Definitions for letter R (Business)

Rates of tax

Income tax rates are percentages of income that must be paid as tax. The Department of Finance sets the basic income tax rates, which vary progressively with the amount of income received.

Effective January 1^st, 2008, the GST rate is 5% and the HST rate is 13%.

Real property

Real property includes:

• a mobile home or floating home and any leasehold or proprietary interest therein;
• in Quebec, immovable property and every lease thereof; and
• in any other place in Canada, all land, buildings of a permanent nature, and any interest in real property.

Records

Documents such as account books, sales and purchase invoices, contracts, bank statements, and cancelled cheques. You must keep records in an orderly manner at your business or residence in Canada for at least six years from the end of the last tax year to which the records relate. You must make these books and other documents available to our officers for audit purposes.

Refund

The overpayment of income tax returned to a taxpayer after we assess the return.

Registrant

A person who is registered or required to be registered under GST/HST legislation.

Remittance

A payment of Canada Pension Plan (CPP) or Quebec Pension Plan (QPP), Employment Insurance (EI), income tax, or GST/HST that is paid to us through a financial institution, or that a business or individual sends directly to us. It also includes the employer's share of CPP contributions and EI premiums.

Research grants

Amounts of money given to individuals to explore areas in various fields of study. The grants cover the cost of research plus the researcher's income. These amounts are taxable but some of the researcher's expenses may be deductible for tax purposes. For more information, see Interpretation Bulletin IT-75, Scholarships, Fellowships, Bursaries, Prizes, Research Grants and Financial Assistance.

Reserves

Funds set aside to cover future expenses, losses, or claims.