Taxation

The following guide on Taxation is a document designed to help you navigate through some of the most common Federal and Provincial government taxation programs available in New Brunswick. Although many of your questions will be answered in this document, the list given here is by no means exhaustive.

Before proceeding, reference should be made to the Business Start-up in New Brunswick guide for information on the steps involved in establishing a new business in New Brunswick. You may also want to consult our complete List of New Brunswick Guides.

Note : You will notice that throughout this publication, there are some references made to other relevant documents ("see the document...")  If you are using the Web, simply click on the links provided. If you are reading this publication from a print copy and would like to obtain those additional documents, please call the Canada / New Brunswick Business Service Centre at 1-800-668-1010 and we will provide you with copies.

For further information on individual programs identified herein, contact the respective governing body or the Canada / New Brunswick Business Service Centre. Because this document is only meant as a guide, the Canada / New Brunswick Business Service Centre will not accept responsibility for business decisions made based on the information provided.

TABLE OF CONTENTS

1. Financial Assistance

1.1  Scientific Research and Experimental Development (SR&ED) Program

2. Information Services         

2.1  Finance and Taxation Information for Enterprises
2.2  Forms and Publications -- Internet Ordering Service (CRA)
2.3  Guide for Canadian Small Businesses (CRA)
2.4  Services of the Income Tax Rulings Directorate (CRA)
2.5  Tables on Diskette - TOD -- Payroll Deductions (CRA)
2.6  Small Business Information Seminar (CRA)
2.7  Information on provincial taxes
2.8  Information on New Brunswick Corporate Income Tax

3. Management Services

3.1  Business Windows
3.2  New Employer Visits
3.3  Social Insurance Number (SIN)

4. Regulations

4.1  Business Number (BN)
4.2  Excise Taxes and Excise Duties
4.3  Goods and Services Tax (GST) / Harmonized Sales Tax (HST)
4.4  Income Tax Returns: T1 General
4.5  Income Tax Returns: the T2 Corporation Income Tax Return and the T2 Short Return
4.6  Objections and Appeals
4.7  Trust Accounts Division
4.8  Protection of Personal Information: Your Responsibilities

5. Automated Systems - Taxation

5.1  Corporation Internet Filing

6. Canada / New Brunswick Business Service Centre

1.1  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, please call 1-800-959-5525, see the document Scientific Research and Experimental Development (SR&ED;) Program or visit the Web site at :http://www.cra-arc.gc.ca/taxcredit/sred/brochures-e.html.

2.  Information Services

2.1  Finance and Taxation Information for Enterprises
Statistics Canada maintains financial and taxation information on incorporated enterprises operating in Canada.

For more information, please call 1-800-263-1136, see the document Finance and Taxation Information for Enterprises or visit the Web site at : http://www.statcan.ca/menu-en.htm .

2.2  Forms and Publications -- Internet Ordering Service (CBSA)
The Canada Border Services (CBSA) provides Web access to many of their forms and publications. Each document is available in several formats and can be viewed and printed or downloaded to the client's computer. In addition, all forms and publications can be ordered on line and subsequently mailed to the client.

For further information, please call 1-800-959-2221 , see the document Canada Border Services Agency Forms and Publications -- Internet Ordering Service or visit the Web site at : http://www.asfc-cbsa.gc.ca/formspubs/request-e.html.

2.3  Guide for Canadian Small Businesses (CRA)
The Guide for Canadian Small Businesses provides useful information on a broad range of issues, such as how to set up a business, the GST/HST, excise taxes and duties, importing/exporting, payroll deductions, and income tax.

For further information, please call the Canada Revenue Agency (CRA) at 1-800-959-5525, see the document Guide for Canadian Small Businesses or visit the Web site at: http://www.cra-arc.gc.ca/E/pub/tg/rc4070/README.html.

2.4  Services of the Income Tax Rulings Directorate (CRA)
Canada Revenue Agency (CRA)'s Income Tax  Rulings Directorate interprets the provisions of the Income Tax Act (the Act) and related statutes. Staff also establish Canada Revenue Agency (CRA)'s policy regarding the interpretation of the Act.

For further information, please call 1-800-959-5525 or see the document Services of the Income Tax Rulings Directorate .

2.5  Tables on Diskette - TOD -- Payroll Deductions (CRA)
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 (CRA) requires an employer to withhold from an employee's income.

For further information, please call the Canada Revenue Agency (CRA) at 1-800-959-5525, see the document Tables on Diskette - Payroll Deductions or visit the Web site at:
http://www.cra-arc.gc.ca/tax/business/tod/menu-e.html .

2.6  Small Business Information Seminar (CRA)
The small business information seminar program is designed primarily to benefit the small business entrepreneur. It is intended to help those who are about to start a business, as well as those who have just begun to operate a business.

For further information, see the document Small Business Information Seminar, call the Business Enquiries Line at 1-800-959-5525 or visit the Canada Revenue Agency Web site at: http://www.cra-arc.gc.ca/menu-e.html .

2.7  Information on provincial taxes
The Revenue Administration Agency of the New Brunswick Department of Finance administers assigned revenue and taxation programs associated with real property and consumption taxes. The Agency responds to written and telephone inquiries under all the following Acts and also publishes Guides and Notices:

• Gasoline and Motive Fuel Tax Act;
• Tobacco Tax Act;
• Harmonized Sales Tax, Provincial Vehicle Tax and Designated Tangible Personal Property Tax;
• Real Property Tax Act;
• Pari-Mutuel Tax Act.

For further information, please call 506-453-2404 or visit the Web site at the following address: http://www.gnb.ca/0024/tax/index.asp.

2.8  Information on New Brunswick Corporate Income Tax
The Revenue Administration Agency of the New Brunswick provincial Department of Finance provides information on provincial corporate income tax related issues to all businesses, organizations and individuals wishing information on provincial corporate income tax related rules and regulations.

For further information, please call 506-453-2404 or visit the Department of Finance Web site at :http://www.gnb.ca/0024/tax/index.asp.

3.  Management Services

3.1  Business Windows
Businesses can get one-stop service at Business Windows in most Canada Revenue Agency (CRA) 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/HST). Business Window staff can also put business clients in touch with the right contact for other Canada Revenue Agency business programs.

For further information, see the documents Business Window, Business Number - BN , Business Window - Supplement  or call Canada Revenue Agency at 1-800-959-5525.

3.2  New Employer Visits
Personalized visits to new employers help them to understand withholding procedures and to solve any source deduction problems they may have.

For further information, please call the Canada Revenue Agency (CRA) at1-800-959-5525 or see the document  New Employer Visits .

3.3  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 Canadian government programs, namely, Employment Insurance (EI) and the Canada Pension Plan (CPP).

For further information, please contact your local Human Resource Centre of Canada listed in the blue pages of your telephone directory, under Government of Canada, or see the document Social Insurance Number - SIN or visit the Web site : http://www.sdc.gc.ca/en/gateways/topics/sxn-gxr.shtml.

4.  Regulations

4.1  Business Number (BN)
The Business Number (BN) is a reference numbering system that replaces the multiple numbers businesses required to deal with government. The BN is designed to help businesses reduce costs and increase competitiveness; it also increases government efficiency and helps it deliver one-stop service at Business Windows.

For further information, please call the Canada Revenue Agency (CRA) at 1-800-959-5525, see the document Business Number - BN or visit the Web site at: http://www.cra-arc.gc.ca/tax/business/topics/bn/menu-e.html.

4.2  Excise Taxes and Excise Duties
When goods are manufactured in Canada, excise tax is payable at the time the goods are delivered to the purchaser. When 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, please call the Canada Revenue Agency (CRA) at 1-800-959-8287, see the document Excise Taxes and Excise Duties or visit the Web site at http://www.cra-arc.gc.ca/tax/technical/exciseduty-e.html.

4.3  Goods and Services Tax (GST) / Harmonized Sales Tax (HST)
The Goods and Services Tax (GST) / Harmonized Sales Tax (HST) are multi-stage taxes that apply to most transactions throughout the production and marketing process. Businesses must register to obtain a Business Number with a GST/HST account.

For further information, please call 1-800-959-5525, see the document Goods and Services Tax and Harmonized Sales Tax - GST/HST or visit the Web site at http://www.cra-arc.gc.ca/tax/business/topics/gst/menu-e.html.

4.4  Income Tax Returns: T1 General
All individuals use a 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 may also require a supplementary guides, to determine their personal income tax obligations.

For further information, please call 1-800-959-5525, see the document Income Tax Returns - T1 General Income Tax and Benefit Return  or visit the Web site at: http://www.cra-arc.gc.ca/menu/LBA-e.html.

4.5  Income Tax Returns: the T2 Corporation Income Tax Return and the T2 Short Return
The T2 Corporation Income Tax Return is an eight-page return that serves as a federal and provincial/ territorial corporation income tax return. Exceptions: corporations located in Quebec, Ontario or Alberta. If the corporation is located in one of these provinces, it has to file a separate provincial corporate return.

The T2 Short is a two-page return designed for small, non-taxable corporations with a gross annual income of $500 000 or less.

For further information, please call 1-800-959-5525, see the document Income Tax Returns - the T2 Corporate Income Tax Return and the T2 Short Return or visit the Web site at: http://www.cra-arc.gc.ca/tax/business/topics/corporations/menu-e.html.

4.6  Objections and Appeals
The Income Tax Act provides for a formal objection process for taxpayers who disagree with an income tax assessment. The Excise Tax Act provides a similar process for persons who disagree with a GST/HST or excise tax assessment.

If you do not understand or agree with an assessment or reassessment notice, you should first call or visit the Client Services Section of your tax services office or write to the tax centre that processed your return. The Canada Revenue Agency resolves many problems with assessments in this way.

For further information, please call 1-800-959-5525 or see the document Objections and Appeals - Income Tax Act/Excise Tax Act.

4.7  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 theExcise Tax Act. It also ensures they meet the requirements for provincial tax withheld at source, for all provinces except Québec.

For further information, please call 1-800-959-5525, see the document Trust Accounts Division or visit the Web site:  http://www.cra-arc.gc.ca/tax/business/topics/payroll/menu-e.html.

4.8  Protection of Personal Information: Your Responsibilities
The Guide to Canada's Personal Information Protection and Electronic Documents Act (PIPEDA) helps businesses understand their obligations and comply to the Act. Since January 1, 2004, the PIPED Act covers the collection, use or disclosure of personal information in the course of all commercial activities in Canada, except in provinces which have enacted legislation that is deemed to be substantially similar to the federal law.

For more information, see the document Protection of Personal Information - Your Responsibilities, call toll-free 1-800-282-1376 or visit the Web site: http://www.privcom.gc.ca/information/guide_e.asp.

5.  Automated Systems - Taxation

5.1  Corporation Internet Filing
The Corporation Internet Filing initiative provides the client with an easy-to-use, convenient, secure, and confidential option for filing your corporation income tax return. As a result, the CRA will benefit from reduced processing costs. Corporation Internet Filing streamlines the tax-filing process, provides the filer with an immediate confirmation of receipt and results in faster refunds.

For further information, call 1-800-959-5525, see the document Corporation Internet Filing, or visit the Web site at: http://www.cra-arc.gc.ca/eservices/tax/business/corpnet/about-e.html.

6.  Canada / New Brunswick Business Service Centre

The Canada / New Brunswick Business Service Centre is an innovative partnership of federal and provincial government departments. Both levels of government work with key private-sector organizations to create a seamless information network for entrepreneurs.

Our mission is to improve the start-up, survival and growth rates of small and medium sized enterprises by giving business people in every part of New Brunswick access to accurate, timely and relevant information and referrals.

What can we do for you? We can guide you in the right direction! We can give you the information you need! We are your best source of comprehensive business information!

The Canada / New Brunswick Business Service Centre is accessible province-wide and free of charge. You may reach us through our toll-free number or visit us with your questions. Our office is open from 8:30 a.m. to 5:00 p.m., Monday to Friday. We also provide a 24-hour business information service, seven days a week, through our Web site.

Here's how to reach us:

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Links Policy
Some of the hypertext links lead to non-federal government sites which are not subject to the Official Languages Act and the material is available in one language only.