Scenario 12: A Canadian resident earns employment income. What type of income is this generally considered for tax purposes?

Question: Scenario 12: 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. The correct answer is "Employment income". This capacity-fill scenario 12 reinforces the same competency for the cfp bank and follows the certified explanation standard.