Mathematics 20
Module 3
Lesson 15
Mathematics 20
51
Taxes
Lesson 15
Mathematics 20
52
Assignment 15
Taxes
Introduction
The main portion of this lesson deals with personal income taxes, although property taxes
and sales taxes are discussed.
The regulations and legislation on taxes changes frequently and any material written
today will likely be outdated within two or three years. Consequently, the section on
personal income taxes was written with the intent that the current tax guide be used as
much as possible so as to apply the most recent regulations.
The study of personal income taxes involves much more than is covered in this lesson.
This lesson should be approached with the knowledge that information has to be found by
searching the guide or phoning a source of information such as the office of Revenue
Canada, checking the Revenue Canada website.
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Assignment 15
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Assignment 15
Objectives
After completing this lesson, you will be able to
•
define sales tax, property tax, personal income tax, and various terms associated
with these taxes.
•
calculate the final cost of an item purchased after taxes have been added.
•
calculate mill rates and property taxes.
•
calculate discounts or penalties on taxes due depending on when they are due.
•
determine and calculate permissible deductions from total personal income.
•
calculate the tax payable on taxable income.
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Assignment 15
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Assignment 15
15.1
Introduction to Taxes
Classification of Taxes
Governments at the federal, provincial, and municipal levels levy different kinds of taxes.
Taxes may be classified as progressive or regressive and they may be classified as direct
or indirect.
Progressive or Regressive
A tax is said to be progressive if it taxes people on the basis of their income or ability to
pay. For example, if a person whose taxable income is $50 000 is taxed at a higher rate
(%) than one whose taxable income is $20 000, then that would be considered a
progressive tax.
On the other hand, if both were taxed at the same rate, such a tax would be considered
regressive since it would bear more heavily on the person with the lesser income.
Direct or Indirect
A tax is said to be direct if it must be paid by the person on whom it is levied. For
example, the Provincial Sales Tax (PST) is paid by the consumer and this is done usually
at the time of purchase of an item to which the tax applies. Personal income tax is also a
direct tax paid to the federal government by the individual.
If, however, a tax is levied on a business or individual and this tax is passed on to another
party, the tax would be considered indirect. For example, prior to the Goods and Services
Tax (GST) which became effective January 1, 1991, the federal government levied a sales
tax on the producer or manufacturer of goods. The manufacturer simply passed this tax
on to the consumer by means of a higher retail price for the goods. Since the retail price
did not show the tax, it could be called a hidden tax.
Another example of a hidden or indirect tax is the Tobacco Tax which is charged at the
wholesale level. A retailer who purchases tobacco products for resale pays $10.35 per 200
cigarettes (June, 2002) and this cost is passed on to the consumer in the form of a higher
retail price.
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Assignment 15
Provincial Sales Tax
For many years all provinces in Canada (except Alberta) have had a sales tax which is a
direct tax on certain goods sold in the province. In Saskatchewan the Education and
Health Tax, often called the provincial sales tax (PST) is a main source of revenue for the
provincial government. This money is used by the government to provide service such as
health care, education, social programs, and highways.
Currently (2006), the PST is 5% in Saskatchewan and it applies to the purchase of a wide
variety of items. Some items are exempt from the PST such as books, some foods and
medicines.
Detailed and current information on sales tax can be obtained by contacting
Saskatchewan Finance, Revenue Division, 2350 Albert Street, Regina, Saskatchewan,
S4P 4A6. Phone 787-6645.
Goods and Services Tax
The Goods and Services Tax (GST) replaced the Federal Sales Tax on January 1, 1991.
The majority of goods and services sold or provided in Canada are taxable under the GST.
As of January 1, 2008, the GST currently stands at 5%. The revenue of this taxation is
used for social programs, defence, etc. Businesses, including self-employed individuals,
corporations, and partnerships, collect the GST and remit it to the federal government.
The GST applies to all stages of the production and distribution chain. Because the GST
is a tax on personal consumption, the consumer pays the tax. Businesses, however can
recover all the GST paid through a special tax credit, thus preventing tax being paid on
tax.
A simplified example of how the GST works can be seen in the case of the production and
sale of a refrigerator. The 5% GST applies to the price of the iron ore sold by the mining
company to the steel maker. When the steel made from the ore is sold to the appliance
manufacturer, GST applies again. The GST also applies when the appliance maker sells
the refrigerator to the wholesaler, when the wholesaler sells it to the retailer and when
the retailer sells it to the consumer.
The advantage to businesses is that they can recover all GST paid on goods and services
purchased for resale or commercial purposes. An advantage for consumers is that the
GST is not a hidden tax like the PST when applied at the manufacturing stage of
production. The GST is visible at the retail level and is not hidden in the retail price.
To help lower and modest income Canadians afford the tax, the government introduced
the GST credit - a tax credit paid in instalments four times a year based on income
reported on the annual personal income tax return.
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Assignment 15
Always feel free to use your scientific calculator when working through
problems involving taxes.
The following example shows how the PST and GST are calculated on a purchase.
Example 1
A compact disc player was priced at $349.99. Calculate the final amount
paid if the PST was 5% and if the GST was 6%.
Solution:
Calculate the PST (5% of the price).
5% of $349.99
= 0 .05  $ 349 .99
=$17.50
Calculate the GST (6% of the price).
6% of $349.99
= 0 .06  $ 349 .99
=$21.00
Calculate the total price.
Cost
PST
GST
TOTAL
$349.99
17.50
21.00
$388.49
The total cost was $388.49.
Example 2
The final cost of an item is $540.00 after GST and PST were added.
Calculate the original price and the GST (6%) and PST (5%)that were paid.
Solution:
Read the problem.
The formula for finding the final cost of an item is:
Final Cost = Original Cost + 5% × Original Cost + 6% × Original Cost
You know that the final cost is $540.00.
Find the original cost.
Find the amount paid in PST and GST.
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Assignment 15
Develop a plan.
•
•
Let x represent the original price before taxes.
Substitute the known values into the formula.
Carry out the plan.
Write the formula.
Final Cost = Original Cost + 5% × Original Cost + 6% × Original Cost
Substitute the known values.
Solve for x.
$ 540 = x + 0 .05 x + 0 .06 x
$ 540 = 1.11 x
$ 540
x=
1.11
 $ 486 .49
•
The original price was $486.49.
•
The total taxes are $ 540 .00  $ 486 .49 = $ 5 3.51 .
•
The PST is 5 % of $ 486 .49 = $ 24 .32 .
•
The GST is 6 % of $ 486 .49 = $29.19 .
Exercise 15.1
1.
A refrigerator before taxes is $767.00. Calculate a 5% tax (PST), a 6% tax (GST),
and the total cost.
2.
A bill for a purchase of several items from a dealer showed a final cost of $643.63
which included a 5% tax (PST) and a 6% tax (GST) but the taxes were not itemized.
Calculate the amount of each tax paid and the original cost of the items.
3.
A hidden tax of 15% applies to a certain item and the price of the item is $4135.56.
What is the amount of tax paid?
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Assignment 15
15.2 Property Taxes
Municipal governments (cities, towns, rural municipalities, and school boards) are
responsible for providing education, public works including upkeep of streets, parks,
sidewalks, play grounds, sanitation waterworks, police forces, and fire departments.
Grants from the provincial government are one source of funds for the cost of providing
these services but the major source of funds is property and business tax on property
within the municipality.
Property tax is a direct tax on real property which includes land, buildings and
improvements such as sidewalks and swimming pools. Property owned by churches,
hospitals, government agencies, and crown corporations may be exempt from property tax.
This tax is based on the assessed value of the property.
The assessment is not the market value of the property (the price the owner could expect
to get if the property is sold), but is a value determined by the assessor only for the
purpose of calculating taxes. The assessor, who is an employee of the municipality, may
use the current market value for the calculations. However, the assessed value is well
below the market value. It is important that the assessment for one particular property is
in line with the assessments of similar properties in the same or similar neighbourhoods
within the municipality. Once the assessment is set, it remains the same for many years
unless major improvements are made to the property. The assessed value is only a
fraction of the market value of the property.
Assessed value is the value placed on real property by provincial and municipal assessors
on a specific date.
Each year a municipality must prepare a budget showing:
•
expected total expenditures for the coming year for services and education costs
(budgeted expenses)
•
expected total revenue from provincial grants and from property taxes
•
expected total property tax collected based on assessment
The tax rate must be set so that the required amount of tax is collected to cover expenses.
Mill Rate
This example illustrates how the tax rate is determined.
•
•
•
The amount of taxes to be collected (Budgeted Expenses) is $72 000 000.
The total property assessment in the municipality is $800 000 000.
Budgeted Expenses
$ 72 000 000
=
= 0 .09
Total Assessed Value
$ 800 000 000
This means that for every dollar of assessment, $0.09 or 9 cents must be collected in tax.
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Assignment 15
This is equivalent to collecting $9 for every $100 of assessment, or $90 for every $1000 of
assessment.
Tax rates, however, are always expressed in number of dollars to be collected per $1000 of
assessment. The unit for this is the mill.
The Mill Rate is a property tax rate where one mill equals one dollar of tax for every
$1000 of the assessed value of the property.
Formula for Mill Rate:
Mill Rate =
Budgeted Expenses
Budgeted Expenses
=
 1000
Assessment
Assessment
1000
Therefore, the mill rate for the municipality in the example is 90 mills.
$72 000 000
Tax Rate (Mills) =
 1000 = 0.09  1000 = 90 mills
$800 000 000
Property tax is the tax that an individual that owns property has to pay each year.
Formula for Property Tax
Property Tax = Mill Rate 
Example 1
Assessment
1000
If the assessment on a property is $23 530, how many thousands is this?
Solution:
Divide by 1000.
23 530
= 23.53
1000
There are 23.53 thousands in $23 530.
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Assignment 15
Example 2
Find the property tax mill rate if the budgeted expenses are $1 350 000 and
the total assessed value is $20 350 000 for the entire municipality.
Solution:
•
•
Budgeted expenses:
Total assessed value:
Write the formula.
$ 1 350 000
$20 350 000
Budgeted Expenses
 1000
Total Assessed Value
1 350 000
=
 1000 = 66.339 mills
20 350 000
Mill Rate =
Substitute the known values.
The mill rate is 66.339 mills.
Example 3
Find the property taxes to be paid on a house with an assessed value of
$7 950 in a municipality where the mill rate is 98.7 mills.
Solution:
•
•
Assessed value:
Mill rate:
$7 950
98.7 mills
Write the formula.
Assessment
1000
7950
= 98.7 
1000
= $784.67
Property Tax = Mill Rate 
Substitute the known values.
The property tax is $784.67.
Example 4
In a city a certain property is assessed as follows:
•
The lot is assessed at $9 000.
•
The house is assessed at $13 000.
The mill rate consists of 50 mills for the city, 6 mills for the library, and
70 mills for the public school.
Calculate the total tax payable.
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Assignment 15
Solution:
•
•
The total assessment is $22 000.
The total mill rate is 126 mills.
Write the formula.
Property Tax = Mill Rate 
Substitute the known values.
Property Tax = 126 
Assessment
1000
22 000
= $2772
1000
The total tax payable is $2 772.00.
Discounts and Penalties
Suppose that you own a house on a lot in the city of Regina. In December or January , you
will receive a notice from City Hall telling you the amount at which your property has
been assessed if there has been a change in the assessment. It also indicates the tax rate
for the previous year.
About the same time as the notice of assessment is sent to you, the municipality may send
out a Prompt Payment Notice. Most cities and towns don’t set their mill rates until later
in the year. However, they may choose to offer residents a discount on their property
taxes to encourage early payment. If taxes are not paid by a certain deadline, the
municipality may add a penalty on the amount due.
Example 5
Find the discount and the amount due to a rural municipality if on
August 27, an $897.00 tax bill was paid and a 6% discount was applied to the
bill.
Solution:
Calculate the discount.
6% of $897.00 = 0.06  897 = $53.83
Calculate the amount due.
Amount due:
Mathematics 20
= $ 897 .00  $ 53 .82
= $843.18
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Assignment 15
Example 6
Based on the tax notice below determine the following:
a.
b.
c.
How much of the tax is allocated to the library?
If the taxable assessment were increased by $2500.00, what would be
the maximum advance payment credit available? (Assume a 3%
credit)
What would the increase in tax be if the mill rate increased by 1 mill?
2005 ADVANCE PROPERTY TAX NOTICE
Property Description
Date
15/01/05
Address: 123 Triangle Bay
Reference
Co.
810
Ward: 10
Plan: 77R31474
Assessment
Fair Value
Taxable Assessment (70%)
2004
2005
100 690
70 480
103 600
72 500
No.
Deadline Date for
Payment Without
Penalty
June 30, 2005
TAXING AUTHORITY
2004
MILL RATE
2005
ESTIMATE
Municipal
School
Library
18.62
19.72
1.97
1,350.00
1,429.00
143.00
Total Estimated General Taxes
40.31
2922.00
TOTAL BALANCE
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2922.00
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Assignment 15
Solution:
a)
$143.00
$143.00 is allocated to the library in taxes.
b)
Calculate the taxable assessment.
$72 500 + $2 500 = $75 000
Calculate the tax.
Assessment
1000
$75 100
Property Tax = 40.31 
1000
Property Tax = $3023.25
Property Tax = Mill Rate 
clear 75000 ÷ 1000 × 40.31 enter
display: 3023.25
Calculate the advance payment credit.
3%  3 023.25 = $90.70
clear 0.03 × 3023.25 enter
display: 90.6975
The advance payment credit would be $90.70.
c)
Assessment
1000
72 500
Property Tax = 41.31 
1000
Property Tax = $2995.00
Calculate the new tax.
Property Tax = Mill Rate 
clear 72 500 ÷1000 × 41.31 enter
display: 2994.975
Calculate the increase.
$ 2995 .00  $ 2922 .00 = $ 73 .00
The increase would be $73.00.
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Assignment 15
Example 7
a.
Using the same sample of the advance tax notice what would be the
maximum Advance Payment Credit if the tax bill paid before Jan. 31
was $3 563.00? (Assume a 3% credit).
b.
For the same mill rate, what would be the estimated tax on a property
assessed at $64 300?
Solution:
a.
Calculate the maximum advance payment credit.
3%  $3563 = $106.89
clear 0.03 × 3563 enter
display: 106.89
b.
Calculate the estimated tax.
Assessment
1000
64 300
Property Tax = 40.31 
1000
Property Tax = $2592.00
Property Tax = Mill Rate 
clear 64300 ÷ 1000 × 40.31 enter
display: 2591.933
The maximum advance payment credit is $106.89 and the estimated tax would be
$2 592.00
The Urban Municipalities Act allows each municipality to set its own discount and
penalty rates so these may vary.
The Rural Municipalities Act states the schedule for when property assessments and mill
rates must be set. The act also states limits for discounts and penalty rates on taxes.
This act applies to farm land and hamlets.
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Assignment 15
Municipal Business Tax
Municipalities levy a special tax on business. If the proprietor of a business is a tenant
(rents the location), only the business tax is paid. The owner of the location pays the
property tax. If the proprietor owns the property as well, then both taxes are his or her
responsibility.
Municipal business tax assessments are calculated in many different ways throughout
Canada. The tax may be based on the amount of floor space used by the business, or on
the gross annual sales, or on the rental value of the property or as a percentage of the
assessment to which the current property tax rate is applied. In most municipalities, the
type of business is also a consideration in the calculation of the business tax. Also, fees of
varying amounts may be charged for licences permitting businesses to operate in the
municipality.
The property tax and business tax are added together to meet the expected budgeted
expenses.
Business tax formula:
Business Tax = Assessment
 Mill rate
Exercise 15.2
1.
Find the property tax mill rate for each budgeted expense and total assessed value.
a.
$3 140 000
$50 200 000
budgeted expenses
total assessed value
b.
$5 370 000
$70 720 000
budgeted expense
total assessed value
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Assignment 15
2.
Find the property taxes when you are given the assessed value of the property and
the mill rate.
a.
$18 270
111.4
assessed value
mill rate
b.
$10 860
61.3
assessed value
mill rate
3.
The property taxes on a barber shop in Melville are $2375. Find the total amount
1
payable if an 8 % penalty is added.
4
4.
The property taxes are $1 290 for agricultural land in the Rural Municipality of
Wolsley. Find the total amount payable in May if there is a 5% discount for early
payment.
15.3 Personal Income Taxes
For the assignment you are required to have the most recent tax guide and tax forms
available from Canada Revenue Agency. These are available from postal outlets in the
province or they may also be downloaded from
http://www.cra-arc.gc.ca
Since tax regulations change from year to year, the most recent guide and forms available enable
you to read the current information. Also, because of the frequent changes, the teaching
approach used here will be a guided reading approach. In this way, the information you are
reading will be current and directly from the guide mentioned above rather than from this course
material.
The following steps will help you to become acquainted with the General Income Tax and
Benefit Guide and the Income Tax and Benefit Return, which contains the tax forms.
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Assignment 15
1.
Locate the four-page T1 General form. Find the different sections with the
following headings.
Identification
Total Income
Net Income
Taxable Income
Refund or Balance Owing
Pages 1-3 of this form are filled out first to determine your Taxabale Income on
line 260.
2.
Locate the Schedule 1 - Federal Tax form.
Locate the form SK428 - Saskatchewan Income Tax and Credits.
These two forms use the amount from line 260 to calculate the tax paid to the
Federal Government and to the Provincial Government. The results from these two
forms are entered on the fourth page of the T1 General.
3.
There are many other forms that are called Schedules. These numbered schedules
are used to calculate and summarize special information such as the total of
investment interest, or the credit allowed for making charitable donations, for
example. The final result of a calculation on a schedule is then transferred to the
designated line on the main T1 General form.
4.
On the T1 General form each line is numbered. The guide is also arranged
according to the same numbering system. For example, Line 101 in the T1 General
requires you to enter the total of your employment income. In the guide, Line 101
provides information about employment income.
(The amount for employment income is obtained from T4 slips, which are prepared
by your employer. These are discussed later.)
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Assignment 15
Exercise 15.3
1.
2.
3.
Search the T1 General form and locate the line on which you would report
interest earned on investments.
On which schedule are you required to first summarize all interest earned
from investments.
Search the guide to find out how you would report your interest earned in a
joint account.
The T4 and a Simple Tax Return
If you work for a business or a company, part time or full time, your employer must report
your income to both you and to the Canada Revenue Agency. The T4 slip must be received
by the end of February of the following year. It contains all the information necessary for
entering into the T1 General form. The front side of such a form is shown on the next
page for a fictitious person named Raina Dee who works part time at Deli's Grocery.
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Assignment 15
Notice, on the T4, that if a dollar amount is to be written into the T1 General, then the
line on which it must be entered is given.
For Example, the amount $8500.00 from Box 14 is to be entered on Line 101. The amount
$8500.00 in Box 24 is not to be entered on the T1 General since no line is indicated.
For many individuals life is not too complicated and the only information to be reported is
from the T4 slips received from an employer. Completing a tax form in such a case is aided
very much by the information given on the T4.
It is said that the best way to learn is by doing. You may now go to the assignment where
the tax questions will guide you through a tax form.
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Assignment 15
Summary
The following is a list of concepts that you have learned in this lesson.
•
The formula for mill rate is:
Mill Rate =
•
Budgeted Expenses
Budgeted Expenses
=
 1000
Assessment
Assessment
1000
The formula for property tax is:
Property Tax = Mill Rate 
•
Assessment
1000
The process of determining your income tax is activity based and you must become
involved in the process in order to understand the concepts.
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Assignment 15
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Assignment 15
Answers to Exercises
Exercise 15.1
1.
2.
PST (5%)
GST (6%)
Total cost
=
=
$767.00 × 0.05 = $38.35
$767.00 × 0.06 = $46.02
$767.00 + $38.35 + $46.02
$851.37
Let x represent the original cost of the items before taxes.
643.63 = x + 0.05x + 0.06x
643.63 = 1.11x
x = $579.85
Original cost is $579.85.
PST (5%) is 579.85 × 0.05 = $28.99
GST (6%) is 579.85 × 0.06 = $34.79
Check:
?
$643.63  $579.85 + $28.99 + $34.79
$643.63 = $643.63 
3.
Let x represent the price of the item before the hidden tax.
x + 0.15x = $4 135.56
1.15x = 4 135.56
x = $3 596.14
Therefore the amount of tax paid is
$4 135 .56  $3 596 .14  $359 .42 .
Exercise 15.2
1.
2.
Mathematics 20
b.
Budgeted Expenses
 1000
Assessment
3 1 40 000
Mill Rate 
 1000
50 200 000
 62 .5 mills
75.9 mills
a.
b.
$2035.28
$665.72
a.
Mill Rate 
75
Assignment 15
3.
Exercise 15.3
Mathematics 20
1
% penalty:
4
 Total Amount
8
$2 375 × 0.0825 = $195.94
=
=
2 375 + 195.94
$2 570.94
4.
1 290.00 – (0.05 × 1 290) =
=
1.
Line 121
2.
Schedule 4
3.
The amount of interest you report is proportional to your
contributions to the joint account.
76
1 290.00 – 64.50
$1 225.50
Assignment 15
Mathematics 20
Module 3
Assignment 15
Mathematics 20
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Assignment 15
Mathematics 20
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Assignment 15
Optional insert: Assignment #15 frontal sheet here.
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Assignment 15
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Assignment 15
Assignment 15
Values
(30)
A.
Multiple Choice: Select the best answer for each of the following and place a
() beside it.
1.
A 9% tax on $15 of furniture polish amounts to ***.
____
____
____
____
2.
$649.60
$89.60
$576.00
$560.00
a.
b.
c.
d.
$26.36
$402.86
$351.87
$24.63
A town has a total assessment of $700 000 000 and its budgeted
expenses are $14 000 000. The mill rate for the town is ***.
____
____
____
____
Mathematics 20
a.
b.
c.
d.
The final cost of an item is $376.50, including a 7% tax. The amount of
7% tax paid was ***.
____
____
____
____
4.
$1.25
$1.35
$1.45
$16.35
A 7% tax and a 9% tax on a TV priced at $560 brings the final price up
to ***.
____
____
____
____
3.
a.
b.
c.
d.
a.
b.
c.
d.
0.02 mills
20 mills
50 mills
2 mills
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Assignment 15
5.
The mill rate in a town is 251 mills. A house and lot assessed at
$14 000 would have a property tax of ***.
____
____
____
____
6.
Feb. 28
Mar. 31
Apr. 30
Dec. 31
a.
b.
c.
d.
tips
support payments
interest on lottery winnings
lottery winnings
a.
b.
c.
d.
Ontario
both Ontario and Saskatchewan
Saskatchewan
either Ontario or Saskatchewan
Line 101 on the tax form is used to record ***.
____
____
____
____
Mathematics 20
a.
b.
c.
d.
A student who goes to school in Ontario but whose home address is
Saskatchewan would use the tax forms for ***.
____
____
____
____
10.
$76.80
$768.00
$2483.20
$300.00
On the tax form, total personal income is not to include ***.
____
____
____
____
9.
a.
b.
c.
d.
The deadline date for filing income taxes is ***.
____
____
____
____
8.
$251
$3514
$140
$2430
A 3% discount for early payment on a tax bill of $2560 is a saving of
***.
____
____
____
____
7.
a.
b.
c.
d.
a.
b.
c.
d.
farming income
rental income
tips
employment income from T4 slips
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Assignment 15
Part B
Answer the following two questions on the tax forms that you have obtained.
If this is the first time you have had to complete a tax form, it may seem like
an overwhelming task. These problems provide you with guidance for
completing the form and by doing this you will gain some familiarity with the
process.
(40)
1.
Ravi Dee received two T4 slips from his two places of work during the past
year. Using the information provided on the T4 slips, shown at the end of
this problem, complete his T1 General form and all necessary schedules by
following Steps 1 to 9 to determine his Refund or Balance Owing.
STEP 1: Complete page 1 (Identification) of the T1 General. In addition to
the information on the T4, we know that Ravi is single, born June 30, 1970,
and resides in Saskatchewan. Ravi wishes to apply for the GST Credit, be
added to the list of electors and did not own any foreign property.
STEP 2: On page 2 of the T1 General, from box 14 of both T4 slips enter the
total on the appropriate line. Check all the other boxes on the T4 slips. If no
further entries are to be made on page 2, complete line 150 and transfer the
necessary information to page 3.
STEP 3: On page 3 complete line 212. Complete all other necessary totals
on page 3, which are lines 233, 234, 236 and 260.
STEP 4: Follow the instruction at the bottom of page 3. Schedule 1
determines the tax to be paid to the Federal Government.
STEP 5: Complete lines, 300, 308, 312, 363, 335, 338, and 350 of Schedule 1.
STEP 6: On the next page of Schedule 1, complete Steps 2 and 3. Lines
numbered on the far right side requiring completion are: 28, 30, 32, 34, 35,
37, 38, 42, 43, 45, 52. Lines not mentioned here are zero.
STEP 7: Find form SK428 (Saskatchewan Income Tax and Credits). This
form determines how much tax is to be paid to the Saskatchewan
Government.
STEP 8: Complete lines labeled (on the far right side) 1-8, 10, 25, 27, 31, 32,
33, 35, 37, 39, 40, 42, 44, 45, 49, 50, 52, 54, 56, 59, 63, 69, 73. (Note that
some lines will have 0 entered as the amount.)
STEP 9: Finally, go to page 4 of the T1 General. Complete lines 420, 428,
435, 437, 482, and finally, either 484 or 485.
*
Mathematics 20
Remember to include Ravi’s signature where required.
83
Assignment 15
Mathematics 20
84
Assignment 15
(30)
2.
This question deals only with page 4 of the T1 General, Schedule 1, and
SK428 (Saskatchewan Income Tax and Credits form). You are to determine
the balance owing or the tax refund for Sandi Owingmore.
From pages 2 and 3 of the T1 General, Sandi Owingmore has already
calculated that her taxable income (line 260) is $44 633.00. Sandi is a single
mother with one healthy child who is seven years of age. On the T4 slip the
CPP contributions and EI premiums were a maximum. On the T4 slip the
tax deducted by the employer was $9 430.00.
STEP 1: Complete Schedule 1. Enter lines 300, 305, 367, 308, 312, 335, 338,
350. Also, on the next page, enter lines (labeled on the far right) 28, 30, 32,
34, 35, 37, 38, 42, 43, 45, 52. Lines not mentioned are zero.
STEP 2: Use the same information to complete the form SK428
(Saskatchewan Income Tax and Credits). Enter lines 1, 4, 8, 10, 25, 27, 31.
Also, on the next page, enter lines 32-40, 42, 44, 44, 45, 49, 50, 59, 63. And
on the final page, enter lines 63, 69, 71, 73. Lines not mentioned are zero.
STEP 3: To complete page 4 of the T1 General enter lines 420, 428, 435, 437,
482, and all necessary totals.
*
Signatures are required in places.
_____
(100)
Mathematics 20
85
Assignment 15
Mathematics 20
86
Assignment 15