BU413 Chapter 7: Personal Income Tax
Document Summary
To provide you with a basic understanding of the structure of personal income taxation in. To explain and illustrate the differences in taxation of different forms of investment income. To understand and calculate marginal tax rates and after-tax discount rates. Every province except for quebec has their own income taxation statute, in addition to the income tax. Quebec bases their taxation on federal rules and norms. The act itself is administrated by the canada revenue agency (cra) and is frequently changed and affected by every federal government budget and legislations. Canadian income taxation is based on self-assessment, meaning individuals voluntarily complete an income tax return to report their annual income and claim all deductions or credits that apply to their situation. This way they are able to calculate the amount owing or the refund to be received. Table 7. 1 basic format of personal income taxation in canada and most other countries.
