Tax policy Branch o the department of finance: responsible for the development and evaluation of federal taxation policies and legislation.
Canada Revenue Agency: actual collection of taxes and interpretation of tax law
Tax payable by persons resident in Canada: An income tax shall be paid … on the taxable income for each taxation year of every person resident in Canada at any time in the year.
Persons: including corporations and anybody representing such persons. (Individuals, corporations, and trusts that represent individuals or corporations.)
Full time resident: are subject to tax on their worldwide income throughout the entire calendar year. All ...view middle of the document...
Transactions can be |Illegal. Criminal offence. Civil |
| | |ignored |wrongdoing |
|Penalty |None |Arrears and interest plus taxes owing|Fine, possible imprisonment, arrears and|
| | |and possible penalties owing |interest plus taxes |
| |Filing Deadline |Due date of tax |
|Corporation |Six months from year end |Two months from year end, quarterly|
| | |installments |
|Individual |April 30 of the following calendar|Withholding tax and/or quarterly |
| |year |installments |
|Trusts and Estates |90 days from year end |Quarterly installment |
|June 15 if self-employed or spouse of a self-employed person |
Every tax return filed must be assessed by the CRA. Once the assessment is complete, a Notice of Assessment ("NOA") is issued that the date of mailing marks the commencement of certain limitation periods for a taxpayer, including the filing of a Notice of Objection or Appeal.
If the taxpayer disagrees with the assessment and the disagreement isn't resolved through information telephone or written communication with the CRA, the first formal approach for the taxpayer is to file a Notice of Objection.
For individuals, the Notice of Objection is due on the date that is the later of one year after the filing-due date of the return (April 30, June 15, or 90 days after the year end in the case of a trust) or 90 days from the mailing date of the assessment. For all other taxpayers, the Notice of Objection is due within 90 days from the mailing date of the assessment. (For corporate, it is 90 days)
Taxpayers who are not satisfied with the CRA's decision on the Notice of Objection may then appeal to the Tax Court of Canada. A taxpayer has 90 days after the final decision rendered by the CRA regarding a Notice of Objection to appeal to the Court.
Computation of Net Income for Tax Purposes - Steps
| |Net income for tax purpose | | | |
| |这部分都在Division B |=Sources of income + net taxable capital gains-Subdivision e deductions |
| | |=An amount greater than or equal to zero | |
| | | ...