Tax
Federal and provincial income tax collected together, GST or HST on consumption
The Income Tax Act imposes federal tax on residents on worldwide income, and each province levies its own rate on top. Except in Quebec, the Canada Revenue Agency collects both under collection agreements, so a taxpayer files a single return. Consumption is taxed by the federal GST at 5 per cent, harmonised with provincial sales tax into a single HST in Ontario and the Atlantic provinces.
Key rules
- Jurisdiction — Federal and provincial; Quebec administers its own income tax and QST separately
- Deadline — Personal return: 30 April, or 15 June if self-employed with tax due 30 April
- Deadline — Corporate return: six months after the tax year end
- Deadline — Notice of objection: 90 days from the notice of assessment
- Deadline — Appeal to the Tax Court: 90 days after the objection is confirmed
- Deadline — Normal reassessment period: three years for individuals, four for large corporations
Governing law
- Income Tax Act, RSC 1985, c. 15th Supp
- Excise Tax Act, RSC 1985, c. E-15GST and HST
- Taxation Act (Quebec), CQLR c. I-3
- Tax Court of Canada Act, RSC 1985, c. T-2
In practice
Residence rather than citizenship drives liability, and there is no exit tax as such but a deemed disposition of most property on ceasing residence, which can crystallise a large capital gain on departure. Quebec's separate administration means a Quebec taxpayer files two returns, and a business operating there registers for QST with Revenu Québec rather than relying on its federal GST registration.