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:
Canada Ontario
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.