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Last updated: Sept. 16, 2014.
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CANADIAN TAX SYSTEM

General:

Canada has a Federal government, and within its boundaries, 10 Provinces and 3 Territories.  For details about each government, click on the flags below:

 

CanadaProvinces 

Canada                                Provinces 

Canada's Constitution grants taxation powers to the following governments:

  • Federal Government: direct, indirect, and any residual taxes.
  • Provinces: direct taxes only within their own jurisdiction.
  • Territories: powers (similar to the Provinces) that have evolved, but not from the original Constitution.
  • Cities, Towns, and Villages: the Provinces create these governments and may grant them the right to levy direct taxes only within their own jurisdiction (e.g. realty and business taxes).

Examples:

  • Direct Taxes: income taxes, or a sales tax on the final user.
  • Indirect Taxes: customs, duties, and excise taxes that are buried and not seen by the the final consumer.
Canada's Federal, Provincial, and Territorial governments rely mainly on the following taxes:

Cities and towns rely mainly on Realty and Business taxes.