BU357 Chapter Notes - Chapter 1: Precedent, Income Taxes In Canada, Income Tax
Document Summary
Income tax was first imposed federally in 1917 as a temporary measure to help finance world war i under the income war tax act. In 1948, parliament passed the income tax act. A major reform of the federal income tax legislation began in 1962 with the setting up of he royal commission of taxation under the championship of the late kenneth carter. The income tax act became effective january 1, 1972. Income taxes comprise about 63% of total federal government revenues. The constitution act (1867) grants authority for all taxation in canada, separating federal provincial powers to impose income taxes. All proposals for change originate in the department of finance. General: governor general: provides final royal assent. Head tax: tax on existence of particular type of taxpayer (tax paid by all people over 18) Wealth tax: tax on capital gains or succession duties or a tax on accumulated capital.
