MCS 2100 Lecture Notes - Lecture 2: Harmonized Sales Tax, Canada Pension Plan, Tax Avoidance
8 Jun 2017
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5% federal goods and services tax, commonly referred to as gst in most provinces, federal and provincial sales taxes have been harmonized into a single tax, referred to as harmonized sales tax (hst). In addition to sales tax, an excise tax may be imposed by the federal and provincial governments on specific goods and services, such as gasoline, cigarettes, alcoholic beverages, tires, air travel, and telephone services. Real estate property tax i a major source of revenue for local governments and it is based on the assessed value of the land and buildings. Currently, the federal and provincial governments impose a tax on the increase in an individual"s wealth called a capital gains tax. Income taxes are used by the federal government to support a number of social benefit programs, such as old age security pension, canada pension plan, and employment insurance. Income tax is a major financial planning factor for most people.
