Canada Turns 150, the Income Tax Act turns 100

Bob Hamilton, the Commissioner and Nancy Chabwan, the Deputy Commissioner of the Canada Revenue Agency (CRA) Celebrates 100 Years of Taxes with #Canada150

2017 marks not only Canada’s 150th Birthday, but also the 100th Anniversary of the Income Tax Act (ITA).

To mark this anniversary, the CRA has put together a video that highlights the history of income Taxes in Canada and the role they play in building the country and lifestyle of Canadians – as well as how the CRA has evolved to meet the needs of Canadians over the years.

The 150th birthday of Canada is July 1st.

The 100th anniversary of the ITA is September 20th

Watch the video, and share with a de-taxer near you.

Learn How to Lodge a Service-Related Complaint with the CRA

[109/365] Taxation.
Taxation. (Photo credit: kardboard604)
Have you ever had an issue with the Canada Revenue Agency which was so upsetting that you wanted to complain but did not know how?  Well, once you finish reading this post you will know how to do that, when you can do that and what you need to do that.

The first think you will want to do is to follow this link, to the CRA website and read their brief section on service-related complaints.  If everything looks good, then download this form, the RC159 fill it in, and send the completed form, together with supporting documentation and any authorization forms, separately from other tax forms to the CRA.

You can fax your form and supporting documentation to 1.866.388.7371 from Canada or the US or 1.819.536.0701 from outside Canada and the US, or you can mail them to the following address:

CRA – Service Complaints Supporting documentation
National Intake Centre
P.O. Box 8000
Shawinigan-Sud QC. G9N 0A6
CANADA

Make sure to include all relevant documentation that you feel may be helpful in reviewing your complaint or feedback.

This is a service complaint;

A service complaint is an expression of dissatisfaction with the service, quality, or timeliness of the work performed by the CRA which could include, but is not limited to, the following:

  • undue delays;
  • poor or misleading information;
  • staff behaviour; or
  • mistakes, which could potentially result to a misunderstanding or omission.

This is not a service complaint;

If your service complaint does not relate to a service matter, other options are available, for example:

  • normal delays in the processing of your income tax returns – see Service Standards or for more information on what you can expect from the CRA.
  • dispute an assessment, determination, or decision – see Complaints and disputes.
  • disagreements related to the Income Tax Act – the CRA is responsible for administering tax legislation, not amending it. If you have a complaint about the Income Tax Act or other tax legislation matters, contact the Department of Finance Canada.

Additional information can be found by reading Booklet RC4420, Information on CRA – Service Complaints.

CRA Tax Question: T5008. Divorce. Court Order.

In the process of managing the processing of 2 million tax slips for my employer, the world’s largest transfer agent, the following question came across my desk:

A husband and wife divorced during the year and the husband did not make his child support payments as required by court order.  As a result, family court here in Canada passed a judgement stating that any stock he held be removed from his name and either cashed in so those funds could be given to his wife, or the stock be transferred to his wife so that she may cash them in as she needs them.

So here is the question:

Who gets the T5008?  Him or her?

Note:  Traders or dealers in securities have to file a T5008 information return to report purchases of securities as principal for their own account, and sales of securities they make as an agent or nominee, for any vendor.

Issuers of securities and their agents or nominees use this (T5008) information return to report redemptions, acquisitions, or cancellations of securities.

Might this be considered a deemed disposition?

Deemed dispositions

You do not have to report deemed dispositions on a T5008 slip, in certain circumstances, the Income Tax Act considers that a property has been disposed of, even though no real compensation in the form of money or other consideration has been received.

Some examples of when a deemed disposition may occur are:

  • transfers of property to a trust;
  • gifts of property (that is, the name of the beneficial owner of the property is changed);
  • the owner dies; or
  • the owner ceases to be a resident of Canada.

In this guide, “sale” generally refers to a transaction where the ownership of property is transferred from one person or entity to another for a sum of money or other consideration. In the case of a deemed disposition, ownership of the property is not transferred for money or other consideration. In addition, a deemed disposition is not a purchase, redemption or cancellation of a security. Consequently, a deemed disposition is not considered for the purposes of Income Tax Regulation 230 and a T5008 slip is not required.

Answer to follow…