2. In groups, look in the envelope that Mr. Zapfe has given you. Your job is to “find the taxes” in each receipt. Fill out the chart with the type of product or service, the amount of taxes paid and any notes or comment you have. After you have examined all the receipts, fill out the “What did you learn about taxes from these receipts” section of the chart.

3. http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst- tps/gnrl/txbl/xmptgds-eng.html http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst- tps/gnrl/txbl/xmptgds-eng.html

4. Direct Taxes – taxes that are levied against the individual taxpayer who is responsible for paying them. Examples: Income Taxes, Property Taxes Indirect Taxes – Taxes that are levied against the taxpayer but collected by a third party. Examples: Fuel Taxes, Sales Taxes

5. Proportional Taxes (Flat Taxes): taxes that are applied at a constant rate against a taxpayer’s income regardless of the type of income or level of income. Example: Sales Tax (In Ontario, we are charged 13% on all goods and services, regardless of our income level)

6. Progressive Taxes: Taxes that increase as the level of income increases Example: Personal Income Taxes Regressive Taxes: You pay a decreasing percentage of your income in tax as your income increases. A sales tax is considered to be a regressive tax since high income earners pay a smaller part of their income in tax than middle income earners, when they buy a product.

7. User Taxes: a tax paid to use a facility or service Example: Toll charged for using a bridge or road Transfer Taxes: a tax on the value of property when it changes ownership. Example: Land Transfer Tax (In Toronto, we have 2)

8. 0.5% of the value up to and including $55,000, 1% of the value of the consideration which exceeds $55,000 up to and including $250,000. 1.5% of the value of the consideration which exceeds $250,000 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

9. John and Julie are buying a home for $550,000, how much land transfer tax will they pay? Total Tax Payable is: $7475! CategoryCalculationTax Payable Up to $55,00055,000*0.005275 $55,000-$250,000195,000*0.011950 $250,000-$400,000150,000*0.0152250 $400,000+150,000*0.023000

10. In Toronto, we have a municipal land transfer tax as well. The rates are as follows: Up to and including $55,000.00 X 0.5% of total property value From $55,000.01 to $400,000.00 X 1% of total property value Over $400,000.00 X 2% of total property value This means if John and Julie buy in Toronto, they would pay an additional $6775 in land transfer taxes!

11. GST – Goods and Services Tax (5%) Exists in all jurisdictions in Canada, but is often “hidden” in the HST. PST – Provincial Sales Tax (amount varies by province) HST – Harmonized Sales Tax exists in Nova Scotia, New Brunswick, Newfoundland, Ontario.

12. This tax credit is designed to help low to moderate income individuals and families offset all or part of the GST/HST that they pay. It is paid in 4 equal installments.

13. To Qualify, you must meet ONE of the following criteria: 1.Be 19 years old 2.You have, or previously had a spouse or common law partner 3.You are (or previously were) a parent and live (or previously lived) with your child.