About Tax Law in Calgary, Canada
Calgary, like the rest of Canada, follows the federal system of taxation. That means there are both federal and provincial taxes applicable to the residents of Calgary. These taxes include: income tax, corporate tax, sales tax, and property tax among others. The revenues collected fund the public services such as healthcare, education, and infrastructure development. Tax laws can be complex and subject to changes, hence a professional understanding can be beneficial for individuals and businesses.
Why You May Need a Lawyer
Tax laws have profound impacts on individuals and businesses. Individuals may need help understanding the Canadian Income Tax Act and how it applies to their personal financial situations. Businesses may need assistance with tax planning, audits, appeals, and various other tax-relate complications. Having a tax lawyer is beneficial to interpret laws, handle disputes with Canada Revenue Agency (CRA), avoid penalties, and to assist with estate planning or setting up a new business.
Local Laws Overview
Calgary follows Alberta's provincial tax laws in addition to federal tax laws. Notable aspects include Alberta's single-rate tax system, meaning individuals pay a flat tax rate of 10% irrespective of their income level. For corporations, the general corporate income tax rate is 10%, while the small business rate is 2%. GST is 5% and is same all across Canada. Property tax is levied by the city of Calgary and varies depending on the assessed value of the property and the annual tax rate set by the City Council.
Frequently Asked Questions
1. When is the tax year in Calgary?
The tax year in Calgary, and Canada as a whole, is from January 1st to December 31st.
2. What is the penalty if I do not file a tax return?
For individuals, the late-filing penalty is 5% of the balance owed, plus 1% of the balance owed for each full month your return is late, up to a maximum of 12 months. For businesses, the penalty may be more severe.
3. Can I appeal against a CRA decision?
Yes, you have the right to appeal against a decision made by the CRA either by objecting to the notice of assessment or by filing an appeal in the Tax Court of Canada.
4. How much can I earn without paying tax in Calgary?
As per Canada's federal income tax brackets, for the year 2021, you can earn up to $13,808 without paying federal tax. However, you may be subject to provincial taxes.
5. Can a tax lawyer help me with tax evasion charges?
Yes, a tax lawyer is essential in handling charges of tax evasion. They are knowledgeable about tax laws and can provide legal representation and advice to help handle the complex process and reduce potential penalties.
Additional Resources
Here are some Governmental bodies and organizations related to Tax that can be helpful:
Next Steps
If you need legal assistance in Tax, consider reaching out to a tax lawyer in Calgary. You can consult professional law firms that specialize in tax law, or use referral services through the Law Society of Alberta. Ensure you have all relevant documents and detailed information about your case to help your lawyer provide the best advice and representation.
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The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
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