The Canadian Federation of Independent Business (CFIB) is applauding a new tax tool that is now available to businesses to help them get accurate information on their taxes.
Canada Revenue Agency (CRA) has launched the My Business Account for small business.
The new online tool allows users to communicate electronically with CRA and get definitive answers to their tax questions. With the new tool, business owners will be able to email questions to CRA and receive written answers.
"More importantly, CRA will honour its response even if it is later found to be incorrect, as long as CRA has been provided with all the relevant information," the CFIB stated in a press release.
Laura Jones, CFIB's senior vice-president of research and economics, said, "This is a significant change to the administration of tax policy, and one that has its roots in British Columbia.
"It's basic common sense that a business owner should be able to get tax advice in writing, and not be punished for following that advice if it turns out to be wrong.
"In 2005, we successfully lobbied to get these provisions implemented provincially after one of our members nearly lost her fabric store because she was following incorrect government advice. Getting these same provisions implemented federally is very important to small business."
The CFIB's Report Card on CRA released earlier this year found that 57% of small business owners and 78% of tax practitioners did not believe that CRA was accountable for any mistakes it makes.
In 2011, the CFIB released a CRA Call Centre Report Card showing that of 85 calls made to the federal taxman, 21% of the responses included incomplete or incorrect information.
