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Taxation in Canada

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Taxation in Canada

In Canada, taxation is a legislative power shared between the federal government and the various provincial and territorial legislatures.

Under the Constitution Act, 1867, taxation powers are vested in the Parliament of Canada under s. 91(3) for:

3. The raising of Money by any Mode or System of Taxation.

The provincial legislatures have a more restricted authority under ss. 92(2) and 92(9) for:

2. Direct Taxation within the Province in order to the raising of a Revenue for Provincial Purposes.

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9. Shop, Saloon, Tavern, Auctioneer, and other Licences in order to the raising of a Revenue for Provincial, Local, or Municipal Purposes.

The provinces also have a taxation power relating to provincial natural resources, set out in s. 92A of the Constitution Act, 1867:

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