ACCT-4021EL Study Guide - Fall 2018, Comprehensive Midterm Notes - Income Tax, Canada, Italy
Document Summary
Income comes from 5 broad sources: employment income - income from serving as an employee. Only 50% of capital gains are taxable: business income, property income, capital gains, (cid:498)other income(cid:499) Limited number of items, such as canada pension plan payments, old age security payments, spousal support, withdrawals out of a (cid:498)registered retirement savings plan(cid:499), etc . If it is not included in the above, then it is not taxable! Although there aren"t many items that aren"t taxable, there are some for example: Property tax (home, building, manufacturing plants etc. ) Personal income taxes generate approximately billion dollars of revenue per year! Each province has the ability to set their own provincial tax rates (such as hst, gst or pst) and personal tax credits. Since each province differs substantially we will focus only on the federal components of personal taxation and mainly the ontario provincial tax credits. Resource allocation- public goods/ services- police, firefighters, education, health care, pollution control etc.
