What Is Taxation All About?

Taxation is something that is prevalent in all countries and it is the revenue generator for governments to carry out infrastructure projects, development projects and projects that will help in developing the country. To generate revenue, there are taxes that are levied upon the citizens and the companies in a country based on their income and profits. Taxes are basically of two types and they are direct and indirect taxes. Direct tax is the tax that you pay directly to the government, for example income tax and indirect taxes are those that you will pay for the products and services you buy or utilize. The indirect tax amount is included in the cost of the product or service and this tax will paid to the government by the company or the service provider. There is a lot more when it comes to taxation but the nuances of taxes are best explained by tax experts.

Canadian Income Tax

• In Canada, income tax generates most of the annual revenues that are earned by the Government of Canada.

• Personal income tax collected is much more than the corporate income tax collected in Canada.

• Canadian income tax is levied under the provisions of the Income Tax Act of Canada and the tax collection is administered by the Canada Revenue Agency (CRA).

• As in many countries, the income tax system in Canada is based on self-assessment. The taxpayers of Canada assess their income themselves and identify their tax liability. Then the same is filed as an income tax return with the CRA.

• The CRA then analyses the return filed and will correct it if any obvious errors are found.

There are ways to save income tax in Canada, but for clear information on that you might want to consider the option of hiring a Canadian income tax expert to help you with it.

Canada-US Tax Treaty

• There is a Canada-US tax treaty that has been signed by the two countries with respect to Taxes that are levied on income and capital.

• The Canada – US tax treaty was first signed in September 1980 and there have been a few amendments to it over the years.

• Amendments were made to the Canada-US tax treaty in 1983, 1984, 1995 and 1997 to ensure that both governments were not subjected their citizens to double taxation and to prevent citizens from tax evasion.

Why Utilize the Services of a Canadian Income Tax Expert?

Though the income tax calculations in Canada seem to look simple, there are a lot of small intricate adjustments that can be done while filing your Canadian income tax. To help you in knowing where you can save on taxes, get the services of a Canadian income tax expert who will have good knowledge and experience of Income tax laws in Canada. If you do not have the time to prepare the tax return on your own, a Canadian income tax expert will get it done for you correctly and also in less time. Above all the tax expert can help you by saving you on what you pay as taxes not just for the current year, but also help you with tax planning for the years to come.

To add a comment please login by clicking here