Administration:
Federal Income Tax laws are administered by Canada Revenue Agency in Canada.
There are eight Taxation Centres located in British Columbia, Newfoundland, Price Edward Island, Manitoba, Ontario and Quebec. Province of Ontario and Quebec have two offices each.
Non resident returns are processed at the International Taxation Office in Ottawa.International Taxation office is located at 2204 Walkley Road, Ottawa, ON, K1G 4G8, Tel: (800) 267-5177
Appeals:
A lot of differences can be resolved if the taxpayer consults with official responsible for his or her file at the local tax office.
If differences cannot be resolved at this level, a tax payer has a choice to file a notice of objection in prescribed form. This notice of objection is simply a statement of facts and reason for objection. This objection must be filed with in 90 days of mailing of the notice of objection or one year from the due date of the return, whichever is later.
As a next step a taxpayer can appeal to the Tax Court of Canada. Once an appeal is filed, a taxpayer is given the option of an “informal procedure” or a “general procedure”. For tax amount of $12,000.00 or less, a taxpayer is given an informal procedure.
For informal procedure, appeal must be submitted in writing. A taxpayer can represent himself or herself or may be represented by an agent. An agent does not have to be a lawyer.
If general procedures are followed, Court will be bound by strict rules of evidence. A taxpayer can be represented by a legal counsel. a taxpayer may also represent himself or herself. A tax payer can appeal decision of the Tax Court to the Federal Court of Appeal. An appeal to the Federal Court of Appeal must be filed with in 30 days of the Tax Court Judgement.
Supreme Court of Canada is the ultimate court of appeal for tax matters.
Income:
Income is the starting point in any analysis of income tax. Receipt can be classified as income or capital. Receipts of capital have more favourable tax consequences in Canada. Taxable income = Income of a taxpayer plus or minus the additions and permitted deductions.
Deductions:
Deductions are items that can be written off against income to reach taxable income.