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52-666: From 1867 to 1999, tax services and programs were administered by the Department of National Revenue, otherwise known as Revenue Canada. In 1999, Revenue Canada was reorganized into the Canada Customs and Revenue Agency (CCRA). In 2003, the Canada Border Services Agency (CBSA) was created out of the CCRA, leading to customs being dropped from the agency's mandate and the agency's current name. The CRA

104-589: A CRA employee is 45 years old. Under the Financial Administration Act , the CRA is designated under Schedule V as a separate agency outside of the core public administration, which allows the CRA to establish different job classifications, pay rates, and enter into labour negotiations differently from other government departments and agencies. Consequently, the job classifications used by CRA may not align with those typically used in other parts of

156-414: A T4 return, that is, a T4 summary for total wages paid by the business, and T4 slips for wages paid to each employees, to the CRA. The CRA is responsible for collecting several taxes on behalf of the federal government, and most provincial and territorial governments (except Quebec), including personal income taxes , corporate taxes , sales taxes , fuel charges , and certain excise taxes as defined under

208-548: A general sense, it refers to the monarch exercising executive authority , usually in the form of approving orders, on the advice of the country's privy council or executive council . In nations where the reigning monarch is represented by a viceroy , derivative terms are used instead, such as Governor in Council or Lieutenant Governor in Council . In Norway, the King in Council ( Norwegian : Kongen i statsråd ) refers to

260-692: A given tax year. Income is generally reported through the T-series forms, with the number corresponding with a specific type of income situation. Individual taxpayers will report their income using the T1 return . Corporations and trusts respectively use the T2 and T3 forms. Employers use the T4 form to issue a statement of remuneration paid for individual employees, which is then submitted to employees for T1 filing purposes Lastly, any investment income or capital gains earned by

312-580: A lower rate applicable to income that qualifies for the federal small business deduction, and the higher rate to all other forms of income. While some provinces adhere to the business limit for the lower rate set by the federal governments, other provinces choose to maintain their own rate. The Canada Revenue Agency collects the Goods and Services Tax (GST) (the Canadian federal value added tax ) of 5 per cent in all provinces. In Quebec, under an agreement with

364-404: A notice of assessment. The notice of assessment provides a summary of each entity's income, credits and deductions. If a taxpayer disagrees with an assessment, they may file an appeal which may lead to challenging the assessment in tax court. Once a tax return is assessed, it may be subject to review. In some cases, a tax return could be reviewed before being assessed. After an objection is filed,

416-560: A single department, Customs and Excise, between 1918 and 1927. In 1927, the Department of National Revenue Act was enacted by Parliament, which changed the name of the department from Customs and Excise to National Revenue, while retaining its earlier mandate. The Department of National Revenue would gain increasing responsibility as new social programs, such as the Canada Pension Plan , and new streams of revenue, such as

468-482: A taxpayer is reported in a T5 form. Depending on the complexity of a taxpayer's income situation, supplementary forms outside of the T-series may need to be completed. For income tax purposes, trusts are treated as a taxable entity by the Income Tax Act . A legal representative of an estate of a deceased person may have to file a T3 return for the estate if it has properties that has not been distributed. Unlike

520-458: A third-party provider in order to use the system. As of the 2019 tax year, the vast majority of taxpayers file their taxes electronically (90.3%) while increasingly fewer taxpayers (9.7%) use the traditional paper method. Most taxpayers (56.5%) rely on EFILE to submit their return, meaning that most Canadians generally seek out tax professionals when preparing their annual returns. Many benefits, such as Canada Child Benefit (CCB), are determined by

572-420: Is based on the principle of mandatory self-assessment. Taxpayers, comprising both businesses and individuals, must complete a tax return every year determine whether they owe taxes or will receive a refund. For individual tax returns, returns are generally due on April 30 for the preceding tax year. For other entities, such as charities, corporations, sole proprietorships, partnerships, or self-employed individuals,

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624-427: Is responsible for several agency-wide functions, including ministerial reporting, corporate planning, human resources , information technology, communications, and interpreting tax legislation. Headquarters is divided into five program branches, which help deliver the agency's core mandate around tax and benefits administration, and seven corporate branches, which deliver services that support the day-to-day operations of

676-607: Is responsible to Parliament through the minister of national revenue ( Marie Claude-Bibeau since 2023). The day-to-day operations of the agency are overseen by the commissioner of revenue (Bob Hamilton since 2016). Prior to Confederation , the collection of taxes and customs duties was the responsibility of the Department of Customs in each of the British North American colonies. In 1867, Parliament enacted legislation which established two separate departments, Inland Revenue, and Customs. Until end of World War I ,

728-459: Is the largest organization in the Canadian federal public service by number of personnel, employing 54,933 people and has an operating budget of $ 5.1 billion as of the 2018–19 fiscal year. The agency's headquarters are based in Ottawa, itself divided into five program branches, which directly support the CRA's core responsibilities, and seven corporate branches, which deliver internal services within

780-540: The 1976 Summer Olympics in Montreal, QC , the department was called the Department of National Revenue Customs and Excise . This Canadian government –related article is a stub . You can help Misplaced Pages by expanding it . Governor-in-Council The King-in-Council or the Queen-in-Council , depending on the gender of the reigning monarch, is a constitutional term in a number of states. In

832-470: The Excise Tax Act , which requires many entities to register for a GST/HST account and remit GST/HST collected. These entities include sole-proprietors, partnerships, and corporations. Not-for profit organizations, are normally exempt for income tax purposes, but are required to register for GST/HST accounts under the current rules. GST/HST returns are due monthly, quarterly, or annually depending on

884-455: The Excise Tax Act . As a separate agency, the CRA maintains partnerships and agreements with provincial, territorial, and other levels of government to administer non-harmonized sales tax programs on a cost-recovery basis. Personal income taxes The Canada Revenue Agency collects most individual income taxes in Canada . Canada uses tax brackets to determine an individual's tax obligations,

936-618: The Goods and Services Tax (GST) were gradually introduced over the latter half of the 20th century. In 1993, EFILE was first made available to Canadian taxpayers wishing to submit their taxes electronically. In 1999, the Chrétien government introduced legislation that would transform Revenue Canada from a department to a new agency, the Canada Customs and Revenue Agency. This change was intended to reduce duplication in tax administration, streamline services to Canadians, and provide

988-408: The 2019 tax year. The agency was also tasked with delivering emergency financial benefits to Canadians on behalf of the federal government, processing millions of applications through its IT systems. The CRA is led by the minister of national revenue and the commissioner of revenue, who functions as the agency's chief executive officer (CEO). The minister is accountable to Parliament and Cabinet for

1040-629: The Board of Management. The Board of Management consists of 15 members appointed by the Governor in Council , of which 11 are appointed by the provinces and territories, 2 by the federal government, with the remaining seat filled by the commissioner of revenue, who is an ex-officio member of the board. Board members are typically appointed for a term of three years. The board develops the CRA's Corporate Business Plan each year, which sets out objectives, performance expectations, and financial allocations within

1092-827: The CCRA, Citizenship and Immigration Canada and the Canadian Food Inspection Agency on border protection and immigration enforcement. Following the CBSA spin-off, the CCRA was rebranded as the Canada Revenue Agency, with its strategic direction pivoting towards enforcing compliance with Canada's tax laws and delivering benefits to Canadians. Due to the COVID-19 pandemic , the CRA joined several other government departments in transitioning to temporary remote work arrangements. The CRA also extended deadlines for filing returns and payments for

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1144-480: The CRA either as a lump-sum or in quarterly instalments. While most taxpayers file only through the CRA, Quebec residents file separately with the CRA and Revenu Québec each year. Taxes for provincial corporations in Canada are administered by the CRA, except for provinces of Alberta and Quebec. Ontario previously administered corporate taxes until 2008, after which the CRA took over responsibility collecting these taxes. The provinces maintain dual tax rates, with

1196-463: The CRA is required to reassess a tax return "with all due dispatch" according to subsection 165(3) of the Income Tax Act . This may have different meanings depending on how busy the CRA is, the time of year, and other factors. Subsection 165(3) says: On receipt of a notice of objection under this section, the Minister shall, with all due dispatch, reconsider the assessment and vacate, confirm or vary

1248-416: The CRA's operations, and in matters pertaining to tax and benefit administration in Canada. The current minister is Marie-Claude Bibeau, who was appointed on July 26, 2023. The commissioner is the CRA's CEO. The commissioner manages the day-to-day operations of the agency, and advises the minister on the duties and functions of the CRA as prescribed by legislation. The current commissioner is Bob Hamilton, who

1300-619: The CRA. Outside of its headquarters, the CRA's operations across Canada are divided into four regions, which help to carry out the agency's operations in different regions of the country. Each region is headed by an assistant commissioner, who oversees activities in their region, including that of tax centres (TCs) and tax services offices (TSOs) in their area of responsibility. Tax centres are responsible for intaking and processing individual and business tax returns. There are four tax centres located across Canada, each assigned their own geographic areas of responsibility, which may vary depending on

1352-591: The Council of State). The King-in-Council is the technical term of constitutional law for the exercise of executive authority in a Commonwealth realm , denoting the monarch acting by and with the advice and consent of his or her privy council (in the United Kingdom and Canada 's federal jurisdiction) or executive council (in most other Commonwealth realms and the Australian states and Canadian provinces ). In those realms and dependencies where

1404-612: The Goods and Services Tax (GST) has been replaced by the Harmonized Sales Tax (HST). The Harmonized Sales Tax combines the national GST and the provincial sales tax into a single tax. The HST is administered by the CRA. Each province that has Harmonized Sales Tax receives its portion of the HST from the CRA. In 2013, British Columbia removed HST after public protests against the newly taxed items under HST that were not taxed under

1456-420: The King in Council ( Swedish : Konungen i Statsrådet ), more commonly known as Royal Majesty ( Swedish : Kunglig Majestät or the short forms Kungl.Maj:t or K.M:t ) was a concept of constitutional importance until 1974. Royal Majesty was the commonly used term to refer to the supreme executive authority under the 1809 Instrument of Government , under which the monarch made all decisions of state in

1508-528: The PST/GST system. Canada Customs and Revenue Agency Canada Customs and Revenue Agency ( CCRA ; French : Agence des douanes et du revenu du Canada , ADRC ) was a department of the government of Canada and existed from November 1, 1999 until December 12, 2003. It was created from the merging of Revenue Canada with Canada Customs. The CCRA was subsequently split into the Canada Border Services Agency and Canada Revenue Agency . During

1560-616: The United States, families cannot file joint returns. A partnership is not a taxable entity for income tax purposes and its income is taxed in the hands of its partners. Individual taxpayers can file by paper, telephone, or electronically. Taxpayers have two methods for filing electronically: NETFILE, which is for individuals who file their own tax returns, and EFILE, used for professional tax preparers that file on behalf of their clients. Taxpayers that prepare their own taxes through NETFILE generally need to obtain tax filing software from

1612-758: The Yukon, Northwest Territories, and Nunavut, co-located with existing Service Canada offices. There are three NSCs located across the North: As of the 2018-19 fiscal year, the CRA employed about 43,908 people, making it the largest organization within the federal government by personnel. Despite being headquartered in Ottawa, only about 12,000 employees are based in the National Capital Region. Of these employees, 32,598 (74.2%) were indeterminate or permanent employees, 1,251 (2.8%) were students, and 10,057 (22.9%) were contract employees. The average age of

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1664-501: The aforementioned terms, though the phrase may mean more than one thing in certain areas. An order made by the King-in-Council is known as an order-in-council and such actions are subject to judicial review . Orders-in-council may be used to implement secondary legislation , such as British statutory instruments . In practice, decisions made by the King-in-Council are almost always the formal approval to decisions made by

1716-478: The agency, and does not have access to taxpayer information. The CRA maintains four advisory committees to assist it in operational planning and decision-making as it relates to different sectors or issues. Advisory committees consist of tax professionals, lawyers, accountants, and community leaders that help the agency improve its service delivery within a specific area. The current advisory committees are as follows: The CRA's headquarters are located in Ottawa, and

1768-493: The agency. The Board of Management is divided into four committees, Audit, Governance and Social Responsibility, Human Resources, and Resources, and one subcommittee, Service Transformation. These committees allow for a detailed review of items brought before the board, and establish work plans for their respective activities each year. The Board of Management is not directly involved with the CRA's business operations. As such, it cannot enforce or interpret legislation on behalf of

1820-497: The appointed ministry that the law refers to may alone act with complete authority on the matter assigned in the particular law. A decision that is taken in the State Council under the sovereign's leadership is considered to be a royal decree. If the crown prince chairs, they are crown prince resolutions. When neither the monarch nor the crown prince chairs, resolutions adopted are called government resolutions. In Sweden,

1872-408: The assessment or reassess, and shall thereupon notify the taxpayer in writing of the Minister's action. Residents of Canada are required to file an individual income tax return every year. Non-residents may have to file a tax return under certain circumstances where they directly earn income in Canada, which can be rental payments, stock dividends, or royalties that a non-resident earns in Canada during

1924-556: The corresponding TSO where applicable: National Verifications and Collections Centres are responsible for non-complex files related to collection, verification, and validation that do not involve in-person interaction. These new facilities were introduced by the agency in 2016 as part of an effort to modernize the Agency's services. There are three NVCCs located across Canada: In 2019, the CRA opened introduced Northern Service Centres to access to tax services and assistance for residents in

1976-482: The federal government, Revenu Québec administers the GST to businesses, and administers Quebec's own Quebec Sales Tax (QST). The Goods and Services Tax was introduced in 1991 at 7 per cent added to the value of most sales of goods and services. The GST was reduced to 6 per cent in 2006 and 5 per cent in 2008, the current rate. In Prince Edward Island , New Brunswick , Newfoundland and Labrador , Nova Scotia and Ontario

2028-542: The income reported on the T1 returns. If returns are not filed, taxpayers may not be able to obtain benefits they are entitled to. Registered Retirement Savings Plan (RRSP) contribution room also depends on the taxpayer's reported income. Employees normally have income tax withheld on each paycheque by their employers, who remit the tax withheld together with payroll taxes to the CRA. Contractors (and most pensioners) are normally required to pay instalments for income tax to CRA during

2080-516: The majority of federal revenue came from customs and excise duties, but as the war effort placed increasing pressure on government finances, the Borden government introduced a personal income tax in 1917. While intended to be a temporary measure at first, the federal government has since continued to levy personal income taxes, and are now the largest source of revenue for the federal government. Both Inland Revenue and Customs were eventually merged into

2132-583: The meetings of the King and the Council of State (the Cabinet), wherein matters of importance and major decisions are made. The Council meets at the Royal Palace , normally every Friday. These meetings are chaired by the monarch or, if he is ill or abroad, crown prince (the monarch's heir). In Norway's constitution, King in Council refers to the formal Government of Norway , whereas merely King means

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2184-477: The organization. The CRA also has operations throughout the rest of Canada, including 4 Tax Centres (TCs), 3 National Verifications and Collections Centres (NVCCs), and 25 Tax Services Offices (TSOs), organized into four regions: Atlantic, Ontario, Quebec, and Western. During the 2017 tax year, the CRA collected approximately $ 430 billion in revenue on behalf of federal and provincial governments, and administered nearly $ 34 billion in benefits to Canadians. The CRA

2236-499: The presence of his Cabinet ministers. The 1974 Instrument of Government removed the monarch from all exercise of formal political powers, which were passed to the newly created government ( Swedish : Regeringen ), chaired and led in all aspects by the prime minister . The monarch continues to head the Cabinet councils (the sovereign plus the members of the government) and the Council on Foreign Affairs, recognizing new cabinets (in

2288-473: The public service. Executives, management, and students are generally not represented by a union. However, the majority of CRA employees are represented by Union of Taxation Employees , which is a component of Public Service Alliance of Canada . Auditors, investigators and computer systems employees are represented by Professional Institute of the Public Service of Canada . The Canadian tax system

2340-627: The rates of which are set by the Department of Finance . Personal income taxes are levied by both the federal government and provincial governments, each with separate rates, but are collected together with the exception of Quebec. Based on individual earnings, employers will typically deduct income tax, in addition to Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) and Employment Insurance (EI) deductions from an employee's paycheque. However, taxpayers that rely on rental or investment income, or are self-employed generally do not have taxes automatically deducted from their pay, must remit tax payments to

2392-416: The sovereign's powers and functions are delegated to a governor-general , lieutenant governor , or governor , the term Governor-General-in-Council , Lieutenant Governor-in-Council , or Governor-in-Council may be used instead of King-in-Council , all of these terms describing the same technical process within constitutional law. The government of [ jurisdiction ] is commonly used as a synonym for any of

2444-510: The tax administration with more flexibility in corporate planning, and in forming relationships with provincial, territorial, and Indigenous governments. The CCRA was given a broad mandate that covered taxation, customs, and border protection. This arrangement only lasted until December 2003, when the Canada Border Services Agency was spun off from the CCRA due to issues relating to interdepartmental collaboration between

2496-499: The tax deadline may vary widely. Penalties may be imposed if returns are received after the deadline, or any outstanding amounts owed are also subject to penalties and daily compounded interest. Additionally, taxpayers that repeatedly fail to report income over several tax years, or make false statements or omissions may be subject to penalties, which may vary depending on the severity of a taxpayer's actions. The CRA processes most tax returns with very limited review and promptly issues

2548-604: The type of return: Tax services offices are field offices which handle more complex audit and collection files for the agency, generally those which involve direct interaction with taxpayers. While TSOs are present in every province, the territories do not currently have active TSOs, and are instead under the jurisdiction of TSOs located in other parts of Canada. Tax services offices are sometimes divided into branch offices for organizational purposes. There are twenty-five TSOs situated across Canada, and are organized as follows, with any branch offices indicated in indented bullets under

2600-418: The volume of sales. If sales are less than $ 30,000 per year, a business may qualify as smaller suppliers, who are not required to register for GST/HST. An employer is required to withhold income tax and payroll taxes, such as CPP and EI, and to remit the withheld amount to the CRA monthly, quarterly, or annually depending on the amount of withholding. By the end of every February, an employer is required to file

2652-400: The year. Once a tax return is filed, a tax refund will be available if the tax withheld or the instalments are more than tax owing calculated on the tax return. If the tax return results in a balance due, it must be paid in full by the due date or interest will accrue daily. The Goods and Services Tax (GST) or Harmonized Sales Tax (HST), collectively referred to as GST/HST, are governed by

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2704-412: Was appointed to the position on August 1, 2016. The commissioner is supported by the deputy commissioner, who fulfils specific duties and assignments provided to them by the commissioner, and acts for the commissioner in the event of absence or incapacity. The current deputy commissioner is Brigitte Diogo, who was appointed to the position on April 11, 2022. The minister and commissioner are supported by

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