The July 15 deadline approaches to be eligible for the Canada Carbon Rebate for Small Businesses. This refundable tax credit announced in Budget 2024 returns a portion of federal fuel charge proceeds directly to an estimated 600,000 small and medium businesses.

The Canada Revenue Agency (CRA) is focused on making it simpler for you to find the information you need to file your taxes on time and to manage your tax affairs. Filing tax returns on paper always takes more time than filing electronically so why not join the over 90% of corporations that already file their returns electronically?

By filing electronically, corporations receive immediate confirmation that the CRA has received their return, enjoy faster processing and refunds, save on mailing costs, and help the environment by using less paper.

The Canada Revenue Agency (CRA) is committed to helping small and medium businesses by ensuring they have the information and guidance they need to stay organized and to better understand and meet their tax obligations.

Here’s what you can do to make sure you’re doing everything right:

• File and pay on time

• Organize your records and documents

• Resources for you – the CRA is here to help

If you’re struggling to pay your tax debt, we understand and are here to help regardless of your tax situation. If you ignore your tax debt, it will grow with interest charges and penalties. Instead, let’s work together to figure out what your options are based on your financial situation.

Please note that penalties only apply if you file late or pay by instalments and your instalment payments are late or less than the required amount. Debts associated with COVID-19 Individual Emergency Benefits overpayments will not have penalties or interest assessed against the amount owing.

The Canada Revenue Agency (CRA) has observed a recent increase in Scientific Research and Experimental Development (SR&ED) claims containing false and/or fraudulent information. While the vast majority of claims filed for SR&ED tax incentives are compliant with filing requirements, the CRA is reminding you to make sure the information provided in your claim, including information submitted on your behalf by a representative, is valid.

What is SR&ED?

The SR&ED Tax Incentive Program is the largest Government of Canada program supporting research and development in Canada, providing more than $3 billion in tax incentives to over 16,000 businesses annually.

High call volumes to the Canada Revenue Agency's (CRA) Business Enquiries Line can result in long wait times to reach a client service representative.

Here are some quick and easy alternatives to finding the information you need (instead of calling).

Check Canada.ca: We're improving the information on our web pages to make it easier for Canadians to find what they need online. This includes services and information for:

• business number registration;

• business income tax;

• payroll;

• GST/HST for business; and much more.

A peer-to-peer (P2P) transaction involves the selling of goods from one person or party directly to another. You may be taking part in P2P selling if you are connecting with buyers through digital platforms like websites, online marketplaces or mobile applications (such as Etsy, eBay or Amazon).

As a resident of Canada, you must report your income from all sources on your income tax return. This includes any income you earn inside and outside of Canada, whether through P2P or other transactions. If you paid foreign income tax, you could be eligible for a tax credit.

For Uber and Lyft drivers, you must report all income earned from driving your vehicle for ridesharing purposes, including tips, on your income tax and benefit return. You must also complete Form T2125, Statement of Business or Professional Activities, and file it with your income tax return.

You must collect and pay the GST/HST to the CRA on all ridesharing fares.

For Airbnb and accommodation sharing, you must pay income tax on all income you receive from accommodation sharing. Also, your income from accommodation sharing may be considered rental income from a property or a business. The income you receive from renting a property or from accommodation sharing must be reported on your income tax and benefit return.

For GST/HST purposes, accommodation sharing falls under short-term accommodation: renting for a period of continuous occupancy of less than one month. Short-term accommodation is not exempt from GST/HST like rentals of residential premises for periods of continuous occupancy of one month or more.

Most taxpayers comply with the tax laws in Canada, but some don’t. That’s why audits are an important part of the Canada Revenue Agency’s (CRA) range of activities that are in place to make the tax system fair for everyone.

The CRA recognizes the economic challenges that have resulted from the COVID-19 pandemic and the effect that the audit process can have on businesses. For this reason, we continue to proceed carefully to protect businesses and the broader economy that remains vulnerable due to the pandemic.

The CRA has information to help answer your questions about the audit process. The information below also applies to audits of COVID-19 subsidies.

It is important to keep proper financial records of all your activities relating to your cryptocurrency. You should keep records when you purchase, dispose, or mine cryptocurrency to ensure you have accurate information of your activities. This information is important for your own records and for filing your tax returns.

When you trade, sell or mine cryptocurrency, you have to report any income or capital gains from those activities on your tax return. However, you may also be able to report your expenses and losses. If you exchange taxable goods or services for cryptocurrency, you may have to report goods and services tax / harmonized sales tax (GST/HST).

If you earned income by posting pictures, videos and more on your social media channels that involves product placement or product promotion, you may be undertaking a business activity. You can earn income from your social media activities in many ways, both monetary and non-monetary (barter transactions).

If you are carrying on a business through your social media channels, you must report the income (both monetary and non-monetary) that you earn through these activities on your income tax return. When reporting non-monetary income, you must use the fair market value of the item received. The CRA will generally consider your social media activities to be business activities where there is an element of profit to your activities.

This tax season, the best way for you to avoid delays and get the tax information you need is to try our easy-to-use digital services. No need to wait on the phone, the Canada Revenue Agency (CRA) has many online tools to help you!

This tax season, there's a new way to confirm authorized representatives using My Account or My Business Account. Whether you're an individual or a business, this easy, two-step digital process will help you protect your tax information and make authorizing new representatives more efficient and secure.

How you value your cryptocurrencies depends on whether they are considered capital property or inventory. When cryptocurrencies are held as capital property, you must record and track the cost when you acquired them, so that you can accurately report any capital gains when you sell them.

If the cryptocurrencies are considered to be inventory, you can generally value it based on:

• the cost of each item in the inventory when it was acquired; or

• its fair market value at the end of the year.

If you received one or more emergency subsidies, the amounts you received are considered government assistance and are taxable. You must report the subsidies amounts on your income tax or information return for the tax year (fiscal period) in which you are considered to have received them. The wage and rent subsidies are generally considered to have been received on the last day of the claim period they relate to.

A cryptocurrency is a type of virtual asset that is protected using cryptography. It typically uses a system called a blockchain to record and keep a history of transactions. Cryptocurrencies, such as Bitcoin and Ether, are independent, meaning they do not rely on governments, central banks, or other central authorities for backing. You can obtain cryptocurrency in many ways, and new methods are being developed all the time. You can use cryptocurrencies for a wide range of activities, such as buying goods, paying bills, or investing. Transactions involving cryptocurrencies often have tax implications.

The Canada Revenue Agency (CRA) offers free Liaison Officer services to owners of small businesses and self-employed individuals to help them understand their tax obligations. A visit from a Liaison Officer is 100% confidential: the information you choose to discuss with them will not be shared with other areas of the CRA, or anyone else.

Did you know that the CRA has helped over 17,000 small business owners and self-employed individuals virtually through the Liaison Officer service since the beginning of the pandemic and over 69,000 small business owners and self-employed individuals since the start of the program in 2014.