Prokopchuk O.T., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Contemporary Canadian tax system is the product of a long and rather controversial development of a rather complex mechanism of federative relations and is typical for countries of developed economy. In this paper, by means of economic and statistical research methods, in particular monographic, comparison, tabular and graphical ones the general trends of developing modern tax system in Canada are discussed and the specifics of a three-level construction of the latter is clarified, in particular in the context of federal, provincial and local levels. Peculiarities of its structure, in particular in terms of the ratio of direct and indirect taxes and its key advantages and disadvantages are highlighted. According to the results of studies it is found that the Canadian tax system in modern conditions consists of three levels: federal (48% of government revenue), provincial (42%) and local (10%).
It is concluded that in the tax system of the country direct taxation is dominated (the bulk of the revenues consist of revenues from income tax, corporate income tax, tax on the increase in the market value of assets and tax on personal income) but the share of indirect taxes is less significant (the most significant ones are federal tax on goods and services and local sales tax).
Consequently, the tax system of any country is the product of not only economic but also political development of the society. It represents the interests of different social groups and political parties and the result of a consensus which is reached by those forces in the decision of tax bills.
Canadian tax system, taxes, tax policy, direct taxes, indirect taxes, tax rates.