Question 1

What significant tax policy was implemented in Canada in 1917?

Accepted Answer

Income Tax Act

Answer

Property Tax Act

Answer

Sales Tax Act

Answer

Capital Gains Tax Act

Question 2

Which agency is responsible for collecting taxes in Canada?

Accepted Answer

Canadian Revenue Agency (CRA)

Answer

Tax Collection Agency

Answer

Canada Tax Commission

Answer

Revenue Canada

Question 3

What type of tax system does Canada utilize for income tax?

Accepted Answer

Progressive tax system

Answer

Flat tax system

Answer

Sales tax system

Answer

Regressive tax system

Question 4

What is the maximum total marginal tax rate in Canada when combining federal and provincial taxes?

Accepted Answer

54 percent

Answer

45 percent

Answer

50 percent

Answer

60 percent

Question 5

What was the condition under which the Income Tax Act was to be reviewed?

Accepted Answer

After World War I

Answer

After World War II

Answer

Every five years

Answer

After a decade

Question 6

What does 'marginal tax rate' refer to?

Accepted Answer

The tax rate applied to the last dollar earned

Answer

The minimum tax rate

Answer

The average tax rate across all income

Answer

The rate applied to capital gains

Question 7

Which type of income is typically taxed at a lower rate in Canada?

Accepted Answer

Capital gains

Answer

Rental income

Answer

Employment income

Answer

Interest income

Question 8

What does the government do with the taxes collected?

Accepted Answer

Redistributes to provide services and assistance

Answer

Reduces the national debt

Answer

Stores it in reserves

Answer

Invests in foreign markets

Question 9

What misconception do some people have about the progressive tax system?

Accepted Answer

All income is taxed at the highest rate

Answer

Low-income earners do not pay taxes

Answer

Everyone pays the same tax rate

Answer

Income tax is the only tax

Question 10

What is one reason people may dislike the graduated tax system?

Accepted Answer

It penalizes success and discourages prosperity

Answer

It benefits only the wealthy

Answer

It leads to higher government spending

Answer

It complicates tax filing

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