A corporate tax return is a legal document that needs to be filed with the Canadian Revenue Agency. Corporations have a variety of options for filing, including Pay-as-you-go and Free-filing options.
CRA’s risk-assessment process to prevent unwarranted and fraudulent GST/HST refund and rebate claims
The Canada Revenue Agency is increasing audits of large businesses and high-risk industries in an effort to uncover fraud and unwarranted claims. This includes auditing the GST/HST New Housing Rebate and is increasing its capacity to detect tax evasion, including the use of offshore companies and non-arm’s length transactions. In addition, the CRA will increase its collection efforts by investing $230 million over five years.
In one case, an individual was sentenced to ninety-two months in jail and fined $935,506, which represents 100% of the GST refunds he fraudulently claimed. The individual filed returns on behalf of a closed company and deposited the refunds into a new account created under the same name. Another case involved a business owner who was fined $173,129 for a phony invoicing scheme. The business owner disguised the sale of products as tax relief for Status Indians.
The CRA recently updated its My Account (MyA) services. As an additional security measure, it will require taxpayers to provide an email address when logging into MyA. If they fail to provide an email address, they will lose access to MyA. As a result, it is important to provide an email address as soon as possible.
Limitation period for reassessment of tax payable by a corporation
If a corporation disagrees with the assessment of its tax liabilities, it may challenge it before the CRA. To do this, the corporation must file a formal notice of objection. The notice must be filed within 90 days, but the time limit may vary depending on the circumstances. If the corporation is a large one, it must file a more detailed notice of objection. After receiving the notice of objection, the CRA will review it and either confirm or cancel it. If the CRA confirms the objection, then the taxpayer has 90 days to appeal the decision. He or she can then take the matter to the Tax Court of Canada, the Federal Court of Appeal, or the Supreme Court of Canada.
The time limit for a reassessment of tax payable for a corporation depends on its type and its status as a CCPC. The reassessment period can be extended for several reasons. Generally, it is extended by a certain period during which the corporation contests a requirement or an order. This period starts from the date the corporation challenges the requirement and ends at the final disposition.
Electronic transmission of a corporate tax return
The Alberta Corporate Tax Program allows eligible corporations to submit their corporate tax returns electronically to ATRA. This program is free to use and requires no registration or access code. It is available seven days a week from 7 a.m. to midnight (MST). It is also available on Sunday.
To file electronically, a corporation must have the appropriate software and must be approved by the CRA. It must also have passed an Assurance Testing process. The list of approved software providers can be found on the CRA website of e-File Providers. Developers of software can find guidance and fact sheets on the process of filing returns electronically.
Once the return has been completed, it should be signed electronically. The signature must be provided by the taxpayer or preparer. It is also required for joint returns. The taxpayer must ensure that all information on the return is correct before signing. The taxpayer must also double-check the account number and routing number, if applicable.
