Single Administration of Corporate Tax

The governments of Canada and Ontario signed a Memorandum of Agreement on October 6, 2006, that will lead to the Canada Revenue Agency (CRA) administering certain Ontario corporate taxes.

Why are we making this change?

Ontario businesses will benefit from one form, one set of rules, one audit and one appeals process.

What does this mean for businesses?

Corporate taxpayers will start:

making blended instalment payments to the CRA in February 2008;
seeing compliance cost savings starting in April 2008, from integrated audits, objections, appeals and rulings for pre-2009 taxation years;
filing a single T2 Corporate Tax return (including the Ontario annual information return) with the CRA for taxation years ending after December 31, 2008.

The CRA will assume some responsibilities for taxation years ending before December 31, 2008 as a means of providing early compliance gains to business.

For now the Ontario Ministry of Revenue continues to be your first point of contact for all matters related to your Ontario corporate tax account.

Beginning with the 2009 taxation year, the CRA will administer the following corporate taxes on behalf of Ontario:

Corporate income tax
Corporate minimum tax
Capital tax
Special additional tax on life insurers

Ontario will continue to administer:

Mining tax
Insurance premiums tax
Electricity Act payments-in-lieu of federal and Ontario corporate taxes

Learn more

About the Legislation - Bill 174

Memorandum of Agreement

News Release: Ontario businesses will benefit from new Tax Collection Agreement
October 6, 2006
Memorandum of Agreement Concerning a Single Administration of Ontario Corporate Tax
October 6, 2006

Taxes