Frequently Asked Questions About the Income Tax Regulations

The Frequently Asked Questions (FAQs) below are meant to provide Canadians and businesses with basic information about the Canada Revenue Agency’s regulations. FAQ’s have only been added for some regulations - the Income Tax Regulations (C.R.C., c. 945) were selected based on the number of visits these regulations receive on the Justice Canada website.

What is the purpose of this regulation?

These regulations provide the rules and requirements necessary for the application of the Income Tax Act with respect to the tax obligations of individuals and businesses and benefits paid to individuals. Responsibility for these regulations is shared between the Minister of Finance and the Minister of National Revenue.

What are the key elements of this regulation?

The key elements of these regulations that affect businesses are:

• the requirements relating to when and how to withhold tax deductions from taxable income of their employees and to remit the amounts withheld to the CRA;
• the requirement to file information returns and the form and manner in which these information returns must be filed;
• the manner in which taxable income is determined and when deductions are applied; and
• the requirements relating to the retention of books and records in order to enable verification and compliance.

How does this regulation affect Canadian businesses?

Canadian businesses have various obligations originating from these regulations. These obligations include calculating and reporting their taxable income, paying the applicable taxes on this income, deducting and remitting income taxes, contributions and premiums from their employees’ remuneration, filing the applicable information returns and keeping detailed records of all these financial activities.

What is the timeline for implementation?

These regulations are frequently amended on the recommendation of either responsible Minister.

Where can I get more information?

The CRA publishes on its website a broad range of technical and plain language publications and web pages to inform taxpayers, businesses and benefit recipients of their rights and obligations relating to taxes and benefits. The CRA also offers a number of videos and recorded webinars that present information about CRA programs and initiatives. These publications and products can be found by topic.

In addition, telephone enquires agents are available to assist callers in finding the information they need on various topics.

Please go to Contact information to find the various ways of contacting the CRA.

For more information

• Cabinet Directive on Regulatory Management
• Red Tape Reduction Action Plan
• Canada–United States Regulatory Cooperation Council

To learn about upcoming or ongoing consultations on proposed federal regulations, visit the Canada Gazette and Consulting with Canadians websites.

Date modified:

2014-12-19