Corporate Tax Administration for Ontario - Questions and Answers

1. What are the benefits of single administration of corporate income tax for businesses that file in Ontario?
2. Which provincial functions will be assumed by the CRA under the single administration of Ontario's corporate tax?
3. Who should I contact now for matters related to the Ontario Corporate Tax Return (CT23)?
4. Will Ontario corporate taxes change as a result of single administration?
5. How and when will I be informed of forthcoming developments in the Corporate Tax Administration for Ontario initiative?

Q.1 What are the benefits of single administration of corporate income tax for businesses that file in Ontario?

A.1 Single administration of Ontario's corporate income tax will lead to a more streamlined tax system for businesses that file in Ontario. Ontario businesses will benefit from one form, one set of rules, one audit, one objections and appeals process, and one point of contact. This will reduce the compliance burden on the province's businesses by an estimated $100 million a year.

Q.2 Which provincial functions will be assumed by the CRA under the single administration of Ontario's corporate tax?

A.2 The CRA will provide the same services to businesses that it currently provides to other provinces under the Tax Collection Agreements. These services include payments processing, returns processing, audit, objections and appeals, rulings, and the collection of accounts receivable.

Q.3 Who should I contact now for matters related to the Ontario Corporate Tax Return (CT23)?

A.3 The Ontario Ministry of Revenue continues to be your first point of contact for all matters regarding your Ontario Corporate Tax Return (CT23). The CRA and OMoR will provide you with information about the move of CT23 rulings, audits, objections and appeals to the CRA closer to the transition date of April 3, 2008. You will receive information about making single instalment payments in the fall of 2007.

Q.4 Will Ontario corporate taxes change as a result of single administration?

A.4 The Strengthening Business through a Simpler Tax System Act, 2007 (Bill 174) received Royal Assent on June 4, 2007. The new Act amends Ontario corporate tax legislation to harmonize with the federal corporate income tax base and collection system and makes it possible for the CRA to administer the province's corporate taxes. You can find more information about the Strengthening Business through a Simpler Tax System Act, 2007 on the Ontario Ministry of Revenue Web site.

Q.5 How and when will I be informed of forthcoming developments in the Corporate Tax Administration for Ontario initiative?

A.5 The CRA is committed to keeping stakeholders informed on a timely basis as single administration starts to take effect.

Regular updates will be posted on the CRA Web site at www.cra.gc.ca/ctao.