Flat Tax or Simplified Tax?

The tax system in Canada is a way to complicated. It is so convoluted that CRA, accountants, lawyers and tax representatives do not agree on the interpretations of an act that has grown over thousands of pages and millions of words. We need changes made. I have taken on the process of introducing a simplification process.

Not only that but I am starting a petition that will give Canadians a chance to vote for change. For more see the www.taxauditsolutions.ca web site. 

The following is a series of DRAFT suggestions on how the SIMPLIFIED income Tax Act (ITA) should read.

Please use the comment form at the side bottom of this page to comment and or to make suggestions.

FLAT TAX:  While a flat tax is a great idea and we already have the mechanism in place to deliver this across CANADA… by way of the HST…. it would be reasonably easy to implement this and abolish the entire Income Tax Act and the Excise Tax Act.

HOWEVER: There are a way too many vested interests in the current system. SO; the only hope is to simply … SIMPLIFY the Income Tax Act.

So the following is where we begin….


ITA Simplified

Income Tax In Canada

All Canadians pay tax on their worldwide income unless they pass the defined test of nonresident status.
See residency test. Section #…………. “Residency Test.”

Tax payable by persons resident in Canada
1.    All Canadian residents are taxed on their world wide income.
2.    All financial benefits received by a tax payer are taxable income unless specifically exempt.
3.    See definition of taxable income Section #………”Taxable Income.”
4.    See list of exemptions. Section # ………. “Exemptions from Taxable Income.”

Tax payable by persons non-resident in Canada
Offshore income is taxed at the normal rate except as adjusted by a relevant tax treaty between Canada and the Offshore country.

Filing of tax returns.

All Canadians must file a tax return each fiscal year when they have a tax liability owing or when they receive a demand to file from CRA.

Basic Rules

ITA Simplified

To learn more about how a simplified tax would work, click here or go to


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