News from the Greater Innisfil Chamber of Commerce - Corporate Tax Consolidation

Filing corporate tax returns in Ontario will soon be much simpler and cost less time and money thanks to a successful campaign by the Ontario chamber network to bring about corporate tax consolidation.

Businesses must currently file two separate corporate tax returns - one to the provincial government and another to the federal government.

With a requirement to file within six months of year end, some are likely just finishing their returns for 2006.

Two corporate tax collectors mean different forms, processes and rules. The result? Double the time, double the administrative costs and double the headaches.

That will soon change. Legislation that has passed first reading in the Ontario legislature will bring into effect, if approved, a single tax collector for Ontario businesses. Collection and administration of Ontario's corporate income tax will be transferred to the federal government, coming into effect for taxation years ending after December 31, 2008.

Consolidated corporate tax collection will reduce compliance costs for businesses and enable the Canada Revenue Agency to streamline service and reduce administrative costs.

Businesses will enjoy a single tax form, a single set of rules and a single point of contact.

It is estimated that this move alone will save Ontario businesses $100 to $150 million each year in time and money - money that can be better spent and invested.