On November 26, 2014, the Canadian Government partnered with Startup Canada to convene Startup Canada Day on the Hill.
Minister of National Revenue Kerry-Lynne Findlay spoke at the event and highlighted the strategies the CRA has implemented to assist startup companies across the country.
Startups have bright, innovative founder teams, but many lack the financial expertise, time, and money required to maintain adequate financial records. This may seem insignificant in the short-term, but this will become increasingly important when attracting investors and in dealing with the CRA.
Minister Findlay stated that, with this reality in mind, the CRA has worked toward reducing the red tape associated with starting and running a business in Canada. In November 2012, 52 small business owners and 91 small business service representatives and bookkeepers participated in meetings across the country to identify issues stemming from federal rules and regulations.
How is the CRA helping Startups?
- Through the operation of a secure online self-service portal, available 24/7 through which many different kinds of transactions can be completed, including managing banking information and filing tax returns replacing the need to keep track of copious amounts of paper;
- Through the development of the Small Business Checklist which includes user-friendly and detailed information on starting, maintaining and winding up a business;
- Through the Business Tax Reminders App, created in consultation with small and medium-sized business owners, which allows businesses to create reminders for when their various financial payments are due; and
- Through the Liaison Officer Initiative which provides in – person support to businesses at key stages in their growth cycle in an effort to avoid common tax pitfalls, among other things, that would cost them in the future.
Minister Findlay stated that, in the CRA’s view, these tools provide a solid starting point for tax compliance so company founders can focus on what’s most important to them – making their business grow.
As part of the Government’s commitment to consult with businesses every two years, the CRA recently completed another red tape reduction consultation process in November. Results should be available in the Spring 2015.