News and Insights

CRA Fact sheet, “Compliance refund hold legislation – Restrictions on refunds and rebates”

Tax Development Apr 07, 2008

The Canada Revenue Agency issued this fact sheet to advise public service bodies (excluding charities), federal crown corporations and Indian band councils that effective April 1, 2008, they will be applying the compliance refund hold legislation to these entities. In particular, a failure by these entities to file T2 returns by their duedates for the taxation years ending April 1, 2008, and forward will result in a compliance refund hold being placed on their refunds or rebates. This provision was included in the amendments, effective April1, 2007, that were made to harmonize a number of accounting, interest, penalty and related administrative and enforcement provisions within four acts that the CRA administers.