A good way for the average Canadian to get the most out of his finances is to learn more about the tax policies of the country. In particular, there are tax benefits that might not be apparent to the average taxpayer who only relies on his company to withhold the necessary taxes. These tax policies are important in understanding just how much the average Canadian is liable to the government.
New immigrants to the country might be surprised to find out that they need to pay taxes once they’ve settled in. This is because taxes are collected not only on one’s citizenship, but also on his residence. Canadians should also realize that just because they’re not working in the country doesn’t mean they don’t have to file tax returns. Non- resident Canadians have the legal obligation to pay their taxes even if they live on the other side of the globe.
Compared to other countries, Canada’s individual tax rates are much higher. In fact, individuals pay more taxes than corporations. Not a lot of Canadians complain however as the government has done a good job ensuring that the tax collected is spent on the public’s welfare like infrastructure and socialized health care.
Those who are expecting to receive tax benefits this year should realize that these won’t be paid out until the next year. Still, it’s a good idea to get started as early as possible to get the most out of Canada’s tax laws.