Chpt 1

Question 0

Which factor is more important in determining whether an individuals income is subject to Canadian tax?
Citizenship or residency?

Answer 0

Residency

Question 1

For what government does cra collect income tax?

Answer 1

1. Federal government
2. Provincial and territory
   Except Quebec

Question 2

Canada has a self-assessment tax system. What dies this mean?

Answer 2

Each person is required to determine their own taxable income for each year and determine their taxes payable then file a tax return.

Question 3

Why is it a progressive system?

Answer 3

Lower incomes pay lower tax rates. Higher income pay higher tax rates

Question 4

What is the taxation year if an individual?

Answer 4

Jan 1 to dec 31

Question 5

Neither rod it his wife Eileen is self-employed. What is the due date for rods 2012 return?

Answer 5

April 30, 2013

Question 6

What is net income and why is it important?

Answer 6

It is the total of all income that has to be reported less specified allowable deductions

Used to determine eligibility for many tax credits and benefits

Question 7

What is taxable income and why is it important?

Answer 7

Net income less certain allowable deductions and non-taxable amounts allowed.

Important because it is the income on which you are taxed.

Question 8

List 4 types of non-taxable income that are included in net income that are included in net income but not in taxable income

Answer 8

1. Workers compensation payments
2. Social assistance payments
3. Net federal supplements
4. Income exempt by treaty

Question 9

What income must an ordinary resident if Canada report on his or her tax return?

Answer 9

World income for the entire year

Question 10

Identify the main sections if the t1 general.

Answer 10

1. Identification
2. Elections canada question
3. Gst/hst application
4. Foreign property question
5. Total income
6. Net income
7. Taxable income
8. Refund or balance owing

Question 11

What does it mean to file a complete and accurate return?

Answer 11

1. Reporting all income required to be reported

2. Enter all information correctly, legibly and on correct lines

Question 12

What are the advantages of electronic filing?

Answer 12

1. Increased speed, fewer delays
2. Increased accuracy
3. Reduced cost if postage
4. Fewer processing costs

Question 13

What is efile?

Answer 13

Filing a tax return electronically through a registered electronic service provider

Question 14

What is net file

Answer 14

Filing a tax return electronically using the Internet

Question 15

What is a notice of assessment?

Answer 15

A summary of the taxpayers refund or tax payable

Question 16

What records is a tax payer required to keep and for how long?

Answer 16

All records that are adequate to determine amount of tax to be paid

Must be kept for 6 years plus current

Question 17

If you are a Canadian citizen and you answer yes to elections Canada question, will your name be added to the national register of electors?

Answer 17

Yes if you are eligible

Question 18

What are the consequences of answering no to the elections canada question?

Answer 18

If you move your information will not be updated and you will not be on the right voting list

Does not remove your name