Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Everything You Need to Know About Taxation in Canada

By Andersons Subscribe to RSS | December 18th 2011 | Views:
loading
 
  



Taxation in Canada is administrated by the CRA (Canada Revenue Agency), which was earlier known as ‘Revenue Canada’ (Canada Customs and Revenue Agency). Compared with rates of taxation in the United States, Canadian taxations are higher. Earnings of the Canadian government come from fees and investments as well as tariffs. From all mentioned Canadian earnings 70% comes from taxation.

According to the ‘Tax Collections Agreement’, CRA collects and remits to the provinces:

• Corporate taxes on behalf of all provinces (except Alberta and Quebec).

• Provincial personal income taxes on behalf of all provinces (except Quebec).

• Individuals outside of Quebec can file only one set of tax forms each year, to their federal and provincial income taxes.

In the provincial governments of Nova Scotia, New Brunswick, Newfoundland and Labrador, British Columbia and Ontario the federal government collects goods and services tax (GST) at a rate that is higher than the other provinces. On behalf of the federal government The Minister of Revenue Quebec collects the GST in Quebec and sends it to Ottawa.

The history of taxation in Canada shows the bulk of the revenue of the federal government during the early days was obtained from trade tariffs. By the end of the 19th century corporate taxes made their appearance.

Taxation in Canada is divided into the following types:

• Personal income taxes – Federal and provincial governments have imposed income taxes on individuals. These taxes are the government’s most important taxes because over 40% of their tax revenue comes from this type. Personal income tax can be deferred in RRSP (Registered Retirement Savings Plan) and tax-sheltered savings accounts.

• Sales taxes – there are three types of sales taxes levied by the provinces:

• Provincial sales taxes – levied by the provinces

• Goods and Services Tax (GST) – a value-added tax levied by the federal government

• A combined Harmonized Sales Tax (HST) – also a value-added tax (GST & provincial sales tax) levied by the provincial and federal government.

• Every province except Alberta has implemented either a provincial sales tax or Harmonized Sales tax.

• Corporate taxes – Corporations and companies pay taxes on profit income and on capital. Capital tax is charged on a corporation’s taxable capital which has been determined under Part 1.3 of the Income Tax Act (Canada), plus accumulated other comprehensive incomes. In this type of tax, a tax credit is provided to individuals that get dividends to reflect the tax paid at the corporate level. This credit doesn’t eliminate double taxation completely, but it results in a higher level of tax on dividend incomes than other types of income.

• Payroll taxes – Ontario levies a payroll tax on employers, the ‘Employer Health Tax’ of 1.95% of payroll. Quebec levies a similar tax called the ‘Health Services Fund’. For the employees the amount is paid by the employers as part of payroll.

• Excise taxes – Federal and provincial governments impose excise taxes on inelastic goods like gasoline, alcohol and cigarettes and automotive air conditioners. These types of tax have often been called ‘sin’ taxes.

• Property taxes – This type of tax is drawn from taxes on residential, industrial and commercial properties.

• Estate tax – Tax owed is paid by the estate of a deceased individual and not the estate beneficiaries.

• Health and prescription insurance tax – Quebec requires residents to obtain prescription insurance and other provinces such as British Columbia charge premiums collected outside of the tax systems for the provincial Medicare systems.

• International taxation – The residents of Canada and corporations must pay income taxes based on their worldwide income. Canadians are protected against double taxation from receiving income in some countries which have agreements with Canada through the foreign tax credit system.

Andersons - About Author:
Through education, credit counselling and debt management, http://www.consolidatedcredit.ca assists folks pay off your debt a lot quicker. Get hold of more information in regards to credit repair today!

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/everything-you-need-to-know-about-taxation-in-canada.htm

Related Finance Articles Subscribe to RSS

Understanding Christian and credit card debt settlement organizations
Published by Julia Roger on December 14th 2011 | Finance
With increasing debts among the majority of the population, people have started to seek professional...
 
Solving debt problems in the 21st century
Published by Deby Suportie on April 3rd 2012 | Finance
The number of people with debt problems continues to increase year after year. Even individuals who ...
 
Bank debt settlement in America
Published by Govindsingh on June 26th 2012 | Finance
For you to get out of debt settlement bad during settlement of debt in bank is very important. Cashl...
 
Loans from debt settlement banks
Published by Rajkumar Kaushal on May 30th 2012 | Finance
In the beginning Debt settlement IIc firms that take care of loans started with products that were f...
 
The Different Types of Scottsdale Property management
Published by Ray on April 3rd 2012 | Finance
If an individual has any kind of property, be it commercial or residential related he will need some...
 
Making debt settlement easier with groups
Published by Rajkumar Kaushal on May 15th 2012 | Finance
Debt settlement forms and articles have become what a lot of people are making use of when it comes ...
 
Exactly what is a debt management program and just how can I get this service?
Published by Deby Suportie on February 15th 2012 | Finance
This article provides information about debt management program and it's significance in today's tim...
 
What is debt advice UK and just how can one get this service?
Published by Deby Suportie on February 15th 2012 | Finance
Debt advice UK has aided many people affected by their debts. Through the years, providers have been...
 
Financial advice on Capital management
Published by Abhijeet on January 30th 2012 | Finance
The appropriate admonition in looking addition that can advice your business or aggregation to the a...
 
Financial Planner: Time to do savings through smart management
Published by Avena Sowell on December 21st 2011 | Finance
Financial planning can help one to manage the financial resources optimally and thereby generating h...
 
Counseling debtors during debt settlement
Published by Rajkumar Kaushal on May 19th 2012 | Finance
When you are about planning for Counseling in debt settlement and debt activities, it is important t...
 
Do you need assistance with financial debt that has been around for decades?
Published by Deby Suportie on February 16th 2012 | Finance
Debts can often be difficult to manage especially when it has been around for quite a while already....
 
How to choose the right debt management company
Published by James Falla on November 30th 2011 | Finance
There are many different debt management companies. We suggest the things you should consider when ...
 
Caravan Loans - Helps You to be in debt Caravan Loans
Published by Mark Fulton on February 3rd 2012 | Finance
Caravan Loan is extremely well-liked these days, insist in increasing and is basically liked car fi...
 
How creditors help you in learning more about bill and debt consolidation
Published by Joseph Goins on May 18th 2012 | Finance
People facing high bill problems can find a solution and relief through bill and debt consideration....
 
Resolution and reports on debt settlement
Published by Rajkumar Kaushal on April 30th 2012 | Finance
In the world of Debt Settlement report today, there are lots of programming from computer that is ta...
 
Blake cab offer some of the most reliable debt collection agency results of any business of its kind in the UK
Published by Mary Porter on July 12th 2012 | Finance
If you have incurred lost monies then here at Blake debt collection industry we have the experience ...
 
How to find articles on debt settlement
Published by Rajkumar Kaushal on May 12th 2012 | Finance
One can enjoy reduction in debt settlement and its association in debt settlement articles that oper...
 
Essentials for Investment decision and money management
Published by Isol on August 13th 2012 | Finance


Investment is a concept involving restoring your money via acquiring of assets, lending fin...
 
How can I get Debt Reduction? How can a debt plan help me repay my debts?
Published by Deby Suportie on March 28th 2012 | Finance
Debt reduction is a program provided by debt companies so that those who are struggling with debts c...