Revenues

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Revenues consist of all tax and other amounts which enter into the calculation of the annual surplus or deficit of the Government.

Accounting for Revenues

The Government reports all revenues on an accrual basis.

Tax revenues are recognized in the period in which the taxable event occurs and when they are authorized by legislation or the ability to assess and collect the tax has been provided through legislative convention.They are reported net of refunds and are exclusive of amounts collected on behalf of provinces and territories.

Revenues for the fiscal year ended March 31 are based on amounts assessed/reassessed at the time of preparation of the consolidated financial statements and estimates of income tax earned in the fiscal period but not yet assessed/reassessed. These estimates are based on amounts received at the time of preparation of the consolidated financial statements that relate to the fiscal year ended March 31 that have not been assessed or that are awaiting reassessment. Actual results may differ significantly from these estimates. Differences between estimates and actuals are recorded in the fiscal year in which the actual assessment/reassessment is completed. Revenues do not include estimates for amounts of unreported taxes or the impact of future reassessments that cannot be reasonably determined.

Tax expenditures that reduce taxes paid or payable are considered tax concessions and are netted against applicable tax revenue. As foregone revenue, tax concessions do not give rise to assets or expenses of the taxing government. Tax expenditures that provide a financial benefit through the tax system and are not related to the relief of taxes paid or payable are shown as other transfer payment expenses and are not netted against tax revenue.

Income tax revenue is recognized when the taxpayer has earned the income subject to tax. Revenue is determined net of tax concessions allowed under the Income Tax Act and in accordance with the Public Sector Accounting Standard for Tax Revenue.

Domestic goods and services tax revenue is recognized at the time of the sale of goods or the provision of services. These revenues are reported net of input tax credits, GST rebates, and the GST quarterly tax credits. The GST quarterly tax credit for low‑income individuals and families is recorded in the period to which it relates. It is intended to offset the cost of the tax for low‑income individuals and families. Customs duties and goods and services tax revenue on imports is recognized when goods are authorized to enter Canada. Excise tax revenue is recognized when a taxpayer sells goods taxable under the Excise Tax Act. Excise duties revenue is recognized when the taxpayer manufactures goods taxable under the Excise Act and the Excise Act, 2001.

Employment insurance premiums are recognized as revenue in the same period as the insurable earnings are earned. Other revenues are recognized in the period to which they relate.

Tax Revenues

Tax revenues include personal, corporate and non‑resident income tax revenues, and other taxes and duties as summarized in Table 3.2.

Table Summary

The table presents, in millions of dollars, a two‑year comparative of the tax revenues. It consists of three columns: a detailed listing of components; current year; previous year. The first series of rows presents the income tax revenues. The second series of rows presents the other taxes and duties which is divided into four sub‑sections with their respective subtotals. The final row of the series presents the total for other taxes and duties. A final row presents the total for this table.

(in millions of dollars)

Table 3.2
Tax Revenues

  2014–2015 2013–2014
Tax revenues —    
Income tax revenues —    
Personal 135,743 130,811
Corporate 39,447 36,587
Non‑resident 6,216 6,404
Total income tax revenues 181,406 173,802
Other taxes and duties —    
Goods and services tax, Table 3.3 31,349 30,998
Energy taxes —    
Excise tax — Gasoline 4,318 4,290
Excise tax — Aviation gasoline and diesel fuel 1,210 1,196
Total energy taxes 5,528 5,486
Customs import duties 4,581 4,239
Other excise taxes and duties —    
Excise duties 4,813 4,479
Air travellers security charge 696 662
Softwood lumber products export charge (negative 5) 53
Other miscellaneous excise taxes and duties 220 219
Total other excise taxes and duties 5,724 5,413
Total other taxes and duties 47,182 46,136
Total tax revenuesLink to footnote 1 228,588 219,938

Personal income tax

Personal income tax is levied on personal income under the provisions of the Income Tax Act.

Corporate income tax

Corporate income tax is levied on corporate income under the provisions of the Income Tax Act.

Non‑resident income tax

Non‑resident income tax is levied on income earned in Canada by non‑residents under the provisions of the Income Tax Act. This tax is derived from tax withheld from dividends, interest, rents, royalties, alimony, and income from estates and trusts paid to non‑residents.

Non-resident income tax revenues also include withholding taxes on income earned in Canada by non‑resident life insurance companies and income from trusts.

Other taxes and duties

Other taxes and duties are collected under the Excise Act, the Excise Act, 2001, the Excise Tax Act, Customs Tariff (Act) and other acts. They include the goods and services tax, energy taxes, customs import duties, as well as other excise taxes and duties.

Goods and services tax

The goods and services tax (GST) became effective January 1, 1991. It is applied at a rate of 5 percent on most goods and services consumed in Canada, with only a limited set of exclusions that consists of certain medical devices, prescription drugs, basic groceries, residential rents as well as most health and dental care services. A comparative analysis of the GST is presented in Table 3.3.

Table Summary

The table presents, in millions of dollars, a two‑year comparative of the Goods and Services Tax (GST). It consists of three columns: a detailed listing of components; current year; previous year. A final row presents the total for this table.

(in millions of dollars)

Table 3.3
Goods and Services Tax (GST)Link to footnote 2

  2014–2015 2013–2014
GST 37,439 36,903
Less: remission order for the GST paid and accrued by ministries on or for goods and services purchased from outside parties 1,896 1,795
Gross GST from outside parties 35,543 35,108
Less: quarterly tax credits 4,194 4,110
Net GST from outside parties 31,349 30,998

Energy taxes

Energy taxes primarily include the excise tax on gasoline, aviation gas and diesel fuel.

Customs import duties

Revenues from customs import duties consist mainly of ad valorem taxes on the importation of goods levied under the Customs Tariff (Act).

Other excise taxes and duties

Excise taxes and duties are levied on alcoholic beverages and tobacco products. In addition, excise taxes are imposed on other items such as passenger vehicle air conditioners. The Air Travelers Security Charge is collected by air carriers at the time of payment for the air travel by the purchaser of an air transportation service.

The Softwood Lumber Products export charge is assessed on exports of softwood lumber products to the United States after September 30, 2006. The charge on refunds of softwood lumber duty deposits is assessed on amounts refunded to Canadian companies related to an American duty order on the importation of softwood lumber products into the United States between May 22, 2002 and September 30, 2006.

Employment Insurance Premiums

Premiums from employees and employers are levied under the provisions of the Employment Insurance Act and are classified as part of revenues. Additional details on employment insurance premiums are provided in Section 4 of this volume.

Other Revenues

Other revenues include revenues from Crown corporations, other program revenues and net foreign exchange revenues.

Table Summary

The table presents, in millions of dollars, a two‑year comparative of other revenues. It consists of three columns: a detailed listing of components; current year; previous year. The first series of rows presents revenues from Crown corporations. The second series of rows presents revenues from other programs. The third series of rows presents miscellaneous revenues. The fourth series of rows presents revenues from net foreign exchange. A final row presents the total for this table.

(in millions of dollars)

Table 3.4
Other Revenues

  2014–2015 2013–2014
Other revenues —    
Crown corporations —    
Consolidated Crown corporations 4,174 3,489
Enterprise Crown corporations and other government business enterprises —    
Share of annual profit 8,365 5,946
Interest and other 941 2,020
Total Crown corporations 13,480 11,455
Other programs —    
Return on investments, Table 3.5 1,927 1,604
Sales of goods and services —    
Rights and privileges 2,873 2,442
Lease and use of public property 634 615
Services of a regulatory nature 1,360 1,327
Services of a non‑regulatory nature 3,290 3,223
Sales of goods and information products 225 210
Other fees and charges 568 502
Total sales of goods and services 8,950 8,319
Miscellaneous —    
Interest and penalties 4,538 5,290
Other 944 1,623
Total other programs 16,359 16,836
Net foreign exchange —    
Exchange Fund Account 840 1,505
International Monetary Fund 495 176
Other 20 1
Total 1,355 1,682
Total other revenuesLink to footnote 1 31,194 29,973

Crown corporations

Crown corporation revenues include revenues earned from third parties by Consolidated Crown corporations, interest earned on loans to enterprise Crown corporations and other government business enterprises as well as the government's share of the accumulated profits or losses of enterprise Crown corporations and other government business enterprises.

Other programs

Other program revenues include sales of goods and services, return on investments, and miscellaneous revenues. Details are reported by individual ministry in Volume II of the Public Accounts of Canada.

Net foreign exchange

Net foreign exchange revenues include the revenues from investments held in the Exchange Fund Account and the International Monetary Fund, as well as the net gains or losses resulting from the translation of these investments to Canadian dollars at March 31. Net foreign exchange revenues also include the net gains or losses resulting from foreign debt and currency swap revaluations.

Return on investments

Return on investments consists mainly of interest from loans and advances, dividends from investments, and transfer of profits and surpluses for loans, investments and advances other than those in enterprises Crown corporations and government business enterprises. A comparative analysis of return on investments is presented in Table 3.5.

Table Summary

The table presents, in millions of dollars, a two‑year comparative of the return on investments. It consists of three columns: a detailed listing of components; current year; previous year. The first series of rows presents cash and accounts receivable. The second series of rows presents loans, investments and advances. The third series of row presents other accounts. The following rows present the total ministerial return on investment, net gain on exchange, the accrual of other revenues and the elimination of return on investments internal to the Government. A final row presents the total for this table.

(in millions of dollars)

Table 3.5
Return on InvestmentsLink to footnote 3

  2014–2015 2013–2014
Cash and accounts receivable —    
Interest on bank deposits 313 331
Loans, investments and advances —    
Portfolio investments 1 1
National governments including developing countries 6 4
International organizations 2 1
Provincial and territorial governments Link to footnote 4 Link to footnote 4
Other loans, investments and advances 961 840
Total loans, investments and advances 970 846
Other accounts —    
Esso Ltd — Norman Wells Project — Profits 75 83
Other Link to footnote 4 1
Total other accounts 75 84
Total ministerial return on investments 1,358 1,261
Net gain on exchange 572 347
Accrual of other revenues 23 23
Total return on investments 1,953 1,631
Elimination of return on investments internal to the Government (negative 26) (negative 27)
Total external return on investments 1,927 1,604

Footnotes

Footnote 1

Additional details are provided in Table 4a in Section 1 of Volume II of the Public Accounts of Canada.

Return to footnote 1 referrer

Footnote 2

Reported in the Consolidated Statement of Operations and Accumulated Deficit (Section 2 of this volume).

Return to footnote 2 referrer

Footnote 3

Additional details are provided in Table 4a in Section 1 of Volume II, and in Section 10 of Volume III of the Public Accounts of Canada.

Return to footnote 3 referrer

Footnote 4

Less than $500,000.

Return to footnote 4 referrer

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