Canada Revenue Agency (CRA) Tax Specialist Income Practice Questions

What is the primary purpose of income tax?

• AA. To encourage investment
• BB. To promote savings
• CC. To fund public services
• DD. To support private businesses

Which form is typically used to report personal income tax in Canada?

• AA. T1
• BB. T2
• CC. T3
• DD. T4

What is the primary tax levied on individual income in Canada?

• AA. Income Tax
• BB. Corporate Tax
• CC. Sales Tax
• DD. Property Tax

Which tax credit is refundable and helps low-income families?

• AA. Child Care Credit
• BB. Home Buyers' Credit
• CC. GST Credit
• DD. Employment Credit

What does the term "taxable income" refer to?

• AA. Income after deductions
• BB. Total income before deductions
• CC. Income from taxable sources only
• DD. None of the above