“The statute [the Canadian Income Tax Act (and Excise Tax Act)] is now virtually incomprehensible to the average person, who must, nevertheless, comply with it under threat of severe sanctions for non-compliance.” — http://www.canadian-accountant.com/content/thought-leaders/canada-a-brief-overview-of-tax-history
Full Taxation – Yikes!
Income taxation been around as long as there have been humans—some of the earliest forms were “full taxation” where you gave everything to the tribe, and got some of it back. It evolved into a monarch’s prerogative to levy taxes which were used as the monarch saw fit—but with an eye out for the good of the entire country if they didn’t want a revolt.
Partial Taxation – Better, But So Complicated!
We have moved from tribes and monarchies to a modern system where everyone pays a central government, and the people in power in the government decide what to do with all the money everyone sends them. This system is strongly trending towards getting more and more complex; today Canada has a tax code that is 3500 pages long. Business owners and private citizens are expected to comply with this system and pay what they owe on time.
As noted by canadian-accountant.com, “The Income War Tax Act of 1917 was all of ten pages. It has since grown through several reincarnations of "tax reform" into the Act of today—over 3,500 pages and expanding annually at a healthy pace.”
Pay What You Owe – But No More
Taxes are a given—we all pay them. Your obligation is to pay what you owe. You have no obligation to pay more than you owe. As complex as the Canadian Income Tax Act is, your best bet is to have a professional accounting company like Shaw & Associates guiding you every step of the way, from your day-to-day bookkeeping to doing your personal and business taxes for you.
Finally, here’s a bit of fun—average Canadians are questioned about their Canadian Income Tax knowledge: https://www.youtube.com/watch?v=KApAbFxD3hE
Contact Shaw & Associates Chartered Accountants for accounting help you can count on. One complimentary meeting with us will put you and your business on a more profitable and positive path.