As the year 2022 approaches, it is important for Canadians to consider how the tax system will change. In this article, we will discuss what changes will occur and what you need to know to prepare for them.
The first thing that needs to be considered is that the Canada Revenue Agency (CRA) has announced that they will be implementing a new tax regime in the fall of 2021. This will be known as the “Fair Tax System”. The Fair Tax System is a single tax system that combines the federal income tax with the provincial sales tax. The CRA has also stated that this will be the only tax regime in place by 2022.
The Fair Tax System will replace the current system that has been in place since 1985. The previous system was designed to make things easier for small business owners and self-employed individuals. It was based on a three-branch system which included the federal government, provincial governments, and municipalities.
The Fair Tax system will have one tax rate and will be a single tax system that will apply to all Canadians. There will no longer be a separate system for small business owners and self-employed individuals.
The Fair Tax is a single tax system that will include all Canadians. It will combine the federal income tax with the Provincial Sales Tax. The CRA has stated that the system will be simpler and fairer. The Fair Tax System will not be implemented until 2021.
In addition to the Fair Tax System, the CRA has announced that they will be increasing the amount of information that must be disclosed to the CRA. This will include more information about your business activities and personal financial situation. The CRA has also stated they will be taking a closer look at the use of trusts.
The CRA has stated that there will be increased enforcement measures to ensure that people are filing their taxes correctly. They will be using software programs to check your return to ensure that you have reported all the income that you should. If you are found to be over-reporting your income, you may face penalties.
The Fair Tax will also make it easier for Canadians to file their returns online. In the past, Canadians had to fill out paper forms and mail them in. This will be eliminated in the fall of 2021.
The Fair Tax has been designed to help small business owners and self-employed. The CRA has stated that they will provide additional resources to help these individuals. They will also be providing information on how to set up a business so that you can take advantage of the new system.