Taxation Info-Guide

What is an Info-Guide?

The Canada/Manitoba Business Service Centre created Info-Guides to help you navigate through the wide range of programs and services in a specific area as well as related regulations that may affect your business venture. Info-Guides featuring other topics of interest are also available by contacting the Canada/Manitoba Business Service Centre at 204-984-2272 (in Winnipeg) or 1-800-665-2019 (toll free in Canada) or by e-mail at manitoba@canadabusiness.ca.

TABLE OF CONTENTS

• Financial Assistance 
• Information Services 
• Tax Services 
• Tax Information for Businesses 
• Tax Information for Employers 
• Tax Information for Non-Profit Organizations 

Financial Assistance

Canadian Film or Video Production Tax Credit
Canadian Audio-Visual Certification Office (CAVCO)
Canadian Heritage
Phone: 1-888-433-2200
E-mail: cavco_bcpac@pch.gc.ca
Internet: http://www.pch.gc.ca/progs/ac-ca/progs/bcpac-cavco/progs/cipc-cptc/cipc-cptc_e.cfm

The objective of this Tax Credit is to encourage Canadian programming and to develop an active domestic production sector. This fully refundable credit is available at the rate of 25% of the qualified labour expenditure of an eligible production.

Film or Video Production Services Tax Credit (PSTC)
Canadian Audio-Visual Certification Office (CAVCO)
Canadian Heritage
Phone: 1-888-433-2200
E-mail: cavco_bcpac@pch.gc.ca
Internet: http://www.pch.gc.ca/progs/ac-ca/progs/bcpac-cavco/progs/cisp-pstc/cisp-pstc_e.cfm

The Production Service Tax Credit (PSTC) is designed to enhance Canada as a location of choice for film and video productions employing talented Canadians, as well as strengthening the industry and securing investment. The PSTC is available at a rate of 16% of qualified Canadian labour expenditures.

Scientific Research and Experimental Development (SR&ED;) Program
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Forms & Publications: 1-800-959-2221
Internet:  http://www.cra-arc.gc.ca/taxcredit/sred/menu-e.html

Offers income tax incentives to Canadians who conduct scientific research and experimental development (SR&ED) in Canada.  Investment tax credits are available for expenditures such as wages, materials, machinery, equipment, some overhead, and SR&ED contracts. Canadian corporations, proprietorships, partnerships and trusts can receive an investment tax credit between 20% to 35% for qualifying SR&ED expenditures.

Information Services

Employee or Self-Employed?
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french) 
Forms & Publications: 1-800-959-2221
Internet: http://www.cra-arc.gc.ca/E/pub/tg/rc4110/

This guide will help to determine if a worker is an employee or a self-employed individual, and thus if there is an employer-employee relationship or a business relationship. You can order this publication from their website or by phone as noted above.

Corporation Internet Filing
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Internet:  http://www.cra.gc.ca/eservices/tax/business/corpnet/about-e.html

The Corporation Internet Filing initiative provides clients with an easy-to-use, convenient, secure and confidential option for filing corporation income tax return. Some restrictions apply, please contact CRA for details. Clients will be required to use CRA-certified software. There may be a cost to purchase a tax preparation software package, but the Corporation Internet Filing service is free.

Finance and Taxation Information for Enterprises
Statistics Canada - SC
Phone: 204-983-4020 (press "0" to bypass messaging) or Toll free 1-800-263-1136
Fax: 1-800-287-4369
TTY: 1-800-363-7629
E-mail: infostats@statcan.ca
Internet: http://www.statcan.ca/start.html

For a fee, provides financial and taxation statistics on incorporated companies operating in Canada.  Topics included in these records are enterprise financial and taxation statistics on:  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.

Guide for Canadian Small Businesses
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Forms & Publications: 1-800-959-2221
Internet:  http://www.cra-arc.gc.ca/E/pub/tg/rc4070/README.html

The guide is targeted primarily at new and prospective businesses. Some of the information contained in the guide is: setting up a business; the goods and services tax/harmonized sales tax; excise taxes and duties; importing and exporting; payroll deductions; income tax; audits; objections and appeals; and how to get information from the Canada Revenue Agency.

Employer Visits Program
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)

Canada Revenue Agency offers personalized visits to new employers to help them by providing information and assistance with recording, withholding or reporting requirements for employee earnings, income tax, Canada Pension Plan, or Employment Insurance contributions.

Regulating Tax Rebate Discounting Businesses
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Internet: http://www.cra-arc.gc.ca/E/pub/tg/t4163/t4163-e.html

The Tax Rebate Discounting Act regulates tax discounting businesses. The Act is designed to protect consumers who choose to use a discounting service to get cash now rather than wait for a future income tax refund.  

Small Business Information Seminar
Canada  Revenue Agency - CRA
Seminar Location: 805 - 401 York Avenue, Winnipeg, MB
Phone: 204-983-3994
Internet:  http://www.cra-arc.gc.ca/events/menu-e.html

This program benefits the small business entrepreneur and is intended to help those who are about to start a business, as well as those who have just begun to operate a business. Topics covered: Module I - Government Services, Module II - Goods and Services Tax/Harmonized Sales Tax, Module III - Income Tax. For a list of upcoming seminars, please consult the website.

Tax Services

Business Number - BN
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Internet: http://www.cra-arc.gc.ca/tax/business/topics/bn/works-e.html

The Business Number (BN) is a reference numbering system that replaces the multiple numbers businesses need to deal with government. Canadian businesses that register for one or more of the following accounts will receive a Business Number (BN) - Corporate Income Tax, Importer/Exporter account number; Payroll (source) deductions (Trust Accounts); Goods and Services Tax/Harmonized Sales Tax (GST/HST).

E-services for businesses
Canada Revenue Agency
Phone: 1-800-959-5525
Internet: http://www.cra-arc.gc.ca/eservices/tax/business/menu-e.htm

Businesses can file a return, register a business, get information, send online requests, access payroll services, make an electronic payment, download or order forms and publications, and more through Canada Revenue Agency's (CRA) electronic services.

My Business Account
Canada Revenue Agency
Phone: 1-800-959-5525
Internet: http://www.cra-arc.gc.ca/eservices/tax/business/myaccount/menu-e.html

My Business Account is a way for business owners (including directors and officers of corporations) to access GST/HST, payroll, corporation income taxes, excise taxes, excise duties and other levies accounts online.

Objections and Appeals - Income Tax Act/Excise Tax Act
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Internet: http://www.cra-arc.gc.ca/E/pub/gm/31-0/

Allows taxpayers to formally dispute an assessment for income tax, excise tax or GST/HST.  Certain restrictions apply, including time limits.

Online Requests for Business
Canada Revenue Agency - CRA
Phone: 1-800-959-5525
Internet: http://www.cra-arc.gc.ca/eservices/tax/business/requests/menu-e.html

This service lets business clients inform the Canada Revenue Agency via the Internet of an action or review they want them to do, request items they require or inform them of communication items they no longer wish to receive.

TeleReply
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-2256
Internet: http://www.cra-arc.gc.ca/tax/business/topics/payroll/payments/noremit/telereply/menu-e.html

Employers can inform CRA by phone if they have no payroll dedutions remittance to make during a remittance period. This service is fast, free and easy to use. It is available every day except Sundays and statutory holidays. You receive immediate confirmation that your information has been received.

Tax Information for Businesses

Business Assessment and Taxation
City of Winnipeg
Business Assessment Department
Main Floor, 457 Main Street, Winnipeg, MB  R3B 1B5
Phone: 204-986-2353

Business owners are required to pay a percentage of the assessed rental value of their premises as determined by the City Assessor.  Home based businesses are exempt from business assessment, however, they must pay for a license in lieu of business tax (contact the City of Winnipeg License Branch at 204-986-4663, for more information).  For businesses located outside of Winnipeg, please contact your local municipal office for assessment and taxation requirements.

Corporation Capital Tax
Manitoba Finance - Taxation Division
101 - 401 York Avenue, Winnipeg, MB  R3C 0P8
Phone: 204-945-6444 or Toll free 1-800-782-0318
Tax Enquiries & Interpretations: 204-945-5603
E-mail: MBTax@gov.mb.ca
Internet: http://www.gov.mb.ca/finance/taxation/taxes/corporation.html

A tax paid by corporations that have a permanent establishment in Manitoba with total paid-up capital of $10,000,000 or greater.

Excise Duties
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Internet: http://www.cra-arc.gc.ca/tax/technical/exciseduty-e.html

Excise Duties are charged on spirits, beer, wine and tobacco products manufactured in Canada.

Excise Taxes
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Internet: http://www.cra-arc.gc.ca/tax/technical/etsl-e.html

Excise Tax is applied to items such as heavy automobiles (not trucks), automotive air conditioners, certain petroleum products and some insurance premiums.

GST/HST
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Internet: http://www.cra-arc.gc.ca/tax/business/topics/gst/menu-e.html

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

Income Tax Returns - T1 General Income Tax and Benefit Return
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Internet: http://www.cra-arc.gc.ca/menu/LBA-e.html

All individual residents living in Canada or individuals who earn an income in Canada must file a tax return. When used in conjunction with supplementary guides such as Business and Professional Income, Farming Income, Fishing Income the General Income Tax and Benefit package allows non-incorporated business people to report their income.

Income Tax Returns - the T2 Corporate Income Tax Return and the T2 Short Return
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Internet: http://www.arc.gc.ca/t2return/

Under the Income Tax Act, all corporations must file a T2 or T2 Short return even if no tax is payable.  This includes non-profit organizations, tax-exempt corporations, and inactive corporations.  The only exception to this rule are corporations which fell within the guidelines of a registered charity for the fiscal year.

Provincial Taxes
Manitoba Finance - Taxation Division
101 - 401 York Avenue, Winnipeg, MB  R3C 0P8
Phone: 204-945-6444 or Toll free 1-800-782-0318
E-mail: MBTax@gov.mb.ca
Internet:  http://www.gov.mb.ca/finance/taxation/index.html

Wholesalers, retailers, dealers, operators and others whose business involvements relate to: gasoline, propane, diesel and heating fuel, electricity, natural and manufactured gas, coal, interprovincial trucking, tobacco products, and pari-mutuel betting may be subject to additional taxes.

Retail Sales Tax
Manitoba Finance - Taxation Division
101 - 401 York Avenue, Winnipeg, MB  R3C 0P8
Phone: 204-945-6444 or Toll free 1-800-782-0318
E-mail: MBTax@gov.mb.ca
Internet: http://www.gov.mb.ca/finance/taxation/taxes/retail.html

Any person carrying on a business in Manitoba must have a valid Retail Sales Tax (RST) number issued under The Retail Sales Tax Act before making any taxable sales in the province.

Tax Information for Employers

Payroll Deductions
Canada Revenue Agency (CRA)
Phone: 1-800-959-5525
Internet: http://www.cra-arc.gc.ca/E/pub/tg/t4001/README.html

As an employer, you are responsible for deducting & reporting Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and income tax from remuneration or other types of income you pay.

Payroll Deductions - Online Calculator
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Internet: http://www.cra-arc.gc.ca/eservices/tax/business/pdoc-e.html

An electronic version of the payroll deduction tables which calculate the Income Tax, Canada Pension Plan and Employment Insurance contributions that Canada Revenue Agency requires an employer to withhold from an employee's income.  There is no charge for this product.

Payroll Tax (Health and Post Secondary Education Tax Levy)
Manitoba Finance - Taxation Division
101 - 401 York Avenue, Winnipeg, MB  R3C 0P8
Phone: 204-945-6444 or Toll free 1-800-782-0318
Internet:  http://www.gov.mb.ca/finance/taxation/taxes/payroll.html

Employers with a permanent Manitoba establishment pay this tax on employees' salaries. Employers with total remuneration in a year of $1.25 million or less are exempted.

Social Insurance Number - SIN
Human Resources and Social Development Canada - HRSDC
For more information, please contact your local Service Canada Centre: http://www1.servicecanada.gc.ca/en/gateways/where_you_live/menu.shtml
Phone: 1-800-277-9914

A unique nine digit number assigned to an individual for use in the administration of programs, namely, Employment Insurance and the Canada Pension Plan. Employers who want to remit income tax deductions and premiums based on an employee's income must ensure that the employee produces a SIN card within three days after being hired.

Tax Information for Non-Profit Organizations

Information on Charities
Charities Directorate
Canada Revenue Agency - CRA
Ottawa, ON K1A 0L8
Phone: Toll free 1-800-267-2384
Internet: http://www.cra.gc.ca/tax/charities/menu-e.html

This service applies to non-profit organizations which operate for charitable purposes and devote its resources to charitable activities. Registration offers these organizations the authority to issue official donation receipts to donors, exempts the organization from paying income tax, and allows the organization to apply for a 50% rebate of all taxes paid on goods and services used to operate the charity (except for taxes that can be recovered through the GST program).

Non-Profit Organization (NPO) Information Return
Canada Revenue Agency - CRA
Phone: Toll free 1-800-959-5525 (english) or 1-800-959-7775 (french)
Forms & Publications - 1-800-959-2221
Internet: http://www.cra.gc.ca/E/pbg/tf/t1044/README.html

Available to organizations claiming non-profit status under paragraph 149(1)(I) of the Income Tax Act as well as agricultural organizations, boards of trade or chambers of commerce as described in paragraph 149(1)(e) of the Act.  More information is available in the publication Income Tax Guide to Non-Profit Organization (NPO) Information Return.

Canada/Manitoba Business Service Centre
250 - 240 Graham Ave
P.O. Box 2609
Winnipeg, Manitoba  R3C 4B3
Canada
Telephone: 204-984-2272
Fax: 204-983-3852
Toll-free (information): 1-800-665-2019
TTY Toll-free (hearing impaired): 1-800-457-8466
E-mail: manitoba@canadabusiness.ca
Web site: http://www.canadabusiness.ca/manitoba
Hours of operation: 8:00 a.m. to 5:00 p.m. Monday to Friday

      

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.