Tax Tip - Did you know that there are digital services that can make it faster and easier for you to meet the tax obligations for your business? Français

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Canada Revenue Agency

Oct 15, 2024, 10:00 ET

OTTAWA, ON, Oct. 15, 2024 /CNW/ - Hi, I'm Charlie! Charlie the chatbot. You can find me on the Canada.ca/CRA webpage where I can answer questions about your business and other tax-related matters. From January to June 2024, I was asked just over 1,100,000 questions in English and 160,000 questions in French. As we head into Small Business Week 2024, I am here to give you some information about business taxes based on questions that I've received from others.

Business Registration Online

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Charlie the Chatbot (CNW Group/Canada Revenue Agency)
Charlie the Chatbot (CNW Group/Canada Revenue Agency)

When you're running a business, certain activities will require you to have a business number (BN) or program account. Using Business Registration Online (BRO) is the fastest and easiest way to do this. Here is more information about the BN and about CRA program accounts:

  • Business number: it's a nine-digit number and the standard identifier for businesses, which is unique to a business or legal entity. Your business will only ever have one BN. You need a BN if you incorporate or need a Canada Revenue Agency (CRA) program account. Note that you should ensure that your Social Insurance Number (SIN) has been properly associated to your BN for authentication purposes. This can be done as part of the BRO registration process
  • CRA program account identifiers: these are two letters and four digits that are attached to a BN and used for specific business activities that must be reported to the CRA (examples of the most common CRA program accounts are GST/HST (if your business collects GST/HST; this identifier will start with RT), payroll deductions (if your business pays employees; this identifier will start with RP), corporation income tax (if your business is incorporated; this identifier will start with RC), and the Underused Housing Tax (if your corporation files a Underused Housing Tax return for each of their properties in Canada; this identifier will start with RU)

My Business Account

Registering for My Business Account may make interacting with the CRA easier. In My Business Account you can file certain tax returns, make payments, view account balances, submit documents online, and so much more.

For more information about My Business Account and how to access it, go to About My Business Account - Canada.ca.

Digital services

The basics

Once you have access to My Business Account, you may want to know more about these services:

Payments

You should know about these secure methods to send and receive tax-related payments:

  • Make a Payment is a quick, convenient way for businesses to securely fulfill their tax obligations by submitting payments to the appropriate tax program
  • Direct deposit allows you to receive your businesses tax refunds, benefits and other payments directly into your bank account. Avoid the hassle of waiting for paper cheques and register for a secure and reliable way to receive your CRA-related funds

Calculators

 Make calculations quick and easy using these calculators:

  • Payroll Deduction Online Calculator is an online calculator that simplifies the process of determining the amount of Canada Pension Plan (CPP) and Employment Insurance (EI) to be deducted from employee wages
  • Goods and Services Tax/Harmonized Sales Tax Calculator is a tool that determines the correct amount to be charged or claimed on sales and purchases allowing you to make sure your business is collecting and remitting the appropriate amount of GST/HST

Business credits

People often want to know what credits their business may be eligible for. Some of the common ones are:

  • Federal tax credits are credits that businesses may be eligible for when filling out their Income Tax Return. Examples of these credits include the Canadian film or video production tax credit, the Canadian journalism labour tax credit, the Air quality improvement tax credit, the Return of fuel charge proceeds to farmers tax credit, and more
  • Apprenticeship Job Creation Tax credit is a non-refundable investment tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice. If your business hires an eligible apprentice, you qualify to claim the credit
  • Scientific Research and Experimental Development (SR&ED) is a tax incentive designed to support research and development (R&D) activities conducted by businesses. We offer free services to help businesses conducting R&D work in Canada understand how to prepare a SR&ED claim. You can start by using our quick and easy online Self-Assessment and Learning Tool to find out, up-front, if your R&D project is likely to qualify for SR&ED tax incentives and to calculate your potential claim amount. You can also request a virtual pre-claim consultation with a SR&ED specialist if you have questions about whether your work is eligible or how to submit a claim. You can also visit the Outreach Program's web page to register for an upcoming webinar and information session
  • Canada Carbon Rebate for Small Businesses is a vital initiative announced in Budget 2024 as part of efforts to support small and medium businesses in combatting climate change and building a sustainable economy. This new rebate will return a portion of fuel charge proceeds to eligible Canadian-controlled private corporations (CCPCs) with employees in provinces where the federal fuel charge applies through an automatic refundable tax credit. For taxation years that end in 2023 the rebate will be retroactively paid to the 2019 calendar year. To be eligible for the retroactive payment, the eligible CCPC must have filed its 2023 corporate tax return by July 15, 2024. The CRA will continue to administer the Canada Carbon Rebate for Small Businesses to eligible CCPCs in respect of future fuel charge years, including 2024-2025, requiring the eligible CCPC to file its corporate tax return by July 15th of the following calendar year.

CRA business support and resources

As a key part of the CRA's digital services, I'm still learning and don't have all the answers. However, I can lead you to resources that might help, such as how-to-guides and one-on-one support:

  • Forms and Publications: Find guides with the answers to your specific business enquiries. These publications provide detailed information outlining all things tax related from filing forms to technical information about the Underused Housing Tax
  • Webinars: The CRA conducts webinars on a variety of topics to help businesses navigate complex processes. Sessions include GST/HST Filing responsibilities for businesses and Canada Pension Plan Enhancement: Second CPP Contribution 
  • Liaison Officer Service: Do you know that you can request a visit from a Liaison Officer to go over general bookkeeping concepts and best practices, as well as how to avoid common tax errors? These consultations are completely confidential and free for businesses
  • Contact the CRA: For businesses seeking assistance with tax-related inquiries, the CRA provides support through various channels, including phone, email, and online services.  Businesses can contact the CRA directly to receive additional information and guidance

Business taxes can be easier using our digital services! Once again – I'm Charlie the Chatbot, and you can find me on the Canada.ca/CRA webpage, ready to answer your tax-related questions.

See you later!
Charlie the Chatbot

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Canada Revenue Agency

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