If you are a student, which of the following is not a valid reason to file a tax return?

A.

You may be eligible for reduced tuition for the following tax year.

B.

You may be eligible for a refundable GST/HST credit.

C.

To ensure more room to contribute to your RRSP in the future.

D.

You may have eligible tuition and textbook tax credits.

What is the difference between tax avoidance and tax evasion?

Choose the correct answer below.

A.

Tax avoidance includes all legal activities and transactions that reduce or eliminate taxes payable. Tax evasion is when the taxpayer does not pay any taxes by unknowingly reporting an incorrect salary.

B.

Tax avoidance occurs when taxpayers knowingly report less tax payable than what the law obligates them to pay. Tax evasion occurs when taxpayers apply tax law to eliminate taxes payable in ways that would be considered abusive of the spirit of the Income Tax Act.

C.

Tax avoidance occurs when taxpayers legally apply tax law to reduce or eliminate taxes payable in ways that would be considered potentially abusive of the spirit of the Income Tax Act. Tax evasion occurs when taxpayers knowingly report less tax payable than what the law obligates them to pay.

D.

Tax avoidance is when the citizen does not pay any taxes by avoiding filing taxes payable. Tax evasion includes all legal activities and transactions that reduce or eliminate taxes payable.