GST brought a serious change to Canadian taxation system in late 1980’s which was a major concern of diabetes in Canadian politics those days.
The federal government of Canada announced a new tax called Goods and Service Tax (GST) replacing the previous MST tax under the guidelines of conservative prime minister Brian Mulroney. Local tax law firms in Toronto provides you more information on GST.
The federal government made sure that the GST gets implemented in every part of the country and replace individual provisional taxes (PST), so that, the generated credits were shared by both levels of the government.
At that time, some of the provinces even challenged this decision and argued that federal government is misusing its power by changing the history of taxation.
Then in the year, 1989 Quebec signed an agreement according to which the federal government would give full control over the administration of GST to the provinces itself. So It was now up to the provinces what taxes they want to pose in their region.
Types of Taxation in Canada
Top tax lawyer Toronto can educate you about the whole process of Taxation. This is the main technique used by every province of the country to collect revenue from the people living in the country to finance government programs and other services as well.
The taxes are compulsory for every individual, business, and organization which varies according to their income and properties.The different type of taxes in Canada are listed below-
- Personal taxes- these taxes are imposed on each and every individual of the country by the federal government which is the largest source of finance for the government. It differs from one person to another according to his or her annual income.
- Corporate tax- This tax is imposed on the corporate businesses according to their annual earnings and capital of their business.The companies only have to pay taxes on their profits rather than paying on a total amount of money earned from the sale.