Outcome/Expectation 1: Demonstrate an understanding of Canada's tax system and its relationship to our quality of life in Canada

Suggested time: 50 minutes (20 minutes for Activity 1, and 30 minutes for Activity 2)

Activity 1: Introduction

There are two suggested strategies for this activity. You can choose which strategy to use.

Teacher tip
You can use Visual 1, cartoons 1, 2, and 3 to further enhance the concepts behind the statements below.

Strategy 1 - Group exercise

1) Divide the students into groups, and ask each group to decide the accuracy of the following statements:

• You do not have to file an income tax and benefit return if you are under 16.
• Most people get a refund when they file their tax return.
• There is no tax to pay when you buy a used motorcycle.
• You do not have to report tips or cash income.

2) Ask the groups to present their views to the class, describing how they reached their decision.

3) Debrief the students on the accuracy of their findings.

• You do not have to file an income tax and benefit return if you are under 16.
  
  False - The requirement to complete and file an income tax and benefit return is not based on age but on taxable income.
  
  
• Most people get a refund when they file their tax return.
  
  True - Most income tax returns result in a refund.
  
  
• There is no tax to pay when you buy a used motorcycle.
  
  False - The fact that an item is taxable or not has nothing to do with it being new or used.
  
  
• You do not have to report tips or cash income.
  
  False - Tips and cash income are taxable income.

OR

Strategy 2 - Cartoon analysis

To complete this section, you will need the teaching aid Visual 1.

1) Show the students cartoons 1, 2, and 3 found in Visual 1, and then ask them to analyze them and note the questions about tax that the cartoons raise. This may be done as an individual or group activity. Ask the students to give oral reports of their analysis.

2) Suggested discussion questions should include:

• Who is in the cartoon? What are they doing? Where are they? What are they discussing?
• How does this cartoon relate to taxes? What is the message and opinion of the cartoon?
• What is the humour or irony in this cartoon?
• What questions are raised about taxes?

Cartoon 1

Cartoon 2

Teacher tip
Taxes paid are used by the federal, provincial and municipal governments to support the infrastructure, i.e. repair roads, bridges, hospitals, health care, schools, parks, etc.

Cartoon 3

Teacher tip
If a person gets hurt while working on your house you may be responsible for their medical expenses, and may face the possibility of being sued. It is therefore important to have a signed contract. Refer your students to www.hiringacontractor.com for more information.

Activity 2: Government taxes, services and everyday life

Teacher tip
Choose one of the three proposed strategies for this activity.

Strategy 1 - Daily activities

To complete this section, you will need the teaching aids Daily Activity Chart (at the end of Strategy 1), Appendix 1, and, Black Line Master 1 and 2.

1) Divide the students into groups, and ask each group to make a list of what their normal daily activities include, from the time they wake up in the morning until their bedtime (use Black Line Master 1).

2) Ask the students to categorize the goods and services they have consumed in the course of their day (use Daily Activity Chart and Black Line Master 1 and 2).

3) Use examples from the students' lists to identify levels of government and how the government was involved e.g. providing goods and services or collecting tax (use Appendix 1).

4) Ask the class to brainstorm how money is raised to provide all of these services.

5) Initiate a discussion outlining the tax roles of different levels of government and the services each provides to its citizens.

Teacher tip
A sample day may include the following activities:

Time	Activity
6:30 a.m.	Get up and take a shower
7:00 a.m.	Have breakfast
7:20 a.m.	Take school bus
8:00 a.m.	Go to class
9:30 a.m.	Go to cafeteria to try new a chocolate bar
10:00 a.m.	Go to computer lab to do research
12:00 p.m.	Lunch in the park and listen to music on the radio
3:30 p.m.	Sign out a book from the public library
4:00 p.m.	Work as Swimming instructor for disabled children
6:00 p.m.	Take a bus home
6:30 p.m.	Have supper
7:30 p.m.	Visit a friend at the hospital
8:30 p.m.	Go to hockey practice
10:23 p.m.	Crash for the night

Daily Activity Chart

Time	Activity	Goods and services consumed	Municipal Government	Provincial Government	Federal Government
6:30 a.m.	Get up and take a shower	Water, shampoo, soap	Wastewater treatment facility	Provincial energy resources and price regulation boards	National Energy Board

Strategy 2 - Government taxes and services

To complete this section, you will need the teaching aids Appendix 2 and Handout 1.

1) Present information about Canada's tax system, using the resource materials on the following topics:

• Examples of government taxes and services (use Handout 1); and
• Tax revenues (use Appendix 2).

Teacher tip
You may want to inform the students that there are funds other than taxes that form a government's total revenue, such as fines, licences and fees.

Strategy 3 - Distribution of revenues

To complete this section, you will need the teaching aids Appendix 3 and Visual 2 and 3.

1) Use a sample federal, provincial, or territorial distribution of revenues and expenditure pie chart (Appendix 3 and Visual 2) or a sample municipal government budget (Visual 3) to show students where taxes are spent.

2) Have the students create their own pie chart and decide where the money should go. This activity can be done individually or in a group. Teachers or students may access federal, provincial, or municipal government Web sites for examples.

3) Divide the students into groups, and have them create their budgets as an election platform, or as an interest/stakeholder group.

4) Have the groups present the budget to the class, and justify their allocation of funds.