Almost every Canadian tax payer has at least a few small complaints about the country’s tax system but mostly it’s because nobody likes the thought of having to pay it.
There are also many that really believe our system is totally unfair, and this is not only the thoughts of the business person, but personal tax payers as well.
Some are saying that the best way to put fairness back into the tax system is tax those that are considered to be the rich. They feel that the system is such a mess of deductions and exemptions that it is all in favor of those who really could afford to pay taxes. This is often in reference to the tax expenditures or what we call tax breaks.
Some recent studies have shown that tax breaks like the child fitness tax credit and public transit credit provided substantial benefit to the top 25% of tax filers. This is just one example of many, and the studies also covered less known types of tax expenditures.
Sometimes it is difficult to really determine the Government’s thinking on tax expenditures and what the reasoning behind them is. They are usually touted as being beneficial to the tax payer at all levels, but the argument is that most of these do not really provide substantial benefits to the lower income bracket. There are times that these tax breaks are supposedly put into effect to help and breathe life into a specific industry like the arts for example, or to spur the economy.
With a tax system that is a complex as what Canada’s is, most people just throw their arms up in frustration and find it is all they can do to just focus on their own tax implications.
One benefit that we as Canadian tax payers do have is a large array of excellent and well trained accountants. These are the pros that can really help us stay on track and benefit from whatever potential tax breaks they are as they pertain to us on both a personal and business level. While the CRA is going through some changes in how they portray themselves this is over and above any changes in tax laws.
Be sure to check out our accounting services here at Toronto Accountant as we can help to make your tax obligations much easier to understand and adhere to.
