canadian taxes
- This is a preview of the essay.
To view the full text you must login!
Canadian taxes consist of direct taxes and indirect taxes.
"Direct taxes" are taxes that are imposed on the income of Canadian resident individuals, Canadian corporations and various other entities that either reside or carry on business in Canada. Non-resident individuals and businesses may be subject to taxation in Canada if they have a connection with Canada.
"Indirect taxes" are generally consumption taxes levied on property and services, which distinguishes them from direct taxes, such as income taxes. In Canada, the term "commodity taxes" is often used in place of indirect taxes.
In Canadian context, indirect taxes include the sales taxes of general application as well as the other indirect taxes that are levied on commodities such as fuels, tobacco products and alcoholic beverages. They also include excise taxes and customs duties, since both excise taxes and customs duties are selective taxes on goods.
Canada's system of indirect taxation is unique among industrialized countries in that there are two levels of government, federal and provincial, that impose a general sales tax on the same transactions. The federal government levies the Goods and Services Tax, or GST, which is a 7% value-added tax on virtually all goods and services sold in Canada.
FEDERAL
Personal income tax tax that is payable on all sources of income, whether earned in Canada or not...