FIN 502 Chapter Notes - Chapter 7: Tax Bracket, Tax Deduction, Real Estate Transfer Tax
30 Nov 2014
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Document Summary
Canadian income taxation is based on self-assessment. Tax dollars provide revenues for govn"t to provide services such as education, health care, parks and recreation, infrastructure, etc. Income taxes are the main way govn"t draws revenue on a federal and provincial basis. Other big tax is hst, which is charged by province and deferral govn"t on consumption. Property taxes, land transfer taxes, vehicle registrations, etc. are main sources of revenue. Objectives of income tax: provide revenue for federal and provincial govn"t, redistribution for greater social equality. Provides funds for govn"t support programs and charges higher rates at higher income levels: encourage or discourage certain actions through financial actions, ex. Both federal and provincial taxes are calculated on taxable income = the toni tax on net. Taxes are administered by cra canada revenue agency. The tax system is progressive higher levels of income are taxed at higher rates.
