FIN 502 Chapter 7: Chapter 7.docx
Document Summary
Canadian income taxation is based on self-assessment. Every resident- limited corporation, trust, or individual- is required to complete an income tax return on prescribed forms (shows if taxpayer owes money or is owed money and how much) Calculate bother marginal and average tax rates: average tax rate = total tax payable / total income, marginal tax rate is the rate that applies to one more dollar of income. If you are in the higher category or tax bracket and you are deciding whether to invest your money in a term deposit, the marginal after-tax rate of return you receive will be (1. Financial effect is identical to an increase in the basic tax rate, as far as: taxpayer may have paid installments or had tax withheld at source financial decisions are concerned. Basic outline of personal income taxation keyed on t1 form (page 142): page 1 of the t1.
