CRA Goes Proactive!

Canada Revenue Agency is taking a proactive approach to helping small and medium-sized businesses meet their tax obligations, thus saving businesses time and money by helping them to avoid problems before they occur.

CRA has prepared a small business checklist with helpful information for each major phase a business will go through during its cycle (starting, maintaining, closing, etc.). It is not intended to be a comprehensive checklist, but a place to start. You can find the checklist here: http://www.cra-arc.gc.ca/tx/bsnss/sm/chcklst-eng.html.

They have also introduced the Liaison Officer Initiative (LOI) pilot program. On a voluntary basis, small and medium-sized businesses may be asked to receive a visit from a Liaison Officer for any or all of the following purposes:

  1. To offer income tax support and guidance on general tax obligations and educate the business on common errors made by its industry/business sector, as well as address any tax-related questions and concerns the business may have.
  2. To review books and records to ensure accuracy and completeness and to address any potential problems prior to tax filing.
  3. To sign a general or tailored Compliance Support Arrangement (CSA).

The above is only a summary. You can find more detailed information about the above at http://www.cra-arc.gc.ca/gncy/cmplnc/thrpntpln/lsnffcrnttv/menu-eng.html.