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Learn about your taxes

Lesson plan: Purpose of taxes

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Overview

This lesson will help students learn what effect the Canadian tax system has on them and what taxes pay for. Students will be able to test their knowledge through quizzes and practical examples.

The core question is:

Learning objective: Students will develop an understanding of why they pay taxes, why they should file an income tax and benefit return, and how the Canadian tax system works.

Skills to develop

Background information

We enjoy public services and social programs in Canada, like health care and education, and may not think about what makes them possible. The government pays for services and programs with the taxes it collects. By paying taxes, we all support our country and its residents.

Learning more about taxes and how they work in Canada will help your students become responsible members of society. Also, this knowledge will help them in making future financial decisions.

Learning and activities

Required materials step 1

Warm-up exercises step 2

First exercise

Step 1: Explain to students that taxes are mandatory payments made to a government. Individuals in Canada pay different types of taxes to different levels of government.

Step 2: Ask students what types of taxes they know about.

Suggested answers could be:

  • income taxes
  • sales taxes
  • property taxes
  • customs duties or tariffs
  • health services taxes

Second exercise

Step 1: Explain that the Canadian tax system affects everyone. The taxes they pay are used to fund services the government provides to Canadians, such as libraries and parks.

Step 2: Ask students how they might benefit from the system. Have them write down the answers and refer back to them as they go through the lessons.

Walk through the lessons step 3

Read through the lesson pages with the additional guidance provided below. Students can review material individually, in groups, or as a class.

Lesson A: Why you pay taxes

After finishing the lesson

Review the common taxes in Canada, the public programs and services, and the social programs and benefits that taxes pay for.

Activity

Review the answers from the warm-up exercise with the students. Discuss if they discovered any new taxes or benefits and whether they might access any of the programs in the future.

Lesson B: Why you should do your taxes

Before starting the lesson

Talk to students about how doing taxes has many positive aspects and benefits. Some students may have negative perceptions about filing tax returns. They might have heard that filing a tax return is expensive, hard, lengthy, and not worth their efforts. However, these are misconceptions.

After finishing the lesson

Discuss with students what they learned about the benefits of filing a tax return. Advise them that it is easier than ever to do their taxes. There are many options available, many of which are free. For example, they can use free certified tax software to do their taxes themselves. If they need help, they can visit a free tax clinic where a volunteer with the Community Volunteer Income Tax Program can do their taxes for them.

Lesson C: Know your rights and responsibilities

Before starting the lesson

Advise students that the CRA is the government agency responsible for collecting taxes and administering various benefits and credits. Ask students what they know about the guidelines for interactions between taxpayers and the CRA. Are they aware of their rights and responsibilities regarding tax, credits and benefits?

Activity

Have students write down what they think individuals should expect when dealing with the CRA.

Suggest they consider:

  • what taxpayers are responsible for
  • what rights taxpayers have
  • what the CRA is responsible for

Ask students to keep their list in mind as they review the lesson pages.

After finishing the lesson

Stress the benefits of understanding their rights and responsibilities within the Canadian tax system. This ensures they do their part while being treated fairly and professionally. Remind them of the options available to request to correct or review their tax and benefit accounts if necessary.

Lesson D: History of taxes

Before starting the lesson

Explain to students that taxes have not always existed as we know them today. Canada’s tax system has undergone many changes while the country expanded. Many of these changes were influenced by historic events. Ask students if they know when income tax was introduced in Canada. Advise them that they will find the answer as they go through the lesson.

After finishing the lesson

Ask students if they were surprised by anything they learned in the lesson. Reiterate that the changes they saw have helped meet the needs of the Canadian population. This includes the social programs and benefits they learned about earlier in the module.

Activity

Ask students to think about what kind of tax system they would create if they were developing a new country. Have them write down their answers.

Suggest they consider:

  • what types of taxes they would collect
  • how much tax individuals and businesses would pay
  • what public facilities and programs they would use the tax money for
  • what social programs and benefits they would offer

Ask students to compare their answers and discuss the pros and cons of their ideas.

Bring it all together step 4

Direct students to complete the quiz to assess their understanding.

Discuss the importance of taxes with students. The taxes they pay will benefit all individuals in Canada by helping to fund the programs and services the government offers. Students can also access benefits by filing their return each year.

Reiterate that they have completed a basic introduction to the Canadian tax system and the role they play as a taxpayer.

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