Overview

At the heart of responsible Canadian citizenship is voluntary compliance with Canada's tax system. This concept will be presented in an educational setting, as it is important for Canadian students to learn some basic information about the tax system, to understand where their tax dollars go, and how they can legally influence government decisions. Students will also be made aware of their rights and responsibilities, and how they can actively participate in Canadian society.

This learning unit recognizes and incorporates Canadian diversity, (e.g. cultural, ethnicity, gender, regional) in all aspects such as visuals, glossary, appendix materials, simulations, activities, assessment and evaluation.

Background

In recognizing that the underground economy is an issue of concern for all Canadians, the Canada Revenue Agency (CRA) and the Provincial Territorial Departments of Revenue/Finance formed the Federal/Provincial/Territorial Underground Economy Working Group. At the inaugural meeting, held in June 2000, the working group agreed that there was a need for a multi jurisdictional forum at the working level to share best practices in identification of non-compliance. The group focused on three areas: enforcement, information sharing and education. The working group formed committees in each of these areas to better focus efforts on practical joint opportunities.

This Education Committee project focused on seeking opportunities to enhance existing high school curriculum to ensure that young people are aware of the implications of their choices and attitudes towards taxation, and that they also realize the risks associated with participating in the underground economy.

The development of this learning unit was achieved through collaboration and partnering with the provinces of Alberta, New Brunswick and Ontario, and the CRA.

In this unit, the learning outcomes related to this initiative consider the developmental stages of the learner, and align with the existing curriculum and learning outcomes that support active and responsible citizenship and the skills of life long learning.

Structure

This learning unit is organized to meet a wide range of teaching and learning preferences. The learning unit contains black line masters, graphics, a game simulation, assessment strategies, checklists, rubrics, sample review questions and a glossary.

This learning unit has been designed to fit four average classroom periods (300 classroom minutes) and focuses on three connected Outcomes/Expectations that will enable the student to:

1) Demonstrate an understanding of Canada's tax system and its relationship to our quality of life in Canada, such as:

• levels of tax (federal, provincial, municipal);
• types of tax (consumption/commodity, personal and corporate income tax);
• social benefits (health care, public education, citizenship, protection of the environment, police, armed forces, firefighters);
• cultural benefits (amateur sports, recreation and heritage programs, parks); and
• social safety nets (Canada Pension Plan, Old Age Security, Employment Insurance, social assistance).

2) Demonstrate an understanding of the underground economy and its impact on Canadian society, such as:

• how it affects me;
• its impact on Canadian society;
• how it promotes non-compliance; that is, failure to file a tax return, incorrect claims, incorrect deductions, undeclared tips, etc.;
• how it enables fraud; that is, fake claims and declarations, willful default, gross misrepresentation; and
• what I can do about it.

3) Explain how an informed and responsible citizen actively participates in the tax system by:

• demonstrating their understanding of the interconnections involved in responsible citizenship and participating in Canadian society; and
• recognizing their rights and responsibilities as a citizen within Canada's tax system.