General FAQs about Taxes
- How is my tax dollar spent by the Ontario government?
- What is the difference between provincial sales tax and goods and services tax?
- How much money does the Ontario government collect yearly?
- Why can't the MOR reply to a tax interpretation request by e-mail?
- Are the laws of Ontario, such as the Corporations Tax Act, on the MOR website?
- What records am I required to keep and for how long?
How is my tax dollar spent by the Ontario government?
Many of the services and benefits Ontarians enjoy are made possible through taxes. Ontario's tax system funds integral services such as roads and highways, health care, hospitals, education, social services, provincial parks and the environment.
- View the province's Consolidated Statement of Operations which includes expenses for health, education, children's and social services, environment, training and economic development.
- View details of Ontario's Finances
Information on government expenditures is contained in the annual financial report and consolidated financial statement of the Province of Ontario.
What is the difference between provincial sales tax and goods and services tax?
Provincial sales tax (PST), also known as retail sales tax (RST), is a tax that is collected by the Ontario government when taxable goods (e.g. a CD) or taxable services (e.g. cable TV) are sold. The general tax rate of 8% is charged on the selling price of the good or service. For example, if a CD is sold for $10, the PST would be 80 cents.
Goods and services tax (GST) is a federal tax collected by the Canada Revenue Agency. It is charged on the sale of most goods and services in Canada at a rate of 5%. For example, if a CD costs $10, the GST would be 50 cents.
How much money does the Ontario government collect yearly?
For 2008-09, the Ontario government's estimated revenue is $96.9 billion of which $69.0 billion, or about 71 per cent, is expected to come from taxation revenues. Three taxes within this category - Personal Income Tax, Retail Sales Tax and Corporations Tax - account for about 56 per cent of total revenues. (Source: Chapter 2, 2008 Ontario Budget)
Why can't the MOR reply to a tax interpretation request by e-mail?
At this time, the MOR website is primarily an information service. It provides electronic access to the majority of the ministry's forms, publications, and guides.
The MOR cannot respond to interpretation requests via e-mail due to the confidentiality of taxpayer information. Please call or write us with requests for interpretations on the tax and benefit programs administered by the ministry, such as PST and corporations tax.
We do, however, welcome general questions and comments about the site content as well as comments on the quality of the site or suggestions on how to improve it.
Are the laws of Ontario, such as the Corporations Tax Act, on the MOR website?
The MOR does not publish any consolidated statutes and regulations, either in print or electronically.
However, both the Ministry of Government and Consumer Services and Attorney General offer consolidated statutes and regulations on their website (www.e-laws.gov.on.ca) including the Corporations Tax Act.
What records am I required to keep and for how long?
In general, you must keep your books and records for at least seven years. However, there are some exceptions and conditions that must be met before you can destroy any books or records. Please refer to Tax Information Bulletin Retention/Destruction of Books and Records for information pertaining to the consent to destroy records.
The specific records which need to be retained differ with each statute; however, books and records must indicate the taxes payable or collected and substantiate any tax exempt status claimed and must be supported by documents necessary to verify that the information in the books and records is correct.
