Economic Action Plan 2014 – Reducing Red Tape for Small Business

Economic Action PlanWith the release of the Economic Action Plan for 2014, the government is staying the course they laid down in 2006 – the reduction of the burden of bureaucracy on the Canadian small business.

Recognizing that reporting to the Canada Revenue Agency can be time consuming and expensive, detracting from small business owner’s ability to do what they do best – provide goods and services to their customer base, this year’s Economic Action Plan builds on the successes of the past in delivering more efficient ways to deal with the government.  Here are the highlights:

Starting in April, small businesses will be able to file amended T2 Corporate income tax returns online, and to submit electronic requests to the CRA instead of filling out paper forms.

In October, registered My Business Account holders will be able to pay their taxes online, for free, for the first time.  As well, payment history and other records will be accessible in one easy to access digital location.

Remittance thresholds are being revised for employer source deductions, which will result in businesses having to make fewer payments to the government, reducing costs to employers by streamlining the payment process.

Taxation rules for individuals who operate both fishing and farming businesses will be simplified, allowing for more understandable and consistent rules.

For small businesses, these changes serve to reinforce the CRA’s commitment to making it easier to operate a small business in Canada.  Tax preparation, as well as the monthly paperwork employers must provide to the government will become a little less onerous, so that you can spend more time making customers happy and less time appeasing the Canada Revenue Agency.

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