Definitions for letter I (Business)

Income

The sum of revenues earned in a specific period of time. It includes revenues from salaries, wages, benefits, tips, and commissions, profits from operating a business or profession, and investments earned.

Income statement

A financial statement that summarizes the results of business activities (income and expenses) for a given period of time. It is sometimes called a profit and loss statement.

Income tax payroll deductions

Employers must deduct income tax from the salaries or wages of their employees. They must base these deductions on the income tax deductions tables, which reflect each province's rates.

Information circulars

Publications that we issue to give detailed explanations on a variety of tax subjects.

Information slips

These are forms that employers, trusts, and businesses use to tell taxpayers and the CRA how much income was earned, and how much tax was deducted.

Input tax credit (ITC)

This is a credit that GST/HST registrants can claim to recover the GST/HST they paid or owe for goods or services they acquired, imported into Canada, or brought into a participating province for use, consumption, or supply in the course of commercial activities.

Instalment

Instalments are periodic payments of income tax that individuals are required to pay to the CRA to cover tax they would otherwise have to pay on April 30. Most people pay their tax by having tax withheld from their income throughout the year. However, if you receive income that has no tax withheld, or does not have enough tax withheld, you may have to pay tax by instalments. For more information, go to Paying your income tax by instalments.

Interpretation bulletins

Publications that give an interpretation of parts of the Income Tax Act.

Inventory

Generally, the total value of the goods on hand that a business intends to sell, use for manufacture, or use to render a service. In certain cases, inventory can also include services.

Investment

An expenditure to acquire property that yields or is expected to yield revenue or services.

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