Kweku asked in Business & FinanceTaxesCanada · 1 decade ago

How do I apply to claim for the 5-year Tax Back Guarantee from the Canada Revenue Agency?

How do I apply to claim for the 5-year Tax Back Guarantee from the Canada Revenue Agency.

Can I apply privately or need to obtain the services of a tax professional?

1 Answer

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  • Tdot
    Lv 6
    1 decade ago
    Favorite Answer

    You don't need to do anything as this isn't a credit, but rather already factored in to the personal income tax rate.

    The government implemented a 5 year economic plan in which they budget to pay down the national debt by a certain amount each year, then pass on the interest savings through a reduction in the basic income tax rate, which was reduced from 16% to 15.5%.

    Calling it a "tax back guarantee" and the way it was communicated is simply a gimmick. For example, Canada is currently adding to - not reducing - the debt, but the reduced income tax rate remains in effect.

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