Introduction The concept of a negative tax to funnel money to low-income individuals has been widely discussed as a means of alleviating poverty. In fact, Canada’s income tax system is already being used by governments to give money to people who have little or no income. Depending on circumstances, an individual’s “refundable tax credits” can…
Tag: sales tax
Tax Reform Stage II: Some Implications for Charities As part of its tax reform package, on June 17, 1987 the federal government announced a proposal to replace the existing federal sales tax with a broad-based multi-stage sales tax (MSST), to be implemented only after extensive consultation with the provinces and the private sector. Although the…
This article provides a general overview of how the federal Government’s sales tax reform proposals will affect the non-profit sector and suggests some representations which the non-profit sector might make to the federal government. Two areas of tax planning are also discussed. The author wishes to acknowledge the helpful comments made by Jack Millar and…
Although the Income Tax Act makes concessions to registered charities there is a surprising lack of specific sales- and property-tax exemptions for charities. This paper will attempt to outline some of the exemptions from federal sales tax, Ontario retail sales tax, and municipal taxes which are available to charities and will also comment on some…
Budget Update The budget proposals of November 12, 1981, as subsequently modified and incorporated in Bill C-139, were enacted on March 30, 1983. Pursuant to these amendments, paragraphs 110(1)(a) and 110(1)(b) of the Income Tax Act were amended to provide a five-year carry forward of donations to qualified donees and Her Majesty in right of…
There have been a number of developments in the tax field during the last year. This paper will consider these developments. 1981 Budget The most important development was the tabling of the Budget in the House of Commons by The Honourable Allan J. MacEachen on November 12, 1981 (as modified by the Release from the…
Introduction Now that most not-for-profit organizations have sorted out the new federal income tax rules, it may be appropriate for them to focus on sales taxes levied by the federal and most provincial governments. Those organizations which are not familiar with sales taxes will often discover that they have been overpaying these taxes. This article…