The methods for calculating income taxes and remittance schedules are defined in the:

• A. Canada Revenue Agency guidelines
• B. Income Tax Act
• C. Taxation Regulations
• D. Income Tax Regulations

Answer: (D)

In Canada, the detailed rules for how income tax is calculated and when remittances are due come from the Income Tax Regulations, formed under the authority of the Income Tax Act. The Act provides the overall framework and power to regulate, but the actual methods, definitions, and remittance schedules are laid out in the regulations themselves.

Canada Revenue Agency guidelines exist to help interpret and apply those rules, but they are administrative guidance, not the binding source of calculation methods or remittance due dates. The term Taxation Regulations is not the official source used for these payroll calculations. So the regulation set that specifically prescribes how to compute tax and on what schedule to remit is the Income Tax Regulations.