- Income that is not subject to taxation. It is important to note that income exempt from federal taxation is not necessarily exempt from provincial taxation.
nontaxable, a perfect world, free from taxes, tax-free
Related Terms and Acronyms
- Alternative Minimum Tax (AMT) — Acronym,
➥ Form T691.
- This tax primarily affects high-income taxpayers who shelter some of their income from tax through certain tax preference items or deductions. It is often referred to in tax publications as AMT and, if your income meets the limit, you have to recalculate your tax due based on the separate alternative minimum tax rates and tables.
- Constructive Receipt — Definition,
- The idea in which a taxpayer does not actually have to take possession of money for it to be taxable. An example of this is when savings account interest is reinvested rather than sent to the account holder as a separate payment. In this case, the account holder constructively received the interest because the earnings were credited to his account and could have been taken out at the owner's discretion. As such, the earnings are taxable.
- Sales Tax — Definition,
- Federal and / or provincial taxes that are applied to purchases.
- Short Tax Year — Definition,
- A tax period less than 12 months long, resulting from a business start-up or the transition to a tax year ending on a different date.
- Tax Exempt Fuel Sales (TEFS) — Acronym, Canada,