Understanding What Canada Tax Is All About
Living in Canada is a wonderful experience, but it also means you have an obligation to learn what Canada tax is all about and what your obligations are. Nobody likes the thought of having to turn over some of their hard earned money to the government, but at the same time everyone wants a great atmosphere to enjoy life in, and taxes help to provide that.
Not only do you have to pay tax but there are different categories of Canadian taxes. For example, there are taxes on the income you make as well as on some goods and services. How much you have to pay all depends on what province of Canada you live in, and your particular circumstances when it comes to income tax.
The governing body for tax regulation in Canada is called the CRA (Canada Revenue Agency). When it comes to your income tax there are two levels of government that will demand a specific amount of money from you. This will be the Provincial Government and the Federal Government. There are Canadian tax rates that are used as the guidelines for the collection of income taxes based on the income you make and some other variables.
It can be really difficult when money is tight to have to accept that you have to pay taxes. Many Canadian residents become really frustrated when they are in a tight money situation and have to take on a second job. Then to make matters worse they find that at the end of the year the extra income they have made has pushed them into a higher tax bracket.
Another problem with Canada tax is that it is complex to understand. The CRA has put out many bulletins and guides to help the Canadian taxpayer. This often becomes the resource that many people rely on when it comes time to file their annual tax return. While the guide for this is straight forward it has to be remembered that it is an interpretation of the actual tax laws. There are often cases where individuals have unique situations and just aren’t sure how the tax laws are to be applied to their situation. As a result they end up filing a wrong return, or missing out on a tax credit. In addition to this they may have been able to make some financial changes to their current financial situation that would have put them in a more favorable tax position.
Ideally the best way to get the most breaks from your tax obligation within the Canada tax laws and ensure that you are filing your taxes properly is to use the services of an expert in taxes. In Toronto for example there are Toronto accountants who specialize in taxes and are a valuable resource for the Canadian tax payer who wants to get their taxes right.