Sunday, April 01, 2007

Thanks To Jensen For The Heads Up On Obeying The Law

Jensen posted this on Vive le Canada

Canada Revenue Agency - Tax Alert - Where you live matters!
Contributed by: jensonj
Canada Revenue Agency - Tax Alert - Where you live matters!
OTTAWA, March 27 /CNW Telbec/ - The Canada Revenue Agency (CRA) is warning Canadians to properly indicate their province or territory of residence on their tax returns. The CRA catches and fines people who attempt to evade taxes by filing a tax return claiming to live in one province but who actually reside in another.

It's the law.

The CRA wants you to know that in addition to paying the proper amount of federal taxes, it is your legal responsibility to pay the proper amount of taxes to the provincial/territorial administration where you reside. If you don't, you are
participating in inter-provincial tax avoidance. Failure to accurately report your province or territory of residence could result in undesirable consequences including fines and penalties.

How your address affects you.

The CRA collects taxes for individuals in all provinces and territories except Quebec. Services and social programs that you and your family use on a day-to-day basis are directly affected when you don't pay taxes to the proper province or territory.

What you need to consider.

In order to determine which province or territory will receive your tax dollars, we need to know where you resided on December 31. For more information on factors that individuals must consider when determining province/territory of residence for tax purposes, refer to the Interpretation Bulletin, IT-221R3, Determination of an Individual's Residence Status.

http://www.newswire.ca:80/en/releases/archive/March2007/27/c7054.html

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