A Primer on Income Taxes

With the approach of spring on the horizon comes the dawn of the tax season in Canada. One of the primary taxes by the Canadian and provincial governments on its inhabitants.

What are income taxes?

Income Taxes are levied upon the taxable income of each person in a single taxation year. Under this definition, this type of income tax is taxable upon Canadian residents. It is the entire taxpayer’s income with the accrued additions or deductions for the same act. From here, it can be reasoned out that non-residents of Canada do not have any tax obligations.

income tax return

Non-residents of Canada have their respective income tax obligations especially if they have employment in Canada. They have conducted business in Canada, or they have disposed of taxable Canadian property within the taxable year.

Engagement in any of these three activities obligates even non-Canadian residents to file income taxes. This is in accordance with the computations for the Income Tax Act.

Tax Deadlines

Furthermore, Canadian Taxpayers must remember that May 2 is the deadline for the filing of income tax returns this year. Ordinarily, this deadline would fall on April 30.

However, this date falls on a weekend. It is important that this date is not a reprieve and you must file before the deadline. This will avoid the imposition of penalties due to tax returns that have a late filing.

You’ll know your income taxes with the total income of a person who has an income from sources inside and outside Canada.

Other considerations include the presence of taxable capital gains from the disposition of any property in Canada. Also, the disposition of the taxpayer’s property on listing accrues towards the net gain of the taxpayer.

There are other factors to remember with the computation of income taxes include the presence of any losses incurring within the taxable year. For lower taxable amounts you can apply if you are in the following situations:

  • Have been laid off on a job
  • Rendered unemployed
  • Experiencing a financial setback within the taxable year.

There are deductions that can be applied to the amount of income tax for payment. To avail of the deductions and other tax benefits, you would want to avail the services of professionals.

What’s next?

Tax Consultants Calgary links you with professionals who can help you with your income taxes. Income taxes are fraught with intricate laws. The help of a tax consultant ensures that you are able to fill up the requisite paperwork correctly, with minimal fuss.

There would be no need to strain your computational skills anymore. Our professionals would be able to assist you and help you understand any benefits from tax laws that you can avail of.

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