[Verse 1]
Income Tax Act breaks it down by section number
Five through eight for employment, that's the structure
Nine to thirty-seven business income flows
Twelve for property, that's how the system goes
Thirty-eight through fifty-five for capital gains
Every source has rules and regulatory chains
[Chorus]
Tax the income, know the source
Employment, business, property of course
Capital gains at fifty percent rate
Gross-up dividends, don't calculate late
Structure matters, sections guide the way
Individual taxation day by day
[Verse 2]
Employment benefits add to taxable pay
Automobile, housing, stock options in the fray
RPP contributions, union dues deduct
Home office expenses when the rules conduct
Taxable benefits increase your income base
While valid deductions help reduce the case
[Chorus]
Tax the income, know the source
Employment, business, property of course
Capital gains at fifty percent rate
Gross-up dividends, don't calculate late
Structure matters, sections guide the way
Individual taxation day by day
[Verse 3]
Business income includes what you earn
Capital cost allowance helps depreciation turn
Different CCA classes, different rates apply
Inventory valuation methods justify
Eligible capital property has special rules
These are the fundamental business tools
[Bridge]
Property income flows from what you own
Interest, dividends, rental income grown
Eligible dividends get gross-up treatment
Tax credit provides the sweet agreement
Non-eligible dividends get less relief
But still provide some tax credit belief
[Verse 4]
Capital gains start with adjusted cost base
Minus proceeds gives you gain or loss to face
Principal residence exemption saves the day
Listed personal property has its special way
Allowable business investment losses count
Against all income, that's the full amount
[Chorus]
Tax the income, know the source
Employment, business, property of course
Capital gains at fifty percent rate
Gross-up dividends, don't calculate late
Structure matters, sections guide the way
Individual taxation day by day
[Verse 5]
RRSP contributions reduce your tax
Pension splitting gives couples better tracks
Moving expenses, childcare costs deduct
Support payments follow rules that are construct
Net income minus deductions equals taxable
Tax payable depends on what's extractable
[Outro]
Non-refundable credits reduce the tax you owe
Basic personal, medical, charitable flow
Provincial rates and residency apply
Alternative minimum tax stands by
Individual taxation, learn it well
Every section has a story to tell