An Introduction to Canadian Taxation
The Canadian taxation system exists to support a high quality of life that all Canadian residents can enjoy. Every contribution you can make eventually funds projects that add to Canadian society’s greater good and public welfare. These include building roads and Canada’s healthcare and education system. Paying your taxes on time doesn’t just make you a responsible citizen but also fulfills your duty to the state.
Here’s all you need to know about the taxation system in Canada:
A lowdown on the Canadian tax system
Canada relies on a self-assessment taxation system. This means that individuals are responsible for filing their income tax returns voluntarily. The income tax and benefit return help them report their income, calculate their tax obligations for a specific fiscal year, and claim deductions and credits. The usual deadline to send the income tax and benefit returns to the CRA is April 30th. Individuals are expected to file their returns every year to receive the credits.
How to file an income tax return?
Before you start filing your income tax returns, make sure you have your information slips, social insurance number, income statements from Canada and abroad, and a tax package for the province you lived in on December 31st. Having a general income tax and benefits guide also helps. There are three different ways to file your income tax returns and benefits with the CRA.
If you’re doing so online, you either file your returns using NETFILE or get an EFILE provider to complete the return form on your behalf. You can also complete the return form and mail them to the nearest tax center.
Through your CRA account, you can also view your tax return status online, track and view your refunds, and check for any benefits and credit payments.
What are the benefits and credits?
Under the provisions of the CRA, you’re eligible for the child disability benefit, working income tax benefit, Canada child disability benefit (if your child deals with some disability), disability tax credit, and goods and service tax. You might be eligible for additional benefits from your respective provincial and territorial benefits. You can apply for the income tax benefit if you’re working but have a lower income. The benefit is up to Up to $1868 other than your working income.
If you’re based in Edmonton, you’re in luck because Faber LLP is helping with the preparation and filing of corporation and personal income tax returns. We will ensure compliance with both U.S. and Canadian tax laws as and when needed. Get in touch.