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Quiz: How Canada's tax system is structured

9 questions

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1 A caller insists a rule in the Income Tax Act is unfair and asks CRA to waive it for them. What is the accurate thing to tell them about CRA's authority? CRA administers the Act; it cannot change or waive the legislation itself CRA can waive any provision where a taxpayer shows hardship Only the Tax Court of Canada can waive a provision of the Act CRA administers the Act and cannot change or waive it, though relief from penalties and interest may be available where the Act provides for it

Answer key unconfirmed — rests on 2 unverified claims.

2 Who develops tax policy and drafts tax legislation in Canada? The Canada Revenue Agency The Tax Court of Canada The Office of the Taxpayers' Ombudsperson The Department of Finance Canada

Answer key unconfirmed — rests on 1 unverified claim.

3 "Self-assessing" describes Canada's income tax system. What does it actually mean? Taxpayers assess their own returns and CRA reviews only those it audits The taxpayer reports their income and calculates their tax; CRA then assesses the return CRA calculates each taxpayer's tax and sends them the result to confirm Taxpayers may choose which method of assessment CRA applies to them

Answer key unconfirmed — rests on 1 unverified claim.

4 A resident of Quebec asks why they file differently from their sister in Ontario. What is the reason? Quebec has no tax collection agreement, so CRA collects both federal and provincial tax there Quebec residents file only with Revenu Québec and not with CRA at all Quebec residents file the same way; only the credits differ Quebec administers its own personal income tax through Revenu Québec, so Quebec residents file a separate provincial return

Answer key unconfirmed — rests on 2 unverified claims.

5 A taxpayer moved from Alberta to Nova Scotia in October. Which province taxes them for that year? Whichever province they nominate on the return Nova Scotia, because that is where they were resident on December 31 Both, prorated by the number of months in each Alberta, because they lived there for most of the year

Answer key unconfirmed — rests on 1 unverified claim.

6 Someone with no income at all and no tax payable asks whether they need to file. What matters most here? No — CRA will assess them automatically from information slips No — with no tax payable there is nothing to report Only if they were asked to file by CRA Yes — entitlement to the Canada child benefit and the GST/HST credit depends on a return being filed

Answer key unconfirmed — rests on 1 unverified claim.

7 A caller says: "I'm phoning about my wife's return — she's right here, she just doesn't like the phone." What governs your response? Marital status gives no automatic right to the information; authorisation is required, and identity must be confirmed first A spouse may be given information if the taxpayer is present and consents verbally on the spot Spouses filing together share an account, so the information is already jointly held Information may be given to a spouse but not to a parent or adult child

Answer key unconfirmed — rests on 2 unverified claims.

8 A taxpayer is unhappy about how long CRA took to answer their correspondence and separately believes their assessment is wrong. Where does each go? The service complaint to the Tax Court; the assessment to the Ombudsperson The service complaint to the Ombudsperson; the assessment through the objection process, and on appeal to the Tax Court of Canada Both to the Office of the Taxpayers' Ombudsperson Both to the objection process

Answer key unconfirmed — rests on 2 unverified claims.

9 Beyond personal income tax, which of these does CRA administer? Select all that apply.

Select all that apply.

Quebec personal income tax Payroll deductions Registration of charities and registered plans Drafting amendments to the Income Tax Act GST/HST Excise duties and levies

Answer key unconfirmed — rests on 1 unverified claim.

Unanswered questions are marked wrong. There is no partial credit.