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Catalogue of Federal, Provincial and Territorial Taxes on Energy Consumption and Transportation in Canada: 2
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Part 2
Structure and Level of Existing Federal, Provincial and Territorial Taxes on Transportation

1. Corporate Income Taxes

The federal corporate income tax is a levy imposed on corporations based upon taxable income calculated in accordance with provisions set out in the Income Tax Act.

All provinces and territories also impose a corporate income tax. Seven provinces and the territories are part of the Tax Collection Agreements; therefore their tax bases are automatically harmonized with the federal tax base and the collection of their corporate taxes is administered by the Canada Customs and Revenue Agency. Quebec, Ontario and Alberta have their own corporate tax systems, which they administer themselves. However, even for these provinces, departures from the federal tax base have been relatively few.

1.1 Tax Rates

1.1.1 General Rate

The basic statutory federal corporate income tax rate on taxable income was 38 per cent in 2000 (before the federal surtax and the provincial and territorial tax abatement). However, for income earned in Canada, this statutory rate is reduced by 10 percentage points to 28 per cent. As announced in the 2000 budget, the statutory rate on business income not eligible for special tax treatment has been further reduced in 2001 by 1 percentage point. In addition, there is a 4 per cent corporate surtax. As a result, the general tax rate in 2001 is 28.12 per cent.

As proposed in the Economic Statement and Budget Update, released October 18, 2000, the general federal corporate tax rate on business income not eligible for special tax treatment will be reduced by a further 6 percentage points: a reduction of 2 points, from 27 per cent to 25 per cent, effective January 1, 2002, a further reduction of 2 points effective January 1, 2003, and the remaining 2-percentage-point reduction effective January 1, 2004 (all prorated for taxation years that include those dates).

Provincial and territorial general income tax rates vary. As of January 1, 2001, the lowest rate, 9 per cent (on active business income), applies in Quebec while the highest rate, 17 per cent, applies in Manitoba, New Brunswick and Saskatchewan. Other provinces’ and territories’ rates vary between 14 and 16.5 per cent. The average combined federal/provincial/territorial basic tax rate is approximately 42 per cent.

1.1.2 Lower Tax Rates for Small Businesses

The federal tax system provides small and medium-sized businesses with a lower tax rate. Canadian-controlled private corporations (CCPCs) are eligible for a small business tax rate reduction, known as the small business deduction (SBD). This deduction lowers the basic federal tax rate on the first $200,000 of active business income of CCPCs to 12 per cent. When combined with the federal surtax, small businesses effectively pay federal corporate income tax at 13.12 per cent. In addition, as proposed in the 2000 budget, effective for 2001, the federal corporate income tax rate on income between $200,000 and $300,000 earned by a CCPC from an active business carried on in Canada is reduced to 22.12 per cent (21 per cent plus surtax). Income eligible for this lower rate is reduced to the extent that the corporation has manufacturing and processing (M&P) income subject to the reduced M&P tax rate or income from resource activities. The $200,000 and $300,000 limits on income eligible for these reduced rates must be shared among members of an associated group.

CCPCs with more than $15 million of taxable capital employed in Canada are not eligible for these rate reductions. In addition, CCPCs with between $10 million and $15 million of taxable capital employed in Canada have reduced access to these lower rates.

All provinces and territories, except for Quebec, provide lower tax rates for small CCPCs as well. They generally use federal limitations in determining eligibility for the lower rates (i.e., income and taxable capital limits) but have different small business rates. Ontario has provisions to claw back the benefit of its reduced corporate income tax once income exceeds its small business limit. Ontario and Alberta have announced their intention to phase in an increase in the small business threshold to $400,000, by 2005 for Ontario and by 2002 for Alberta.

In 1997 the federal SBD claimed by CCPCs amounted to some $2.7 billion. The transportation sector received about 3 per cent of this amount. This is significant considering that the transportation sector’s taxable income represented only about 1 per cent of the total taxable income. In 1997 the SBD allowed the transportation sector to reduce its average federal income tax rate by 8 percentage points, an impact that is more than twice the reduction provided to other sectors by the SBD. Marine, truck and bus transport industries are the main beneficiaries of the SBD.

1.2 Investment Tax Credits

The transportation sector makes limited use of investment tax credits (ITCs). In 1997 firms in the transportation sector earned about $2.4 million in various forms of federal ITCs.

Most ITCs not used in a particular year may be carried over and claimed in subsequent or prior years. At the end of 1997 firms in the transportation sector had accumulated unused ITCs of approximately $91 million. In 1997 nearly $24 million of current and previous years’ ITCs were applied against federal corporate income tax.

1.3 Adjustments in Determining Taxable Income

Businesses usually have some flexibility in calculating their income for financial statement purposes. For example, different businesses may decide to depreciate their capital assets over a shorter or longer time span. They may also use different methods of valuing their inventories. Therefore, to ensure that all businesses are taxed on the same basis and to improve the fairness of the tax system, corporate income tax is not based on reported financial statement profits but rather on taxable income, which must be calculated in accordance with the rules set out in the Income Tax Act.

Most larger businesses in the transportation sector are incorporated and are therefore subject to corporate taxes. However, many small businesses in this sector are unincorporated. As a result, the profits from these businesses are included in the income of the individual owners and are subject to personal federal, provincial and territorial income taxes. For the most part, the provisions applicable to the determination of taxable income of corporations apply equally to the determination of income from unincorporated businesses.

The significant adjustments to book profits that are made by corporations in the transportation sector in determining taxable income are deduction of losses of other years and deduction of capital cost allowances. A brief description of each of these items follows.

1.3.1 Losses of Other Years

Because of the cyclical nature of business income, the income tax system permits corporations to apply losses incurred in a particular year against taxable income of another year to reduce income tax otherwise payable. There are four types of losses that can be carried over but only two, non-capital losses and net capital losses, are of significance to the transportation sector.

A non-capital loss is a company’s loss from business operations. Non-capital losses may be carried back three years and forward seven years to reduce or offset a corporation’s taxable income.

A net capital loss arises from the disposition of capital property. This type of loss may be carried back three years and forward indefinitely but can only be applied against net taxable capital gains.

At the end of 1997 firms in the transportation sector had approximately $3.6 billion of accumulated non-capital and net capital losses available for application against income of subsequent years.

In 1997 corporations in the transportation sector reported $1.7 billion in taxable income before application of any previous years’ losses. The use of previous years’ capital and non-capital losses reduced the taxable income to $0.9 billion, representing a tax reduction of nearly $140 million.

1.3.2 Capital Cost Allowance

The cost of capital property generally cannot be written off in the year incurred. Rather, the cost, net of any government assistance provided, can only be depreciated over the useful life of the asset as capital cost allowance (CCA). To take into consideration that assets are acquired throughout the year, in the year of acquisition, a half-year rule applies to restrict the deduction of CCA relating to these assets to 50 per cent of the normal amount. In addition, available-for-use rules ensure that CCA is not claimed on assets not yet put in use unless they have been owned for two years. The cost of the asset acquired is allocated to a particular CCA class based upon the type of asset or its purpose or use. The class into which an asset is allocated determines the rate at which it is depreciated.

Most of the CCA classes are subject to the declining balance depreciation method whereby the eligible CCA rate is applied on the undepreciated balance at the end of the year. As a result, the CCA deduction decreases with time but the asset is never totally written off. In contrast, the straight-line depreciation method, which applies only to a few classes, applies the CCA rate to the original cost each year. As a result, the CCA deduction is constant over time and, after a certain number of years, the asset is totally written off.

Generally, a CCA class consists of a pooling of assets with no distinction being made between one asset and another. The CCA rate is applied on the depreciated value of the pool of assets. A terminal loss, equal to any remaining undepreciated balance in the class, may be claimed after the last asset has been disposed of. There is a recapture of CCA (i.e., an income inclusion) to the extent that a disposition results in a negative undepreciated balance in the pool.

In certain specific instances, the assets are not pooled but rather are segregated in separate classes. This is done to either permit an accelerated CCA rate to be applied to a specific asset (e.g., eligible Canadian-built ships) or to recognize recapture or terminal loss upon the disposal of each asset (e.g., rental buildings and certain office equipment subject to technological obsolescence).

There are nine CCA classes of particular importance to the transportation sector. It should be noted that, although some of these classes contain just a few types of assets specific to transportation, the majority include other assets not necessarily unique to the transportation sector (e.g., Class 1 includes dams, bridges, canals and most newer buildings).

Class 1: Railroad structures^[5]

Class 1 provides a 4 per cent declining balance rate for railway track and grading, including components such as rails, ballast, ties and other track material. Railway traffic control or signalling equipment, but not including property that is principally electronic equipment or systems software, also qualify for this class. Class 1 includes about 55 per cent of all tangible railway assets subject to depreciation.

Class 3: Trestles^[6]

Class 3 provides a 5 per cent declining balance rate for railway trestles. This class represents only 2 per cent of all tangible railway assets subject to depreciation.

Class 4: Railway/tramway systems

Class 4 provides a 6 per cent declining balance rate for most railway assets acquired before May 26, 1976. It also applies to tramway or trolley bus systems not included in certain other classes.

Class 6: Railway locomotives

Class 6 provides a 10 per cent declining balance rate for railway locomotives but not including an automotive railway car. Class 6 includes about 10 per cent of all tangible railway assets subject to depreciation. The cost of aeroplane hangars is also included in this class. The 2000 federal budget proposed that the CCA rate for locomotives acquired after February 27, 2000, be increased to 15 per cent.

Class 7: Vessels

Class 7 provides a 15 per cent declining balance rate for vessels, except those eligible for the accelerated rate discussed in the next section and those included in Class 41 (used for exploration purposes). Spare engines, furniture, fittings, or equipment attached to the vessels are included in this class, but not radio-communication equipment. A vessel under construction also qualifies if not subject to Class 41. Marine railways are eligible for the 15 per cent CCA rate as well. Class 7, including vessels eligible for the accelerated CCA described below, represents about half of the tangible assets subject to depreciation in the marine transport industry.

Class 9: Aircraft

Class 9 provides a 25 per cent declining balance rate for aircraft including furniture, fittings or equipment. It also applies to spare parts for the aircraft or for attached equipment. Class 9 includes about 65 per cent of all tangible assets subject to depreciation in the air transport industry.

Class 10: Automotive

Class 10 provides a 30 per cent declining balance rate for automotive equipment, not including an automotive railway car acquired after May 25, 1976, a railway locomotive or a tramcar. Trailers, including those designed to be hauled on both highways and railways tracks, also qualify. Class 10 represents about 65 per cent of all tangible assets subject to depreciation in the trucking and bus transport industries.

Class 16: Automotive for lease/for hauling freight

Class 16 provides a 40 per cent declining balance rate for motor vehicles acquired for the purpose of renting or leasing, but not to any person for more than 30 days in any 12-month period. Class 16 also includes trucks and tractors designed for hauling freight that have a gross vehicle weight rating in excess of 11,788 kg (26,000 lb.) and are used primarily by the taxpayer or a person with whom the taxpayer does not deal at arm’s length. Taxicabs are also eligible for the 40 per cent CCA rate. Class 16 represents about 20 per cent of all tangible assets subject to depreciation in the trucking industry.

Class 35: Railway car^[7]

Class 35 provides a 7 per cent declining balance rate for railway cars and rail suspension devices designed to carry trailers that can be hauled on both highways and railway tracks. Class 35 represents almost 10 per cent of all tangible railway assets subject to depreciation.

The 2000 federal budget proposed that the CCA rate for railway cars and rail suspension devices acquired after February 27, 2000, be increased to 15 per cent. In certain circumstances, Class 35 railway assets that are the subject of a lease are already eligible for a 13 per cent CCA rate. The proposed 15 per cent CCA rate will apply to these assets only if the lessor elects to have the "specified leasing property" rules apply to the asset.

1.3.3 Additional or Accelerated Capital Cost Allowance

Additional CCA is provided to certain types of assets in order to stimulate capital investments or to support particular industries. Railway assets and Canadian-built ships benefit from additional CCA in excess of the standard rate applicable to their respective classes.

1.3.4 Railway Assets

Railway cars acquired prior to February 28, 2000, are generally included in Class 35 and depreciated at a rate of 7 per cent on a declining balance basis. However, some of these railway cars are eligible for additional allowances. Railway cars acquired by common carriers are eligible for an additional allowance of 3 per cent. Railway cars for rent or lease are generally eligible for an additional allowance of 6 per cent.

Other railway properties such as track, grading, control or signalling equipment are generally included in Class 1 and subject to a 4 per cent declining balance rate. Such railway properties acquired by common carriers are eligible for an additional allowance of 6 per cent.

Railway trestles are generally included in Class 3 and subject to a 5 per cent declining balance rate. Trestles acquired by common carriers are eligible for an additional allowance of 5 per cent.

These additional allowances generally raise the CCA rates for railway cars acquired prior to February 28, 2000, track and other railway equipment to 10 per cent (see the table below). A separate class is prescribed for properties included in Classes 1, 3 or 35 and eligible for the additional CCA rate. Locomotives acquired prior to February 28, 2000 are not provided with any additional allowance since they are already eligible for a 10 per cent declining balance rate under Class 6.

Basic and Additional CCA Rates for Rail Assets (1999)

* The 2000 federal budget proposed that the CCA rates for locomotives, railway cars and rail suspension devices acquired after February 27, 2000, be increased to 15 per cent. In certain circumstances, Class 35 railway assets that are the subject of a lease are already eligible for a 13 per cent CCA rate. The proposed 15 per cent CCA rate will apply to these assets only if the lessor elects to have the "specified leasing property" rules apply to the asset.

1.3.5 Canadian-Built Vessels

Vessels are generally included in Class 7 and are subject to a 15 per cent declining balance rate. Accelerated CCA on a straight-line basis at a maximum rate of 33¹/₃ per cent of the capital cost of the property is available in respect of a vessel, including furniture, fittings, radio-communication equipment and other equipment if it was constructed and registered in Canada and not used for any purpose whatever before acquisition by the owner. These assets are depreciated over a four-year period, with 16 2/3 per cent written off in the first and fourth years and 33 1/3 per cent written off in the second and third years. A separate class is prescribed for properties eligible for this accelerated CCA rate.

1.3.6 Statistics on Transportation Assets

Although not exhaustive, the above CCA class description covers the majority of the investment made by firms in the transportation sector. As shown in the table presented in the Annex, additions to the previously mentioned CCA classes represented about 90 per cent of all additions in the transportation sector in 1997.

The table also shows, for each transportation sub-sector, a concentration of additions in a few classes. For airlines, additions to Class 9 represented 82 per cent of all additions in the airline industry. For railways, additions to classes 1 and 6 together represented 72 per cent of all additions in the railway industry. For ship operators, additions to class 7, including vessels eligible for accelerated CCA, represented 94 per cent of all additions in the marine industry. For truck and bus operators, additions to classes 10 and 16 represented over 80 per cent of all additions in the truck and bus transport industries.

2. Non-Income Taxes

2.1 Taxes and Levies Based Upon Payroll

2.1.1 Federal

Federal and provincial governments are the joint stewards of the Canada Pension Plan (CPP), a work-related pension scheme administered by the federal government. Quebec has a similar plan called the Quebec Pension Plan (QPP). Both employers and employees are required to contribute to a public pension plan, the QPP in Quebec and the CPP in the rest of the country. Contributions to both plans are identical. Employers and employees are subject to the same contribution rate of 4.3 per cent (2001). The premiums are calculated on earnings in excess of $3,500 up to a maximum of $38,300 per year (2001). As a result, employer contributions to CPP/QPP could represent up to $1,496 per employee in 2001.

Employers and employees are also required to contribute to the employment insurance (EI) program. The employee contributes 2.25 per cent of insurable earnings (2001) and the employer contributes 1.4 times the employee’s premiums, that is 3.15 per cent of insurable earnings. The annual maximum insurable earnings are currently $39,000. As a result, employer contributions to EI could represent up to $1,228.50 per employee in 2001.

2.1.2 Provincial and Territorial

The provincial and territorial governments have two kinds of payroll taxes: a general payroll tax^[8], which is not allocated to any specific program, and workers’ compensation, which is comparable to an insurance premium. All of the provinces and territories assess workers’ compensation premiums but only four provinces and two territories have a general payroll tax.

In 1997 Canadian corporate employers paid about $13 billion in payroll taxes at the federal level and $8.5 billion at the provincial level for a total of $21.5 billion. Contributions by firms in the transportation sector represented approximately 3 per cent of this amount.

2.2 Capital Taxes

The federal government and several provinces impose a levy on capital used by corporations in their jurisdictions. The capital tax rates vary according to the jurisdiction and the nature of the corporations. Generally, corporations in the transportation sector are subject to the general capital tax rates.

Canadian corporations paid about $4.5 billion in general capital taxes in 1997, approximately $1.2 billion to the federal government and $3.3 billion to provincial governments. Of this total, roughly 3 per cent was paid by firms in the transportation sector.

2.2.1 Federal

A federal capital tax is applied to all corporations on taxable capital employed in Canada in excess of $10 million. The $10-million exclusion eliminates small corporations from liability for this tax; accordingly, this tax is called the "large corporations tax" (LCT). The effective rate of the LCT is 0.225 per cent.

The LCT affects the various transportation sub-sectors differently. Essentially, the air and rail transport industries are dominated by a few large corporations while other transportation sub-sectors, especially the trucking industry, are represented mostly by small and medium-sized corporations, many of which are too small to be subject to LCT. In 1997 the transportation sector paid about $36 million in LCT, of which more than 80 per cent came from the air and rail transport industries.

There are special rules for determining the taxable capital of non-residents that are subject to the LCT. Generally, the taxable capital employed in Canada of a corporation that was throughout the year not resident in Canada is based on the total value of the assets used to carry on any business through a permanent establishment in Canada. However, some types of assets as well as certain debts relating to a permanent establishment in Canada are deductible from the taxable capital base. Specifically, the carrying value of a ship, aircraft or personal property used to transport passengers or goods in international traffic is deducted from the taxable capital base. The provision applies only if the non-resident’s home country gives Canadian residents substantially similar tax relief.

2.2.2 Provincial

Seven provinces (British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Quebec and Saskatchewan) impose a general capital tax. Taxable capital bases, rates and thresholds from which rates start to apply vary from province to province. Quebec has the highest rate at 0.64 per cent and has no capital threshold while Nova Scotia has the lowest rate at 0.25 per cent and a $5-million capital threshold.

3. Other Specific Tax Provisions

There are several specific provisions in the tax system that relate directly or indirectly to the transportation sector. This section briefly describes some of these transportation-related tax provisions.

3.1 Specified Leasing Property Rules

To ensure fairness in the tax system, the Income Tax Act contains several provisions that restrict the deductibility of CCA from leasing and rental operations. One limitation is the specified leasing property rules. The specified leasing property rules basically restrict the CCA deduction of the lessor to the notional principal payments that would have been received if the lease had been structured as a loan.

These specified leasing property rules apply to most leased assets costing in excess of $25,000. A few exceptions from this restriction are provided where the CCA rate for the particular asset is not unduly accelerated vis-à-vis economic depreciation. The so-called "exempt properties" are not subject to the specified leasing property rules.

Several assets related to the transportation sector are exempted from this restriction including automobiles of all kinds that have a seating capacity of no more than nine persons, trucks or tractors for highway use, trailers designed to be hauled by a truck or a tractor, and railway cars.

3.2 Aviation Fuel Excise Tax Rebate

The aviation fuel excise tax rebate, which is effective for calendar years 1997 to 2000, provides excise tax rebates on the aviation fuel used by airline companies. Rebates are limited to $20 million per year per associated group of companies. In order to receive a rebate, a company must agree to reduce its non-capital losses by $10 for every $1 of rebate.

Losses exchanged for the rebate may be reinstated later provided that the airline repays the associated excise tax rebate previously received, including the payment of interest at the prescribed rate on unpaid taxes. However, no interest will be payable in respect of repayments of excise tax rebates for the period prior to January 1, 2000. Reinstated losses remain losses for the year in which they were originally incurred.

3.3 Exemption From Branch Tax

The branch tax is imposed on that portion of the income of non-resident corporations derived from the carrying on of business in Canada through a branch. If a Canadian branch ceases active business operations, non-residents are liable for tax on capital gains on dispositions of taxable Canadian property. The rate is 25 per cent but is frequently reduced by bilateral tax treaties to 15 per cent, 10 per cent or 5 per cent.

However, some corporations, including corporations whose principal business is the transportation of persons or goods, are exempt from the branch tax.

3.4 Exemption From Non-Resident Withholding

Canada, like other countries, imposes a withholding tax on various types of income paid to non-residents. The basis for this tax rests on the internationally accepted principle that a country has the right to tax income that arises or has its source in that country. The types of income subject to non-resident withholding tax include: certain interest, dividends, rents, royalties and similar payments; management fees; estate and trust income, alimony and support payments; and certain pension, annuity and other payments.

Over time, as the benefits of freer trade in capital, goods and services have been increasingly recognized, countries including Canada have adjusted their tariff and tax structures to remove impediments to international transactions. Part of this adjustment has been the reduction of non-resident withholding tax on certain payments.

Canada’s statutory non-resident withholding tax rate is 25 per cent. However, the rate is lowered and exemptions provided for certain payments through an extensive network of bilateral tax treaties. These rate reductions, which apply on a reciprocal basis, differ depending on the type of income and the tax treaty country.

The Income Tax Act also provides for a number of unilateral exemptions from withholding tax including several that apply specifically to the transportation sector. Rent payments made to a non-resident for the use of an aircraft, including furniture, fittings, equipment attached and spare parts, are exempted from the non-resident withholding tax. An exemption is also provided for rent payments made to a non-resident by a railway company for the short-term use of railway rolling stock.

3.5 Income Tax Exemption on Income Earned by Non-Residents

Non-residents operating a ship in international traffic are exempted from Canadian income tax, as is done in other countries. Similarly, non-residents operating an airline in international traffic are exempted from Canadian income tax. In both cases, the exemption applies only if the non-resident’s home country gives Canadian residents substantially similar tax relief.

3.6 Reserve for Quadrennial Surveys

A deduction is permitted for amounts prescribed as a reserve for expenses to be incurred for quadrennial or other special surveys required under the Canada Shipping Act or the regulations under the Act, or under the rules of any society or association for the classification and registry of shipping approved by the Minister of Transport for the purposes of the Canada Shipping Act. In this way the cost of such major expenditures, recurring periodically, may be spread over several preceding years instead of being deducted all in the year in which they are incurred.

3.7 Income Earned in a Province or Territory

Generally, the allocation of taxable income among provinces and territories is based on salaries and wages paid in each province or territory where the corporation had a permanent establishment and on gross revenues attributable to each province or territory where the corporation had a permanent establishment. However, due to the nature of their operations, airlines, railways, and ship, bus and truck operators use alternative methods of allocation.

An airline corporation allocates its taxable income among provinces and territories on the basis of its fixed assets, other than aircraft, in each province and territory and of revenue plane miles flown by its aircraft in provinces and territories in which the corporation had a permanent establishment. The revenue plane miles flown are weighted according to take-off weight of the aircraft operated.

A railway corporation allocates its taxable income among provinces and territories on the basis of equated track miles and of gross ton-miles in each province or territory. Equated track miles is an aggregate number made up of the number of miles of first main track and a percentage of other main track, yard tracks and sidings.

A bus or a truck operator allocates its taxable income among provinces and territories on the basis of the number of kilometres driven by the corporation’s vehicles on roads in each province or territory in which the corporation had a permanent establishment and of salaries and wages paid to employees of its permanent establishment in each province or territory.

A ship operator allocates its taxable income among provinces and territories on the basis of port-call-tonnage and of salaries and wages paid to employees in each province or territory in which the corporation had a permanent establishment. Port-call-tonnage is the product of port calls made by the ship and the registered net tonnage of that ship.

Annex

Breakdown of Additions by Selected CCA Class – Transportation Sector and Sub-Sectors
(as a per cent of total additions in each sub-sector/sector, 1997)

Source: Corporation Sample File, 1997.

¹ Railroad structures are entitled to an additional 6% CCA.
² Railway trestles are entitled to an additional 5% CCA.
³ Canadian-built vessels are entitled to a 331/3% straight-line depreciation rate.
⁴ Railway cars are entitled to an additional 3%/6% CCA.

¹ Natural Resources Canada, Department of Finance Canada and Industry Canada, Federal Income Tax Treatment of Virgin and Recycled Materials (December 1996).  [Return]

² Natural Resources Canada and Department of Finance Canada, The Level Playing Field: The Tax Treatment of Competing Energy Investments (September 1996). [Return]

³ Methanol in gasoline is not tax-exempt as of May 1, 2000. [Return]

⁴ The 2000 Ontario budget phases out the retail sales tax on vehicle insurance premiums as follows:
- 3 per cent effective April 1, 2001;
- 2 per cent effective April 1, 2002;
- 1 per cent effective April 1, 2003; and
- 0 per cent effective April 1, 2004. [Return]

⁵ See Section 1.3.3. [Return]

⁶  See Section 1.3.3. [Return]

⁷  See Section 1.3.3. [Return]

⁸ Health levies raised by some provinces are considered as general payroll taxes since these levies are not allocated to a specific health fund but to their consolidated revenue fund. [Return]