2.  Who pays the tax  The tax base  The rates to be applied to the base  General exemptions  General deductions  Other measures, such as how tax is to be paid  These determine how much revenue is produced, how fair the tax system is, and its ability to produce economic growth.

3.  Based on the principle of self-assessment  Tax payers complete their tax return every year to report their income and calculate whether they owe tax or if they receivee a refund  It is the most economical and efficient way to collect tax.

4.  Why do you think the CRA felt the need to publish these rights?  Would you add anything to this list?

5.  GST/HST  GST – 5% tax that applies to most goodsand services in Canada  There are two taxes, the GST (Goods and Services Tax) & PST (Provincial Sales Tax)  In NL and some other provinces, these are combined into HST (harmonized sales tax)

6.  Direct taxes are paid by the taxpayer directly to the government.  Indirect taxes are paid by the taxpayer to a third party (such as a retail store) who remits the tax to the government.

7.  Which are these?  Income tax: a tax levied on the income of individuals, corporations, and trusts.  Tobacco tax: a tax applied to the sale of cigarettes, cigars, and other tobacco products  GST/HST: a tax on the supply of products and services  Property tax: a tax levied on the value of a property

8.  Proportional/flat taxes – applied at a constant rate regardless of income level and type.  Progressive income tax – individuals pay a larger percentage of tax as their income increases.  Regressive income tax – individuals pay a decreasing percentage of income in tax as their income increases. A sales tax is considered regressive since high income earners pay a smaller part of their income in tax than middle income earners.

9.  You can apply for this credit, if:  You are at least 19 years of age or older  You have (or previously had) a spouse or common law partner; or  You are (or previously were) a parent and live 9or previously lived) with your child.  Paid out every quarter (January, April, July, October)

10.  Statement of remuneration paid  Completed by the employer  Employers have to release these slips by the end of February for each tax year