Electrical Business

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Government of Canada says it has reduced red tape for small business


July 25, 2012
By Anthony Capkun

July 25, 2012 – The Government of Canada says it recently introduced a number of initiatives to reduce the red tape small businesses face. For example, Economic Action Plan 2012 extended the Hiring Credit for Small Business, which helps offset the cost of hiring new employees, and will be automatically applied when a qualifying business files its 2012 T4 information return. Canada Revenue Agency (CRA) will calculate it for you, no added burden.

Also, the new My Business Account Enquiries Service provides businesses (or their representatives) with a secure, online portal to ask CRA tax-related questions specific to their accounts. Businesses then receive answers upon which they can rely in the Message Centre—online and in writing.

Since January 2012, businesses can file up to 50 information returns in a single submission using CRA’s Web Forms application. CRA also recently created a one-stop shop webpage where businesses can find information and service options that may apply to their situation: www.cra.gc.ca/businessonline.

CRA also changed the penalty structure that is applied for failure to file an information return by the due date for some small businesses. The new administrative structure, which applies to specific information returns, has lowered the penalties for businesses who file fewer than 11 slips. For example, those filing one to five qualifying returns will have a maximum penalty of $100 under the new structure as opposed to $1000.

Discussing those changes today at a meeting of Nanaimo, B.C.’s local business community were parliamentary secretary to the minister of national revenue, Cathy McLeod, accompanied by James Lunney, MP Nanaimo-Alberni.

“Reducing red tape for businesses is one important way that we are putting the economy first and supporting small businesses,” said Lunney.