What Is Income Tax?
Income tax is the tax that is levied on the money that people earn and has to be paid to the national government. The term income is something that is looked at a different context in taxation and depending on the country; this context is also bound to change. There are a lot of different types of income tax systems that are being used all around the world and the way income is taxed is a lot different from one country to another. In some countries, only personal income is taken in the purview of income tax, and in some countries profit that is made by a company owned by the person is also taken into consideration for income tax. Income tax is something that you can’t avoid and therefore it is better to hire a tax expert to help you with income tax.
Canadian Income Tax
* Canadian income tax is considered to be the major contributor to the revenue of the Government of Canada.
* The collection of personal income tax is considerably higher than the collection of corporate income tax
* The federal government of Canada collects the personal income tax on behalf of all the territories and provinces in Canada except Quebec.
* The corporate income tax is not collected in Alberta and Quebec territories by the federal government.
* The federal income tax system comes under the administration of the Canada Revenue Agency (CRA)
* Personal and corporate Canadian income tax that falls under federal income taxes are levied under the provisions of the Income Tax act
* The territorial and provincial income tax are levied under the provincial statutes that are present in the different territories.
* The Canadian income tax system is based on a self-assessment model.
* The tax liability is assessed by people and then it is filed as a return to the CRA.
* The CRA then will assess the return filed and correct them if any errors are found.
Why Hire a Canadian Tax Expert to Help You with Taxes
Taxation is a complex process and it involves a lot of knowhow on the policies and rules that exist in any taxation policy. If you are looking to file your income tax return with the CRA and do not want any issues to come out of it, you can look at hiring a Canadian tax expert to help you file your income tax return. A Canadian tax expert will be well versed in income tax provisions and will be able to file your income tax returns a lot faster and also without obvious mistakes.
What to Be Aware of While Hiring a Tax Expert?
If you are planning on hiring a Canadian tax expert to help you in filing your income tax returns, there are a few things that you must look at before you do so. Always hire tax experts who have a good reputation as they will ensure that you will not have any issues related to income tax after filing your returns. Reputed tax experts will have the expertise and the much needed experience to get the income tax return filed correctly and on time. Cost of hiring a tax expert should not deter you as you may be able to save a lot more through tax planning advice that a tax expert will give you.