I need the joy of learning how CAD income tax works!
#16
Joined: Aug 2005
Posts: 14,227
Re: I need the joy of learning how CAD income tax works!
It will never happen, the north american mindset is to be very upfront and paranoid about taxation, and want to double and triple check that they are not being fleaced. Hence annual tax return paperwork and no tax included on shop sticker prices so that you are seing it crystal clear on the sales slip how much the government just lifted from your wallet.
#17
Re: I need the joy of learning how CAD income tax works!
What's staggeringly inefficient and cumbersome about it is that everyone has to file for the calendar year, meaning that RevCan has to have huge computers and armies of temporary staff early in the next year and accountants are rushed off their feet in April. If they switched to making your tax year run from, say, your birthday, a great frenzy could be avoided.
#18
Re: I need the joy of learning how CAD income tax works!
What's staggeringly inefficient and cumbersome about it is that everyone has to file for the calendar year, meaning that RevCan has to have huge computers and armies of temporary staff early in the next year and accountants are rushed off their feet in April. If they switched to making your tax year run from, say, your birthday, a great frenzy could be avoided.
#20
Re: I need the joy of learning how CAD income tax works!
I did three in over 30 years. One when I started work. One when I took in a mate as a lodger and the last one when he moved out.
Now I've done six since 2004.
True enough. I do think there's a bit of obsession with tax though.
People speak about their tax dollars (Brits never spoke of tax pounds did they?) and there's tax season.
And of course, tax freedom day or whatever it's called.
Now I've done six since 2004.
True enough. I do think there's a bit of obsession with tax though.
People speak about their tax dollars (Brits never spoke of tax pounds did they?) and there's tax season.
And of course, tax freedom day or whatever it's called.
Last edited by BristolUK; Dec 15th 2010 at 5:03 pm.
#21
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: I need the joy of learning how CAD income tax works!
I don't think the two systems are all that different.
It is true that the P45s and cumulative tax codes in the UK mean that employer deductions are more accurate and are more likely to approximate the tax you actually owe if you have more than one job in a tax year.
It is also true that there are more deductions/credits available to the average joe in Canada. Means tested benefits in Canada are calculated on your income as reported on your tax returns so there is a great incentive to file each year.
However, the principle is the same. In both countries you have to file a tax return if you owe tax, or if the revenue request you to. You file a return if you want a refund because of allowances not included in you tax code. In both countries you don't have to file a tax return if you don't owe any tax.
It is true that the P45s and cumulative tax codes in the UK mean that employer deductions are more accurate and are more likely to approximate the tax you actually owe if you have more than one job in a tax year.
It is also true that there are more deductions/credits available to the average joe in Canada. Means tested benefits in Canada are calculated on your income as reported on your tax returns so there is a great incentive to file each year.
However, the principle is the same. In both countries you have to file a tax return if you owe tax, or if the revenue request you to. You file a return if you want a refund because of allowances not included in you tax code. In both countries you don't have to file a tax return if you don't owe any tax.
#22
BE Forum Addict
Joined: Sep 2009
Location: Paradise NL
Posts: 1,511
Re: I need the joy of learning how CAD income tax works!
I quite enjoy tax time myself - pay some bloke at a tax company $100 bucks , hand over a few receipts and the T4's and wait on a tidy deposit coming in to the bankie in 10 or 11 days or pay an extra few bucks and get a cheque there and then - Nothing inefficient or cumbersome about it and I do it the lazy way rather than spending the half hour doing it myself.
#23
Account Closed
Joined: Aug 2008
Posts: 7,284
Re: I need the joy of learning how CAD income tax works!
I quite enjoy tax time myself - pay some bloke at a tax company $100 bucks , hand over a few receipts and the T4's and wait on a tidy deposit coming in to the bankie in 10 or 11 days or pay an extra few bucks and get a cheque there and then - Nothing inefficient or cumbersome about it and I do it the lazy way rather than spending the half hour doing it myself.
#24
Re: I need the joy of learning how CAD income tax works!
We're some way short of tax levels but we do our returns every year.
I quite enjoy it in a weird sort of way.
Do you think you're more likely to be audited (or whatever) if you don't file than if you do? Especially if returns suddenly stop?
Do you think we look perverted to the agency because we file each year?
Presumably there are no GST refunds if you don't file?
I quite enjoy it in a weird sort of way.
Do you think you're more likely to be audited (or whatever) if you don't file than if you do? Especially if returns suddenly stop?
Do you think we look perverted to the agency because we file each year?
Presumably there are no GST refunds if you don't file?
Last edited by BristolUK; Dec 15th 2010 at 5:11 pm.
#25
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: I need the joy of learning how CAD income tax works!
We're some way short of tax levels but we do our returns every year.
I quite enjoy it in a weird sort of way.
Do you think you're more likely to be audited (or whatever) if you don't file than if you do? Especially if returns suddenly stop?
Do you think we look perverted to the agency because we file each year?
I quite enjoy it in a weird sort of way.
Do you think you're more likely to be audited (or whatever) if you don't file than if you do? Especially if returns suddenly stop?
Do you think we look perverted to the agency because we file each year?
I always advise people to file their returns on time, pay their taxes on time and fly under the CRA's radar.
#27
Re: I need the joy of learning how CAD income tax works!
I do agree with dbd that everyone filing at once is stupid. Why not split it over 12 months based on SIN number, or Surname or something?
#28
Re: I need the joy of learning how CAD income tax works!
You just sent me back to the 1970s in the DHSS with the National Insurance Card exchange (with stamps!) done 4 times a year according to the suffix of the NINO.
#29
Forum Regular
Joined: Aug 2005
Posts: 156
Re: I need the joy of learning how CAD income tax works!
Actually once you have become accustomed to the Canadian tax system you will realize its purpose. The Canadian tax system provides a vast amount of ways to save money on tax. These are called tax credits. The system is also set up to tax people based upon their indiviudal circumstances rather than their salary. Therefore a spouse that supports another spouse is allowed additional deductions, people with kids under 18 pay less tax, you don't pay tax on daycare fees, union dues, tution fees etc. You are rewarded for saving for your retirement. The system from what I can tell is much more fair yet more complicated than the british tax system. Most small companies don't have the proper staff to be able to effectively and accurately determine each individuals correct tax rate. As such individuals file their taxes once a year.
#30
Re: I need the joy of learning how CAD income tax works!
JB