Canada has a tax system known as a PROGRESSIVE TAXATION SYSTEM. This means that people who have higher incomes will pay higher rates of tax on income that is in excess of the BASE AMOUNT. The base amount for taxable income used to calculate the federal tax rate is $46,605. Consequently, those who have incomes higher than $46,605 cannot claim any non-refundable tax credits in order to reduce the federal tax payable.

Answer rating: 100% (QA)

In Canada the tax system is known as a progressive taxation system where individuals with higher inc... View the full answer