Ministry of Revenue

Human Resources Agreement Reached for Harmonization of Ontario Corporations Tax With Federal Regime

Streamlining will save Ontario businesses up to $190 million a year

    OTTAWA, July 31 — The Canada Revenue Agency (CRA) and the Ontario
Ministry of Revenue have signed a human resources agreement that represents a
significant step in the move to federal administration of Ontario's corporate
taxes.
    The agreement outlines employment opportunities at the CRA for Ontario
staff currently involved in corporation tax audit, appeals and advisory roles,
and describes how the two organizations will manage the movement of employees
who accept job offers from the CRA. It provides for these employees to begin
working at the Agency on April 3, 2008.
    "In Budget 2007, the Government of Canada made a commitment to reduce the
federal paper burden and tax compliance costs for businesses," said the
Honourable Carol Skelton, Minister of National Revenue. "Single administration
of Ontario's corporate tax will reduce the compliance burden on the province's
businesses by an estimated $100 million a year in administrative costs alone."
    "Ontario's business community will begin to experience the tangible
benefits of CRA administration in February of 2008, when they start to remit
single instalment payments to the Agency," added Minister Skelton. "The hiring
of the Ontario employees at the CRA means that corporations will see
integrated audit and objections processes in April of next year. The single
return will follow in 2009 for tax years ending after December 31, 2008."
    "This is a good deal for Ontario and it protects Ontario revenues," said
Ontario Minister of Revenue, Michael Chan. "This agreement recognizes that
Ontario's corporate tax professionals are skilled and experienced and the CRA
has recognized their value."
    "This agreement also demonstrates the ongoing commitment to the
partnership between our province and the federal government," added Minister
Chan. "The streamlining of tax administration will improve efficiency and help
businesses free up resources that can be invested in new jobs and help build a
stronger, more productive economy, for all Ontarians."
    The single administration of Ontario's corporate tax by the CRA will lead
to one set of rules, one form, one audit, one appeals process and one point of
contact. For tax years ending after December 31, 2008, businesses will also
save $90 million a year in lower Ontario corporate incomes taxes as a result
of harmonization with the federal corporate income tax base.
    Additional information is available on the CRA website at
www.cra.gc.ca/ctao and on the Ontario Ministry of Revenue website at
www.rev.gov.on.ca/english/index.html

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                 For more information visit www.rev.gov.on.ca
    

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