, you should still be aware as to the basics expected of you by your staff.  For example;

The management style of yelling and berating staff is so 1980’s and is no longer an effective tool… Unless you want your staff to hate you.  Also unpopular among staff is the perception that they do way more work than you.  That should never happen.  Not only do you have a job to do as a manager but you are also required to lead a team, think strategically and get stuff done to a higher level on some very short time frames.  Not that I recommend whining to staff about it, they don’t know what you do all day, but sharing information with them helps them buy into the job, and feel that they are an important piece in the company.  Nothing is wrong with telling your staff your thoughts and suggestions to make their lives better.  I believe they actually appreciate it.

As for the perception of doing nothing or the concept of being hated for doing your job, I think these 2 go hand-in-hand.  If you sit in your office reading the paper, but then go home and put in 5 hours in the evening, no one is going to know about the extra work, but everyone will know about the perceived slacking during the day.  Be strategic.  If you must read the news during the day, do it online!

So back to the clues…  Here is my top 10 list;

10. You have a bigger vision of the way the company can operate more efficiently

9. You offer suggestions and ask questions surrounding process improvements and operational improvements

8. You enjoy helping others get work done and see them praised for it.

7. You are eager to achieve recognition of you direct manager and peers, in the good way. 

6.  Being respected is important.  Being a team player, also important.  Put team goals first.

5. You are able to act as a team leader / manager naturally

4. You have passion – for your current job, for the company, for everyone doing a good job.

3. You are flexible.  You can work in different areas, understand what others have to do and can thrive in your area of expertise or somewhere where you have no knowledge of the work required. 

2. You keep emotion out of the workplace

1. You treat everyone in the manner you want to be treated… With respect!  Explain to the level of understanding.  Be empathetic.  If you ever want people to work for you, and I mean WORK for you, you have to be understanding that they have lives beyond work and in their lives there are stresses.  Don’t be one too.

My thoughts… What would you add?

Beneficial Owner – CRA Clarification

Beneficial owner – Regarding proper amount of withholding, the CRA bases it on name of address, UNLESS, there is a “care of” address or the mailing address and permanent address are different.  If there is a care of address, or difference in permanent address, the CRA requires a certificate to be completed by the holder. 

“In any doubtful case, a certificate, as described in ¶ 5(b), is required to be completed and forwarded to the payer by the payee in order that a lower rate of withholding tax, in accordance with a tax convention, can be applied. Otherwise the 25% rate will apply.

The Canada Revenue Agency (CRA) will accept the payee as beneficial owner of amounts paid to non-residents if the payee is an insurance corporation or pension trust that invests solely on its own behalf and includes such amounts in computing its revenue.”

Examples of the certificates are available in this CRA Information circular, pages 2 and 3.  http://www.cra-arc.gc.ca/E/pub/tp/ic76-12r6/ic76-12r6-e.pdf

CRA to finally accept payments via Interac Online

Monday 5 October 2009

 

The Canada Revenue Agency (CRA) has integrated Interac Online, an internet payment method which enables Canadians to make income tax payments directly from their bank accounts, without disclosing personal financial data.

As a result of the initiative, starting October 5th 2009, taxpayers and businesses will be able to pay online for various types of taxes, including income taxes, corporate taxes, payroll taxes, and GST, as well as make one-time payments and instalments.  Interac Online works with existing online banking services of participating Canadian financial institutions.

Public Works and Government Services Canada, which establishes banking services for the Government of Canada, has made it possible for the CRA to implement this new service.

Finally!

CRA – Filer Identification Number coming January 2010.

Filer Identification Number (FIN) change
 
Starting in January 2010, the Canada Revenue Agency (CRA) will be processing information returns using the Business Number (BN) in order to simplify filing and processing.
 
 
In the future, the FIN will be converted to the BN. If you are required to file either the T5, T5007, T5008, T5013 or the RRSP contribution receipts, you will be asked to file your returns and receipts using the BN instead of the FIN.
 
The CRA will be notifying all filers of their new converted BN by letter. If you have not received your BN by December 2009, please call 1-800-959-5525 (English).
 
If you are filing these returns on behalf of others then you might want to give them some notice that you will be requiring this number and they should contact you once they receive it.  Failing to put this number on a return will be subject to a fine.

T5008

The CRA Guide for T5008’s explains how to prepare this form, to account for the Return of Securities Transactions.  This form reports purchases and sales of securities.  Transactions are reported to all persons; individuals, corporations, partnerships, trusts, or ANY other person residing in or outside Canada.

Who has to file a T5008 Information Return?

  • every trader or dealer in securities who buys a security as principal (for their own account) or sells a security as an agent or nominee for any vendor;
  • every person in the business of buying and selling precious metals in the form of certificates, bullion, or coins who makes a payment to another person for a sale of precious metals by that other person;
  • every person who, as a nominee or agent for another person, gets the proceeds of a sale or other transaction carried out in the name of the nominee or agent;
  • every person who makes a payment to, or acts as a nominee or agent for, an individual resident in Canada for the disposition or redemption of a debt obligation in bearer form; and
  • every person (other than an individual who is not a trust) who acquires, redeems, or cancels a security issued by that same person, except when the transactions involve the following:
    • exchanges of shares for new shares in the course of a reorganization of the capital of a corporation (section 86), if no consideration other than the new shares is receivable;
    • securities disposed of when a partnership ends [subsection 98(3)];
    • securities transferred when a new partnership is formed from a predecessor partnership [subsection 98(6)];
    • convertible property (section 51), that is, when a corporation’s shares, bonds, debentures, or notes are exchanged for shares of the same corporation and no consideration other than the new shares is receivable;
    • redemptions, cancellations, or acquisitions of securities made during an amalgamation (section 87); or
    • exchange of capital property that is a convertible debt obligation for another debt obligation under section 51.1.

Note
If cash or some other consideration totalling $200 or less is received instead of a fractional interest in shares during an exchange to which section 51 or 87 applies, you do not need to report the transaction. If the cash or other consideration is more than $200, you have to report the entire exchange transaction. 

You do not need to file a T5008 information return for:

  • a purchase of a security by one trader or dealer in securities from another, other than a non-resident trader or dealer in securities;
  • a sale of a security by a trader or dealer in securities for another trader or dealer in securities;
  • a sale of currencies or precious metals in the form of jewellery, works of art, or numismatic coins;
  • a sale of precious metals if you ordinarily produce or sell precious metals in bulk or commercial quantities;
  • a redemption, acquisition, or cancellation of a debt obligation by the issuer or agent when:
    • the debt obligation was issued for its principal amount;
    • the redemption, acquisition, or cancellation satisfies all of the issuer’s obligations;
    • there are no disproportionate payments of principal and interest to any person with an interest in the debt obligation; and
    • an information return other than a T5008 information return is required as a result of the redemption, acquisition, or cancellation;
  • a sale of securities by a trader or dealer in securities on behalf of a person who is exempt from tax under section 149 (for example, municipalities, registered charities, non-profit organizations, and registered retirement savings plans);
  • transactions reported under section 202 or 204 of the Income Tax Regulations;
  • a deemed disposition of a security; or
  • the expiry or exercise of an option, right, or warrant.

When is it due?

You have to file your T5008 information return on or before the last day of February following the year to which the information return applies.  For example, if you are filing a T5008 information return for 2009, it has to be filed on or before the last day of February, 2010. If this date falls on a Saturday, Sunday, or statutory holiday, your information return is due on the next business day. Note that several provinces and territories have their own unique holidays. Therefore, due dates may be affected depending on where you reside. For a list of public holidays, visit www.cra.gc.ca/duedates.

Cessation of Business:

If you end your business or activity, you have to file a return for the year or part of the year no later than 30 days after the date the business or activity ended.

You can send recipients an electronic copy of their T5008 slips. The recipient must have consented in writing or by email to receive the slips electronically.

Send the recipients’ copies of the T5008 slips to their last known address or deliver them in person. You have to do this on or before the day you have to file the T5008 information return.

New Language – Beneficial Owner for a W-8BEN

From the IRS;

A W-8BEN must be signed and dated by the beneficial owner of the income.  If the beneficial owner is a;

Individual – That person must sign and date the form.  The capacity line should be left blank.  For a minor child, a parent or guardian may sign and must enter “parent” or “guardian” where applicable on the capacity line.

Corporation – The form must be signed and dated by the President, VP, Treasurer, Assistant-Treasurer, CAO,, or any other officer, such as the Tax Officer, who has the authority to sign.  Forms signed by a receiver or trustee in bankruptcy on behalf of a corporation must be accompanied by a copy of the order or instructions of the court signing the form. 

Partnership – A general partner or member manager must sign and date the form.  If the form is filed on behalf of a partnership by a trustee, receiver or assignee, the fiduciary must sign instead of a general partner or member manager.  Forms signed by a receiver or trustee in bankruptcy on behalf of a partnership must be accompanied by a copy of the order or instructions of the court authorizing signing of the form.  The capacity line must state the tile of the person signing on behalf of the partnership.

Estate or Trust – A fiduciary must sign and date the form.  The capacity line must state the fiduciary’s title – such as trustee, administrator, or executor.

 

* fiduciary – A person or institution which occupies a position of special trust and has responsibility for the money, property or financial affairs of another