Canada Tax System

Canada's Income Tax System

Overview

Canada's income tax system is a complex and comprehensive system that is administered by the Canada Revenue Agency (CRA). The system is based on the principle of progressive taxation, which means that individuals with higher incomes pay a higher percentage of their income in taxes.

Key Points

• All provinces and territories in Canada use a tax-on-income system.
• The federal government also levies personal and corporate income taxes.
• The system is based on the principle of progressive taxation.
• The CRA is responsible for administering the income tax system.
• Individuals and businesses must file tax returns each year.