Have you filed your taxes?

Here is a bigger picture. If you ever wondered where your tax dollars go, here it is. As you can see more than 25 percent of the income tax revenue goes back to the citizens. It means that the tax dollars are used to fund programs such as Employment Insurance, Children’s Benefits and Seniors Benefits.

Let's look at federal expenses for the fiscal year of 2008-2009.




The Canadian tax system is based on self-assessment. The United States, Australia, and New Zealand also use the self-assessment system. Self-assessment is considered the most economical and efficient way to collect income tax.

Under the self-assessment system, non-residents with Canadian income and Canadian residents are responsible for making sure they have paid their taxes according to the Income Tax Act. Income and deductions are listed on the return so both the taxpayer and the CRA can calculate the taxes the taxpayer has to pay

Below are some of the milestones in Canadian taxation.

Canada first collected personal income tax in 1917.
The organization that evolved into the CRA was founded in 1927.
Starting in 1966, Canada Pension Plan (CPP) contributions were collected from employers and self-employed Canadians.
In 1972, Revenue Canada Taxation began to collect Unemployment Insurance premiums (now called Employment Insurance or EI).
The federal government began to collect the goods and services tax (GST) in 1991.
The Canada Child Tax Benefit (CCTB) program was introduced in 1993.
The Universal Child Care Benefit (UCCB) program was introduced in July 2006.
The Working Income tax Benefit (WITB) program was introduced in 2007.

Even though you may not have to file a tax return, you may want to. By filing a tax return, you could qualify for a tax refund, credit, or benefit. For more information, go to Benefits of filing a tax return.

If you pay more tax than you owe during the year you could qualify for a tax refund. The tax refund cheque is sent out with a Notice of Assessment or deposited into your bank account if you have asked for direct deposit.

Whether you get a refund or not, you may qualify for a tax credit or benefit.

So what are you waiting for:)