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Canada Revenue Agency
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Module 1: Basics of Taxation

Tax is defined as a compulsory contribution levied on persons, property, or businesses for the support of government for economic and social operations. In other words, it is money paid to a government to fund its programs and services.

Sometimes, different levels of government collect tax. For example, in Canada individuals will pay federal taxes to the Government of Canada to administer the country. They may pay provincial or territorial taxes as well.

Without a tax system, a government would not have any money to provide services.

Citizens support the tax system by paying their fair share of taxes. In turn, they receive services and benefits from their government.