Federal Tax Canada

What Does Federal Tax Canada Mean for Toronto Tax Payers

 

Federal tax Canada for Torontonians comes under the heading of Canada tax of course. It is just one portion of the taxes that you pay.   So when did it all begin.  Well, there was a time when Canada really didn’t want to levy an income tax.   Hard to believe isn’t it!     In fact, through before WWI there was no income tax for Canadians.   The reason for this was a selfish one in that the Government was using this tax free concept to lure immigrants to Canada. During this time the Government relied on other sources of income such as tariffs and customs.   The Federal Liberal Party in time began to entertain the thought of imposing a income tax, but the Conservatives opposed it.

The expenses that the war brought were substantial and the Government really had no extra funds at their disposal to meet these costs. So in 1917 the Tories had no choice but under the leadership of Sir Robert Borden an income tax was levied BUT it was only supposed to be temporary, until the war debt could be dealt with. We have often heard the story of temporary taxes before, but alas history repeats itself and the federal income tax remains until this day.

 

It is pretty scary when you think that a hefty chunk of your income that you work for so hard is going into the hands of people who you have to trust to use those dollars wisely. We all have expenses, including the Canadian government and for the fiscal period between 2011-2012 it is reported that a whopping $271.4 billion in expenses is what the Canadian Federal Government managed to chalk up.
Now included in that would be the transfers, which is the portion of money that goes out to the individual provinces and territories. It is said to make up the largest chunk of expenditures by the Feds. With 59 cents of each tax dollar being allocated in this manner.

 

Then of course it costs money to operate and maintain the multitude of government departments that are supposed to be for the convenience of the tax payers. These amount to in excess of about 130 departments, agencies, etc. So you can figure on about another 30 cents of the Federal tax Canada dollars going to operating expenses. A good chunk of that 30 cents goes to our National Defence, the Public Safety Canada and of course the tax man himself the Canada Revenue Agency.    So that leaves us about 11 cents on each of our tax dollar, and guess what that is going to the whopping national debt that we have managed to accumulate.

 

We do need to understand that if we really want to enjoy all of the many pleasures that Canada has to offer then we should only expect to have to pay for it. The bottom line is though that every tax payer should feel that they are being taxed fairly according to their financial situation. Also, there should be clear and concise ways of ensuring that all Canada tax benefits are realized. The best way to look after yourself in this regard is to rely on the expertise of an experienced Toronto accountant.

 
 

Contact

Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

Contact Sam today