We will help taxpayers better understand how to claim the northern residents deductions
What you said
You said some taxpayers are not aware of the northern residents deductions. You told us in great detail how difficult it is to identify the Lowest Return Airfare available at the time of your trip, and you think the CRA conducts repeated or unnecessary reviews of tax returns for taxpayers who claim the northern residents deductions.
What you said:
"To service the northern centre and nearest centre, there could be 20,000 flights in a month. The airlines ask, 'what do you mean by the average lowest return airfare? We could have many sales going on in that month'."
What we will do
- Improve information presented in the CRA’s publications and webpages to help northern residents better understand the northern residents deductions and how to claim them.
- Create a checklist for claiming the northern residents deductions that includes a reminder to taxpayers to collect their travel expense receipts throughout the year.
- Raise awareness with businesses in the North on their responsibility to report employee travel benefits on T4 and T4A tax slips.
- Explore options that can help taxpayers identify the Lowest Return Airfare.
Did you know? We recently added a new Information Sheet and Tax Tip, on the CRA web site, to help clarify the rules about the northern residents deductions. We’ve also explained how tax returns are selected for reviews, and the types of reviews that are conducted. To learn more, go to Review of your tax return by the CRA.