CRA SERIOUS ABOUT COMPLIANCE

The Canada Revenue Agency (CRA) has release a news release in response to allegations that it treats some taxpayers unfairly.

"The Income Tax Act requires employers whose monthly source deduction remittances exceed $50,000 make their payments at a financial institution by the business day they are due. This is to ensure that the payments are immediately credited to the Government of Canada. Some employers have been making their remittances directly to the CRA, with the result that the deposit was often delayed until the next business day, which might occur two or even three days later. Playing the system this way, while advantageous to some employers, was unfair to all other taxpayers."

The CRA has indicated that it has clearly advised nearly 57,000 large employers of the penalty where large employers continue to make late remittances. The penalty represents 10 per cent of the amount of the payment.

"Suggesting that such penalties are unfair is in fact suggesting that the CRA not apply the provisions of the Income Tax Act. This would have the effect of giving a small number of businesses what amounts to unfair financial advantages."

The news release continues that the CRA remains committed to equal treatment of all taxpayers and will impose penalties where warranted.

For more information on this news release, visit the CRA website at: http://www.cra-arc.gc.ca/newsroom/releases/2006/nov/nr061124-e.html