Income taxes in Canada
Every Canadian with income must file an income tax return every year. People earning a small amount are exempt from this requirement.[1] Unlike Americans, Canadian citizens who live outside Canada are exempt from filing an income tax return and paying taxes to Canada, unless their income is derived in Canada.
The income tax returns are assessed by Canada Revenue Agency (CRA). Sometimes the filer must pay and other times they get a refund. Most employees pay income tax in advance through employer deductions. This is called tax withholding. When tax witholding exceeds the income tax due for the year, the employee can get a refund when filing their tax return.
Income tax in Canada is very complex. The Income Tax Act contains over over one million words[2]
The deadline for filing an income tax return is April 30th of the following year. Those who owe money to the government and miss the deadline pay interest on the amount owed plus a penalty.
References
- ↑ "Who is Required to File an Income Tax Return? | 2022 TurboTax® Canada Tips". 16 February 2022.
- ↑ "The Income Tax Act: 1.1 million words and counting!". Archived from the original on 2019-04-12. Retrieved 2019-04-12.
