As with a jigsaw puzzle, we need to look at the picture on the
front of the box before we start putting the pieces together.
Hence, we examine the nature and meaning of taxes, the
constitutional authority to levy them, the analytical framework of
fiscal legislation, administrative considerations and the processes
for dispute resolution. In addition, we look at the policy
underpinnings of the income tax system and its role in economic and
social structures.
I. The Federal Income Tax
The federal income tax is a charge that the government imposes
on certain annual gains of individuals, corporations, or other
taxable entities derived through labour, business, investments, and
other financial dealings in accordance with the Income Tax Act
(Canada) ("Act"). We tend to think about income tax law
solely as a numbers exercise and a source of revenues to finance
public expenditures. To be sure, revenue generation is the most
significant purpose of the income tax law, but it
