Tax Return Review

Who is responsible for determining how much tax an individual must pay each year?

• The taxpayer

• The government

• The employer

The requirement to file a tax return in Canada is based on:

• Residency

• Citizenship

• Social insurance number

Juanita is a resident of Mexico but owns a rental property in Canada. How does Canada collect income tax on her rental income?

• Income tax is withheld from the rents and submitted to the government before the net rents are sent to Juanita.

• Juanita is required to file a tax return because she has income in Canada.

• Since Juanita is not a resident of Canada, Canada does not tax her rental income.

Who is required to file a tax return?

• Canadian residents and temporary residents earning income in Canada and must report worldwide income.

• Only residents of Canada

• Only those who owe income tax

On which line of the tax return would the Canada Workers Benefit be reported?

• 45300

• 41550

• 45700

Which document outlines CRA’s obligations to the taxpayer?

• Taxpayer Bill of Rights

• Taxpayer Notice of Assessment

• Taxpayer Right to Appeal

What are two of the EFILER’s obligations to the taxpayer?

• Protect the Client’s privacy and retention of records for 6 years.

• Keep records and privacy policies.

• File Tax returns and retention of records.

What is the difference between NETFILE and EFILE?

• NETFILE is a method of filing for taxpayers when preparing their own income taxes electronically. To EFILE tax returns you need to apply to the CRA for an EFILE number and then using approved EFILE software.

• EFILE is a service for filing your personal tax and NETFILE is one used for filing other people’s tax.

• NETFILE is filing online and EFILE is a business.

To set up My Account with the CRA, you must have your Social Insurance Number along with...

• Address and a line off your previously filed tax return.

• Address and Line 15000 of your tax return

• a line off your previous tax return

What is the purpose of a RepID?

• To be able to represent your clients to the CRA and access their the CRA personal and business records of their clients.

• To be able to access My Account.

• To be able to access your own personal taxes.