Canadian Payroll Reporter

MAY 2013 NEWS IN BRIEF A LOOK AT NEWS, FACTS AND FIGURES SHAPING THE WORLD OF PAYROLL PROFESSIONALS CRA putting more resources into international tax evasion Average weekly earnings up 0.1 per cent in January OTTAWA — The federal government is continuing to increase auditing resources for the Canada Revenue Agency's (CRA) international compliance programs, according to Minister of National Revenue Gail Shea. The 2013 federal budget continues to build on the government's efforts and will provide the CRA with an unprecedented ability to crack down on international tax evasion and aggressive international tax avoidance, she says. The following measures were announced: •Launching a new stop international tax evasion program that will allow the CRA to pay individuals with knowledge of major international tax non-compliance a percentage of federal tax collected as a result of the information provided. •Requiring financial institutions and others who currently report information on international electronic funds transfers greater than $10,000 to the Financial Transactions and Reports Analysis Centre of Canada to also report those transactions to the CRA. •Streamlining the judicial process that provides the CRA authorization to obtain information from third parties, such as banks. This measure will facilitate faster access to information on unnamed individuals for the purposes of civil actions. •Introducing additional requirements for Canadian taxpayers with foreign income or properties to report more detailed information, and extending the amount of time the CRA has to reassess those who have not properly reported this income. Since 2006, the number of audit positions in the CRA's international audit program has increased by nearly 40 per cent. 4 OTTAWA — Average weekly earnings of non-farm payroll employees were $908 in January, up 0.1 per cent from the previous month, according to Statistics Canada. On a year-overyear basis, earnings increased 2.7 per cent. The 2.7 per cent increase in earnings during the 12 months to January reflects a number of factors, including wage growth, changes in composition of employment by industry, occupation and level of job experience, as well as average hours worked per week. In January, non-farm payroll employees worked an average of 33 hours per week, unchanged from the previous month but up from 32.9 hours a year earlier. Year-over-year earnings growth of non-farm payroll employees was above the national average in five provinces, with the highest growth in Newfoundland and Labrador and Quebec, Statistics Canada said. Total non-farm payroll employment increased by 16,300 in January, following a decline of 31,200 the pre vious month. Number of EI recipients unchanged in February OTTAWA — Following three consecutive months of decline, the number of people receiving regular employment insurance (EI) benefits was virtually unchanged in February, at 528,900. Compared with a year earlier, the number of beneficiaries was down 7.4 per cent. A number of provinces had fewer beneficiaries in February, with the largest percentage decreases in Prince Edward Island, Manitoba and Saskatchewan. The number of initial and renewal claims fell by 15,200 to 223,900 in February, more than offsetting the increase recorded the previous month. Claims in Quebec decreased by 7.9 per cent, which was the largest percentage decline in claims in February. This was followed by Ontario, which saw a 7.4 per cent decline and New Brunswick, which saw a 6.8 per cent decline. Alberta experienced a 5.5 per cent decline, British Columbia experienced a 4.2 per cent decline and Saskatchewan saw a 3.2 per cent decline. At the same time, claims fell 2.8 per cent in Nova Scotia and fell 1.8 per cent in Manitoba. There was little or no change in Newfoundland and Labrador and Prince Edward Island. 94 per cent of Canadians file tax each year: Study TORONTO — Canadians are conscientious and responsible with their taxes, according to a study released by BMO Nesbitt Burns. Ninety-four per cent of respondents said they file a personal income tax return every year. Nearly one-half of Canadians prefer preparing their own tax returns rather than relying on someone else — such as a tax professional or family and friends, the study also showed. This year, more than one-third of Canadians (35 per cent) will have used tax software to file their returns. More than one-half of Canadians (58 per cent) are not sure about how capital gains are taxed, while almost two-thirds (62 per cent) are not knowledgeable about how dividend income is taxed, according to the study. The online survey was conducted with a sample of 1,002 Canadians between March 15 - 19. The margin of error for a probability sample of this size is plus or minus 3.1 per cent, 19 times out of 20. Canadian HR Reporter, a Thomson Reuters business 2013

• Cover