Personal Income Tax

Personal Income Tax Services in Brantford, Ontario

The first income tax imposed in America was during the War of 1812. Its original purpose was to fund the repayment of a $100 million debt that was incurred through war-related expenses. After the war, the tax was repealed, but income tax became permanent during the early 20th century.

On July 25, 1917 finance minister of Canada tabled a resolution which called for income tax: 4% on all income of single men over $2,000. For others, the personal exemption was $3,000.

For those Canadians with annual incomes of more than $6,000, the tax rate ranged from 2 to 25 per cent.

In fact, he insisted on calling his bill the "War Tax upon Income" bill.

You must file a Tax Return if any of the following situations apply:

  • You have to pay tax for year.
  • CRA sent you a request to file a return.
  • You and your spouse or common-law partner elected to split pension income for the year.
  • You received working income tax benefit (WITB) advance payments.
  • You disposed of capital property (for example, if you sold real estate or shares) or you realized a taxable capital gain (for example, if a mutual fund or trust attributed amounts to you, or you are reporting a capital gains reserve you claimed on your previous year return).
  • You have to repay any of your old age security or employment insurance benefits.
  • You have not repaid all amounts withdrawn from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan or the Lifelong Learning Plan.
  • You have to contribute to the Canada Pension Plan (CPP). This can apply if, for the year, the total of your net self-employment income and pensionable employment income is more than $3,500.
  • You are paying employment insurance premiums on self-employment and other eligible earnings.
  • Even if none of these requirements apply, you can file a return if any of the following situations apply:
  • You want to claim a refund.
  • You want to claim the WITB.
  • You want the GST/HST credit (including any related provincial credits). For example, you may be eligible if you turn 19 before April next year.
  • You or your spouse or common-law partner want to begin or continue receiving Canada child tax benefit payments, including related provincial or territorial benefit payments.
  • You have incurred a non-capital loss in the year that you want to be able to apply in other years.
  • You want to carry forward or transfer the unused part of your tuition, education, and textbook amounts.
  • You want to report income for which you could contribute to an RRSP and/or a pooled registered pension plan (PRPP) to keep your RRSP/PRPP deduction limit for future years current.
  • You want to carry forward the unused investment tax credit on expenditures you incurred during the current year.
  • You receive the guaranteed income supplement or allowance benefits under the old age security program. You can usually renew your benefit by filing your return by April 30.