The VAT and Housing

RANDALL SCHWARTZ

ABSTRACT

The Canadian government plans on implementing a value-added tax to replace the existing manufacturer's sales tax. This paper details the weaknesses of the existing tax while showing why a VAT may be desirable. The goals the government should be pursuing in the implementation of the VAT are then outlined. Next, the paper discusses the housing sector and the challenges it poses for the implementation of the tax. Different theories and approaches taken by other countries are presented. Finally, criticisms of the proposed tax are discussed. The paper concludes that the government should apply the tax to the housing sector as widely as possible though it recognizes the political and practical difficulties of implementing a totally comprehensive tax. At the time of writing, draft legislation on the tax had not yet been released by the federal government. As a result, this paper does not incorporate any references to the legislation. The Government has decided to call its version of the VAT a Goods and Services Tax.

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Citation: (1989) 47(Supp) U.T. Fac. L. Rev. 718.
Copyright © 1989. University of Toronto Faculty of Law Review.
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