Taxation in Canada

In any country, the tax system is a method of collecting money to invest in public utilities and other important aspects. It is similar with Canada where money is collected from its citizens to aid for the public services. In Canada, these taxes are regulated by the Canada Revenue Agency (CRA).

It has to be remembered that the benefits which are deemed by a citizen such as proper roads, schools, health care and other developmental aspects are all with the help of taxes. In Canada, it is collected as Income Tax.

It is usually collected as some money from an individual’s income. This is mostly done by the employers who pay the monthly incomes. For those running their own enterprises, they pay it in the form of installments.

In Canada, each year the citizens have to file an income tax return. This is a form that needs to be filled by an earning citizen of the country. The form involves elaborating and listing details about the income and its sources. Also included are deductions and tax credits which help to calculate the taxable income that has to be paid by the citizen. This form provides the government with all the required information to assess your eligibility for the Canada Child Tax Benefit (CCTB). The local is also considered for the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit.

Both the provincial and the federal taxes are mostly collected at the same time. This is when the yearly income tax return is filed. This is usually done by April 30th. This helps in the right amount of money to be collected. Incase of excess payment, it is refunded by the government.

On the other hand, if an individual declines to pay before the deadline, he would be charged an extra fine and other penalties.

However, if you are a prospective immigrant intending to migrate to Canada, it is highly recommended that you contact an Immigration and Visa expert dealing with Canadian immigration. Schemes regarding tax could be best explained by him.

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