Single Administration of Corporate Tax

Ontario corporations will soon benefit from a single administration for corporate income taxes. April 3, 2008 is the target date for transitioning the Ontario objections, appeals and rulings.

Canada Revenue Agency (CRA) will administer corporate income tax and capital tax on behalf of Ontario in a move expected to save the government over $100 million annually. While corporations are not expected to see their tax burden decrease as a result of this move, compliance matters will be more consistent with one set of rules for audit and appeals.

Corporations with year ends commencing after December 31, 2008 will only file one tax return with CRA. Blended installments for those corporations will commence February 2008.

The provincial government has undertaken to notify every corporation of the changes in reporting that affect them. A period of transition may complicate matters - check with us to ensure that installments and appeals are properly handled.



More information can be found on the Government of Ontario's website:

http://www.rev.gov.on.ca/english/taxes/ct/faq_singleadmin.html#7203