Canada Revenue Agency
www.cra.gc.ca
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How this guide can help You
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Are you starting a new small business in Canada? Are you operating one already? Then this guide is for you. It will introduce you to the Canada Revenue Agency (CRA) programs you need to know about, and give an overview of your obligations and entitlements under the laws that we administer.
Many activities of a small business are subject to different forms of taxation. This guide will help you with each of these, and will explain how to plan for taxes, keep records, and make and report payments.
It will also explain the different kinds of business structures, GST/HST, excise taxes and excise duties and products export charge, payroll deductions, income tax reporting and payment, how to prepare for and handle an audit, objections and appeals and electronic services.
Taxes can sometimes be difficult and complex. In such cases, we will refer you to more detailed publications--all free of charge.
If you are not familiar with some of the terms used in this guide, refer to the Glossary of Terms.
Internet access
You can get copies of the guides and forms mentioned in this publication by visiting forms and publications, on our Web site or by calling our Forms line at 1-800-959-2221.
A list of frequently used CRA Web sites is included in this guide for additional information.
If, after reading this guide, you need more information about businesses or professional activities, call our Business Enquiries line at 1-800-959-5525.
For more general information on starting a business, see the Government of Canada Web site Business Start-Up Assistant where you will find information from the federal, provincial and territorial governments, as well as many other sources.
About the CRA
The CRA is the federal government agency responsible for administering tax laws for the Government of Canada and for most provinces and territories, administering tariffs, and delivering various social and economical benefit and incentive programs through the tax system.
We collect federal, provincial, and territorial individual income taxes (except in Quebec).
We also administer and collect goods and services tax/harmonized sales tax (GST/HST) (except in Quebec), the Air Travellers Security Charge, the Softwood Lumber Products Export Charge, Canada Pension Plan contributions, Employment Insurance premiums, excise duties on alcohol and tobacco products, excise taxes on gasoline and fuel-inefficient vehicles, and a tax on insurance premiums (other than marine).
We also administer federal, provincial, and territorial corporate income taxes for all provinces except Alberta, Ontario, and Quebec. As of January 1, 2009, we will also administer corporate income taxes for Ontario.
The CRA also administers Canada's international tax agreements with other countries. We therefore have a key role in helping Canadian business and industry compete in world markets by ensuring they have a fair environment in which to trade.
We are committed to helping small businesses in Canada. We recognize that, as entrepreneurs, you are very busy making your business profitable. You may not always have the time, expertise, or inclination to do it all yourself. In some circumstances, you probably consult with professionals, such as lawyers, accountants, or customs brokers, to help you with your business. While these individuals are professionals and will help you, you are the one who is ultimately responsible for the actions of your business. You need to stay informed so that you can work in partnership with the professionals you hire and with the CRA.
The legislative authority for these responsibilities are identified in the:
- Income Tax Act (Canada);
- Income Tax Act (provincial and territorial);
- Excise Tax Act;
- Excise Act;
- Excise Act, 2001;
- Air Travellers Security Charge Act;
- Softwood Lumber Products Export Charge Act, 2006.
Although we administer the tax laws that Parliament has passed, the Department of Finance Canada plans the Government of Canada’s fiscal and tax policy.
When the Minister of Finance introduces a new budget, it includes proposed amendments to existing legislation. The Department of Finance Canada then issues budget documents to explain the reasons behind the changes to the legislation. The amendments become law after Parliament debates, approves, and gives them Royal Assent.
