tax Flashcards
what is the purpose to tax
revenue generation, distribution of wealth, provide services, influence behavior
what are ways on revenue generation
income taxes, sales taxes, property taxes, duties and tariffs
tax return
a government form used by a person or organization that presents an amount of income
progressive tax
the tax rate increases as income increases in different income brackets
regressive tax
HST flat amount
taxable entities
individuals (T1), corporations (T2), trusts (T3)
types of taxable income
employment income, business income, property income
capital gains
tax owning on the sale of capital property
for capital gains what income is taxable
until 250,000 only 50% of your income is taxable
what are the types of employment income deductions
income tax, canadian pension plan, employment insurance
canadian pension plan max, rate and exemption
exemption = $3,500
rate = 5.95% (employee and employer)
max - $68,500
employment insurance rate, exemption, max
1.66% (employee) and 1.66% *1.4 (employer)
exemption = 0
max = $63,200
what are deductions
reduce your taxable income
what are the types of deductions
registered retirement savings plan
childcare expenses
moving expenses
what are credits and the basic personal amount
reduce your tax payable, $15,705
