18 February 1993 Income Tax Severed Letter 9301972 - Employer Tax Credits

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

XXXXXXXXXX 930197
Jim Wilson
(613) 957-2123
Attention: XXXXXXXXXX
February 18, 1993
Dear Sirs:

We are writing in reply to your letter dated January 18, 1993, concerning whether Canadian employers are offered tax credits for hiring employees from specific targeted groups (e.g. minorities, students, economically disadvantaged, etc.). You have also enquired as to what forms employers must complete with respect to the hiring and termination of employees.

The Income Tax Act of Canada does not provide tax credits to taxpayers (e.g. employers) with respect to the hiring of employees from specific targeted groups. The Income Tax Act, in a variety of ways, does provide tax concessions to targeted groups. However, such concessions benefit the individual/employee in the computation of his Canadian tax payable and not the employer.

It is our understanding that other forms of relief (i.e. non-tax related) may be available to employers hiring from targeted groups. In this regard, we suggest you write to the following address for further information on this topic.

Employment and Immigration Canada
Almonte-Carleton Place Employment Centre
50 Lansdowne Ave.
Ottawa, Ontario
K7C 3S9

Attention: M. Jarvis
Telephone: (613) 257-3355

In regard to the second issue, the "Employers Guide to Payroll Deductions" and a "Small Business Employers Kit" will be forwarded to you shortly which should meet any of your information needs in regard to forms and procedures for Canadian employers with respect to payroll deduction requirements on employees. With respect to other forms that may be required (e.g. forms equivalent to U.S. form "I-9"), we again recommend you write to the above address for further information in that regard.

We trust you will find the above to your satisfaction.

Yours truly

for Director
Reorganizations and Foreign Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch