The tax system is set to undergo a major overhaul in 2019, and some experts expect it to hit a rough patch.article What is the Canada Revenue Agency’s (CRA) tax overhaul?
Read moreWhat will the tax overhaul mean for Canadians?
This year, the CRA has been looking to simplify the tax system for the first time in over a decade.
The government has also announced it will scrap the personal income tax rate of 35%, a change that will see income tax rates reduced from 12.5% to 8% for families, and from 35% to 25% for individuals.
The changes will apply to tax year 2019-20, so Canadians will start paying their taxes on April 15, 2020, with the tax changes kicking in on April 16, 2021.
A number of experts have questioned the fairness of the changes, pointing out that the new rates have been in place for over a year, and it’s still possible to deduct some of the tax you pay.
For example, a single parent with two children earning $35,000 a year will still be able to deduct up to $2,000 of the amount of income they receive from the government.
In the case of a single child with two parents, the child could also deduct up a total of $3,000 from their tax bill.
The new rates also will allow for individuals to take the additional deduction for the full amount of their federal income tax payment.
The move comes after the Canadian Federation of Independent Business (CFIB), which represents the Canadian business community, called for changes to the tax code in 2017, saying it would create “a wealth of opportunity for small businesses”.
The CRA said that it’s working with stakeholders to review the proposals, which have been called a “historic” and “historic change”.
“We will ensure that every Canadian is treated fairly and fairly fairly in the tax regime,” said spokesperson Catherine McKenna.
Read more”The tax reforms announced today will make our country the envy of the world and will create millions of new opportunities for Canadians, businesses, and small business across the country.
This is a great day for the country.”
The CRA has said that the changes will “help Canada achieve our goal of reducing tax compliance by 50 per cent by 2020”.
In a statement, the government said that its tax reform aims to “improve transparency, fairness, and accountability in our tax system” and to “give Canadians more certainty and control over their tax dollars”.
“Tax reform is a long-term process that is well underway,” the statement added.
“As Canadians head to the polls on April 17, 2019, we will ensure they receive a fair tax bill.”
The government will be unveiling its tax plan on Monday.