FIN 502 Chapter Notes - Chapter 7: Hectare, Cash Flow, Discount Window
Document Summary
Canadian income taxation is based on self assessment. = income tax payable before credits tax credits. Few exception, every resident limited corporations trusts, or individuals required to complete an income tax on prescribed forms. Canadian system for individuals is progressive: higher levels of taxable income are taxed at higher rates, lower rates applies to all income up to a specified level all income above that level is taxed at the higher level. Average tax rate- total tax payable divided by total income. Marginal tax rate- rate that applies to one more dollar of income. Highest category or tax bracket- and you are deciding whether to invest your money in a term deposit: marginal after-tax rate od return you receive will be (1- marginal tax rate)(interest rate) Under progressive system average rate will be equal to or less than the marginal rate.
