Tax and Accounting Resources

Federal Taxes

This affects all Canadians and is of course one portion of the taxes each individual and business must pay. It all began after WW1, prior to that Canadians did not have to pay taxes on their income. The support for the Government at the time came from Customs tax and import and export tariffs.

Naturally, the opposing political parties had a difference of opinion at the time, the Federal Liberal Party wanted to impose an income tax while the Conservative party strongly argued against such a tax levy. Sadly, the expense of the war gave the government little choice because of the lack of funding for normal operations and in 1917 the Canadian Government began, what was supposed to be temporary, collecting an income tax under the guise of covering the debt incurred by the war. While it can get frustrating, handing part of our earnings over to a group of people that handle these funds responsibly it is understandable that expenses are a result of living in today’s world.

We all have them Governments and individuals alike. The Canadian Government’s expenditures for the fiscal period of 2011-12 totalled around $271.4 billion, which came from taxpayer monies. The distribution of this tax amount is among the provinces and territories, reportedly, using approximately $0.59 of each tax dollar.

Operating a Government is a costly business when you figure there are over 130 different government agencies and departments that make up the Canadian Government as a single unit. In an approximate breakdown, we can figure another $0.30 goes to the operation of the infrastructure, public safety, the CRA, and the National Defence. This leaves around $0.11 going towards the National debt that this country has accrued over the years.

The bottom line is in order to continue to have the lifestyles we all enjoy we must come to the terms that we must pay for it. In addition to this, taxation should follow a fair and impartial set of guidelines that all citizens are subject too regardless of our individual financial status. Accordingly, all should have access to benefits derived from allowable deductions. This again makes it important when wanting to ensure the best results for a return.