Canada - Taxation

As with most industrialized democracies, Canada's tax system is complex, reflecting the impact of numerous social and economic policy goals. Since 2000, the government has also been engaged in a Five-Year Tax Reduction Plan which aims by 2005 to, among other things, reduce the corporate tax rate to 21%, the tax rate to 23%, and to raise the limits for the applicability of the various tax brackets. In Canada, there are both federal and provincial taxes on corporate income. Ontario, Quebec and Alberta administer their own corporate tax systems, but in the other provinces the federal government levies both.