News
Tax Minute – Shareholder Details
Every year CRA sends out letters requesting information on a specific line item on tax returns. Unlike prior years, this year CRA is giving advanced warning of what this will be.
In an upcoming letter campaign, CRA will be asking for shareholder information on schedule 50 of the corporate income tax return where it is not complete. To be complete, information on shareholders that hold more than 10% of the common or preferred shares must be reported. This includes Name, Tax Identification Number (Business number or SIN) and percent of common and/or preferred shares held.
CRA indicates that one of the goals is to help taxpayers avoid reassessment, audits and penalties and that completing schedule 50 can reduce the changes of a potential audit. While all of this is true, for CRA purposes it also provides more information for their analytics group to run algorithms to identify audits for other reasons, giving them reason to wish it complete.
While we always complete this schedule to the best of our abilities, if you are missing any of this information, we will be following up to ensure this is as complete as possible going forward.
Contributed by Seanna Weir, CPA from Mowbrey Gil LLP. This piece was produced as a part of the quarterly Canadian Overview, a newsletter produced by the Canadian member firms of Moore North America. These articles are meant to pursue our mission of being the best partner in your success by keeping you aware of the latest business news.
All Posts