BU357 Chapter Notes - Chapter 1: Income Taxes In Canada, Taxation In Canada
Document Summary
1917: imposed federally to temporarily help finance ww1 under the income war tax act generated revenue to supplement revenues from more traditional custom and excise taxes. 1948: parliament passed the income tax act merged with iwta but few changes. 1962: major reform of federal income tax legislation; set up royal commission on taxation. 1967: carter commission recommended use of comprehensive tax base including capital gains (previously tax free) effective 1972. 1987: white paper on tax reform implemented in 2 phases. 1988: phase one changes to personal and corporate income tax systems and interim changes to existing federal sales tax. 1991- phase two replaced existing federal sales tax with gst (hst for provinces harmonizing provincial sales tax with gst) Constitution act (1867) grants authority for all taxation in canada, separating provincial and federal powers to impose income taxes. Subsection 91(3) provides federal gov. with unlimited powers of taxation by permitting raising money by any mode or system of taxation.
