Rick MacKay Elected President - The Institute of Chartered ...

CRA Proposing Mandatory
E-filing Requirements after 2012
A surprise measure was introduced in the 2012 federal budget legislation (Bill
C-38), a mandatory e-file requirement, which will be effective for 2012 income
returns filed after December 31, 2012. The proposal will impact tax preparers
engaged to prepare more than 10 income tax returns annually.
The proposal contains a new definition of “tax preparer” for this purpose, which
includes a person or partnership that accepts consideration to prepare more than
10 “returns of income” of corporations or more than 10 “returns of income” for
individuals (other than trusts) in a calendar year. An employee who prepares these
returns in performing their employment duties is not considered a tax preparer
for these purposes. These tax preparers must electronically file “any return of
income that they prepare for consideration” under proposed subsection 150.1(2.3),
although up to 10 corporate returns and 10 individual returns may be filed by other
means. Bill C-38 also introduces penalties for non-compliance of $25 for each
individual return and $100 for each corporate return that is not e-filed.
Specific e-file exceptions have been proposed. More information on Bill C-38
is available on the Parliament of Canada’s website at parl.gc.ca. All of these
amendments come into force on January 1, 2013.
If you would like to share your thoughts on this proposal, please contact Gabe
Hayos, FCA, CICA’s Vice-President of Taxation. He can be reached by e-mail at
Gabe.Hayos@cica.ca or on his blog at CAConnect.
CRA to Expand Carryover Information
Displayed in “My Account”
The Canada Revenue Agency (CRA) has carryforward information available
for individual taxpayers who use the My Account service on their website.
Accountants appointed as client representatives can access this information.
Loss carryforward information is presently only available for the last 25 years, with
the starting point for the 25-year slide rule currently starting at 1988. This period
may not be sufficient, such as in respect of the capital gains deductions which
started in 1985, or in respect of adjusted cost base values determined in 1972,
when capital gains taxation became effective.
The CICA has approached the CRA on this issue, and is pleased to report the
following response from the CRA: “Information for Carryover amounts in My
Account currently have a 25-year slide rule applied starting at 1988. Next year, at
the current state, the display will be 1989 and subsequent years. However, due to
the many requests being received from users, a work order has been prepared (in
time for February 2013 systems update) to allow the display back to 1972 when
required.”
For additional information or questions, please contact Gabe.Hayos@cica.ca.
10
Auditor
Selection
To: The Members
Each year the Audit Committee of
The Institute of Chartered Accountants
of Manitoba reviews the selection
process for the Institute’s auditors
and makes a recommendation to
Council for the coming year.
This is in turn ratified by the membership
at the AGM. In addition, the Audit
Committee approves the fee for the
coming year.
Members of the Manitoba Chartered
Accountants Foundation Inc. also
approve the use of the Institute’s
auditors as the Foundation’s auditors
at their AGM.
Booke and Partners has now been approved
as the Institute’s and Foundation’s
auditors for 2012-13.
In considering the appointment of
auditors, the committee evaluates the
current auditors and has found that
they continue to meet expectations.
The committee has discussed the
advantages and disadvantages of
changing auditors and feels that there
has been no compelling reason to
change.
The committee has agreed however
that if expressions of interest were to
be received from other firms, it would
consider a tendering process.
Cheryl A. Atchison, CA
Chair
2011-12 Audit Committee