Important Business Tax Changes in 2024 to Be Aware Of

As we usher in a new year, many businesses are looking forward to new opportunities, adventures, and milestones. However, one thing they cannot overlook is their yearly tax obligations.

The Canada Revenue Agency (CRA) has announced significant updates that will influence your business practices and tax compliance procedures in 2024. The two that will most likely impact businesses are listed below.

Mandatory Electronic Filing and Information Returns

A key shift arriving with the new year is the adjustment in mandatory electronic filing thresholds. Starting January 1, 2024, if your business processes six or more information returns—be it a T4 payroll return, T5, T3, or T4A—you must transition to electronic submissions.

This change aims to improve efficiency and cut down on manual paperwork and the associated potential errors.

Revised Reporting Rules for Trusts

The CRA is increasing its scrutiny of trusts with revised reporting regulations that emphasize transparency. Effective after December 30, 2023, trustees must now file a comprehensive T3 Trust income tax return annually.

These amendments apply notably to bare trusts—a type previously excluded from many tax obligations due to its unique structure where trustees act solely based on beneficiaries' directives without possessing additional rights over properties held within the trust framework.

Navigating these changes effectively requires proactive measures, from adopting compatible technological platforms early on to familiarizing oneself with intricate guidelines relevant to trust operations.

Contact HWGCA today if you have any questions or are unsure how these changes may affect your business.

Located in Surrey (Cloverdale), British Columbia, since 1971, HWG, Chartered Professional Accountants proudly helps clients throughout the Lower Mainland and across Canada.

Our team of chartered professional accountants provides helpful business and personal tax services. Our continued growth proves the success of our client relationships.