Tax Policy

This course investigates the Canadian tax system in light of the objectives of that system. For any current tax rule, the idea is to identify the underlying policy problem the rule is intended to solve, consider alternative solutions, and then determine if the current tax rule can be improved. Students will apply this procedure in a major essay. In class, topics discussed will include: the process of formulating tax policy and the roles of Finance; CCRA; courts, lobby groups, etc.; the goals of taxation such as fairness and neutrality; tax evasion and the underground economy; flat taxes and single-rate taxes versus progressive-rate taxes; and implementing incentives through the tax system versus as direct government expenditures. This course is intended to make students think about the purpose of tax rules. Tax rules are just so many random bits of information unless you understand the purpose of the rules. Understanding the purpose helps you remember the rules and makes you better able to explain them to clients. Also, by identifying gaps and inconsistencies where the rules do not achieve their purpose, you may be able to identify tax planning opportunities and areas where the rules may change in the future.