How This Guide Can Help You

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• Internet access
• About the CRA

Are you starting a new small business in Canada? Are you operating one already? Then this guide is for you. It will introduce you to the Canada Revenue Agency (CRA) programs you need to know about, and give an overview of your obligations and entitlements under the laws that we administer.

Many activities of a small business are subject to different forms of taxation. This guide will help you with each of these, and will explain how to plan for taxes, keep records, and make and report payments.

It will also explain the different kinds of business structures, income tax reporting and payment, payroll deductions, electronic services, GST/HST, and how to prepare for and handle an audit, etc.

Taxes can sometimes be difficult and complex. In such cases, we will refer you to more detailed publications--all free of charge.

If you aren't familiar with some of the terms used in this guide, refer to the Glossary of Terms.

Internet access

You can find more information and most of our forms and publications, on our Web site.

A list of frequently used CRA Web pages is included in this guide for additional information.

You can also get copies of the guides and forms mentioned in this publication by calling us at 1-800-959-2221. If, after reading this guide, you need more information about businesses or professional activities, call our Business Enquiries line at 1-800-959-5525.

For more general information on starting a business, see the Government of Canada Web site Business Start-up Assistant where you will find information from the federal and provincial governments, as well as many other sources.

About the CRA

The CRA is the federal government agency responsible for administering tax laws for the Government of Canada and for most provinces and territories, administration of tariffs, various social and economical benefit and incentive programs delivered through the tax system.

We collect federal and provincial individual income taxes (except in Quebec).

We also collect the Goods and Services Tax/Harmonized Sales Tax (GST/HST) (except in Quebec), Canada Pension Plan contributions, Employment Insurance premiums, excise duties, and excise taxes on gasoline and tobacco products.

We also administer federal and provincial corporate income taxes for all provinces except Alberta, Ontario, and Quebec.

The CRA also administers Canada's international tax agreements with other countries. We therefore have a key role in helping Canadian business and industry compete in world markets by ensuring they have a fair environment in which to trade.

We are committed to helping small businesses in Canada. We recognize that, as entrepreneurs, you are very busy making your business profitable. You may not always have the time, expertise, or inclination to do it all yourself. In some circumstances, you probably consult with professionals, such as lawyers, accountants, or customs brokers to help you with your business. While these individuals are professionals and will help you, you are the one who is ultimately responsible for the actions of your business. You need to keep informed so that you can work in partnership with the professionals you hire and with the CRA.

It should be noted that the information about Importing and Exporting that was previously in this publication was removed. However, if your business is Importing or Exporting and you require more information on these subjects, it can be found in the Small and Medium-sized Enterprise Centre of the Canada Border Services Agency Web site.

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