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INCOME TAX

Meet Kay

  • Kay needs your help. Follow her along on a financial journey, as she makes mistakes, fixes them, and learns her lesson.

  • Click-through time: ~8 minutes.

  • Test your knowledge with a quiz and our game: "Talk Like a Banker"!​​

"Kay has just arrived from Mars for a summer internship on Earth. Upon inspecting her first paycheque, she notices…"

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How Income Tax Works

Where Tax Comes From and Where it Goes

​The Canadian government taxes businesses and individuals to raise money for public goods and services.  The CRA (Canada Revenue Agency) administers taxes on behalf of the government.

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  • ​Taxes fund roads, bridges, schools, our health care and legal systems, army, police, and certain cultural / charitable activities.

  • ​They're used to pay the salaries of government employees and fund social services / benefits for certain groups, such as low income earners, students, retirees, children, and people with disabilities. 

Income Tax Tip

Tax Tip #1

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Check with your parents / guardian if they've ever filed a tax return on your behalf. If they did, ask if you can take over, or at least participate.

If they haven't, start filing your own taxes.

Income Tax Tip

Tax Tip #2

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At the latest, file your first tax return the next tax season after you turn 18. Taxes are due by the end of April, every year.

 

​This will allow you to qualify for the HST/GST tax credit, as soon as possible.  It's a cash refund that pays up to $300 per year, in quarterly installments (every 3 months) after you turn 19.

What Does the Government Tax?

  • ​Income earned by individuals, from employment and investments.

  • Profits earned by businesses.

  • Property - land and any buildings on it.

  • Consumption - GST/HST and excise taxes on certain items, including alcohol, tobacco, and gasoline.

  • Payrolls - this tax is paid by your employer on the money they pay employees.

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