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Finance Business Service

The Canadian tax benefits are profitable for rich persons

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Канада, замок
Tax expenditures on the income of physical persons of Canada bring benefit for more than 50 percent of persons which gain income, according to the new report of the Canadian center of political alternatives (CCPA).

Using data of 2011, it was established that 59 of 64 tax expenses, provide more benefit to 50 percent of the persons gaining income. It shows that in 2011 39 percent of profitable tax expenses provided to more than 10 percent of persons which gain income, and less affluent taxpayers saw only 16 percent of the benefits.
The report states that there are only five taxes: a tax on working income, a guaranteed income without tax, social security without taxation, reimbursement of medical costs and disability tax credit - they can be described as "relatively progressive" with maximum benefit CAD1,110 ($ 840 USA).
The Canadian government is currently carrying out a comprehensive review of federal tax expenditures. The goal is to ensure that the tax costs are fair, effective and have financial responsibility.
The Canadian center of political alternatives has recommended that the annual tax expenditure report from Finance Canada, included the distribution of tax expenses through the income spectrum and those tax expenses were included as a cost in the financial statements of the federal government. Therefore, the federal government must be aimed at annual savings in tax expenditures to five percent.

Author: Olena Kutova

senior lawyer of the Finance Business Service company

Сергей Панов
Author
managing partner
Finance Business Service