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Our Monstrosity of a Tax Code

Just look at the copy of the Income Tax Act to see how labyrinthine and cumbersome our tax system is.

An example of this 3000 page monster sized book is from Section 125.7(2), on page 1038:

"For a qualifying period, an over payment on account of the qualifying entity's liability under this Part for the taxation year in which the qualifying period ends is deemed to have arisen during the qualifying period in an amount determined by the formula A - B - C + D."

The Next one is a favorite from section 18.1(8), page 149:

"Subsection 18.1(10) applies where (a) a taxpayer's particular right to receive production to which a matchable expenditure (other than an expenditure no portion of which would, if this section were read without reference to subsections 18.1(7) and 18.1(10), be deductible under subsection 18.1(3) in computing the taxpayers income) relates has expired or the taxpayer has disposed of all the right (otherwise than in a disposition to which subsection 87(1) or 88(1) applies)."

These are only a couple of the sections of the tax act which has everyone scratching their head in incertitude. It is not just confusing to the average individual, but to many lawyers and accountants alike.

No society is able to function properly if its citizens do not know or comprehend the laws they live with.

This murkiness that the code is under makes businesses productivity/ efficiency hard to accomplish.

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