Is Construction your Primary Source of Business Income?
The CRA is increasing their focus on non-compliance within the construction industry concerning the payment of subcontractors. For most contracting companies to remain compliant with the CRA regulations they must submit T5018 slips.
A T5018 is an information return which a payor (contractor) must submit to the CRA reporting amounts paid to payee (subcontractor). If you are an individual, partnership, trust, or corporation involved in construction activities that represent 50% of your business’ income-earning operations, you must adequately submit T5018 information returns and slips.
As a construction company who makes payments to or credits a subcontractor (whether by cheque, cash, barter, or offset against an amount owing), ensure you always record the required information necessary to complete your T5018. T5018’s are due six months after your year-end.
CLICK HERE TO VIEW AND DOWNLOAD THE T5018
Construction companies who plan to avoid taxation by concealing payments to subcontractors are committing a criminal offence. If the contractor is caught and criminally charged, they can face fines and a maximum penalty of up to 200% of the tax they tried to avoid.
To learn more contact a GMSPC representative or CLICK HERE