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Canada is a country where taxation is levied in order to meet public expenses like transport, roads, schooling, health care, and so on. Therefore, it is a sort of tie up between the citizens of Canada and the federal government and municipalities which collect taxes from people according to their earnings and spend on public utilities which are maintained at high standards. In Canada, income tax is collected according to the sources of incomes indicated by the citizens and there is also the provision of returns filed on the tax paid.
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Taxation — a system by which governments finance their expenditure by imposing charges on citizens and corporates. It is also used to encourage or discourage certain economic decisions. The study of taxation emphasizes the crucial nature of the relation between an individual and the state.
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