2017-0712781M4 Question on subsection 248(1)

Principal Issues: Under what authority is subsection 248(1) based?

Position: See response

Author: Robertson, George
Section: 91(3) Constitution Act, 1867; 248(1) ITA

August 16, 2017

XXXXXXXXXX

Dear XXXXXXXXXX:

Thank you for your correspondence about subsection 248(1) of the Income Tax Act, and for your understanding regarding the delay of this response.

The legal authority for Canadian taxation is established under the Constitution Act, 1867. Subsection 91(3) of the Constitution Act, 1867 gives the federal government the power to make laws about “the raising of money by any mode or system of taxation.” Every major court decision on the subject has confirmed this authority, and the courts have upheld the legality of the Income Tax Act under the Constitution Act, 1867. The provisions of the Income Tax Act are written by the Department of Finance Canada and approved by Parliament. Subsection 248(1) of the Income Tax Act gives definitions of terms used within the Income Tax Act.

Thank you for writing. I trust the information I have provided is helpful.

Sincerely,

The Honourable Diane Lebouthillier

George A Robertson, CPA, CMA
905-721-5196
2017-071278

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