Question

Do you agree or disagree with imposing inheritance tax in Canada? Please explain.

Answer 1

Answer - Inheritance tax should not be imposed in Canada. This is because , this will result in double taxation. The tax on the.property must have been paid at the time when the property was constructed for the first time and belonged to the persom from whome ot was inherited. Hence taxing it again would not be fair. Also , due to this inherited property , nothing new has been added to the economy. It was an old property which had already been taxed. Hence inheritance tax should not be imposed.

Suppose X had an estate. He died but before this , he transferred estate to his son Y. All the dues and taxes were paid earlier by X. Now if after inheritance , Y will also pay the tax on estate , it will be double taxation. Hence Y should not pay inheritance tax.