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Penalties after the expiration of the relief period Although the CRA is providing relief from the application of the late filing penalty in the instances described above, a return will be considered late the day following the end of the relief period and will incur a late filing penalty based on its original due date. For example, if the relief period ends on March 7, 2025, for a return due by February 28, 2025, and a return is filed on March 8, 2025, the return will be considered to be 8 days late. ...

Note A loss from the sale of depreciable property is not considered to be a capital loss. ... If you sell depreciable property in a year, you also have to subtract from the UCC one of the following amounts, whichever of the following amounts is less: the proceeds of disposition of the property, minus the related outlays and expenses the capital cost of the property If the UCC of a class has a negative balance at the end of the year, this amount is considered to be a recapture of CCA. ...

Qualified farm or fishing property (QFFP) includes the following: a share of the capital stock of a family-farm or fishing corporation that you or your spouse or common-law partner owns an interest in a family-farm or fishing partnership that you or your spouse or common-law partner owns real property, such as land, buildings, and fishing vessels property included in capital cost allowance Class 14.1, such as milk and egg quotas, or fishing licenses For more information on what is considered to be qualified farm or fishing property, see the following guides: T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income RC4060, Farming Income and the AgriStability and AgriInvest Programs Guide RC4408, Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide Qualified small business corporation shares A share of a corporation will be considered to be a qualified small business corporation share if all the following conditions are met: at the time of sale, it was a share of the capital stock of a small business corporation (see below), and it was owned by you, your spouse or common-law partner, or a partnership of which you were a member throughout that part of the 24 months immediately before the share was disposed of, while the share was owned by you, a partnership of which you were a member, or a person related to you, it was a share of a Canadian-controlled private corporation (see above) and more than 50% of the fair market value of the assets of the corporation were: used mainly in an active business carried on primarily in Canada by the Canadian-controlled private corporation, or by a related corporation certain shares or debts of connected corporations a combination of these two types of assets throughout the 24 months immediately before the share was disposed of, no one owned the share other than you, a partnership of which you were a member or person related to you Generally, when a corporation has issued shares after June 13, 1988, either to you, to a partnership of which you are a member, or to a person related to you, a special situation exists. ...

Note When calculating the capital gain or loss on the sale of capital property that was made in a foreign currency, you must convert: the proceeds of disposition to Canadian dollars using the exchange rate in effect at the time of the sale the ACB of the property to Canadian dollars using the exchange rate in effect at the time the property was acquired the outlays and expenses to Canadian dollars using the exchange rate in effect at the time they were incurred You have a capital gain when you sell, or are considered to have sold, a capital property for more than the total of its ACB and the outlays and expenses incurred to sell the property. ... When you sell, or are considered to have sold, a capital property for less than its ACB plus the outlays and expenses incurred to sell the property, you have a capital loss. ...

Other significant changes to the Voluntary Disclosures Program Payment of estimated taxes owing: Payment of the estimated taxes owing will be required as a condition to qualify for the program.When a taxpayer does not have the ability to make payment at the time of filing the VDP application, they may request to be considered for a payment arrangement. ... Large corporations: Generally, applications by corporations with gross revenue in excess of $250 million in at least two of their last five taxation years, and any related entities, will be considered under the Limited Program. ...

Generally speaking, when an audit is conducted, it is to determine a tax liability and taxpayers may be ordered to pay sums of money to the Receiver General for Canada to correct their tax affairs Audits are considered a civil matter, and they relate to possible tax avoidance In a criminal investigation, the CRA investigators gather evidence to determine whether there has been tax evasion, tax fraud and/or other serious violations of tax laws. ... In order for charges to be considered, the PPSC will evaluate whether the laying of a charge is in the public interest, and whether there is a high likelihood of a conviction. ...

. ¶2.9 and 2.10 have been added to provide readers with general information on when loans or debts may be considered to exist for purposes of subsection 80.4(2). Readers are also advised of the potential application of subsection 15(1) if a shareholder extracts money or property from a corporation and the evidence does not support the conclusion that the money or property was received as a loan or a debt. ¶2.11 has been added to clarify that tax consequences are not determined by accounting entries or what a taxpayer might have done or intended to do, but are determined by the reality underlying the accounting entries and the transactions that the taxpayer actually undertook. ¶2.15 (formerly included in ¶10 of IT‑421R2) has been revised to clarify that it is necessary for a taxpayer to determine whether subsection 15(2) applies to a particular loan before considering whether subsection 80.4(2) applies. ¶2.17 to 2.19 have been added to reflect a legislative amendment made by S.C. 2024, c. 15, s. 16 (formerly Bill C-59) which added paragraph 80.4(3)(c) to the Act, effective January 1, 2024. ¶2.20 to 2.23 (formerly ¶13 of IT‑421R2) have been revised and expanded to provide readers with an understanding of some of the factors that are considered in determining whether a loan was received by virtue of shareholding or by virtue of employment. ¶2.25 and 2.26 (formerly ¶6 of IT‑421R2) have been expanded to clarify that subsection 80.4(2) can apply to a loan as long as any portion of it remains outstanding. ...

If April 30 is on a Saturday, Sunday or public holiday When a due date falls on a Saturday, Sunday or public holiday recognized by the CRA, your return is considered on time if the CRA receives it or if it is postmarked on or before the next business day. Your payment is considered on time if it is received by the first business day after the due date. ...

If you provided a taxable benefit to an employee If you are considered to have collected the GST/HST on a taxable benefit, you have to calculate the amount of the GST/HST due. The amount of the GST/HST you are considered to have collected on a taxable benefit is based on a percentage of the value of the benefit for GST/HST purposes. ...

It is a question of fact whether a particular fee is reasonably considered to relate solely to the year. For example, a one-time fee related to a loan with a term longer than one year, such as a loan-structuring fee or loan-placement fee, is not reasonably considered to relate only to the year in which the loan was made. ... In that situation, the expense will normally be considered to be incurred in the course of the issuance. ...