Introduction: Tax Elections Offer Option and Flexibility to
Taxpayers
Canadian taxpayers may be surprised to know that choice pervades
the Canadian tax system. A common perception of the Canadian
taxation is a complex labyrinth where a taxpayer has no choice but
to follow the rules prescribed. Although the complexity of the tax
rules is well founded view, the perception of lack of any choice is
far from the truth. Several provisions of the Income Tax Act allow
a taxpayer to choose when and how to be taxed. Many of such
provisions are categorized as "elections."
Tax elections give taxpayers option and flexibility. In certain
circumstances, a taxpayer has a choice between two options: the
choice for a default set of tax rules to apply to or the choice to
make an election so that an alternative set of rules become
applicable in the specific circumstances.
