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Certified Financial Planner (CFP) Practice Exam · Question

A Canadian resident earns employment income. What type of income is this generally considered for tax purposes?

Income received from an employer for services rendered is generally classified as employment income for tax purposes in Canada.

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Question: A Canadian resident earns employment income. What type of income is this generally considered for tax purposes?

Answer options:

  • Business income
  • Capital gain ✅ Employment income
  • Other income

Correct answer: Employment income

Explanation: Income received from an employer for services rendered is generally classified as employment income for tax purposes in Canada.

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