Taxation Info-Guide

T he following Info-Guide is a document designed to help you navigate through the federal and provincial government programs and services available to individuals regarding taxation to start up a business in Saskatchewan.  Although many of your questions will be answered in this document, this list is, by no means, exhaustive. Further information on any of these programs or services can be obtained by calling the numbers listed under the program descriptions; by visiting the Web sites listed under the program descriptions; by calling the Canada-Saskatchewan Business Service Centre (CSBSC) and speaking with one of our Information Officers; by visiting the CSBSC office in person; or by visiting the Canada-Saskatchewan Business Service Centre Web site.

PLEASE NOTE: 
Although the CSBSC has compiled the following information as provided by our partners, we are not a delivery agency for any of these programs and/or services.

TABLE OF CONTENTS

1. Start-up Business/New Employer Taxation Information
2. Income Tax Information for Registered or Incorporated Businesses
3. Income Tax Information for Not-for-profit Incorporated Businesses
4. Special Tax Treatments
5. Municipal Taxation
6. Other Information Sources

1.  Start-up Business/New Employer Taxation Information

Obtaining a Provincial Sales Tax (PST ) Vendor's License/Registration Number
The Provincial Sales Tax is a tax based on the retail price of most goods. Businesses that sell goods and taxable services are required to become licensed as a retailer, and are responsible for collecting and remitting tax on a regular basis. Businesses that do not sell goods or taxable services are required to become registered as a Registered Consumer. Businesses are required to pay tax on the purchase of equipment, materials and supplies used to operate a business.

There is no charge for obtaining a Vendor's License or a Registered Consumer permit number.

The PST applies to the purchase or rental of new and used tangible personal property. The following services are also subject to PST: telecommunication services, cable television, telephone answering services, accommodation, repair or installation labour, legal services, laundry and dry-cleaning services, security and investigation services, credit reporting and account collection services, real estate commissions, commercial building cleaning services, accounting services, engineering and architectural services, veterinary services, computer services, employment placement services and advertising services.

A series of tax bulletins on specific types of businesses is available at the Tax Bulletins, Forms and Information Web site. 

For further information regarding Vendor's Licenses or Registration Numbers, contact the Saskatchewan Department of Finance, Revenue Division toll-free at 1-800-667-6102 or visit the Provincial Sales Tax Web site. 

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. A sample BN might be 123456789 RP1234.

ELIGIBILITY CRITERIA
Canadian businesses that register for one or more of the following accounts:

• Corporate Income Tax;
• Importer/Exporter account number;
• Payroll (source) deductions (Trust accounts);
• Goods and Services Tax

The first nine digits are the registration number. This registration number will stay the same no matter how many or what types of accounts a business has.

The next six digits identify the account, as follows:

Several forms and publications on the Business Number are available in hard copy by calling 1-800-959-2221 or on line at the The Business Number and Your Canada Revenue Agency Accounts Web site.

Tax Service Offices in Saskatchewan:

Toll Free Numbers listed below:

1-800-959-5525 (Business Enquiries and Registrations)
1-800-461-9999 (Border Information Service - BIS)
1-800-959-2221 (Forms and Publications)

For further information contact your nearest Canada Revenue Agency Business Window office listed above or see the document Business Number - BN.

Goods and Services Tax (GST)
Most persons and organizations engaged in commercial activities in Canada who have annual worldwide, taxable sales of more than $30,000 must register for and collect the Goods and Services Tax/Harmonized Sales Tax (GST/HST).

All taxi operators must register for GST/HST, regardless of their revenues.

The GST/HST applies to most transactions throughout the production and marketing process. Business and organizations required to, or who voluntarily choose to, register for the GST/HST are referred to as registrants.Businesses must register to obtain a Business Number with a GST/HST account. Registrants can claim a credit to recover the GST/HST that is paid or payable on purchases used to provide taxable goods and services. This credit is called an input tax credit and can be claimed for the GST/HST paid or payable for goods or services acquired or imported for use, consumption or supply in their commercial (taxable) activities.

Internet Publications
GST/HST Guides 
GST/HST Forms 
GST/HST News 

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the Canada Revenue Agency Web site or see the document Goods and Services Tax and Harmonized Sales Tax - GST/HST.

GST section and Treaty and Status Indian People
In some instances GST is not charged to Treaty and Status Indian People. For additional information, refer to the CRA Web site for the guide RC4022 General Information for GST/HST Registrants  (Under Table of Contents, see Indians on Page 43), Publications B-039R GST Administrative Policy - Application of GST to Indians, contact CRA at 1-800-959-8296 or see the document GST/HST and Indians

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 contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the Excise duty Web site or see the document Excise Taxes and Excise Duties.

New Employer Visit
Personalized visits to new employers help them to understand withholding procedures and to solve any trust accounts problems they may have.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the Canada Revenue Agency Web site or see the document New Employer Visits .

Social Insurance Number (SIN)
The Social Insurance Number (SIN) is a unique nine digit number used in the administration of various Canadian government programs.

As an employer, you must:

• ask to see the SIN card of all new employees when they are hired, and the employee must show it to you within three days of the start date of employment;
• obtain the correct SIN of your employee to ensure the deductions on your payroll can be made (such as Employment Insurance, Canada Pension Plan/Quebec Pension Plan, income tax, etc.);
• record the SIN as it appears on the employee's SIN card;
• report to your local Human Resources Development Canada office within six days of the start date of employment if you cannot ascertain the SIN of an employee.

For further information visit the Employers and Social Insurance Numbers Web site,contact your local Human Resources Centre of Canada (For a complete list of local Human Resources Centers of Canada in Saskatchewan see the document Service Canada Centres - Supplement for Saskatchewan or check the government listings in the blue pages of your telephone directory.) You may also visit the Web site Contact Us - Saskatchewan  for contact Information or see the document Social Insurance Number - SIN .

Trust Accounts Division
Remittances for the Canada Pension Plan and the Employment Insurance are shared by the employer and employee. The Trust Accounts Division handles enforcement and some collection activities related to payroll deductions and the tax to be withheld on certain payments to non-resident individuals. The Trust Accounts Division also calculates and prepares the Payroll Deduction Tables used by employers.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the Canada Revenue Agency Web site or see the document Trust Accounts Division .

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 (CRA) requires an employer to withhold from an employee's income.

TOD is a Windows based computer program that calculates payroll deductions for all provinces and territories. The program gives you easy access to information you need without the paper burden.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the Canada Customs and Revenue Agency (CCRA) - Tables on Diskette for Windows (WinTOD) Web site or see the document  Tables on Diskette - Payroll Deductions.

Income Tax Returns: T1 General Income Tax and Benefit Return
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 contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the T1 General Returns Web site; or see the document Income Tax Returns - T1 General Income Tax and Benefit Return.

Canada Revenue Agency Forms and Publications -- Internet Ordering Service
The Canada Revenue Agency (CRA) 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 contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the Ordering forms and publications Web site to order forms and publications or see the document Canada Border Services Agency Forms and Publications -- Internet Ordering Service .

Guide for Canadian Small Businesses
This guide fosters the growth of small businesses and helps them comply with tax and customs legislation. 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.

The new guide contains information on:

• setting up a business;
• the goods and services tax/harmonized sales tax;
• excise taxes and duties;
• importing and exporting;
• payroll deductions; and
• income tax.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the Guide for Canadian Small Businesses Web site or see the document  Guide for Canadian Small Businesses.

Services of the Income Tax Rulings Directorate
The Income Tax Rulings Directorate is the centre of income tax expertise within the Canada Revenue Agency (CRA); it is responsible for issuing advance income tax rulings and technical interpretations upon which its clients can rely. The Directorate's staff is well educated, trained and experienced and capable of effectively dealing with any income tax issue that arises.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the Canada Revenue Agency Web site or see the document Services of the Income Tax Rulings Directorate.

Injury and Safety Information Services
The Saskatchewan Workers´ Compensation Board administers a compulsory, employer funded, no fault collective liability system. Workers receive compensation for wages lost, for medical expenses and for rehabilitation services that are required after a workplace injury occurs. The injured party loses the right to sue his/her respective employer for the injuries caused. Incentives to hire injured workers can include subsidies for work assessment, on the job training and workplace modifications.

For further information contact the Saskatchewan Worker's Compensation Board toll-free at 1-800-667-7590 or 306-780-4651 (Regina) or see the document Injury And Safety Informational Services.

2. Income Tax Information for Registered or Incorporated Businesses

GST Returns
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 instalments 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 contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the Canada Revenue Agency Web site or see the document GST/HST Returns .

Statutory Filings Under the Canada Business Corporations Act - CBCA
The Canada Business Corporations Act requires that certain statutory filings be made in order for a corporation to be in good standing and compliance. If the filings are not made in accordance with the act, penalties and fines may be incurred or the corporation may be dissolved.

For further information contact Industry Canada - Corporations Directorate toll-free at 1-866-333-5556 or see the document Statutory Filings Under the Canada Business Corporations Act (CBCA) .

Exemptions From Filing Requirements of the Canada Business Corporations Act
Under the Canada Business Corporations Act, federal corporations are obliged to file certain documents with the Corporations Directorate every year. Companies can, however, apply for exemptions from filing certain documents.

Client information kits on these exemptions are available from any Corporations Canada office or at the Information Kits Web site.

For further information contact Industry Canada - Corporations Directorate toll-free at 1-866-333-5556 or see the document Exemptions From Certain Requirements of the Canada Business Corporations Act - CBCA.

Income Tax Returns: The T2-Corporation Income Tax Return & the T2-Short Return
Under the Income Tax Act, all corporations have to file a T2 or T2 Short return, even if there is no tax payable. This includes non-profit organizations, tax-exempt corporations inactive corporations. The only exception to this rule is a corporation that was a registered charity throughout the year.

Visit the T2 - Corporation Income Tax Return Web site.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications) or see the document Income Tax Returns - the T2 Corporate Income Tax Return and the T2 Short Return.

Collection of Tax Arrears
This policy applies to clients who do not pay taxes they owe when required to do so by law. They may refuse to pay, or may be unable to pay because of financial problems.

Canada Revenue Agency sets policy on collecting taxes owed in arrears under the following core legislations:

• Income Tax Act ;
• Canada Pension Plan Act ;
• Unemployment Insurance Act ;
• Excise Tax Act ;
• Customs Act ;
• Petroleum and Gas Revenue Tax Act ;
• provincial and territorial income tax acts for individuals (except in Quebec);
• provincial and territorial income tax acts for corporations (except in Alberta, Ontario and Quebec).

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the Canada Revenue Agency - Topics for businesses Web site or see the document Collection of Tax Arrears.

Objections and Appeals - Income Tax/Excise Tax
This document applies to anyone who wants to object to an assessment of income tax, GST/HST or excise tax. Certain restrictions apply and time limits are imposed.

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 (CRA) resolves many problems with assessments in this manner.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications) or see the document Objections and Appeals - Income Tax Act/Excise Tax Act.

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.

For further information contact Statistics Canada toll-free at 1-800-263-1136 or see the document Finance and Taxation Information for Enterprises .

Saskatchewan Department of Finance - Corporations Tax Branch
Any corporation doing business in Saskatchewan, must file a separate income tax return with the provincial Department of Finance. Several exemptions from filing exist for corporate filings.

For further information regarding Saskatchewan Department of Finance - Corporations Tax Branch, contact the Saskatchewan Department of Finance's Customer Service Centre toll-free at 1-800-667-6102.

TeleReply
TeleReply is an electronic reply service for payroll deductions. Employers can inform the CRA by phone if they have no payroll deductions remittance to make during a remittance period.

TeleReply is available across Canada to employers who meet all of the following conditions:

• You had no employees who are subject to payroll deductions.
• You want to report a nil remittance.
• The correct name and Business Number are on the printed remittance voucher we sent you.

TeleReply is fast, free, and easy to use. This phone service is available every day except Sundays and statutory holidays.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the TeleReply for payroll deductions for payroll deductions Web site or see the document TeleReply.

3. Income Tax Information for Not-for-profit Incorporated Businesses

Non-profit Organization - NPO - Information Return
The publication entitled T4117 Income Tax Guide to the Non-Profit Organization (NPO) Information Return shows users how to complete the return line by line. The form is available online - T1044 Non-Profit Organization (NPO) Information Return.

For further information contact Canada Revenue Agency toll-free at 1-800-959-5525 (Business Enquiries and Registrations); 1-800-959-2221 (Forms and Publications); visit the Canada Revenue Agency Web site or see the document Non-profit Organization - NPO - Information Return.

4. Special Tax Treatments

Prototype Equipment Sales Tax Exemption Program
The province provides a sales tax exemption to a manufacturer purchasing materials to manufacture prototype equipment used for research and development.

For further information contact the Revenue Division, Saskatchewan Finance toll-free at 1-800-667-6102 or 306-787-6645 (Regina) or see the document Prototype Equipment Sales Tax Exemption Program .

Saskatchewan Investment Tax Credit For Manufacturing and Processing
The Saskatchewan Investment Tax Credit (ITC) for Manufacturing and Processing (M&P) is available to all M&P corporations filing a T2 Corporation Income Tax (CIT) Return with some allocation of taxable income to Saskatchewan. It is a non-refundable income tax credit which is designed to encourage plant and equipment investment for use in M&P activities in Saskatchewan. The ITC applies as a percentage of the total capital cost of eligible building and machinery and equipment purchases.

For further information contact Taxation and Intergovernmental Affairs Branch, Saskatchewan Finance toll-free at 1-800-667-6102 (ext. 6722) or 306-787-6722 (Regina) or see the document Saskatchewan Investment Tax Credit for Manufacturing and Processing.

Saskatchewan Manufacturing and Processing Profits Tax Reduction
The Revenue Division provides information and administers all aspects of the Saskatchewan Manufacturing and Processing Profits Tax Reduction. The province will provide a tax reduction to firms in the manufacturing and processing industry. The Saskatchewan Corporate Income Tax rate will be reduced by as much as 7% based on the allocation of income to the province. The tax reduction is effective July 1, 1995.

For further information contact the Revenue Division, Saskatchewan Finance toll-free at 1-800-667-6102 or 306-787-7773 (Regina) or see the document Saskatchewan Manufacturing and Processing Profits Tax Reduction.

Information for Status Indians
Canada Revenue Agency (CRA) has prepared information on tax benefits as well as general information regarding the application of the exemption under section 87 of the Indian Act and its effect on income tax, the goods and services tax/harmonized sales tax (GST/HST) and excise taxes.  Visit their Web site or for additional information call CRA toll-free 1-800-959-5525 .

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 contact Canada Revenue Agency at 613-952-3881 (Ottawa); visit the Canada Revenue Agency Web site or see the document Scientific Research and Experimental Development (SR&ED;) Program.

5. Municipal Taxation

When seeking information regarding taxation for small businesses, contact your local city hall, town or village office or rural municipal office regarding local taxation requirements.

6. Other Information Sources

Strategis
Strategis is one of the most comprehensive business and consumer information Web sites in Canada. It provides fast, accurate and value-added information aimed at small and medium enterprises (SMEs), as well as consumers. With Strategis, Canadian businesses have access to a vast array of management resources, perspectives and data that can help them further develop and expand markets, create alliances and find new clients. Consumers have access to interactive bank service charge and credit card cost calculators, and other useful information to help them become better informed citizens. Businesses and consumers who are not linked to the Internet can access Strategis through various Canada Business  centres and community access points across the country.

For further information contact Industry Canada toll-free at 1-800-328-6189 or see the document Strategis

Links to other Info-Guides:

Aboriginal Info-Guide

Business Start-up Info-Guide

Employment and Training Info-Guide

Exporting Info-Guide

Importing Info-Guide

E-Business Info-Guide

For further information regarding taxation, contact the

Canada-Saskatchewan Business Service Centre
#2 - 345 3^rd Avenue South
Saskatoon, Saskatchewan
S7K 1M6
Phone: 306-956-2323
Toll-Free: 1-800-667-4374
E-mail: saskatchewan@cbsc.ic.gc.ca
Web site: http://www.cbsc.org/sask

THE INDIVIDUAL/BUSINESS/CORPORATION/PARTNERSHIP (HEREINAFTER REFERRED TO AS THE CLIENT) ACKNOWLEDGES AND UNDERSTANDS THAT THE CANADA-SASKATCHEWAN BUSINESS SERVICE CENTRE DOES NOT WARRANT OR REPRESENT THE ACCURACY, SUITABILITY OR APPLICABILITY OF THIS INFORMATION AND ASSUMES NO RESPONSIBILITY OR LIABILITY FOR THE USE THEREOF BY THE CLIENT AND ANY THIRD PARTIES AND THAT THE INTERPRETATION, USE AND APPLICATION OF SUCH INFORMATION SHALL BE THE CLIENT'S SOLE RESPONSIBILITY.

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.