The following Taxation Info-Guide is a document designed to help you navigate through the different government programs, services and regulations and identify those of interest. Although most of the questions will be answered in an Info-Guide, the list is, by no means, exhaustive. For further information on any of the programs or services in this document can be obtained by calling the numbers listed with each program or by calling the Canada/NWT Business Service Centre. This document is only meant as a guide and should not be considered all-inclusive; therefore, the Canada/NWT Business Service Centre will not accept responsibility for business decisions made with the information provided.
FINANCIAL ASSISTANCE
1. Canada Revenue Agency
Scientific Research and Experimental Development (SR&ED) Program
The federal government provides income tax incentives to Canadian taxpayers that conduct scientific research and experimental development (SR&ED) in Canada. The program encourages industry, including small business and start-up firms, to develop technologically advanced products and processes in Canada . Claimants can apply for SR&ED investment tax credits for expenditures such as wages, materials, machinery, equipment, some overhead, and SR&ED contracts.
For further information visit the Web site at http://www.cra-arc.gc.ca/taxcredit/sred/menu-e.html or contact:
Tel: (613) 952-3881
Fax: (613) 957-3622
GST Rebates for Public Service Bodies
Many goods and services provided by public service bodies are exempt from GST. These bodies can get back some of the GST they paid on items they used either to make the goods or to provide the services.
Public service bodies may all receive the GST rebate if they meet certain conditions. These may include: charities, non-profit organizations, municipalities, school authorities, hospital authorities, public colleges and universities.
For further information contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
2. Government of the Northwest Territories -- Department of Finance
The Risk Capital Investment Tax Credits Act
The Risk Capital Investment Tax Credits Act is designed to promote healthy economic growth of territorial businesses, and to create and sustain employment in the Northwest Territories . The program allows taxpayers to qualify for tax credits by investing, either directly or indirectly in corporations that carry on business in the Territories, and that qualify as an "Eligible Business".
There are separate guides for businesses and investors.
For further information visit the Web site at http://www.fin.gov.nt.ca/riskcapital/ or contact:
Carron Business Services Ltd.
Apt. 401 - 4503 - 52nd Ave
Yellowknife, NT X1A 3Y4
Tel: (867) 873-9804
Fax: (867) 920-4817
E-mail: carron@theedge.ca
INFORMATION SERVICES
1. Government of the Northwest Territories -- Department of Finance
Northwest Territories Tax Rates
Northwest Territorial Tax Rates for 2005-2006
|
|
Northwest Territories
|
Canadian Average PT0
|
|
Personal Income Tax (% of federal tax) PT1
|
43.05
|
45.75 PT2
|
|
Retail Sales Tax (%)
|
None
|
6.9
|
|
Gasoline Unleaded (cents/litre) PT3
|
10.7
|
14.2
|
|
Diesel Fuel (cents/litre)
|
9.1
|
14.4
|
|
Cigarettes ($/carton) PT4
|
42.00
|
26.52
|
|
Payroll Tax (%) PT5
|
2.00
|
1.87
|
|
Small Corporate Tax (%)
|
4.0
|
5.7
|
|
Large Corporate Tax (%)
|
14
|
12.7
|
|
|
|
|
(a) Personal income tax rates in effect for the 2005 tax year.
(b) Average of all provincial and territorial rates, weighted by population.
(c) 45.75% is the weighted average of the combined federal-provincial/territorial top marginal tax rate.
(d) Quebec , New Brunswick , Nova Scotia and Newfoundland apply sales tax to fuel.(e) Saskatchewan , Manitoba , New Brunswick , Nova Scotia and Newfoundland apply sales tax to tobacco products.
(f) The NWT Payroll Tax is levied on employees. For all the other provinces that levy payroll tax, there are exemptions for small business and/or the rates vary depending on the size of the payroll.
(g) The 4.0% NWT small corporate rate applies to the first $300,000 of active business income earned by Canadian controlled private corporations. The 14% NWT large corporate rate applies to all foreign controlled companies, any company listed on a stock exchange and any income over $300,000 earned by Canadian controlled private corporations.
(h) The 2006-07 NWT Budget Address announced a decrease in the large corporate rate to 11.5% effective July 1, 2006.
Note: a complete listing of provincial and territorial tax rates are located in the Appendix of each Budget Address, or for the most current rates at: http://www.fin.gov.nt.ca/
2. Statistics Canada
Finance and Taxation Information for Enterprises
Statistics Canada maintains financial and taxation information on incorporated enterprises operating in Canada .
Topics included in these records are:
- enterprise financial and taxation statistics: assets, liabilities, shareholder's equity, revenues, expenses, profits, and retained earnings, statement of change in financial position, reconciliation of profits to taxable income, taxable income and income taxes payable.
Costs will be applicable in obtaining these statistics.
For further information visit the Web site at http://www.statcan.ca or contact:
Statistical Reference Centre
Statistics Canada
HR. H. Coates Bldg
Holland Ave , Ottawa , ON
K1A 0T6
Toll-free: 1-800-263-1136
Tel: (613) 951-8116
Fax: (613) 951-0581
1-877-287-4369
E-mail: infostats@statcan.ca
Or regionally at:
Statistics Canada Prairie Regional Office
Pacific Plaza , Suite 900
10909 Jasper Avenue, N.W.
Edmonton , AB
T5J 4J3
For NWT specific information, visit the Web site at http://www.stats.gov.nt.ca/ or contact:
NWT Bureau of Statistics
2nd Floor YK Centre
Franklin Avenue and 48th Street
P.O. Box 1320
Yellowknife , Northwest Territories
X1A 2L9
Tel: (867) 873-7147
Fax: (867) 873-0275
E-mail: info@stats.gov.nt.ca
3. Canada Revenue Agency
Canada Revenue Agency Forms and Publications -- Internet Ordering Service
If you would like to order a paper copy of one of the Canada Revenue Agency's forms or publications, please complete their on-line Order form or call their toll free number.
For further information visit the Web site at http://www.cra-arc.gc.ca/formspubs/menu-e.html or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Guide for Canadian Small Businesses - Publication
The guide is targeted primarily at new and prospective small businesses. It provides a comprehensive overview of tax and customs related information that established small businesses may also find useful.
For further information visit the Web site at http://www.cra-arc.gc.ca/E/pub/tg/rc4070/README.html or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Revenue Agency
5101-50th Ave.
1st Floor, Greenstone Bldg.
Yellowknife , Northwest Territories X1A 2P3
Tables on Diskette (TOD ) -- Payroll Deductions
Tables on Diskette (TOD ) is an electronic version of the payroll deduction tables. TOD calculates the amount of income tax, Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums that the Canada Revenue Agency (CCRA) requires an employer to withhold from an employee's income.
For further information visit the Web site at http://www.cra-arc.gc.ca/tax/business/tod/2000/wtod0700-e.html or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Revenue Agency
5101-50th Ave.
1st Floor, Greenstone Bldg.
Yellowknife , Northwest Territories
X1A 2P3
MANAGEMENT SERVICES
1. Canada Revenue Agency
Business Window
Businesses can get one-stop service at Business Windows in most Revenue Canada offices. Service is offered at the counter, or by telephone or fax for the four Business Number (BN) accounts (i.e. corporate income tax, import/export, payroll deductions and GST). Business Window staff can also put business clients in touch with the right contact for other Canada Revenue Agency business programs.
For further information visit the Web site at http://www.cra-arc.gc.ca or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Revenue Agency
5101-50th Ave.
1st Floor, Greenstone Bldg.
Yellowknife , Northwest Territories
X1A 2P3
New Employer Visits
The Canada Revenue Agency visits new employers to help them with trust accounts and withholding procedures. These visits help clients understand their legal obligations and responsibilities as employers. These visits are not audits, but are a way to educate employers.
For further information visit the Web site at: http://www.cra-arc.gc.ca/ or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Revenue Agency
5101-50th Ave.
1st Floor, Greenstone Bldg.
Yellowknife , Northwest Territories
X1A 2P3
Trust Accounts Division
The Trust Accounts Division works to ensure that employers and workers meet the withholding, remitting and reporting requirements of the Income Tax Act, the Canada Pension Plan, the Employment Insurance Act and the Excise Tax Act.
For further information visit the Web site at http://www.cra-arc.gc.ca/ or contact:
Canada Revenue Agency
333 Laurier Avenue West
Ottawa , Ontario
K1A 0L9
Toll Free: 1-800-959-8281
Fax: (613) 238-7125
Services of the Income Tax Rulings Directorate
The Canada Revenue Agency's Income Tax Rulings Directorate interprets the provisions of the Income Tax Act (the Act) and related statutes. Staff also establish the Canada Revenue Agency's (CCRA) policy regarding the interpretation of the Act.
For further information contact:
Canada Revenue Agency
333 Laurier Avenue West
Ottawa , Ontario
K1A 0L9
Toll Free: 1-800-959-5525
Fax: (613) 238-7125
TELEFILE
TELEFILE is an electronic way to file your income tax return. If you qualify, all you need is a push-button telephone with touch-tone service to file your return.
For more information about TELEFILE visit our Web site at http://www.cra-arc.gc.ca/eservices/ or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Electronic Filing
Electronic Filing (EFILE) is an automated system that allows approved electronic filers to deliver individual income tax return information to the Canada Revenue Agency (CCRA) electronically.
For more information about Electronic Filing visit our Web site at http://www.cra-arc.gc.ca/eservices/ or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
2. Human Resources Development Canada
Social Insurance Number (SIN)
A Social Insurance Number (SIN) is a unique nine digit number assigned to an individual and used in the administration of various government programs, namely, Employment Insurance, the Canada Pension Plan and Canada Customs and Revenue Agency.
For further information visit the Web site at http://www.hrsdc.gc.ca/en/home.shtml or contact:
Canada/NWT Service Centre
Education, Culture & Employment
Main Floor, Joe Tobie Building
5020 - 48th Street
Box 1320
Yellowknife , Northwest Territories
X1A 2L9
Tel: (867) 766-5100
Fax: (867) 873-0423
3. Industry Canada
Combined Form 22 - Annual Return and Corporation Income Tax Return Filing Option
Industry Canada and the Canada Revenue Agency have introduced an initiative that will reduce the reporting burden for federally incorporated corporations. As of January 1, 1999 , corporations are able to file their 1999 and subsequent Canada Business Corporations Act Annual Return with the Canada Revenue Agency's corporation income tax return.
The new schedules will be incorporated in tax preparation software. Copies of the schedules will be available at the Canada Revenue Agency's Web site at http://www.cra-arc.gc.ca/t2return/, at tax service offices, and at points of service of Industry Canada Corporations Directorate. A list of these locations is available on the Corporations Directorate Web site at http://strategis.ic.gc.ca/epic/internet/incd-dgc.nsf/en/Home or through the automated fax information service at (613) 941-0220 .
For more information contact:
Information and Publications Unit
Corporations Directorate
Industry Canada
9th Floor
Jean Edmonds Tower South
365 Laurier Avenue West
Ottawa , Ontario
K1A 0C8
Tel: (613) 941-9042
Fax: (613) 941-0601
Fax-on-demand: (613) 941-0220
E-mail: hotline.service@ic.gc.ca
REGULATIONS
1. Department of Finance
Northwest Territories Payroll Tax
It is a tax on employment income that must be collected by employers. Any business commencing operations in the Northwest Territories must register within 21 days of paying remuneration to an employee. Registration packages and additional information can be obtained by contacting the Department of Finance.
For further information contact:
Taxation Division
Department of Finance
Box 1320
Yellowknife , Northwest Territories
X1A 2L9
Toll-free: 1-800-661-0820
Tel: (867) 920-3470
Fax: (867) 873-0325
General Excise and Sales Tax
The Excise Tax Act governs excise taxes payable on gasoline, wine, jewelry, tobacco products, air conditioners and certain automobiles.
The General Excise and Sales Tax Regulations outline the rules applicable to licensing of manufacturers, producers and wholesalers for the purpose of excise tax; the licensing exemption for small manufacturers, the security required by licensed wholesalers; returns and payments; documentation requirements for exported goods and conditions for rebate or deduction. Additional details on excise tax can be obtained at the following Web address: http://www.cra-arc.gc.ca/tax/technical/etsl-e.html
For further information contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Revenue Agency
5101-50th Ave ,
1st Floor, Greenstone Bldg.|
Yellowknife , Northwest Territories
X1A 2P3
Excise Taxes and Excise Duties
When certain goods are manufactured in Canada , excise tax is payable at the time the goods are delivered to the purchaser. When certain goods are imported, excise tax is payable by the importer, at the time the goods are imported.
Excise duties are charged on spirits, beer, and tobacco products manufactured in Canada . The Excise Act sets out the rates of duty for these goods.
For further information visit the Web site at http://www.cra-arc.gc.ca/ or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Revenue Agency
5101-50th Ave.
1st Floor, Greenstone Bldg.
Yellowknife , Northwest Territories
X1A 2P3
Goods and Services Tax and Harmonized Sales Tax - GST/HST
Most persons and organizations engaged in commercial activities in Canada who have worldwide taxable sales of more than $30,000 in any previous four consecutive calendar quarters or in any one calendar quarter, must register for and collect GST/HST. All taxi operators must register for GST/HST, regardless of their revenues.
For further information visit the Web site at: http://www.cra-arc.gc.ca/ or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Customs & Revenue Agency
5101-50th Ave. ,
1st Floor, Greenstone Bldg.
Yellowknife , Northwest Territories
X1A 2P3
GST/HST Returns
Most persons and businesses engaged in commercial activities in Canada must file GST tax returns for a prescribed reporting period.
Most businesses registered for the GST must file a return on a quarterly basis. However, if your business has annual revenues of $500,000 or less, you can file your GST returns annually. In this case, if your net tax paid in the previous year was greater than $1,500, you pay four tax installments based on the net tax you paid in the previous year, and an estimate of the current year's net tax. At the end of the year, you file one return that reports your transactions.
For further information visit the Web site at http://www.cra-arc.gc.ca/ or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Revenue Agency
5101-50th Ave. ,
1st Floor, Greenstone Bldg.
Yellowknife , Northwest Territories
X1A 2P3
Income Tax Returns - T1 General
All individuals use the T1 General return to report income and determine their income tax obligations under the laws of Canada and of all provinces and territories, except Quebec . (Quebec residents must use a separate provincial return for their provincial income taxes.)
Non-incorporated self-employed individuals can also use the T1, along with supplementary guides, to determine their personal income tax obligations.
Resident individuals and corporations: Deliver the T1 or T2 return to your local tax services office, or mail it to: Tax Centre, Winnipeg , MB R3C 3M2 .
For further information visit the Web site at http://www.cra-arc.gc.ca/tax/individuals/segments/self/menu-e.html or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Revenue Agency
5101-50th Ave. ,
1st Floor, Greenstone Bldg.
Yellowknife , Northwest Territories
X1A 2P3
Income Tax Returns: the T2 Corporation Income Tax Return and the T2 Short Return
Under the Income Tax Act, all corporations have to file a T2 orT2 Short return, even if there is no tax payable. This includes non-profit organizations, tax-exempt corporations, and inactive corporations. The only exception to this rule is a corporation that was a registered charity throughout the year.
The T2 Short is a two-page return designed for small, non-taxable corporations with a gross annual income of $500,000 or less.
Resident individuals and corporations: Deliver the T1 or T2 return to your local tax services office, or mail it to: Tax Centre, Winnipeg MB R3C 3M2 .
For further information visit the Web site at http://www.cra-arc.gc.ca/ or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Revenue Agency
5101-50th Ave. ,
1st Floor, Greenstone Bldg.
Yellowknife , Northwest Territories
X1A 2P3
Non-profit Organization - NPO - Information Return
These returns are available to organizations claiming non-profit status under paragraph 149(1)(l) of the Income Tax Act, as well as to agricultural organizations, boards of trade or chambers of commerce as described in paragraph 149(1)(e) of the act.
The publication, Income Tax Guide to the Non-Profit Organization Information Return shows users how to complete the return line by line.
This guide is available on the Internet at http://www.cra-arc.gc.ca/tax/nonprofit/menu-e.html
For further information contact:
Canada Revenue Agency
333 Laurier Avenue West
Ottawa , Ontario
K1A 0L9
Toll Free: 1-800-959-8281
Fax: (613) 238-7125
Information on Charities
Through the Charities Tax Incentive Program, which gives Canadians tax relief when they give to charity, the Canada Revenue Agency supports the charitable community in Canada .
The Charities Division reviews applications for charitable registration, provides technical advice to registered charities and audits charities for compliance with the law.
For further information contact:
Client Assistance Section, Charities Division
Canada Revenue Agency
400 Cumberland St.
Ottawa , Ontario
K1A 0L8
Telephone: 1-800-267-2384
Fax: (613) 952-6020
Income Tax - Payroll Deductions
Under the Income Tax Act, an employer is required to withhold any amounts relating to income tax from employees' pay cheque. As an employer, you are holding these deductions in trust for your employees. Therefore, you are expected to keep these funds separate from the operating funds of your business.
If you do not withhold these amounts, or do not remit them to the Canada Revenue Agency when required, you will be subject to certain penalties.
If you are self-employed, you do not have tax deducted from your income.
For further information visit the Web site at http://www.cra-arc.gc.ca/tax/business/topics/payroll/menu-e.html or contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Revenue Agency
5101-50th Ave. ,
1st Floor, Greenstone Bldg.
Yellowknife , Northwest Territories
X1A 2P3
Objections and Appeals -- Income Tax/Excise Tax
The Income Tax Act and the Excise Tax Act allow taxpayers to formally dispute a tax assessment. Canada Revenue Agency appeals officers then impartially review the assessment.
If you do not understand your income tax assessment, or if you disagree with an assessment or reassessment notice, you should first contact your tax services office or tax centre. You can do this by telephone, in writing, or in person. Staff at these offices can usually answer your questions, making the objection process unnecessary.
For further information contact:
Canada Revenue Agency
Toll-free: 1-800-959-5525 (Business Enquiries and Registrations)
1-800-959-2221 (Forms and Publications)
Canada Revenue Agency
5101-50th Ave.
1st Floor, Greenstone Bldg.
Yellowknife , Northwest Territories
X1A 2P3
