Module 1: Basics of Taxation

A brief history of taxation

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Many people assume that taxes are a recent development and that our ancestors and ancient people did not have to pay them. This is not the case.

Right back to the beginning of recorded history, wherever there was an organized society and government, there was some kind of tax system in place. Over 3,500 years ago, the ancient Egyptians collected taxes and the Roman Empire had a highly evolved tax system.

Of course, back then people didn't always pay with money. Instead, most would pay their tax bill with something that they produced or gathered such as grain, fish, minerals, or animals.

Below are some of the milestones in Canadian taxation.

• Canada first collected personal income tax in 1917.
  
• The organization that evolved into the CRA was founded in 1927.
  
• Starting in 1966, Canada Pension Plan (CPP)contributions were collected from employers and self-employed Canadians.
  
• In 1972, Revenue Canada Taxation began to collect Unemployment Insurance premiums (now called Employment Insurance   or EI).
  
• The federal government began to collect the goods and services tax (GST) in 1991.
  
• The Canada Child Tax Benefit (CCTB) program was introduced in 1993.
  
• The Universal Child Care Benefit (UCCB) program was introduced in July 2006.

We will discuss some of these taxes (for example, GST) later in the course.

Would you like to know more about the history of taxes in Canada?

A brief history of taxation

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