Archived -Report on Federal Tax Expenditures - Concepts, Estimates and Evaluations 2022: part 7
Measure | |
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Description | A 100% rebate is provided in respect of GST paid on books acquired by:
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Tax | Goods and Services Tax |
Beneficiaries | Schools, colleges, universities, municipalities, certain charities and certain non-profit organizations |
Type of measure | Rebate |
Legal reference | Excise Tax Act, section 259.1 |
Implementation and recent history |
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Objective – category | To achieve a social objective |
Objective | This measure recognizes the important role played by public libraries, educational institutions and other community organizations in helping people learn how to read and improve their reading skills (Department of Finance Canada news release 1996-076, October 23, 1996). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | GST rebates effectively reduce the value added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Education |
CCOFOG 2014 code | 70959 - Education - Education not definable by level |
Other relevant government programs | Programs within the mandates of Employment and Social Development Canada, the Social Sciences and Humanities Research Council, the Natural Sciences and Engineering Research Council, the Canadian Institutes of Health Research and Indigenous Services Canada also support objectives related to education and training. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Form GST66 - Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund |
Estimation method | The cost of this measure corresponds to the amounts of rebates approved, as reported in administrative data. |
Projection method | The cost of this measure is projected to grow in line with provincial government expenditures on education. |
Number of beneficiaries | About 1,800 entities claim this rebate each year. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Goods and Services Tax | 15 | 15 | 15 | 15 | 10 | 15 | 10 | 10 |
Measure | |
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Description | Hospitals provide primarily tax-exempt services, and as such are unable to claim input tax credits for GST paid on most of their purchases. However, public hospitals are eligible for a rebate of 83% of the GST paid on purchases related to their supply of exempt services. Since 2005, government-funded charities and non-profit organizations that provide health care services similar to those traditionally performed in hospitals or supply ancillary support services to hospitals and eligible health care facilities (“facility operators and external suppliers”) are also eligible for an 83% rebate of the GST paid on purchases related to their exempt health care supplies. |
Tax | Goods and Services Tax |
Beneficiaries | Public hospitals, facility operators and external suppliers |
Type of measure | Rebate |
Legal reference | Excise Tax Act, subsection 259(3) |
Implementation and recent history |
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Objective – category | To achieve a social objective |
Objective | The rebate for public hospitals was implemented at the time of inception of the GST to ensure that the sales tax burden did not increase as a result of moving to the GST from the previous federal sales tax (Goods and Services Tax: Technical Paper, August 1989). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | GST rebates effectively reduce the value added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Health |
CCOFOG 2014 code | 7073 - Health - Hospital services |
Other relevant government programs | Programs within the mandates of Health Canada, the Canadian Food Inspection Agency, the Canadian Institutes of Health Research, the Public Health Agency of Canada and Veterans Affairs Canada also support health-related objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Form GST66 - Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund |
Estimation method | The cost of this measure corresponds to the amounts of rebates approved, as reported in administrative data. |
Projection method | The cost of this measure is projected to grow in line with provincial government expenditures on health. |
Number of beneficiaries | About 700 entities claim this rebate each year. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Goods and Services Tax | 630 | 665 | 695 | 745 | 980 | 1,035 | 1,070 | 1,095 |
Measure | |
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Description | Municipalities are eligible for a 100% rebate for the GST paid on their purchases of inputs used in the provision of their exempt supplies. Entities that are not municipalities (e.g., library boards) may nonetheless be determined by the Minister of National Revenue to be municipalities for the purposes of this rebate. Similarly, service providers may be designated to be municipalities with respect to certain municipal-like services they provide (e.g., sewage treatment services). Entities determined or designated to be municipalities are eligible for the 100% rebate in respect of GST paid on inputs used in the course of their exempt municipal activities. |
Tax | Goods and Services Tax |
Beneficiaries | Municipalities |
Type of measure | Rebate |
Legal reference | Excise Tax Act, subsections 259(3) and (4) |
Implementation and recent history |
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Objective – category | To implement intergovernmental tax arrangements |
Objective | The partial rebate initially provided was intended to ensure that the sales tax burden of municipalities did not increase as a result of moving to the GST from the previous federal sales tax (Goods and Services Tax: Technical Paper, August 1989). The rebate was increased to 100% to provide municipalities with an increased source of reliable, predictable and long-term funding to address infrastructure priorities (Department of Finance Canada news release 2004-007, February 3, 2004). |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | GST rebates effectively reduce the value added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Intergovernmental tax arrangements |
CCOFOG 2014 code | 70183 - General public services - Transfers of a general character between different levels of government - General purpose transfers to local governments |
Other relevant government programs | n/a |
Source of data | Form GST66 - Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund |
Estimation method | The cost of this measure corresponds to the amounts of rebates approved, as reported in administrative data. |
Projection method | The cost of this measure is projected to grow in line with local government expenditures. |
Number of beneficiaries | About 9,500 entities claim this rebate each year. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Goods and Services Tax | 2,285 | 2,515 | 2,665 | 2,760 | 2,745 | 2,925 | 2,985 | 3,070 |
Measure | |
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Description | Builders or purchasers of newly constructed and substantially renovated residential housing are eligible for a rebate of the GST paid if the housing is for use as a primary place of residence. For houses valued at or below $350,000, the rebate is 36% of the total GST paid to a maximum of $6,300. The rebate is gradually phased out for houses valued between $350,000 and $450,000, and there is no rebate for houses valued at $450,000 or more. The same rebate is available for the GST paid by individuals to construct or substantially renovate housing that is for use by the owner or a relative as a primary place of residence. The rate of rebate was established so that the GST burden on new housing would be equal to the federal sales tax component of the total price of a new home before the introduction of the GST (which was approximately 4.5% on average). |
Tax | Goods and Services Tax |
Beneficiaries | Individuals who have purchased or constructed new homes |
Type of measure | Rebate |
Legal reference | Excise Tax Act, sections 254 and 256 |
Implementation and recent history |
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Objective – category | To achieve a social objective |
Objective | This measure is designed to ensure that the GST does not pose a barrier to the affordability of new homes (Goods and Services Tax Consolidated Explanatory Notes, April 1997). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | GST rebates effectively reduce the value added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Housing |
CCOFOG 2014 code | 70619 - Housing and community amenities - Housing development |
Other relevant government programs | Programs within the mandate of the Canada Mortgage and Housing Corporation, Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada are intended to promote the construction, repair and renewal of affordable and safe housing. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Statistics Canada. Data on expenditures on residential construction from the System of National Accounts were adjusted by Statistics Canada for conceptual differences in the timing and tax treatment of land. |
Estimation method | The cost of this measure is calculated from source data. |
Projection method | The cost of this measure is projected to grow in line with housing completions. |
Number of beneficiaries | No data is available. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Goods and Services Tax | 520 | 510 | 495 | 420 | 425 | 405 | 385 | 365 |
Measure | |
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Description | Builders or purchasers of newly constructed or substantially renovated residential rental housing are eligible for a rebate of the GST payable if it can reasonably be expected that the first use of the individual residential units within the property will be as a primary place of residence for at least one year. The rebate also applies to builders or purchasers of new additions to multiple-unit residential rental housing and to the leasing of land (i.e., housing lots) to a person that affixes a new or substantially renovated house or sites in new residential trailer parks for long-term residential use. For single-unit residential housing (including duplexes) or units in multiple-unit residential housing valued at or below $350,000, the rebate is 36% of the total GST paid to a maximum of $6,300. The rebate is phased out for such residential housing or units valued between $350,000 and $450,000. In the case of leasing housing lots or sites in residential trailer parks, the rebate is 36% of the total GST paid to a maximum $1,575. The rebate is phased out for each housing lot or site valued between $87,500 and $112,500. |
Tax | Goods and Services Tax |
Beneficiaries | Builders and purchasers of new residential rental property and landlords that lease housing lots or sites in new residential trailer parks for long-term residential use |
Type of measure | Rebate |
Legal reference | Excise Tax Act, section 256.1 |
Implementation and recent history |
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Objective – category | To achieve a social objective |
Objective | This measure ensures that builders and purchasers of new residential rental property face the same effective GST rate faced by purchasers of new owner-occupied homes (Budget 2000). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | GST rebates effectively reduce the value added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Housing |
CCOFOG 2014 code | 70619 - Housing and community amenities - Housing development |
Other relevant government programs | Programs within the mandate of the Canada Mortgage and Housing Corporation, Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada are intended to promote the construction, repair and renewal of affordable and safe housing. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Form GST524 - GST/HST New Residential Rental Property Rebate Application |
Estimation method | The cost of this measure is calculated from source data. |
Projection method | The cost of this measure is projected to grow in line with housing completions for multiple units. |
Number of beneficiaries | No data is available. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Goods and Services Tax | 170 | 160 | 170 | 205 | 190 | 220 | 230 | 205 |
Measure | |
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Description | The Royal Canadian Legion is eligible for a 100% rebate of GST paid on Remembrance Day poppies and wreaths it acquires. |
Tax | Goods and Services Tax |
Beneficiaries | Royal Canadian Legion |
Type of measure | Rebate |
Legal reference | Excise Tax Act, section 259.2 |
Implementation and recent history |
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Objective – category | To achieve a social objective |
Objective | This measure recognizes the special status of poppies and wreaths as symbols of the contribution, courage and sacrifices of those who served in the Canadian Forces (Department of Finance Canada news release 2010-101, October 28, 2010). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | GST rebates effectively reduce the value added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Donations, gifts, charities and non-profit organizations |
CCOFOG 2014 code | 70869 - Recreation, culture, and religion - Recreation, culture, and religion not elsewhere classified |
Other relevant government programs | Many federal government entities provide direct funding to registered charities, non-profit organizations and international development associations through various programs. |
Source of data | Form GST189 - General Application for Rebate of GST/HST |
Estimation method | The cost of this measure corresponds to the amounts of rebates approved, as reported in administrative data. |
Projection method | n/a |
Number of beneficiaries | The Royal Canadian Legion is the sole direct beneficiary of this measure. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Goods and Services Tax | X | X | X | X | X | X | X | X |
Measure | |
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Description | Non-profit organizations that receive at least 40% of their funding from governments, municipalities or Indian Bands are eligible for a rebate of 50% of the GST paid on purchases related to their supplies of exempt services. |
Tax | Goods and Services Tax |
Beneficiaries | Non-profit organizations |
Type of measure | Rebate |
Legal reference | Excise Tax Act, subsection 259(3) |
Implementation and recent history |
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Objective – category | To achieve a social objective |
Objective | This measure recognizes the important role of non-profit organizations in Canadian society (Goods and Services Tax, December 1989). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | GST rebates effectively reduce the value added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Donations, gifts, charities and non-profit organizations |
CCOFOG 2014 code | 705 - Environmental protection; 706 - Housing and community amenities; 707 - Health; 708 - Recreation, culture, and religion; 709 - Education; 710 - Social protection; Other various codes |
Other relevant government programs | Many federal government entities provide direct funding to registered charities, non-profit organizations and international development associations through various programs. |
Source of data | Form GST66 - Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund |
Estimation method | The cost of this measure corresponds to the amounts of rebates approved, as reported in administrative data. |
Projection method | The cost of this measure is projected to grow in line with nominal gross domestic product. |
Number of beneficiaries | About 7,000 entities claim this rebate each year. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Goods and Services Tax | 70 | 75 | 80 | 80 | 70 | 75 | 80 | 85 |
Measure | |
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Description | Charities registered under the Income Tax Act and registered Canadian amateur athletic associations are eligible for a rebate of 50% of the GST paid on purchases related to their supplies of exempt services. Non-profit organizations operating a facility or part thereof to provide nursing home care are also eligible for the rebate. |
Tax | Goods and Services Tax |
Beneficiaries | Registered charities, registered Canadian amateur athletic associations, non-profit organizations operating a facility or part thereof to provide nursing home care |
Type of measure | Rebate |
Legal reference | Excise Tax Act, subsection 259(3) |
Implementation and recent history |
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Objective – category | To achieve a social objective |
Objective | This measure recognizes the important role of charities in Canadian society (Goods and Services Tax, December 1989). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | GST rebates effectively reduce the value added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Donations, gifts, charities and non-profit organizations |
CCOFOG 2014 code | 705 - Environmental protection; 706 - Housing and community amenities; 707 - Health; 708 - Recreation, culture, and religion; 709 - Education; 710 - Social protection; Other various codes |
Other relevant government programs | Many federal government entities provide direct funding to registered charities, non-profit organizations and international development associations through various programs. |
Source of data | Form GST66 - Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund |
Estimation method | The cost of this measure corresponds to the amounts of rebates approved, as reported in administrative data. |
Projection method | The cost of this measure is projected to grow in line with nominal gross domestic product. |
Number of beneficiaries | About 45,000 entities claim this rebate each year. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Goods and Services Tax | 310 | 315 | 320 | 330 | 285 | 295 | 305 | 320 |
Measure | |
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Description | Schools, colleges and universities provide primarily tax-exempt services, and as such are unable to claim input tax credits for GST paid on most of their purchases. However, elementary and secondary schools operating on a not-for-profit basis are eligible for a rebate of 68% of the GST paid on purchases related to their supplies of exempt services. Publicly funded colleges and recognized degree-granting universities operating on a not-for-profit basis are eligible for a rebate of 67% of the GST paid on purchases related to their supplies of exempt services. |
Tax | Goods and Services Tax |
Beneficiaries | Schools, colleges and universities |
Type of measure | Rebate |
Legal reference | Excise Tax Act, subsection 259(3) |
Implementation and recent history |
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Objective – category | To achieve a social objective |
Objective | This measure was implemented at the time of inception of the GST to ensure that the sales tax burden on these sectors did not increase as a result of moving to the GST from the previous federal sales tax (Goods and Services Tax: Technical Paper, August 1989). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | GST rebates effectively reduce the value added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Education |
CCOFOG 2014 code | 70929 - Education - Primary and Secondary education 70939 - Education - College education 70949 - Education - University education |
Other relevant government programs | Programs within the mandates of Employment and Social Development Canada, the Social Sciences and Humanities Research Council, the Natural Sciences and Engineering Research Council, the Canadian Institutes of Health Research and Indigenous Services Canada also support objectives related to education and training. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Form GST66 - Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund |
Estimation method | The cost of this measure corresponds to the amounts of rebates approved, as reported in administrative data. |
Projection method | The cost of this measure is projected to grow in line with provincial government expenditures on education. |
Number of beneficiaries | About 4,500 entities claim this rebate each year. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Rebate for schools | 420 | 445 | 470 | 470 | 450 | 480 | 495 | 510 |
Rebate for colleges | 95 | 105 | 125 | 110 | 95 | 105 | 110 | 110 |
Rebate for universities | 235 | 280 | 295 | 275 | 245 | 260 | 270 | 275 |
Total – Goods and Services Tax | 745 | 830 | 885 | 860 | 790 | 840 | 875 | 900 |
Measure | |
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Description | A GST rebate is available in respect of motor vehicles specially equipped with certain features for use by individuals with disabilities. The amount of the rebate is the GST paid on the portion of the purchase price attributable to the special features. The rebate is available in respect of both new and used vehicles, and in respect of vehicles purchased either in Canada or abroad (with the GST being paid on importation). The rebate is also available when a vehicle is imported after being modified with special features. |
Tax | Goods and Services Tax |
Beneficiaries | Individuals with disabilities, organizations serving these individuals and caregivers |
Type of measure | Rebate |
Legal reference | Excise Tax Act, sections 258.1 and 258.2 |
Implementation and recent history |
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Objective – category | To achieve a social objective |
Objective | This measure ensures that all individuals and organizations get tax relief on the additional cost of purchasing vehicles, such as a car or minivan, that meet their special needs (Department of Finance Canada news release 1998-036, April 3, 1998). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | GST rebates effectively reduce the value added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Health |
CCOFOG 2014 code | 70713 - Health - Medical products, appliances, and equipment - Therapeutic appliances and equipment |
Other relevant government programs | Programs within the mandates of Health Canada, the Canadian Food Inspection Agency, the Canadian Institutes of Health Research, the Public Health Agency of Canada and Veterans Affairs Canada also support health-related objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Form GST518 - GST/HST Specially Equipped Motor Vehicle Rebate Application |
Estimation method | The cost of this measure corresponds to the amounts of rebates approved, as reported in administrative data. |
Projection method | The cost of this measure is projected to grow in line with consumption expenditures on vehicles and parts. |
Number of beneficiaries | No data is available. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Goods and Services Tax | S | S | S | S | S | S | S | S |
Measure | |
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Description | Employees and partners may incur expenses in the course of carrying out their duties that are not directly reimbursed by their employers and partnerships. Instead, compensation may be provided through salaries, commissions, profits and other means that would not be subject to GST. Consequently, employers and partnerships cannot recover the GST paid by the employees and partners through the input tax credit mechanism. A rebate is available to an employee of a GST registrant (other than a listed financial institution) for the GST paid on those expenses that are deductible in computing the employee’s income from employment for income tax purposes. For example, an employee is allowed to claim a rebate in respect of the GST on a portion of entertainment expenses or on the capital cost allowance for an automobile, aircraft or musical instrument that is used in his or her employment and on which GST is payable. This rebate is also available to an individual who is a member of a GST-registered partnership in respect of expenses incurred outside the partnership that are deducted in computing the member’s income from the partnership for income tax purposes. |
Tax | Goods and Services Tax |
Beneficiaries | Employees and partners |
Type of measure | Rebate |
Legal reference | Excise Tax Act, section 253 |
Implementation and recent history |
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Objective – category | To provide relief for special circumstances |
Objective | This measure is designed to reduce the possible tax-cascading effect that would occur in certain cases when employers and partnerships cannot recover GST paid by employees and partners in the course of their duties. |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | GST rebates effectively reduce the value added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Employment Business - other |
CCOFOG 2014 code | 70412 - Economic affairs - General economic, commercial, and labor affairs - General labor affairs 70499 - Economic affairs - Economic affairs not elsewhere classified |
Other relevant government programs | Programs within the mandate of Employment and Social Development Canada also support employment. Programs within the mandates of Global Affairs Canada, Public Services and Procurement Canada, and the regional development agencies (among other federal organizations) also offer support to Canadian businesses in various manners. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Form GST370 - Employee and Partner GST/HST Rebate Application |
Estimation method | The cost of this measure corresponds to the amounts of rebates approved, as reported in administrative data. |
Projection method | The cost of this measure is projected to grow in line with nominal gross domestic product. |
Number of beneficiaries | No data is available. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Goods and Services Tax | 55 | 50 | 50 | 50 | 40 | 45 | 45 | 50 |
Measure | |
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Description | Small corporations in the oil and gas sector were entitled to reclassify as Canadian Exploration Expenses (CEE) the first $1 million per year of eligible Canadian Development Expenses (CDE) renounced to shareholders under a flow-through share agreement. CEE is fully deductible in the year incurred, while CDE is deductible at the rate of 30% per year. For background information, see the related item “Flow-through share deductions”. Budget 2017 announced the elimination of this measure. |
Tax | Personal (including trusts) and corporate income tax |
Beneficiaries | Investors in flow-through shares and small oil and gas corporations |
Type of measure | Timing preference |
Legal reference | Income Tax Act, subsection 66(12.601) |
Implementation and recent history |
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Objective – category | To encourage or attract investment |
Objective | This measure was introduced to facilitate financing and promote investment in the junior oil and gas sector (Economic and Fiscal Statement, 1992; Budget 1996). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure may permit the depreciation of a capital asset faster than its useful life. |
Subject | Business - natural resources |
CCOFOG 2014 code | 70432 - Economic affairs - Fuel and energy - Petroleum and natural gas |
Other relevant government programs | Programs within the mandate of Natural Resources Canada also support the natural resource sector. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return T2 Corporation Income Tax Return |
Estimation method | The value of this tax expenditure is estimated by comparing the tax benefits received by the shareholders to the tax benefits that would have been received if the CDE had been flowed out as CDE rather than CEE. It is assumed that the issuing corporations would have been able to fully flow out the expenses as CDE, even though CDE is generally less attractive to investors than CEE. To the extent that they could not, the tax expenditure would be higher than this estimate. The breakdown of the estimates between individuals and trusts is not available. |
Projection method | Projections are based on current market conditions. |
Number of beneficiaries | Information on the number of flow-through share investors who benefitted from the measure is not available. No corporations reclassified expenses under this provision in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Personal income tax | -5 | -2 | -4 | -3 | -2 | -1 | -1 | -1 |
Corporate income tax | S | S | -1 | -1 | S | S | S | S |
Total | -5 | -2 | -4 | -3 | -2 | -2 | -1 | -1 |
Measure | |
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Description | Capital gains realized by an investment corporation or a mutual fund corporation are taxed at the corporation level, and the tax is accumulated in an account known as the “refundable capital gains tax on hand” account. The tax accumulated in that account is refunded to the corporation upon distribution of its capital gains to its shareholders or when a mutual fund corporation redeems shares. These distributions are taxed as capital gains in the hands of the shareholder and not as dividends. This departs from general practice in that income earned by a public corporation (including taxable capital gains) does not generally retain its character for tax purposes when subsequently distributed to shareholders. Similarly, a mutual fund trust can claim a refund when it redeems units in respect of the tax the trust has paid on capital gains retained within the trust. |
Tax | Personal (trusts only) and corporate income tax |
Beneficiaries | Investment and mutual fund corporations and mutual fund trusts |
Type of measure | Other |
Legal reference | Income Tax Act, subsections 131(2) and (6) |
Implementation and recent history |
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Objective – category | To prevent double taxation |
Objective | This measure permits capital gains earned by investors through investment corporations and mutual fund corporations to be taxed on a similar basis as capital gains earned directly by investors. |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure is considered part of the benchmark tax system, and therefore is not a tax expenditure. |
Subject | Savings and investment |
CCOFOG 2014 code | n/a |
Other relevant government programs | n/a |
Source of data | T2 Corporation Income Tax Return T3 Trust Income Tax and Information Return |
Estimation method | The value of this measure is the sum of the amounts of federal capital gains refunds claimed by investment corporations, mutual fund corporations and mutual fund trusts. |
Projection method | Projections for this measure are derived under the assumption that capital gains refunds will increase at the same rate as the average of corporate taxable income and taxable capital gains. |
Number of beneficiaries | About 70 investment and mutual fund corporations and 2,300 mutual fund trusts claimed a capital gain refund in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
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Investment and mutual fund corporations – corporate income tax | 925 | 1,540 | 1,125 | 1,175 | 1,165 | 1,215 | 1,260 | 1,310 |
Mutual fund trusts – personal income tax | 3,355 | 4,480 | 2,405 | 4,840 | 5,920 | 6,215 | 6,525 | 6,720 |
Total | 4,280 | 6,020 | 3,530 | 6,015 | 7,085 | 7,430 | 7,785 | 8,030 |
Measure | |
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Description | The Refundable Medical Expense Supplement is a refundable credit that provides low-income working Canadians with assistance for medical and disability-related expenses. For 2021, the supplement is available to individuals whose earnings from employment or self-employment meet or exceed a minimum threshold of $3,751. To be eligible for the supplement, individuals must be 18 years of age or older and have claimed eligible medical expenses under the Medical Expense Tax Credit or the disability supports deduction. The supplement is equal to the lesser of $1,285 (for 2021) and 25% of the allowable portion of expenses that can be claimed under the Medical Expense Tax Credit and the disability supports deduction. The supplement is reduced by 5% of net family income above an income threshold of $28,446. The maximum supplement amount, the minimum earnings threshold and the family net income threshold are indexed to inflation. |
Tax | Personal income tax |
Beneficiaries | Low-income employees and self-employed individuals |
Type of measure | Credit, refundable |
Legal reference | Income Tax Act, section 122.51 |
Implementation and recent history |
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Objective – category | To encourage employment |
Objective | This measure improves work incentives for Canadians with disabilities by helping to offset the loss of coverage for medical and disability-related expenses when individuals move from social assistance to the paid labour force (Budget 2006). |
Category | Refundable tax credit |
Reason why this measure is not part of benchmark tax system | This measure is classified as a transfer payment for government accounting purposes, and therefore is not considered to be a tax expenditure. |
Subject | Employment Health |
CCOFOG 2014 code | 7071 - Health - Medical products, appliances, and equipment 7072 - Health - Outpatient services 7073 - Health - Hospital services 71012 - Social protection - Sickness and disability - Disability |
Other relevant government programs | Programs within the mandate of Employment and Social Development Canada also support employment. Programs within the mandates of Health Canada, the Canadian Food Inspection Agency, the Canadian Institutes of Health Research, the Public Health Agency of Canada and Veterans Affairs Canada also support health-related objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model |
Projection method | T1 micro-simulation model |
Number of beneficiaries | About 545,000 individuals received this benefit in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 155 | 155 | 165 | 165 | 140 | 155 | 165 | 175 |
Measure | |
---|---|
Description |
An individual could defer personal income tax on investment income if the individual earned the investment income through a private corporation that is subject to a corporate income tax rate that is significantly lower than the highest personal income tax rate. Consequently, the Income Tax Act provides rules that counter such a deferral:
|
Tax | Corporate income tax |
Beneficiaries | Private corporations |
Type of measure | Other |
Legal reference | Income Tax Act, sections 123, 123.3, 123.4, 124, 129 and 186 |
Implementation and recent history |
|
Objective – category | To ensure a neutral tax treatment across similar situations |
Objective | This measure is intended to reduce the possibility for individuals to defer personal income tax on investment income by earning such income through a private corporation instead of earning such income directly (Budget 1995). |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure is considered part of the benchmark tax system, and therefore is not a tax expenditure. |
Subject | Other |
CCOFOG 2014 code | n/a |
Other relevant government programs | n/a |
Source of data | T2 Corporation Income Tax Return |
Estimation method | The tax expenditure is comprised of the additional Part I tax (the difference between the applicable Part I tax rate and the federal general corporate income tax rate of 15%), the Part IV tax and the sum of the aforementioned refunds. In these accounts, tax revenues are recorded as negative amounts. |
Projection method | The cost of this measure is projected to grow in line with investment income and taxable income. |
Number of beneficiaries | About 308,000 and 255,000 corporations were respectively subject to the additional Part I tax and Part IV tax in 2019, while 286,000 corporations claimed the dividend refund in that year. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Additional Part I tax | -4,950 | -6,105 | -7,580 | -7,560 | -7,665 | -8,110 | -9,030 | -9,615 |
Part IV tax | -5,320 | -6,125 | -8,020 | -7,575 | -7,240 | -7,665 | -8,535 | -9,085 |
Dividend refund | 8,990 | 10,430 | 13,230 | 12,590 | 11,715 | 12,400 | 13,805 | 14,695 |
Total – corporate income tax | -1,280 | -1,800 | -2,365 | -2,545 | -3,190 | -3,375 | -3,760 | -4,000 |
Measure | |
---|---|
Description | Under agreements which are given force of law by Parliament, Indigenous self-governments are provided with a 100% refund of the GST for goods and services acquired for use in governmental activities. |
Tax | Goods and Services Tax |
Beneficiaries | Indigenous self-governments, their corporations and entities performing functions of government |
Type of measure | Refund |
Legal reference | The agreements are given force of law by the implementation legislation related to Self-Government Agreements and Comprehensive Land Claims and Self-Government Agreements. |
Implementation and recent history |
|
Objective – category | To implement intergovernmental tax arrangements |
Objective | This measure relieves from GST the expenditures incurred by Indigenous self-governments in exercising governmental activities. |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | GST refunds effectively reduce the value-added subject to tax, and are therefore deviations from a broadly defined value-added tax base. |
Subject | Intergovernmental tax arrangements |
CCOFOG 2014 code | 7018 - General public services - Transfers of a general character between different levels of government |
Other relevant government programs | n/a |
Source of data | Form GST66 - Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund |
Estimation method | The cost of this measure corresponds to the amounts of rebates approved, as reported in administrative data. |
Projection method | The cost of this measure is projected to grow in line with government expenditures and expected ratification of new Self-Government Agreements and Comprehensive Land Claims and Self-Government Agreements. |
Number of beneficiaries | About 30 entities claim these refunds each year. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Goods and Services Tax | 5 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
Measure | |
---|---|
Description | A Registered Disability Savings Plan (RDSP) is a tax-assisted long-term savings plan that may generally be established for the benefit of an individual under 60 years of age who is eligible for the Disability Tax Credit. Contributions to an RDSP are not deductible from income, and therefore are also not included in income for tax purposes when paid out of an RDSP. Canada Disability Savings Grants (CDSGs) and Canada Disability Savings Bonds (CDSBs) are not taxed when they are paid into an RDSP and investment income earned in the plan is not taxed as it accrues. CDSGs, CDSBs and investment income earned in the plan are included in the beneficiary’s income for tax purposes when paid out of an RDSP. Contributions to an RDSP are limited to a lifetime maximum of $200,000, and are permitted up until the end of the year in which a beneficiary attains 59 years of age. Up to $70,000 in matching CDSGs and up to $20,000 in CDSBs may be provided to a beneficiary over their lifetime, up until the end of the year in which the beneficiary attains 49 years of age. While the CDSGs and CDSBs are not tax expenditures, they increase the cost of the tax expenditure to the extent that they encourage increased use of RDSPs. |
Tax | Personal income tax |
Beneficiaries | Individuals with disabilities |
Type of measure | Timing preference |
Legal reference | Income Tax Act, sections 146.4 and 205 Canada Disability Savings Act and Canada Disability Savings Regulations |
Implementation and recent history |
|
Objective – category | To encourage savings |
Objective | This measure helps individuals with severe disabilities and their families save for their long-term financial security (Budget 2014). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure permits the deferral of the recognition of income or gains for income tax purposes. |
Subject | Health Savings and investment |
CCOFOG 2014 code | 71012 - Social protection - Sickness and disability - Disability |
Other relevant government programs | Programs within the mandates of Health Canada, the Canadian Food Inspection Agency, the Canadian Institutes of Health Research, the Public Health Agency of Canada and Veterans Affairs Canada also support health-related objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Employment and Social Development Canada |
Estimation method | The value of this tax expenditure is calculated as the tax revenue forgone from the non-taxation of investment income earned on RDSP assets as well as from the non-taxation of CDSBs and CDSGs when deposited in an RDSP, minus the taxes paid on RDSP withdrawals. These amounts are determined using assumed marginal tax rates for plan contributors and beneficiaries. The tax-sheltered investment income is estimated based on the assumption that the rate of return on net RDSP assets is equal to the rate of return on Government of Canada bonds. Estimates and projections vary from those in last year's report due primarily to a revision in the reporting of actual and projected levels of bond payments. |
Projection method | Projections for this measure are based on projected RDSP net assets and withdrawals produced by Employment and Social Development Canada. Future bond yields are based on the average private sector forecast of the 10-year government bond rate. |
Number of beneficiaries | About 234,000 RDSPs were registered from December 2008 to October 2021. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 50 | 60 | 65 | 70 | 70 | 80 | 85 | 95 |
Measure | |
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Description | A Registered Education Savings Plan (RESP) is a tax-assisted savings vehicle designed to help families accumulate savings for the post-secondary education of their children. Contributions to an RESP are not deductible for income tax purposes and as such are not taxed upon withdrawal, while the investment income accruing in the plan is not subject to tax until withdrawal. An individual can contribute to an RESP on behalf of a designated beneficiary. For each beneficiary of an RESP, there is a lifetime contribution limit of $50,000, but no annual limit on contributions. Contributions to an RESP may attract additional government assistance through the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB), both of which are generally included in the income of the plan’s beneficiary on withdrawal. While the CESG and CLB are not tax expenditures, they increase the tax expenditure associated with RESPs to the extent that they encourage the use of RESPs, are not taxable until withdrawn and generate investment income on which tax can be deferred. |
Tax | Personal income tax |
Beneficiaries | Individuals who subscribe under an RESP |
Type of measure | Timing preference |
Legal reference | Income Tax Act, section 146.1 Canada Education Savings Act and Canada Education Savings Regulations |
Implementation and recent history |
|
Objective – category | To encourage savings |
Objective | This measure broadens access to higher education by encouraging Canadians to save towards the post-secondary education of children (Budget 1998). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure permits the deferral of the recognition of income or gains for income tax purposes. |
Subject | Education Savings and investment |
CCOFOG 2014 code | 70939 - Education - College education 70949 - Education - University education |
Other relevant government programs | Programs within the mandates of Employment and Social Development Canada, the Social Sciences and Humanities Research Council, the Natural Sciences and Engineering Research Council, the Canadian Institutes of Health Research and Indigenous Services Canada also support objectives related to education and training. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Employment and Social Development Canada |
Estimation method | The value of this tax expenditure is calculated as the tax revenue forgone from the non-taxation of investment income earned on RESP assets, minus the taxes paid on RESP withdrawals. These amounts are determined using assumed marginal tax rates for plan contributors and beneficiaries. The tax-sheltered investment income is estimated assuming that the rate of return on net RESP assets is equal to the rate of return on Government of Canada bonds. |
Projection method | The projection for the first year is based on projected RESP net assets and withdrawals produced by Employment and Social Development Canada, while projections for outer years are made based on historical growth. Future Government of Canada bond yields are based on the average private sector forecast of the 10-year government bond rate. |
Number of beneficiaries | No data on the total number of individuals with an RESP is available. About 6.6 million individuals with an RESP have received a Canada Education Savings Grant between 1998 and 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 135 | 110 | 110 | 120 | 100 | 115 | 145 | 150 |
Measure | |
---|---|
Description | A deferral of tax is provided on contributions to Registered Pension Plans (RPPs) in order to encourage and assist Canadians to save for retirement. Contributions to these plans are deductible from income, the investment income is not taxed as it accrues in the plan, and withdrawals are included in income for tax purposes. For defined contribution RPP members, contributions are limited to 18% of employment earnings up to a specified dollar amount ($29,210 for 2021). For defined benefit RPP members, pension benefits are limited to 2% of employment earnings per year of service up to a specified dollar amount ($3,245.56 for 2021). |
Tax | Personal income tax |
Beneficiaries | Employees with a registered pension plan |
Type of measure | Timing preference |
Legal reference | Income Tax Act, sections 147.1 to 147.4 |
Implementation and recent history |
|
Objective – category | To encourage savings |
Objective | By allowing taxpayers to defer tax on savings, this measure encourages and assists Canadians to arrange for their financial security in later years (Pension Reform: Improvements in Tax Assistance for Retirement Saving, Department of Finance Canada, 1989). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure permits the deferral of the recognition of income or gains for income tax purposes. |
Subject | Retirement Savings and investment |
CCOFOG 2014 code | 71029 - Social protection - Old age |
Other relevant government programs | Programs within the mandate of Employment and Social Development Canada also support retirement income security. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return Statistics Canada, Registered pension plans, Trusteed pension funds and Pension satellite account (Tables 11-10-0122-01, 11-10-0079-01 and 36-10-0576-01) |
Estimation method | The value of this tax expenditure is calculated on a cash-flow basis as the sum of forgone tax revenue from the deductibility of RPP contributions and non-taxation of investment income earned on RPP assets, minus the tax revenue from RPP benefit payments. |
Projection method | Projections are derived using T1 micro-simulation model and data from Statistics Canada on historical RPP assets. |
Number of beneficiaries | About 8 million households had individuals that had accrued benefits under RPPs in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Deduction for contributions | 15,595 | 16,125 | 16,460 | 16,405 | 16,490 | 16,855 | 17,970 | 18,685 |
Non-taxation of investment income | 20,725 | 23,345 | 20,235 | 24,660 | 20,775 | 23,875 | 25,370 | 29,360 |
Taxation of withdrawals | -10,605 | -11,580 | -11,815 | -11,985 | -13,085 | -14,090 | -14,090 | -15,055 |
Total – personal income tax | 25,715 | 27,890 | 24,885 | 29,075 | 24,180 | 26,645 | 29,255 | 32,995 |
Measure | |
---|---|
Description | A deferral of tax is provided on contributions to Registered Retirement Savings Plans (RRSPs) in order to encourage and assist Canadians to save for retirement. Contributions to these plans are deductible from income, the investment income is not taxed as it accrues in the plan, and withdrawals are included in income for tax purposes. Contribution limits are determined as 18% of prior year earned income up to a specified dollar limit ($27,830 for 2021), less an estimate of contributions made to a Registered Pension Plan and/or a Deferred Profit-Sharing Plan, plus unused contribution room carried forward from previous years. Earned income for this purpose includes income from employment and self-employment as well as other specified types of earnings. Tax-free withdrawals from RRSPs are permitted under the Home Buyers’ Plan and the Lifelong Learning Plan to promote home ownership and skills enhancement respectively, subject to specified eligibility conditions, withdrawal limits and repayment provisions. |
Tax | Personal income tax |
Beneficiaries | Individuals with earned income |
Type of measure | Timing preference |
Legal reference | Income Tax Act, section 146 |
Implementation and recent history |
|
Objective – category | To encourage savings |
Objective | By allowing taxpayers to defer tax on savings, this measure encourages and assists Canadians to arrange for their financial security in later years (Pension Reform: Improvements in Tax Assistance for Retirement Saving, Department of Finance Canada, 1989). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure permits the deferral of the recognition of income or gains for income tax purposes. |
Subject | Retirement Savings and investment |
CCOFOG 2014 code | 71029 - Social protection - Old age |
Other relevant government programs | Programs within the mandate of Employment and Social Development Canada also support retirement income security. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return Statistics Canada, Pension satellite account (Table 36-10-0576-01) |
Estimation method | The value of this tax expenditure is calculated on a cash-flow basis as the sum of forgone tax revenue from the deductibility of RRSP contributions and non-taxation of investment income earned on RRSP assets, minus the tax revenue from Registered Retirement Income Fund/annuity income and RRSP withdrawals. |
Projection method | Projections are derived using the T1 micro-simulation model and Statistics Canada data on historical RRSP assets. |
Number of beneficiaries | About 9.3 million households had individuals that had RRSPs or Registered Retirement Income Funds in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Deduction for contributions | 8,855 | 9,375 | 9,750 | 10,080 | 10,055 | 10,390 | 10,385 | 10,440 |
Non-taxation of investment income | 13,715 | 15,145 | 12,795 | 15,810 | 13,525 | 14,940 | 15,605 | 17,700 |
Taxation of withdrawals | -6,710 | -6,965 | -7,665 | -8,215 | -8,035 | -8,955 | -9,150 | -9,765 |
Total – personal income tax | 15,860 | 17,560 | 14,880 | 17,675 | 15,545 | 16,380 | 16,840 | 18,380 |
Note: The cost information includes the tax expenditures associated with Pooled Registered Pension Plans and the Saskatchewan Pension Plan. |
Measure | |
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Description | Individuals are permitted to defer the tax on a capital gain arising from the disposition of shares in a qualified small business investment, to the extent the proceeds are reinvested in shares of another qualified small business. An eligible small business investment consists of shares issued from treasury in an active Canadian-controlled private corporation with assets not exceeding $50 million, excluding professional corporations, specified financial institutions, rental or leasing corporations, and real estate corporations. The reinvestment must be made at any time in the year of disposition or within 120 days after the end of that year. |
Tax | Personal income tax |
Beneficiaries | Individual investors |
Type of measure | Timing preference |
Legal reference | Income Tax Act, section 44.1 |
Implementation and recent history |
|
Objective – category | To encourage or attract investment |
Objective | This measure was implemented to improve access to capital for small business corporations (Economic Statement and Budget Update, October 2000; Budget 2003). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure permits the deferral of the recognition of income or gains for income tax purposes. |
Subject | Business - small businesses |
CCOFOG 2014 code | 70499 - Economic affairs - Economic affairs not elsewhere classified |
Other relevant government programs | Programs within the mandate of Innovation, Science and Economic Development Canada also support small businesses. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model |
Projection method | T1 micro-simulation model |
Number of beneficiaries | About 1,800 individuals reported capital gains eligible for this measure in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 25 | 10 | 15 | 10 | 10 | 10 | 10 | 10 |
Measure | |
---|---|
Description | A deferral of tax is provided on contributions to the Saskatchewan Pension Plan (SPP) in order to encourage and assist Canadians to save for retirement. Contributions to the SPP are deductible from income, the investment income is not taxed as it accrues in the plan, and withdrawals and benefit payments are included in income for tax purposes. While the tax rules permit SPP contributions to be made within an SPP member’s available Registered Retirement Savings Plan (RRSP) contribution limit, the SPP restricts annual contributions to a specified maximum ($6,600 for 2021). |
Tax | Personal income tax |
Beneficiaries | Individuals with available RRSP contribution room |
Type of measure | Timing preference |
Legal reference | Income Tax Act, subsections 146(21) to (21.3) Income Tax Regulations, section 7800 |
Implementation and recent history |
|
Objective – category | To encourage savings |
Objective | This measure was introduced to ensure consistency in the tax treatment of Canadians saving for their retirement, whether they save through a private or a provincially sponsored registered plan (Budget 1987). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure permits the deferral of the recognition of income or gains for income tax purposes. |
Subject | Retirement Savings and investment |
CCOFOG 2014 code | 71029 - Social protection - Old age |
Other relevant government programs | Programs within the mandate of Employment and Social Development Canada also support retirement income security. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | n/a |
Estimation method | n/a |
Projection method | n/a |
Number of beneficiaries | About 11,500 individuals contributed to the Saskatchewan Pension Plan in 2020. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Note: The tax expenditure associated with this measure is combined with the tax expenditure associated with Registered Retirement Savings Plans (see measure “Registered Retirement Savings Plans”). |
Measure | |
---|---|
Description | A credit is available in respect of eligible expenditures on scientific research and experimental development (SR&ED) performed by businesses in Canada. SR&ED involves the systematic investigation or search carried out in a field of science or technology by means of experiment or analysis, and eligible SR&ED activities cover basic research and applied research as well as experimental development. Expenditures eligible for the credit include most current expenditures in respect of SR&ED performed by or on behalf of a taxpayer and that are related to a business of the taxpayer, including salary and wages, materials, overhead and contracts. The credit is provided at a general rate of 15%. An enhanced rate of 35% is provided to small Canadian-controlled private corporations (CCPCs) on their first $3 million per year of eligible expenditures. Small CCPCs that have prior-year taxable capital of $10 million or less can obtain a refund in respect of credits earned in a year but not used, at a rate of 100% on the first $3 million of eligible expenses. The $3 million expenditure limit is gradually reduced if prior-year taxable capital is between $10 million and $50 million. Qualifying expenditures in excess of a CCPC’s expenditure limit are eligible for the 15% tax credit. Unused SR&ED credits earned at this rate may be partially refundable depending on the CCPC’s taxable income and taxable capital. Unused credits that are not refunded can be carried forward 20 years and back 3 years to reduce taxes payable in those years. Unincorporated businesses are not eligible for the enhanced 35% credit rate, but are generally eligible for a 40% refund. An immediate income tax deduction is also provided in respect of eligible SR&ED expenditures (see the measure “Expensing of current expenditures on scientific research and experimental development”). |
Tax | Personal (including trusts) and corporate income tax |
Beneficiaries | Businesses conducting eligible scientific research and experimental development |
Type of measure | Credit, refundable and non-refundable |
Legal reference | Income Tax Act, section 127 |
Implementation and recent history |
|
Objective – category | To encourage or attract investment |
Objective | This measure is intended to encourage the performance of scientific research and experimental development in Canada by the private sector and to assist small businesses to perform scientific research and experimental development (Budget 1996). The rationale for this tax support is that the benefits of SR&ED extend beyond the performers themselves to other firms and sectors of the economy. The existence of these spillovers of externalities means that, in the absence of government support, firms would perform less SR&ED than desirable for the economy. |
Category | Non-structural tax measure and refundable tax credit |
Reason why this measure is not part of benchmark tax system | Tax credits are treated as deviations from the benchmark tax system. The tax benefit from this measure can be obtained in a taxation year other than the year during which it accrues. The portion of this measure that is refundable is classified as a transfer payment for government accounting purposes, and therefore is not considered to be a tax expenditure. |
Subject | Business - research and development |
CCOFOG 2014 code | 7048 - Economic affairs - R&D Economic affairs |
Other relevant government programs | Programs within the mandates of Innovation, Science and Economic Development Canada, the National Research Council Canada and the federal granting councils also support research and development. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Personal income tax: T1 Income Tax and Benefit Return Corporate income tax: T2 Corporation Income Tax Return |
Estimation method | The cost of this measure is based on data on actual credits claimed. Estimates for the personal income tax for 2010 to 2013 include investment tax credits claimed in respect of certain other certified property under a provision that is now repealed. These credits cannot be separated from SR&ED investment tax credits, but are likely negligible. The estimates do not cover investment tax credits claimed by trusts. |
Projection method | Personal income tax: The cost of this measure is projected based on historical growth. Corporate income tax: The cost of this measure is projected to grow in line with nominal gross domestic product. The projected cost of the non-refundable portion of the measure is reduced for 2019 to 2021 by the introduction of the Accelerated Investment Incentive, full expensing for manufacturing or processing machinery and equipment, and full expensing for clean energy generation equipment, which will reduce corporate taxable income. |
Number of beneficiaries | About 4,400 individuals and 22,300 corporations claimed this credit in 2019. The number of trusts having claimed this credit in 2019 is not disclosed due to confidentiality restrictions. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | S | 1 | 1 | 1 | S | S | S | S |
Corporate income tax | ||||||||
Non-refundable portion | ||||||||
Earned and claimed in current year | 445 | 445 | 560 | 480 | 465 | 485 | 515 | 540 |
Claimed in current year but earned in prior years | 930 | 1,035 | 825 | 920 | 895 | 935 | 960 | 1,045 |
Earned in current year but carried back to prior years | 70 | 70 | 30 | 40 | 45 | 45 | 50 | 50 |
Total – non-refundable portion | 1,445 | 1,550 | 1,415 | 1,445 | 1,410 | 1,465 | 1,525 | 1,635 |
Refundable portion | 1,280 | 1,300 | 1,405 | 1,855 | 1,805 | 1,880 | 2,000 | 2,090 |
Total – corporate income tax | 2,725 | 2,850 | 2,820 | 3,300 | 3,215 | 3,345 | 3,525 | 3,725 |
Total | 2,725 | 2,850 | 2,820 | 3,300 | 3,215 | 3,345 | 3,525 | 3,725 |
Measure | |
---|---|
Description | Individuals who performed at least 200 hours of eligible ground, air and marine search and rescue volunteer services during a year can claim the non-refundable Search and Rescue Volunteers Tax Credit. The value of the credit is calculated by applying the lowest personal income tax rate to a credit amount of $3,000. An individual who performs both eligible volunteer search and rescue services and eligible volunteer firefighting services for a total of at least 200 hours in the year can claim either the Search and Rescue Volunteers Tax Credit or the Volunteer Firefighters Tax Credit. An individual who claims the Search and Rescue Volunteers Tax Credit is ineligible for the exemption from income that would otherwise apply to up to $1,000 of income (honoraria) received in the year for being a search and rescue volunteer (see the measure “Tax-free amount for emergency services volunteers”). |
Tax | Personal income tax |
Beneficiaries | Search and rescue volunteers |
Type of measure | Credit, non-refundable |
Legal reference | Income Tax Act, section 118.07 |
Implementation and recent history |
|
Objective – category | To achieve a social objective |
Objective | This measure recognizes the important role played by search and rescue volunteers in contributing to the security and safety of Canadians (Budget 2014). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | Tax credits are treated as deviations from the benchmark tax system. |
Subject | Social |
CCOFOG 2014 code | 70369 - Public order and safety - Public order and safety not elsewhere classified |
Other relevant government programs | Programs within the mandates of Canadian Heritage, Immigration, Refugees and Citizenship Canada, Transport Canada and Public Safety Canada (among other departments) also support various other social objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model |
Projection method | T1 micro-simulation model |
Number of beneficiaries | About 5,700 individuals claimed this credit in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
Measure | |
---|---|
Description | Small businesses may claim a refundable tax credit of 25% on eligible air quality improvement expenses incurred between September 1, 2021, and December 31, 2022. Eligible businesses include individuals (other than trusts) and Canadian-controlled private corporations with taxable capital employed in Canada of less than $15 million in the taxation year immediately preceding the taxation year in which the qualifying expenditure is incurred. Businesses may claim the credit on eligible expenses related to the purchase or upgrade of mechanical heating, ventilation and air conditioning (HVAC) systems and the purchase of devices designed to filter air using high efficiency particulate air (HEPA) filters, up to a maximum of $10,000 per location and $50,000 in total. |
Tax | Personal and corporate income tax |
Beneficiaries | Small businesses and small commercial landlords |
Type of measure | Credit, refundable |
Legal reference | Income Tax Act, section [127.43] |
Implementation and recent history |
|
Objective – category | To achieve a social objective To support business activity |
Objective | The government proposes a refundable Small Businesses Air Quality Improvement Tax Credit of 25% on eligible air quality improvement expenses incurred by small businesses to make it more affordable for them to invest in safer and healthier ventilation and air filtration. (2021 Economic and Fiscal Update). |
Category | Refundable tax credit |
Reason why this measure is not part of benchmark tax system | This measure is classified as a transfer payment for government accounting purposes, and therefore is not considered to be a tax expenditure. |
Subject | Health Business – other |
CCOFOG 2014 code | 70761 - Health - Health not elsewhere classified - Health prevention programs (collective) |
Other relevant government programs | Programs within the mandate of Infrastructure Canada also support projects whose primary purpose is to increase outdoor air intake and/or increase air cleaning in order to help reduce the transmission of the virus that causes COVID-19. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return T2 Corporation Income Tax Return |
Estimation method | Micro-simulation model |
Projection method | Micro-simulation model |
Number of beneficiaries | n.a. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | - | - | - | - | - | - | 5 | 1 |
Corporate income tax | - | - | - | - | - | - | 155 | 80 |
Total | - | - | - | - | - | - | 155 | 80 |
Measure | |
---|---|
Description | Small suppliers (other than taxi businesses, which include ride-sharing providers) are not required to register for GST purposes. Small suppliers who choose not to register do not have to charge and remit GST on taxable supplies (other than sales of real property and, in the case of municipalities, of capital property) and they are not entitled to input tax credits.
A “small supplier” is a person whose total taxable supplies in the preceding year do not exceed $30,000 ($50,000 in the case of public service bodies). A charity or public institution (i.e., a registered charity that is a university, a public college, a school authority, a hospital authority or a designated municipality) can also qualify as a small supplier if its gross annual revenue in either of its previous two fiscal years does not exceed $250,000. |
Tax | Goods and Services Tax |
Beneficiaries | Small businesses, charities and public institutions |
Type of measure | Other |
Legal reference | Excise Tax Act, paragraph 240(1)(a) and section 166 |
Implementation and recent history |
|
Objective – category | To reduce administration or compliance costs |
Objective | This measure ensures that very small businesses do not face an additional compliance burden as a result of the introduction of the GST (Goods and Services Tax: Technical Paper, August 1989). |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure is a deviation from a broadly defined value-added tax base. |
Subject | Business - small businesses |
CCOFOG 2014 code | 70499 - Economic affairs - Economic affairs not elsewhere classified |
Other relevant government programs | Programs within the mandate of Innovation, Science and Economic Development Canada also support small businesses. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return T2 Corporation Income Tax Return GST34 Goods and Services Tax/Harmonized Sales Tax Return |
Estimation method | The cost of this measure is estimated by applying the GST rate to the net revenues of non-registered businesses with gross revenue under $30,000. Net revenues of the small businesses are estimated using personal and corporate income tax data. Businesses that are registered for the GST are identified from GST34 return and deducted to obtain the net revenues of non-registered businesses. |
Projection method | The cost of this measure is projected to grow in line with nominal gross domestic product. |
Number of beneficiaries | About 1.4 million small suppliers make use of this measure each year. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Goods and Services Tax | 225 | 225 | 240 | 295 | 210 | 235 | 250 | 260 |
Measure | |
---|---|
Description | Taxpayers receiving qualifying retroactive lump-sum payments may use a special mechanism to compute the tax on those payments. The tax under the special mechanism is the federal tax that would have been payable if the principal portion of the retroactive lump-sum payment had been taxed in the year to which it relates, plus interest to reflect the time value of money in respect of the delay in paying the tax. The interest component of the receipt of a lump-sum payment is fully included in income in the year in which it is received. To be eligible for the special tax calculation, the right to receive the income must have existed in a prior year. In addition, the principal portion of the lump-sum payment must be at least $3,000, and must have been received in a year after 1994. |
Tax | Personal income tax |
Beneficiaries | Individuals |
Type of measure | Other |
Legal reference | Income Tax Act, sections 110.2 and 120.31 |
Implementation and recent history |
|
Objective – category | To assess tax liability over a multi-year period |
Objective | This measure aims to ensure that the Government does not benefit from the delay in certain types of lump-sum payments at the taxpayer’s expense as a result of the progressivity of the income tax system (Budget 1999). |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure is considered part of the benchmark tax system, and therefore is not a tax expenditure. |
Subject | Other |
CCOFOG 2014 code | n/a |
Other relevant government programs | n/a |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model. The value of this measure corresponds to the difference between the tax that would be owed on the principal portion of eligible retroactive lump-sum payments if they were taxed in the year received, and the tax computed under the special mechanism. |
Projection method | T1 micro-simulation model |
Number of beneficiaries | This measure provided tax relief to about 2,300 individuals in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 1 | 1 | 1 | 2 | 1 | 1 | 1 | 1 |
Measure | |
---|---|
Description | Credit unions are eligible for the preferential small business tax rate of 9% (as of January 1, 2019) that generally applies to a Canadian-controlled private corporation on the first $500,000 of qualifying income (the cost associated with this preferential tax rate is included under the tax expenditure “Preferential tax rate for small businesses”). An additional deduction, available only to credit unions, provided access to the preferential income tax rate for income that is not eligible for the small business deduction. This tax expenditure represents the cost of this additional preference. Budget 2013 announced the phase-out over five years of this additional preference for credit unions. For 2013, the preferential tax rate applied to 80% of the qualifying income of a credit union that exceeds $500,000. This percentage is reduced to 60% in 2014, 40% in 2015, 20% in 2016, and 0% in 2017 and subsequent years. |
Tax | Corporate income tax |
Beneficiaries | Credit unions |
Type of measure | Preferential tax rate |
Legal reference | Income Tax Act, subsection 137(3) |
Implementation and recent history |
|
Objective – category | To encourage or attract investment |
Objective | This measure permits a credit union to accumulate capital on a tax-preferred basis up to a maximum of 5% of deposits and capital (Department of Finance Canada news release 71-157, December 6, 1971). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | The applicable tax rate departs from the benchmark tax rate. |
Subject | Business - other |
CCOFOG 2014 code | 70499 - Economic affairs - Economic affairs not elsewhere classified |
Other relevant government programs | Programs within the mandates of Global Affairs Canada, Public Services and Procurement Canada, and the regional development agencies (among other federal organizations) also offer support to Canadian businesses in various manners. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T2 Corporation Income Tax Return |
Estimation method | This tax expenditure is estimated by multiplying the additional deduction claimed by credit unions with a factor that represents the difference between the federal general corporate tax rate of 15% and the preferential small business tax rate. |
Projection method | Projections for this measure are derived under the assumption that the amount of deduction claimed will increase at the same rate as the average of taxable income and will be subject to applicable phase-out factors. |
Number of beneficiaries | About 325 credit unions applied this special tax rate in 2016. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Corporate income tax | 10 | S | – | – | – | – | – | – |
Measure | |
---|---|
Description | A taxpayer supporting a spouse or common-law partner may be eligible for the non-refundable Spouse or Common-Law Partner Credit, the value of which is calculated by applying the lowest personal income tax rate to the credit amount. The credit amount is indexed to inflation. The credit amount is reduced dollar-for-dollar by the net income of the dependent spouse or common-law partner. As of 2020, a taxpayer may also claim an income-tested supplement to the Spouse or Common-Law Partner Credit. This supplement is legislated to gradually increase in steps exceeding inflation each year until 2023, at which time the maximum credit amount will reach $15,000. The maximum credit amount for 2021 is $13,808, with the fully reduced amount being $12,421. |
Tax | Personal income tax |
Beneficiaries | Couples |
Type of measure | Credit, non-refundable |
Legal reference | Income Tax Act, paragraph 118(1)(a) |
Implementation and recent history |
|
Objective – category | To recognize non-discretionary expenses (ability to pay) |
Objective | This measure recognizes that a taxpayer whose spouse or common-law partner has little or no income has a reduced ability to pay tax relative to a single taxpayer with the same income (Report of the Royal Commission on Taxation, vol. 3, 1966). |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | Tax credits are treated as deviations from the benchmark tax system. |
Subject | Families and households |
CCOFOG 2014 code | 71049 - Social protection - Family and children |
Other relevant government programs | Programs within the mandates of Employment and Social Development Canada and Indigenous Services Canada also support Canadian families and households. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model |
Projection method | T1 micro-simulation model |
Number of beneficiaries | About 2.1 million individuals claimed this credit in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 1,575 | 1,715 | 1,740 | 1,740 | 1,615 | 1,815 | 1,960 | 2,045 |
Measure | |
---|---|
Description | Individuals can claim a non-refundable credit in respect of interest paid in the year or in the preceding five years on a student loan received for post-secondary education under the Canada Student Loans Act, the Canada Student Financial Assistance Act, the Apprentice Loans Act or similar provincial or territorial government programs. The value of the credit is calculated by applying the lowest personal income tax rate to the amount of interest paid. |
Tax | Personal income tax |
Beneficiaries | Students |
Type of measure | Credit, non-refundable |
Legal reference | Income Tax Act, section 118.62 |
Implementation and recent history |
|
Objective – category | To recognize education costs |
Objective | This measure helps individuals manage their student debt loads by providing tax relief for interest payments on student loans and improving the Canada Student Loan Program to help borrowers facing financial difficulties (Budget 1998). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | Tax credits are treated as deviations from the benchmark tax system. The tax benefit from this measure can be obtained in a taxation year other than the year during which it accrues. |
Subject | Education |
CCOFOG 2014 code | 70939 - Education - College education 70949 - Education - University education 70959 - Education - Education not definable by level |
Other relevant government programs | Programs within the mandates of Employment and Social Development Canada, the Social Sciences and Humanities Research Council, the Natural Sciences and Engineering Research Council, the Canadian Institutes of Health Research and Indigenous Services Canada also support objectives related to education and training. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model |
Projection method | T1 micro-simulation model |
Number of beneficiaries | About 560,000 individuals claimed this credit in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 40 | 45 | 50 | 55 | 25 | 25 | 15 | 55 |
Measure | |
---|---|
Description | Tobacco manufacturers were subject to a surtax on their profits, equivalent to an additional income tax of 10.5% on Canadian tobacco manufacturing profits. This measure was a negative tax expenditure as the surtax resulted in more revenues than would otherwise be raised under the benchmark tax system. Budget 2017 announced the repeal of the surtax as of March 23, 2017. |
Tax | Corporate income tax |
Beneficiaries | Tobacco manufacturers |
Type of measure | Surtax |
Legal reference | Income Tax Act, Part II, section 182 |
Implementation and recent history |
|
Objective – category | To achieve a social objective |
Objective | This measure was introduced as part of the National Action Plan to Combat Smuggling to reduce the windfall profits for the tobacco industry that resulted from the reduction in tobacco excise taxes that were implemented as part of this plan. The rate of surtax was increased in 2001 as part of the Government’s comprehensive strategy to improve the health of Canadians by discouraging tobacco consumption (Department of Finance Canada news release 2001-039, April 5, 2001). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | The applicable tax rate departs from the benchmark tax rate. |
Subject | Health |
CCOFOG 2014 code | 70761 - Health - Health not elsewhere classified - Health prevention programs (collective) |
Other relevant government programs | Programs within the mandates of Health Canada, the Canadian Food Inspection Agency, the Canadian Institutes of Health Research, the Public Health Agency of Canada and Veterans Affairs Canada also support health-related objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T2 Corporation Income Tax Return |
Estimation method | The value of this measure is based on data on actual amounts of surtax paid. |
Projection method | n/a |
Number of beneficiaries | The number of corporations affected by this measure is not published in order to preserve taxpayer confidentiality. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Corporate income tax | X | X | – | – | – | – | – | – |
Measure | |
---|---|
Description | Under section 125 of the Constitution Act, 1867, Canada and the Provinces are immune from taxation. This immunity generally extends to federal Crown corporations that act as agents of the Crown. However, federal Crown corporations prescribed under the Income Tax Regulations that carry on substantial business activities, as well as their subsidiaries, are subject to federal corporate income tax. This gives rise to a negative tax expenditure. For agent Crown corporations, the applicable federal tax rate is increased by 10% (i.e., they do not benefit from the federal abatement) given that no provincial taxes apply. Prescribed non-agent Crown corporations are taxed at the regular applicable rate by both the federal and provincial governments. |
Tax | Corporate income tax |
Beneficiaries | Certain federal Crown corporations |
Type of measure | Other |
Legal reference | Income Tax Act, sections 27 and 124 and paragraphs 149(1)(d) to (d.4) Income Tax Regulations, section 7100 |
Implementation and recent history |
|
Objective – category | To ensure a neutral tax treatment across similar situations To support competitiveness |
Objective | This measure is intended to ensure a level playing field between these corporations and similar businesses in the private sector. |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | The measure imposes federal tax on prescribed federal Crown corporations that would otherwise be immune or exempt from income tax. |
Subject | Business - other |
CCOFOG 2014 code | 70499 - Economic affairs - Economic affairs not elsewhere classified |
Other relevant government programs | Programs within the mandates of Global Affairs Canada, Public Services and Procurement Canada, and the regional development agencies (among other federal organizations) also offer support to Canadian businesses in various manners. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T2 Corporation Income Tax Return |
Estimation method | The value of this (negative) tax expenditure corresponds to the taxes paid by prescribed federal Crown corporations. |
Projection method | n/a |
Number of beneficiaries | The Income Tax Regulations currently prescribe 10 federal Crown corporations. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Corporate income tax | X | X | X | X | X | X | X | X |
Measure | |
---|---|
Description | The active business income of a foreign affiliate of a Canadian corporation is effectively exempt from tax in Canada, both when it is earned and when paid out as a dividend to the Canadian corporation, if the foreign affiliate is located in a country which has a tax treaty or tax information exchange agreement (TIEA) with Canada and has earned the income from a business carried on in such a country (referred to as “exempt surplus” treatment). In other situations the active business income of a foreign affiliate is generally taxable in Canada when paid out as a dividend to the Canadian corporation (“taxable surplus” treatment). Half of a dividend paid out of certain capital gains of a foreign affiliate is taxable in Canada, and half is exempt (“hybrid surplus” treatment). If the active business income is earned by a controlled foreign affiliate in a country with which Canada has no tax treaty and has not concluded a TIEA within five years of being asked by Canada to do so, then it is taxed to the Canadian corporation as it accrues (i.e., on a current basis as “foreign accrual property income”). Where active business income is taxable, relief is provided for foreign tax paid on that income. Interest and other expenses incurred by a Canadian corporation in respect of an investment in a foreign affiliate can generally be deducted in Canada, regardless of whether income from that investment is taxable in Canada, subject only to the general limitations on the deductibility of interest that are not specific to investments in foreign affiliates. |
Tax | Corporate income tax |
Beneficiaries | Corporations with foreign affiliates |
Type of measure | Exemption; deduction |
Legal reference | Income Tax Act, sections 91 and 113 and subsections 20(1), 93.1(1), 94.2(2) and 95(1) Income Tax Regulations, sections 5900-5902, 5905 and 5907 |
Implementation and recent history |
|
Objective – category | To support competitiveness To prevent double taxation |
Objective | The tax treatment of foreign active business income prevents international double taxation, supports the competitiveness of Canadian companies abroad, and assists Canada’s policy on tax information exchange by giving an incentive to non-treaty countries to enter into TIEAs with Canada (Proposals for Tax Reform, 1969; Budget 2007). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | There are at least three possible benchmarks for taxing the active business income of foreign affiliates of Canadian corporations (see part I of this report, footnote 5). Under the benchmark where that income would be exempt, its taxation in Canada in certain circumstances would be a negative tax expenditure, while the deductibility of interest would be a positive tax expenditure. Under the benchmark where that income would be taxable when dividends are paid to the Canadian corporation, the exemption in some cases would be a positive tax expenditure, taxation of the income on an accrual basis in certain cases would be a negative tax expenditure, and the immediate deductibility of interest would be a positive tax expenditure. Under the benchmark where that income would be taxable in Canada as it accrues, the exemption of that income in some cases and the deferral of tax until the income is paid out as dividends in other cases would both be considered a positive tax expenditure. |
Subject | International |
CCOFOG 2014 code | 70499 - Economic affairs - Economic affairs not elsewhere classified |
Other relevant government programs | n/a |
Source of data | n/a |
Estimation method | n/a |
Projection method | n/a |
Number of beneficiaries | No data is available. |
Measure | |
---|---|
Description | Spousal support payments (also called “alimony and maintenance payments”) paid on a periodic basis under a written agreement or court order are deductible by the payer and included in the taxable income of the recipient. |
Tax | Personal income tax |
Beneficiaries | Former couples |
Type of measure | Other |
Legal reference | Income Tax Act, paragraph 56(1)(b) and subsection 60(b) |
Implementation and recent history |
|
Objective – category | To extend or modify the unit of taxation |
Objective | This measure provides consistent tax treatment of alimony payments under a written agreement or court order. |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure extends the unit of taxation. |
Subject | Families and households |
CCOFOG 2014 code | 71049 - Social protection - Family and children |
Other relevant government programs | Programs within the mandates of Employment and Social Development Canada and Indigenous Services Canada also support Canadian families and households. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model. The value of this tax expenditure corresponds to the value of the deduction to the payer, less the tax collected from the recipient. |
Projection method | T1 micro-simulation model |
Number of beneficiaries | About 85,000 individuals reported having received alimony or maintenance payments in 2019, while about 65,000 individuals claimed a deduction. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 95 | 95 | 95 | 120 | 100 | 110 | 125 | 135 |
Measure | |
---|---|
Description | Contributions to the Canada Pension Plan/Quebec Pension Plan receive tax recognition for income tax purposes, consistent with the taxation of the benefits received. Employees receive a tax credit for their contributions, and employer contributions are not included in their incomes. Self-employed individuals also receive a tax credit for the employee portion of the contribution, as well as a deduction for the employer portion. For both employees and self-employed individuals, the value of the credit for contributions is calculated by applying the lowest personal income tax rate to the value of contributions (15% in 2021). A tax deduction is provided on employee contributions (and on the employee share of contributions by self-employed individuals) associated with the enhanced portion of the Canada Pension Plan and Quebec Pension Plan (contributions to the enhanced portion of the Canada Pension Plan and Quebec Pension Plan began in 2019). |
Tax | Personal income tax |
Beneficiaries | Employees and self-employed individuals |
Type of measure | Exemption; credit, non-refundable; deduction |
Legal reference | Income Tax Act, section 118.7 and paragraphs 56(1)(a), 60(1)(e) and (e.1) |
Implementation and recent history |
|
Objective – category | Other |
Objective | These measures ensure a consistent tax treatment of Canada Pension Plan/Quebec Pension Plan contributions and benefits. |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | These measures are considered part of the benchmark tax system, and therefore are not tax expenditures. |
Subject | Employment Retirement |
CCOFOG 2014 code | 70412 - Economic affairs - General economic, commercial, and labor affairs - General labor affairs 71029 - Social protection - Old age |
Other relevant government programs | Programs within the mandate of Employment and Social Development Canada also support employment. Programs within the mandate of Employment and Social Development Canada also support retirement income security. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model |
Projection method | T1 micro-simulation model |
Number of beneficiaries | About 16.8 million individuals claimed the credit for Canada Pension Plan or Quebec Pension Plan contributions on employment income in 2019, while about 2 million claimed the credit for these contributions on self-employment or other income. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Tax recognition for employee-paid contributions | 3,815 | 4,015 | 4,200 | 4,595 | 4,695 | 5,435 | 6,245 | 6,930 |
Non-taxation of employer-paid contributions | 5,795 | 6,060 | 6,415 | 6,950 | 7,050 | 8,230 | 9,160 | 9,985 |
Total – personal income tax | 9,610 | 10,075 | 10,615 | 11,540 | 11,745 | 13,665 | 15,405 | 16,910 |
Measure | |
---|---|
Description | A tax credit is provided for Employment Insurance and Quebec Parental Insurance Plan premiums paid by employees, while premiums paid by employers are not included in employees’ incomes. The recognition for income tax purposes of employee and employer premiums is consistent with the taxation of the benefits received. The value of the credit for employee premiums is calculated by applying the lowest personal income tax rate to the premiums. |
Tax | Personal income tax |
Beneficiaries | Employees and self-employed individuals |
Type of measure | Exemption; credit, non-refundable |
Legal reference | Income Tax Act, section 118.7, subparagraphs 56(1)(a)(iv) and (vii) and paragraph 56(1)(r) |
Implementation and recent history |
|
Objective – category | Other |
Objective | These measures ensure a consistent tax treatment of Employment Insurance and Quebec Parental Insurance Plan premiums and benefits. |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | These measures are considered part of the benchmark tax system, and therefore are not tax expenditures. |
Subject | Employment Social |
CCOFOG 2014 code | 70412 - Economic affairs - General economic, commercial, and labor affairs - General labor affairs 71049 - Social protection - Family and children |
Other relevant government programs | Programs within the mandate of Employment and Social Development Canada also support employment. Programs within the mandates of Canadian Heritage, Immigration, Refugees and Citizenship Canada, Transport Canada and Public Safety Canada (among other departments) also support various other social objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model |
Projection method | T1 micro-simulation model |
Number of beneficiaries | In 2019, about 16.3 million individuals claimed the credit for Employment Insurance contributions on employment income, while about 9,000 individuals claimed this credit on self-employment or other eligible earnings. About 4 million individuals claimed the credit for Quebec Parental Insurance Plan contributions on employment income earned in the province of Quebec, while about 122,000 individuals claimed the credit on income earned outside Quebec. About 487,000 individuals claimed the Quebec Parental Insurance Plan credit on self-employment or other eligible income. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Credit for employee-paid premiums | 1,360 | 1,280 | 1,365 | 1,390 | 1,320 | 1,425 | 1,540 | 1,635 |
Non-taxation of employer-paid premiums | 2,855 | 2,690 | 2,875 | 2,940 | 2,810 | 3,130 | 3,345 | 3,565 |
Total – personal income tax | 4,215 | 3,970 | 4,240 | 4,330 | 4,135 | 4,555 | 4,885 | 5,200 |
Measure | |
---|---|
Description | AgriInvest is a producer savings account that provides flexible coverage to farmers for small income declines (first 15% of income) and supports investments to mitigate risks and improve market income. Generally, producers may make a deposit into an AgriInvest account each year, and receive a matching contribution from the federal and provincial governments. Interest income earned in AgriInvest accounts and government contributions to them are not taxable until the year of withdrawal. Since 2011, the province of Quebec has supplemented AgriInvest with the Agri-Québec program, an agricultural income stabilization account program that is very similar to the AgriInvest program. The Agri-Québec program is accorded the same income tax treatment as is provided to the AgriInvest program. |
Tax | Personal (including trusts) and corporate income tax |
Beneficiaries | Farming businesses |
Type of measure | Timing preference |
Legal reference | Income Tax Act, subsections 12(10.2) and 248(1) |
Implementation and recent history |
|
Objective – category | To achieve an economic objective - other To encourage savings |
Objective | This measure is provided in support of the AgriInvest program, which is designed to encourage farmers, through government-matched contributions, to set aside earnings in order to provide coverage against income declines. |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure permits the deferral of the recognition of income or gains for income tax purposes. |
Subject | Business - farming and fishing |
CCOFOG 2014 code | 70421 - Economic affairs - Agriculture, forestry, fishing, and hunting - Agriculture |
Other relevant government programs | Programs within the mandates of Agriculture and Agri-Food Canada and Fisheries and Oceans Canada also support the farming and fishing sectors. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Agriculture and Agri-Food Canada |
Estimation method | Personal income tax (unincorporated farms): The value of this tax expenditure is estimated on a cash-flow basis and corresponds to the taxes forgone in the year on the government contributions to and interest income earned in the farm savings accounts, minus the taxes paid on amounts withdrawn from the accounts in the year. This amount is multiplied by the share of farms that are unincorporated. Calculations are based on a marginal tax rate for unincorporated farm income as estimated by the Department of Finance Canada. The breakdown of the estimates between individuals and trusts is not available. Corporate income tax (incorporated farms): The estimated amount described above is multiplied by the share of farms that are incorporated and then by the average tax rate faced by farms, based on T2 tax return data. No estimate is available for Agri-Québec. |
Projection method | Projections for 2021 through 2023 are not provided as the value of this measure cannot be reliably forecast for these years. |
Number of beneficiaries | As of December 2020, about 97,000 AgriInvest accounts were registered. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
AgriInvest program | ||||||||
Personal income tax | 15 | 5 | 4 | -1 | 1 | n.a. | n.a. | n.a. |
Corporate income tax | 2 | 1 | 1 | S | S | n.a. | n.a. | n.a. |
Total | 15 | 5 | 5 | -1 | 1 | n.a. | n.a. | n.a. |
Agri-Québec program | ||||||||
Personal income tax | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Corporate income tax | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Total | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Total | ||||||||
Personal income tax | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Corporate income tax | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Total | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
Measure | |
---|---|
Description | A life insurance policyholder is not subject to annual taxation on the investment income earned in a life insurance policy as long as the policy qualifies as an exempt life insurance policy. Instead, life insurance companies pay a 15% tax (known as the Investment Income Tax) on the income they earn on investments that they hold to meet their liabilities under the life insurance policy. This treatment results in a tax deferral and tax rate reduction to the extent that the Investment Income Tax is less than the income tax that the policyholders would pay if they were taxed on the investment income as this income accrues. In practice, almost all life insurance policies with a savings element are structured by the life insurance industry to qualify as exempt policies, with the result that the Investment Income Tax system is the de facto system. |
Tax | Personal (including trusts) and corporate income tax |
Beneficiaries | Life insurance policyholders |
Type of measure | Preferential tax rate |
Legal reference | Income Tax Act, subsections 12.2(9) and 211.1(1) and (2) |
Implementation and recent history |
|
Objective – category | To reduce administration or compliance costs |
Objective | This measure simplifies the taxation of investment income earned on life insurance policies. |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | The applicable tax rate departs from the benchmark tax rate. |
Subject | Savings and investment |
CCOFOG 2014 code | 71029 - Social protection - Old age |
Other relevant government programs | n/a |
Source of data | T2 Corporation Income Tax Return, industry survey statistics |
Estimation method | The tax expenditure is estimated as the difference between the annual tax that would be payable by policyholders and the Investment Income Tax paid by life insurance companies. The breakdown of the estimated value by type of policyholders is not available. |
Projection method | Projected growth in the Investment Income Tax is based on changes to average reserves and long-term bond rates. |
Number of beneficiaries | According to the Canadian Health and Life Insurance Association, about 22 million individuals own life insurance. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal and corporate income tax | 205 | 225 | 215 | 230 | 235 | 205 | 220 | 235 |
Measure | |
---|---|
Description | In general, capital gains are taxed on a realization basis, upon the disposition of property. This results in a tax expenditure because, under the benchmark tax system, capital gains (net of capital losses) would be included in income as they accrue. |
Tax | Personal (including trusts) and corporate income tax |
Beneficiaries | Individuals and corporations |
Type of measure | Timing preference |
Legal reference | Income Tax Act, subsection 40(1) |
Implementation and recent history |
|
Objective – category | To reduce administration or compliance costs |
Objective | This measure recognizes that, in many cases, it is difficult to estimate with accuracy the value of unsold assets, and that taxing the accrued gains on assets that have not been sold would be administratively complex and could create significant liquidity problems for taxpayers (Report of the Royal Commission on Taxation, vol. 3, 1966). |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure permits the deferral of the recognition of income or gains for income tax purposes. |
Subject | Savings and investment |
CCOFOG 2014 code | 70499 - Economic affairs - Economic affairs not elsewhere classified |
Other relevant government programs | n/a |
Source of data | No data is available. |
Estimation method | No estimate is available. |
Projection method | No projection is available. |
Number of beneficiaries | No data is available. |
Measure | |
---|---|
Description | A volunteer emergency service provider can claim an exemption of up to $1,000 for amounts received from a government, municipality or other public authority for work as a volunteer ambulance technician, firefighter, or search, rescue or other type of emergency worker. If the volunteer emergency service provider claims the $1,000 exemption, he or she cannot claim the Volunteer Firefighters Tax Credit or Search and Rescue Volunteers Tax Credit in respect of the emergency work. |
Tax | Personal income tax |
Beneficiaries | Providers of volunteer emergency services |
Type of measure | Exemption |
Legal reference | Income Tax Act, subsection 81(4) |
Implementation and recent history |
|
Objective – category | To achieve a social objective |
Objective | This measure assists small and rural communities, which are often unable to maintain full-time emergency staff and depend on the services of volunteers. The measure supports emergency services volunteers who give freely of their time and expertise, often at considerable risk to themselves, in the service of their community (Budget 1998). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure exempts from tax income or gains that are included in a comprehensive income tax base. |
Subject | Social |
CCOFOG 2014 code | 70329 - Public order and safety - Fire protection services 70369 - Public order and safety - Public order and safety not elsewhere classified |
Other relevant government programs | Programs within the mandates of Canadian Heritage, Immigration, Refugees and Citizenship Canada, Transport Canada and Public Safety Canada (among other departments) also support various other social objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T4 Statement of Remuneration Paid |
Estimation method | The value of this measure is estimated by first excluding taxpayers who claim the Volunteer Firefighters Tax Credit rather than the exemption. An estimate of forgone tax revenue is calculated by multiplying the total number of individuals assumed to claim the exemption by the average amount claimed in the year, and by the marginal tax rate of individuals claiming the Volunteer Firefighters Tax Credit over the estimation period. |
Projection method | The projection assumes 0.68% average annual growth in the number of emergency services volunteers claiming the exemption. |
Number of beneficiaries | It is estimated that about 19,000 individuals benefitted from this exemption in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 |
Measure | |
---|---|
Description | The Tax-Free Savings Account (TFSA) is a general-purpose savings account that allows individuals to earn tax-free investment income. Individuals 18 years of age and older acquire TFSA contribution room each year, with unused room being carried forward. The TFSA annual contribution limit was $6,000 for 2021. TFSA contributions are not deductible, but investment income earned in the account and amounts withdrawn are not included in income for tax purposes or taken into account in determining eligibility for federal income-tested benefits and credits. Withdrawals also create contribution room in the following year for future savings. |
Tax | Personal income tax |
Beneficiaries | Individuals |
Type of measure | Exemption |
Legal reference | Income Tax Act, sections 146.2 and 207.01 |
Implementation and recent history |
|
Objective – category | To encourage savings |
Objective | This measure improves incentives for Canadians to save by reducing taxes on savings (Budget 2008). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure exempts from tax income or gains that are included in a comprehensive income tax base. |
Subject | Savings and investment |
CCOFOG 2014 code | 70499 - Economic affairs - Economic affairs not elsewhere classified |
Other relevant government programs | n/a |
Source of data | Canada Revenue Agency, Tax-Free Savings Account statistics |
Estimation method | The value of this tax expenditure corresponds to the tax revenues forgone on the investment income earned in TFSAs. It is calculated by estimating how much of the total investment income earned in TFSAs is interest, dividends or capital gains, and multiplying these amounts by estimates of the average marginal tax rates applicable to TFSA holders (accounting for the dividend gross-up and tax credit and for the partial inclusion of capital gains). Interest income and dividend income are calculated based on estimated shares of TFSA assets that are fixed income and equity investments and on historical interest rates and dividend yields. Capital gains (or losses) are determined residually by subtracting estimated interest and dividend income from the total investment income. |
Projection method | The value of this measure is projected based on the expected growth of net contributions and investment income earned in the accounts. |
Number of beneficiaries | About 15.3 million individuals had a TFSA at the end of 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 810 | 1,075 | 870 | 1,095 | 1,515 | 1,820 | 2,020 | 2,200 |
Measure | |
---|---|
Description | Teachers and early childhood educators may claim a 25% refundable tax credit based on an amount of up to $1,000 in expenditures made in a taxation year for eligible supplies. Eligible supplies must be purchased for the purpose of teaching or otherwise enhancing students’ learning in the classroom or learning environment. Eligible supplies include consumable goods, such as construction paper for activities, flashcards or activity centres, as well as prescribed durable goods. This measure applies to supplies acquired on or after January 1, 2016. |
Tax | Personal income tax |
Beneficiaries | Teachers and early childhood educators |
Type of measure | Credit, refundable |
Legal reference | Income Tax Act, section 122.9 Income Tax Regulations, section 9600 |
Implementation and recent history |
|
Objective – category | To recognize expenses incurred to earn employment income |
Objective | This measure provides tax recognition for costs that educators often incur at their own expense for supplies that enrich the learning environment (Budget 2016). |
Category | Refundable tax credit |
Reason why this measure is not part of benchmark tax system | This measure is classified as a transfer payment for government accounting purposes, and therefore is not considered to be a tax expenditure. |
Subject | Employment |
CCOFOG 2014 code | 70412 - Economic affairs - General economic, commercial, and labor affairs - General labor affairs |
Other relevant government programs | Programs within the mandate of Employment and Social Development Canada also support employment. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Statistics Canada, Labour Force Survey |
Estimation method | n/a |
Projection method | Projections are based on estimates of total amounts to be claimed multiplied by the 15% credit rate. Total amounts to be claimed are estimated on the basis of the eligible population and anticipated out-of-pocket school supply expenses. The number of eligible educators is projected to grow in line with Employment and Social Development Canada’s Canadian Occupational Projection System for secondary and elementary school teachers and counsellors. |
Number of beneficiaries | About 67,000 individuals claimed this credit in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 3 | 4 | 5 | 5 | 5 | 10 | 10 | 10 |
Measure | |
---|---|
Description | A student eligible for the Education Tax Credit could claim a non-refundable tax credit at the lowest personal income tax rate for post-secondary textbook costs. For full-time students the amount was $65 per month of study, and for part-time students the amount was $20 per month. Unused amounts could be transferred to a supporting individual or carried forward to a subsequent taxation year. Budget 2016 announced the elimination of this measure as of 2017. Amounts carried forward from prior years may still be claimed. |
Tax | Personal income tax |
Beneficiaries | Students and individuals supporting them |
Type of measure | Credit, non-refundable |
Legal reference | Income Tax Act, subsection 118.6(2.1) |
Implementation and recent history |
|
Objective – category | To recognize education costs |
Objective | This measure provided better tax recognition for the cost of textbooks for post-secondary students (Budget 2006). |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | Tax credits are treated as deviations from the benchmark tax system. This measure extended the unit of taxation. The tax benefit from this measure could be obtained in a taxation year other than the year during which it accrued. |
Subject | Education |
CCOFOG 2014 code | 70939 - Education - College education 70949 - Education - University education 70959 - Education - Education not definable by level |
Other relevant government programs | Programs within the mandates of Employment and Social Development Canada, the Social Sciences and Humanities Research Council, the Natural Sciences and Engineering Research Council, the Canadian Institutes of Health Research and Indigenous Services Canada also support objectives related to education and training. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model |
Projection method | T1 micro-simulation model |
Number of beneficiaries | About 2.3 million individuals earned this credit in 2016. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 115 | 65 | 55 | 40 | 30 | 20 | 5 | S |
Measure | |
---|---|
Description | The Tourism and Hospitality Recovery Program (THRP) provides a wage and rent subsidy for employers in prescribed tourism or hospitality businesses that have an average revenue reduction for the first year of the CEWS of 40% or more and have a current period revenue reduction of at least 40%. For qualifying entities, the THRP pays a wage and rent subsidy of between 40% and 75% until March 13, 2022. From March 13 to May 7, 2022 the maximum wage and rent subsidy rate will decrease by half. |
Tax | Personal (including trusts) and corporate income tax |
Beneficiaries | Businesses, individuals and other organizations |
Type of measure | Credit, refundable |
Legal reference | Income Tax Act, sections 125.7 and 164 |
Implementation and recent history |
|
Objective – category | To encourage employment To support business activity |
Objective | This measure was put in place to help prevent job losses and encourage employers to quickly rehire workers previously laid off as a result of COVID-19. |
Category | Refundable tax credit |
Reason why this measure is not part of benchmark tax system | This measure is classified as a transfer payment for government accounting purposes, and therefore is not considered to be a tax expenditure. |
Subject | Employment Business – other |
CCOFOG 2014 code | 70499 - Economic affairs - Economic affairs not elsewhere classified 71059 - Social Protection - Unemployment |
Other relevant government programs | Programs relevant to supporting individuals and businesses during the COVID-19 crisis, as part of Canada’s COVID-19 Economic Response Plan. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Administrative data provided by the Canada Revenue Agency |
Estimation method | Micro-simulation model based on administrative data |
Projection method | Micro-simulation model based on administrative data |
Number of beneficiaries | No data is available. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal and corporate income tax | – | – | – | – | – | 605 | 535 | – |
Measure | |
---|---|
Description | The federal government transfers 14.85851 points of personal income tax and one point of corporate income tax to provincial and territorial governments as part of existing federal-provincial fiscal arrangements. |
Tax | Personal (including trusts) and corporate income tax |
Beneficiaries | n/a |
Type of measure | Other |
Legal reference | Federal-Provincial Fiscal Arrangements Act, Part V.1 |
Implementation and recent history |
|
Objective – category | To implement intergovernmental tax arrangements |
Objective | This measure reflects arrangements with provincial and territorial governments that allowed them to receive part of the federal program contribution for health and social programs in the form of tax abatements. |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | This measure is considered part of the benchmark tax system, and therefore is not a tax expenditure. |
Subject | Intergovernmental tax arrangements |
CCOFOG 2014 code | n/a |
Other relevant government programs | n/a |
Source of data | Canada Revenue Agency, Tax Sharing Statements |
Estimation method | The value of the tax point transfers for personal income tax is estimated by multiplying Basic Federal Tax by 0.1485851. For corporate income tax, it is estimated by multiplying corporate taxable income by 0.01. |
Projection method | Projections for this measure are based on forecasted growth of Basic Federal Tax for personal income tax and corporate taxable income for corporate income tax. |
Number of beneficiaries | n/a |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | ||||||||
Individuals | 21,265 | 22,895 | 24,425 | 25,260 | 26,530 | 28,030 | 29,445 | 30,665 |
Trusts | 615 | 830 | 525 | 890 | 1,105 | 865 | 910 | 950 |
Total – personal income tax | 21,875 | 23,725 | 24,945 | 26,150 | 27,635 | 28,895 | 30,355 | 31,610 |
Corporate income tax | 3,000 | 3,320 | 3,650 | 3,435 | 3,540 | 3,775 | 4,040 | 5,025 |
Total | 24,875 | 27,045 | 28,595 | 29,585 | 31,175 | 32,670 | 34,395 | 36,635 |
Measure | |
---|---|
Description | Canadian travellers are eligible for limited GST relief on goods they bring back to Canada. The relief that is provided depends on the length of absence: returning residents can bring back up to $200 in goods without paying the GST if they were outside the country for between 24 and 48 hours, and up to $800 in goods if they were away for more than 48 hours. There is no relief for same-day travel. This measure is referred to as an “exemption”, based on customs administrative terminology. However, the imported goods are not exempt supplies as defined under the Excise Tax Act, and unlike exempt supplies, no GST is embedded in the cost of these goods. |
Tax | Goods and Services Tax |
Beneficiaries | Canadian travellers returning to Canada |
Type of measure | Other |
Legal reference | Section 1 of Schedule VII to the Excise Tax Act |
Implementation and recent history |
|
Objective – category | To reduce administration or compliance costs |
Objective | This measure expedites customs clearance for returning Canadian consumers, making cross-border business and personal travel more convenient for Canadians (Department of Finance Canada news release 2012-061, June 1, 2012). |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | The non-taxation of goods that will be consumed in Canada is a deviation from a broadly defined value-added tax base. |
Subject | International |
CCOFOG 2014 code | 70499 - Economic affairs - Economic affairs not elsewhere classified |
Other relevant government programs | n/a |
Source of data | Statistics Canada, Supply and Use Tables Canada Border Services Agency data |
Estimation method | The cost of this measure is calculated by applying the GST rate to Statistics Canada’s estimates of expenditures by Canadians abroad on goods brought back to Canada less the GST collected on such goods. |
Projection method | The cost of this measure is projected to grow in line with non-merchandise travel imports. |
Number of beneficiaries | No data is available. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Goods and Services Tax | 300 | 305 | 310 | 335 | 80 | 100 | 250 | 300 |
Measure | |
---|---|
Description | A student can claim a non-refundable tax credit at the lowest personal income tax rate on tuition fees paid to designated educational institutions where the total for such fees exceeds $100. The student must claim the credit first on his or her own return. If the student does not need to use all of the credit, the unused amount may be transferred to a supporting individual or carried forward to a subsequent taxation year. |
Tax | Personal income tax |
Beneficiaries | Students and individuals supporting them |
Type of measure | Credit, non-refundable |
Legal reference | Income Tax Act, section 118.5 |
Implementation and recent history |
|
Objective – category | To recognize education costs |
Objective | This measure provides students with tax relief by recognizing the costs of enrolling in qualifying programs or courses (Budget 1960). |
Category | Structural tax measure |
Reason why this measure is not part of benchmark tax system | Tax credits are treated as deviations from the benchmark tax system. This measure extends the unit of taxation. The tax benefit from this measure can be obtained in a taxation year other than the year during which it accrues. |
Subject | Education |
CCOFOG 2014 code | 70939 - Education - College education 70949 - Education - University education |
Other relevant government programs | Programs within the mandates of Employment and Social Development Canada, the Social Sciences and Humanities Research Council, the Natural Sciences and Engineering Research Council, the Canadian Institutes of Health Research and Indigenous Services Canada also support objectives related to education and training. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model |
Projection method | T1 micro-simulation model |
Number of beneficiaries | About 2.5 million individuals earned this credit in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 1,315 | 1,455 | 1,630 | 1,770 | 2,085 | 2,050 | 2,030 | 2,100 |
Measure | |
---|---|
Description | Individuals who performed at least 200 hours of eligible volunteer firefighting services during a year can claim the non-refundable Volunteer Firefighters Tax Credit. The value of the credit is calculated by applying the lowest personal income tax rate to a credit amount of $3,000. An individual who performs both eligible volunteer firefighting services and eligible volunteer search and rescue services for a total of at least 200 hours in the year can claim either the Volunteer Firefighters Tax Credit or the Search and Rescue Volunteers Tax Credit. An individual who claims the Volunteer Firefighters Tax Credit is ineligible for the exemption from income that would otherwise apply to up to $1,000 of income (honoraria) received in the year for being a volunteer firefighter (see the measure “Tax-free amount for emergency services volunteers”). |
Tax | Personal income tax |
Beneficiaries | Volunteer firefighters |
Type of measure | Credit, non-refundable |
Legal reference | Income Tax Act, section 118.06 |
Implementation and recent history |
|
Objective – category | To achieve a social objective |
Objective | This measure recognizes the important role played by volunteer firefighters in contributing to the security and safety of Canadians (Budget 2011). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | Tax credits are treated as deviations from the benchmark tax system. |
Subject | Social |
CCOFOG 2014 code | 70329 - Public order and safety - Fire protection services |
Other relevant government programs | Programs within the mandates of Canadian Heritage, Immigration, Refugees and Citizenship Canada, Transport Canada and Public Safety Canada (among other departments) also support various other social objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | T1 Income Tax and Benefit Return |
Estimation method | T1 micro-simulation model |
Projection method | T1 micro-simulation model |
Number of beneficiaries | About 43,000 individuals claimed this credit in 2019. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Personal income tax | 20 | 20 | 20 | 15 | 20 | 20 | 20 | 20 |
Measure | |
---|---|
Description | Certain agricultural and fish products are zero-rated throughout the production chain, including farm livestock, poultry, bees, grains and seeds for planting or feed, hops, barley, flax seed, straw, sugar cane, sugar beets and fertilizer. Prescribed agricultural and fishing equipment, such as tractors and fishing nets, are also zero-rated. This measure relates to the zero-rating of basic groceries. |
Tax | Goods and Services Tax |
Beneficiaries | Farming and fishing businesses |
Type of measure | Zero-rating |
Legal reference | Part IV of Schedule VI to the Excise Tax Act Agriculture and Fishing Property (GST/HST) Regulations |
Implementation and recent history |
|
Objective – category | To achieve a social objective To provide income support or tax relief |
Objective | This measure is intended to improve the cash-flow position of farming and fishing businesses (Goods and Services Tax, December 1989). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | Zero-rating inputs is a deviation from the multi-stage design of the GST, whereby businesses pay tax on their inputs and then claim input tax credits in respect of inputs used in making taxable (including zero-rated) supplies. |
Subject | Business - farming and fishing |
CCOFOG 2014 code | 70421 - Economic affairs - Agriculture, forestry, fishing, and hunting - Agriculture 70423 - Economic affairs - Agriculture, forestry, fishing, and hunting - Fishing and hunting |
Other relevant government programs | Programs within the mandates of Agriculture and Agri-Food Canada and Fisheries and Oceans Canada also support the farming and fishing sectors. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | No data is available. |
Estimation method | No estimate is available. |
Projection method | No projection is available. |
Number of beneficiaries | No data is available. |
Measure | |
---|---|
Description | Basic groceries, which include the majority of foodstuffs for preparation and consumption at home, are zero-rated under the GST. A specified list of goods, such as soft drinks, candies, confections and alcoholic beverages, are not staple grocery items and are therefore taxable. |
Tax | Goods and Services Tax |
Beneficiaries | Households |
Type of measure | Zero-rating |
Legal reference | Part III of Schedule VI to the Excise Tax Act |
Implementation and recent history |
|
Objective – category | To achieve a social objective |
Objective | The zero-rating of basic groceries reflects the widely held view of Canadians that, as a general principle, basic foodstuffs should not be taxed (Goods and Services Tax: Technical Paper, August 1989). |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | Zero-rating is a deviation from a broadly defined value-added tax base. |
Subject | Social |
CCOFOG 2014 code | n/a |
Other relevant government programs | Programs within the mandates of Canadian Heritage, Immigration, Refugees and Citizenship Canada, Transport Canada and Public Safety Canada (among other departments) also support various other social objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Statistics Canada, Supply and Use Tables and National Income and Expenditure Accounts |
Estimation method | Goods and Services Tax model |
Projection method | Goods and Services Tax model |
Number of beneficiaries | No data is available. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Goods and Services Tax | 4,370 | 4,525 | 4,715 | 4,910 | 5,405 | 5,420 | 5,260 | 5,410 |
Measure | |
---|---|
Description | Face masks (medical and non-medical grade) and face shields designed for human use that meet certain specifications (e.g., cover the nose and mouth) and that are for use in preventing the transmission of infectious agents, such as respiratory viruses, are currently zero-rated under the GST. |
Tax | Goods and Services Tax |
Beneficiaries | Households |
Type of measure | Zero-rating |
Legal reference | Sections 2 to 5 of Part II.1 of Schedule VI to the Excise Tax Act |
Implementation and recent history |
|
Objective – category | To achieve a social objective |
Objective | This measure provides tax relief to households and other purchasers to support public health during the COVID-19 pandemic. |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | Zero-rating is a deviation from a broadly defined value-added tax base. |
Subject | Health |
CCOFOG 2014 code | 70719 - Health - Medical products, appliances, and equipment - Medical products, appliances, and equipment not elsewhere classified |
Other relevant government programs | Programs within the mandates of Health Canada, the Canadian Food Inspection Agency, the Canadian Institutes of Health Research, the Public Health Agency of Canada and Veterans Affairs Canada also support health-related objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Statistics Canada, Supply and Use Tables Canada Border Services Agency data |
Estimation method | The cost of this measure corresponds to the tax on the estimated value of face masks (medical and non-medical grade) and face shields that would otherwise be taxable. |
Projection method | Projections for this measure are based on the anticipated demand for face masks (medical and non-medical grade) and face shields. |
Number of beneficiaries | No data is available. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Goods and Services Tax | – | – | – | – | 3 | 75 | 75 | 20 |
Note: The total cost of this tax expenditure is slightly different than that presented in the 2020 Fall Economic Statement because of rounding. |
Measure | |
---|---|
Description | Sanitary napkins, tampons, sanitary belts, menstrual cups and other similar products that are marketed exclusively for feminine hygiene purposes are zero-rated. |
Tax | Goods and Services Tax |
Beneficiaries | Households |
Type of measure | Zero-rating |
Legal reference | Section 1 of Part II.1 of Schedule VI to the Excise Tax Act |
Implementation and recent history |
|
Objective – category | To provide income support or tax relief |
Objective | This measure provides tax relief to households. |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | Zero-rating is a deviation from a broadly defined value-added tax base. |
Subject | Families and households |
CCOFOG 2014 code | n/a |
Other relevant government programs | Programs within the mandates of Employment and Social Development Canada and Indigenous Services Canada also support Canadian families and households. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Statistics Canada, Supply and Use Tables and National Income and Expenditure Accounts |
Estimation method | Goods and Services Tax model |
Projection method | Goods and Services Tax model |
Number of beneficiaries | No data is available. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Goods and Services Tax | 45 | 50 | 50 | 50 | 55 | 55 | 55 | 60 |
Measure | |
---|---|
Description | A wide range of medical and assistive devices are zero-rated under the GST, including wheelchairs, medical and surgical prostheses, hearing and speaking aids, prescription eyeglasses and various diabetic supplies. Certain devices are zero-rated only if provided on the written order of a physician, physiotherapist, occupational therapist or registered nurse. Certain devices are zero-rated only when for use by a final consumer, but others are zero-rated whether the user is the final consumer or a health care provider. |
Tax | Goods and Services Tax |
Beneficiaries | Individuals with medical conditions or disabilities and health care providers |
Type of measure | Zero-rating |
Legal reference | Part II of Schedule VI to the Excise Tax Act |
Implementation and recent history |
|
Objective – category | To achieve a social objective |
Objective | This measure helps to preserve the affordability of these supplies. |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | Zero-rating is a deviation from a broadly defined value-added tax base. |
Subject | Health |
CCOFOG 2014 code | 70719 - Health - Medical products, appliances, and equipment - Medical products, appliances, and equipment not elsewhere classified |
Other relevant government programs | Programs within the mandates of Health Canada, the Canadian Food Inspection Agency, the Canadian Institutes of Health Research, the Public Health Agency of Canada and Veterans Affairs Canada also support health-related objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Statistics Canada, Supply and Use Tables and National Income and Expenditure Accounts |
Estimation method | Goods and Services Tax model |
Projection method | Goods and Services Tax model |
Number of beneficiaries | No data is available. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Goods and Services Tax | 430 | 440 | 460 | 480 | 480 | 530 | 530 | 540 |
Measure | |
---|---|
Description |
The following are zero-rated under the GST:
|
Tax | Goods and Services Tax |
Beneficiaries | Individuals with medical conditions |
Type of measure | Zero-rating |
Legal reference | Part I of Schedule VI to the Excise Tax Act |
Implementation and recent history |
|
Objective – category | To achieve a social objective |
Objective | This measure helps to preserve the affordability of these supplies. |
Category | Non-structural tax measure |
Reason why this measure is not part of benchmark tax system | Zero-rating is a deviation from a broadly defined value-added tax base. |
Subject | Health |
CCOFOG 2014 code | 70711 - Health - Medical products, appliances, and equipment - Pharmaceutical products |
Other relevant government programs | Programs within the mandates of Health Canada, the Canadian Food Inspection Agency, the Canadian Institutes of Health Research, the Public Health Agency of Canada and Veterans Affairs Canada also support health-related objectives. Additional information on the relevant Government programs is provided in the table at the end of Part 3. |
Source of data | Statistics Canada, Supply and Use Tables and National Income and Expenditure Accounts |
Estimation method | Goods and Services Tax model |
Projection method | Goods and Services Tax model |
Number of beneficiaries | No data is available. |
Millions of dollars | 2016 | 2017 | 2018 | 2019 | 2020 (P) | 2021 (P) | 2022 (P) | 2023 (P) |
---|---|---|---|---|---|---|---|---|
Goods and Services Tax | 825 | 850 | 880 | 900 | 925 | 980 | 980 | 1,000 |
Subject | |
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Arts and culture | Programs within the mandate of Canadian Heritage also support arts and culture. These include programs such as the Canada Arts Presentation Fund, the Canada Arts Training Fund and the Canada Music Fund. More information on these programs can be found in the Departmental Plans of Canadian Heritage. |
Business – farming and fishing | Programs within the mandates of Agriculture and Agri-Food Canada and Fisheries and Oceans Canada also support the farming and fishing sectors. These include programs such as the AgriStability, AgriInvest and AgriInsurance programs as well as the Catch Certification Program. More information on these programs can be found in the Departmental Plans of these organizations. |
Business – natural resources | Programs within the mandate of Natural Resources Canada also support the natural resource sector. These include programs such as the Indigenous Forestry Initiative, the Investments in Forest Industry Transformation program, the Targeted Geoscience Initiative program, and the Green Mining Innovation initiatives. More information on these programs can be found in the Departmental Plans of Natural Resources Canada. |
Business – small businesses | Programs within the mandate of Innovation, Science and Economic Development Canada also support small businesses. These include programs such as the Canada Small Business Financing Program, Innovative Solutions Canada, BizPal and Canada Business Network. More information on these programs can be found in the Departmental Plans of Innovation, Science and Economic Development Canada. The Business Development Bank of Canada, a federal Crown corporation, also provides financing and consulting services to small and medium-sized enterprises. |
Business – research and development | Programs within the mandates of Innovation, Science and Economic Development Canada, the National Research Council Canada and the federal granting councils also support research and development. These include programs such as the Strategic Innovation Fund, Industrial Research Assistance Program, and Industrial Research Chairs. More information on these programs can be found in the Departmental Plans of these organizations. |
Business – other | Programs within the mandates of Global Affairs Canada and the regional development agencies (among other federal organizations) also offer support to Canadian businesses in various manners. These include programs such as the Canadian Trade Commissioner Service and the CanExport program at Global Affairs Canada, and the Regional Economic Growth Through Innovation program at each regional development agency across the country. More information on these programs can be found in the Departmental Plans of these organizations. Export Development Canada and the Canadian Commercial Corporation, two federal Crown corporations, also have mandates of facilitating and promoting international trade, notably by providing financing, market expertise and other services to Canadian businesses. |
Canada's COVID-19 Economic Response Plan | Many federal programs were introduced to support Canadians and businesses facing hardship as a result of the COVID-19 outbreak. Details on these programs can be found on the Website. |
Donations, gifts, charities and non-profit organizations | Many federal government entities provide direct funding to registered charities, non-profit organizations and international development associations through various programs. |
Education | Programs within the mandates of Employment and Social Development Canada, the Social Sciences and Humanities Research Council, the Natural Sciences and Engineering Research Council, the Canadian Institutes of Health Research, and Indigenous Services Canada also support objectives related to education and training. These include programs such as the Canada Student Loan Program and Canada Education Savings Grant, the Apprenticeship Incentive Grant and Apprenticeship Completion Grant, and the Canada Graduate Scholarships program. More information on these programs can be found in the Departmental Plans of these organizations. The federal government also provides funding to provinces and territories in support of post-secondary education through the Canada Social Transfer—see the Departmental Plans of the Department of Finance Canada. |
Employment | Programs within the mandate of Employment and Social Development Canada also support employment. These include programs such as the Employment Insurance program, the Labour Market Development Agreements, the Workforce Development Agreements, the Federal Workers’ Compensation Service, the Youth Employment Strategy, the Indigenous Skills and Employment Training Program, and the Foreign Credential Recognition Program. More information on these programs can be found in the Departmental Plans of Employment and Social Development Canada. |
Environment | Programs within the mandates of Environment and Climate Change Canada, the Impact Assessment Agency of Canada, the Parks Canada Agency, Natural Resources Canada and Infrastructure Canada also support environment-related objectives. These include programs related to combatting climate change, such as the Low Carbon Economy Fund, the Energy Innovation Program and green infrastructure investments as well as supporting sustainable ecosystems and biodiversity, and the Clean Growth Program. More information on these programs can be found in the Departmental Plans of these organizations. |
Families and households | Programs within the mandates of Employment and Social Development Canada and Indigenous Services Canada also support Canadian families and households. These include programs such as Employment Insurance maternity and parental benefits, investments to support early learning and child care, and the Income Assistance Program and Assisted Living Program that support First Nations on reserve. More information on these programs can be found in the Departmental Plans of these organizations. |
Health | Programs within the mandates of Health Canada, the Canadian Food Inspection Agency, the Canadian Institutes of Health Research, Indigenous Services Canada, the Public Health Agency of Canada and Veterans Affairs Canada also support health-related objectives. These include programs such as the Health System Priorities program, the Medical Devices program, the Federal Tobacco Control Strategy, the Healthy Child Development program, and the First Nations and Inuit Primary Health Care program. More information on these programs can be found in the Departmental Plans of these organizations. The federal government also provides long-term predictable funding for health care to provinces and territories through the Canada Health Transfer—see the Departmental Plans of the Department of Finance Canada. |
Housing | Programs within the mandate of Canada Mortgage and Housing Corporation are intended to promote the construction, repair and renewal of affordable housing – currently under the umbrella of the National Housing Strategy. The Housing program of Indigenous Services Canada, and related programs at Crown-Indigenous Relations and Northern Affairs Canada, also pursue the goal of increasing the supply of safe and affordable housing to First Nations, Inuit and Métis. More information on these programs can be found in the annual report of Canada Mortgage and Housing Corporation and Departmental Plans of Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada. |
Income support | Programs within the mandates of Employment and Social Development Canada and Veterans Affairs Canada also support income security. These include programs such as the Canada Pension Plan Disability and Survivor benefits, the Federal Workers’ Compensation Service and the Disability Award program for veterans. More information on these programs can be found in the Departmental Plans of these organizations. |
Retirement | Programs within the mandate of Employment and Social Development Canada also support retirement income security. These include the Canada Pension Plan as well as the Old Age Security program. More information on these programs can be found in the Departmental Plans of Employment and Social Development Canada. |
Social | Programs within the mandates of Canadian Heritage, Immigration, Refugees and Citizenship Canada, Transport Canada and Public Safety Canada (among other departments) also support various other social objectives. These include programs such as the Development of Official-Language Communities program, the Settlement program, the Transportation Infrastructure program and programs in support of emergency management. More information on these programs can be found in the Departmental Plans of these organizations. The federal government also provides funding to provinces and territories in support of programs for children, social assistance and other social programs through the Canada Social Transfer—see the Departmental Plans of the Department of Finance Canada. |
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