Canadian Income Research Articles

Household food insecurity among persons with disabilities in Canada: Findings from the 2021 Canadian Income Survey.

Income-related food insecurity is an important determinant of health. Persons with disabilities are at a higher risk of experiencing household food insecurity (HFI) than those without disabilities. The main objectives of this study were to estimate the prevalence of HFI for persons with different types, numbers, and severity of disabilities, and to examine sociodemographic correlates of HFI among this group. Data from the 2021 Canadian Income Survey (CIS) were used. Disability status was assessed using the short version of the Disability Screening Questions module for one randomly selected household respondent. The Household Food Security Survey Module measured HFI as marginal, moderate, or severe. Weighted descriptive and multivariable analyses were conducted to estimate the prevalence of HFI and analyze the association between various socioeconomic factors and HFI among the study sample. Among CIS participants with disabilities (30% of the total CIS sample: 31 million persons), 26% reported some level of HFI, including 8% with severe HFI. The prevalence of HFI was 13% among those without disabilities. The prevalence of HFI was highest among those with learning, memory, cognition, and seeing disabilities (each at 36%). Levels of HFI were higher for those with more severe disabilities and with a greater number of disabilities. For persons with disabilities, the odds of HFI were two times higher, compared with persons without disabilities (adjusted odds ratio [AOR]: 2.5 [95% confidence interval (CI): 2.2, 2.7]), after adjustment for a range of sociodemographic covariates. Persons with disabilities who were in the lowest income quintile (AOR: 4.0 [95% CI: 3.2, 4.9]) and aged 45 to 54 (AOR: 2.9 [95% CI: 2.1, 4.1]) had the highest odds of HFI, compared with other persons with disabilities living in wealthier households and those aged 65 and older, respectively. Other risk factors included being in a one-parent household, living in the Prairies, and living in a dwelling not owned by the household. HFI prevalence among CIS participants with disabilities was higher than for persons without disabilities, even after adjustment for well-documented sociodemographic risk factors. Consistent monitoring of HFI among persons with disabilities can help inform any ongoing or newly developed poverty reduction strategies for this population.

Experiences of accessing mental health services for women living on a low income in Canada: a qualitative systematic review protocol.

The objective of this review is to comprehensively analyze qualitative evidence on the experiences of Canadian women aged 18 years or above living on a low income. The review will examine the intersectionality of their identities and privileges when accessing mental health services, with the aim of informing targeted interventions and policy improvements. Despite the growing body of research on mental health disparities and a call for improved mental health care, both globally and in Canada, there is a need to identify recommendations for system enhancement and to improve gender equality by understanding the nuanced experiences of accessing mental health care for Canadian women living on a low income. This review will include qualitative studies conducted within the past decade about women of diverse backgrounds aged 18 years or above who identify as living on a low income and who have resided in Canada for 6 months or longer. Studies using any qualitative methodology will be included. The following databases will be searched for published studies: MEDLINE and PsycINFO (Ovid); CINAHL and Pre-CINAHL (EBSCOhost); LiSSa; and Google Scholar. Searches for unpublished studies will include the Primo Central Index, ProQuest Dissertations and Theses Global, and the Canadian Women's Foundation Studies. The review will include studies published in English and French in Canada, from 2013 to the present. The JBI methodology for systematic reviews of qualitative evidence will be followed, informing study selection, appraisal, extraction, synthesis, and assessment of confidence, which will be conducted by 2 independent reviewers. PROSPERO CRD42023430100.

Grin and bare it: the recent kerfuffle over bare trusts

Abstract Recent changes to the Canadian Income Tax Act have resulted in the concept of bare trusts coming under discussion. In this article, Joel Nitikman, K.C. explores the history, definition and details of the concept of a bare trust and concludes that a trustee may have significant powers and even numerous inherent fiduciary duties and yet still be a bare trustee.

Regional differentiation of the tax burden on personal income in Canada

The income of citizens reflects the degree of economic development of the country, and in the regional aspect – the degree of economic development of each region. Canada is very similar to Russia in its geographical location, nature and climate, so the standard of living of the population in this country is of interest. One of its indicators is the income of citizens. The state’s approach to personal income taxation reflects the general socio-economic policy in the country. The study analysed the tax burden on personal income in the provinces of Canada in 2000–2022, determined the dynamics of this indicator for the period under review, and identified the existence of correlation between the amount of income and the tax burden on it in the regional aspect. The results obtained found that in Canada, there is a conditional division into eastern provinces with a traditionally high tax burden, western provinces with a national average tax burden, and northern territories with a relatively low tax burden. A certain inverse relationship between the amount of citizens’ income and the tax burden on it has been established. In regions with high incomes, the tax burden is usually lower, and in regions with low incomes, it is generally higher. However, there are regions that are exceptions, which shows the relative financial independence of regional authorities in Canada. The dynamics of the tax burden on personal income in the analysed period reflected the impact of the crises of 2008 and 2020 when it decreased. This fact demonstrates the sensitive response of regional governments to the changing economic situation.

Unveiling the benefits and gaps of wild pollinators on nutrition and income

Pollinators play a crucial role in global crop production, enhancing crop yields, nutritional value and fruit quality. However, their wild populations worldwide have been experiencing alarming declines. We investigated the contribution of wild pollinators to nutrition and farmer income in Canada, while examining the spatial distribution of pollination services. We used publicly available data on crop types, yields, nutrient content, and farm gate values, alongside information on natural habitats. Our findings suggest that wild pollinators in Canada help sustain the equivalent of approximately 24.4 million people each year in terms of nutrition and generate an annual income of nearly CAD$2.8 billion for farmers. To provide context, these estimates exceed half of the Canadian population and correspond to 5% of total national crop-related farm income. However, significant benefit gaps exist due to the lack of nearby pollinator habitat and insufficient pollination of dependent crops at a national scale. Addressing these gaps could potentially provide an additional nutrition supply for nearly 30 million equivalent people and increase farmer income by CAD$3 billion. We discuss how and where efforts focused on preserving and enhancing wild pollinator habitats, promoting sustainable farming practices, and raising awareness among stakeholders are crucial for the long-term viability of wild pollinator populations and the sustainability of agricultural systems in Canada. Our research underscores the urgent need for a national strategy aimed at safeguarding wild pollinators. Implementing such a strategy would not only contribute to strengthening local economies but also ensure the production of nutritionally essential food.

A History of Canadian Income Tax. Volume 1: The Income War Tax Act 1917–1948. Colin Campbell and Robert Raizenne

<i>A History of Canadian Income Tax. Volume 1: The Income War Tax Act 1917–1948</i>. Colin Campbell and Robert Raizenne

Comparative analysis of trust taxation: a deep dive into Australian and Canadian regimes

Abstract This article examines trust taxation in Australia and Canada, focusing on the Australian Income Tax Assessment Act 1936's Section 97(1) and the Canadian Income Tax Act’s Section 94.1. It explores the Australian Carter and the Canadian Fundy Settlement cases, highlighting their implications for tax avoidance strategies. The article employs a comparative methodology to provide insights into the policy and legislative nuances shaping trust distribution taxation in these jurisdictions. The goal is to bridge traditional legal frameworks with modern fiscal challenges and inform future reforms in common-law countries.

Flirting with a basic income in Canada: Were the lessons worth the risk of popular backlash?

AbstractCanada responded to the COVID‐19 pandemic with a series of supports, including direct payments to workers displaced by public health measures. While not a true basic income, the experience highlighted a number of issues including challenges with implementation and intergovernmental relations that affected public opinion and must be dealt with by basic income advocates. The operation of the Canadian social‐liberal welfare state informed pandemic policy making and exhibited the path dependence of a deserving/undeserving binary that resulted in conditionality. The income supports associated with the pandemic represent a pragmatic response to an exogenous shock that highlights the inadequacies of existing policy and offers the possibility of change.

Corporate Tax Planning: The Refashioning of Earnouts

This article discusses the Canadian income tax treatment of earnouts, primarily as they relate to share-based sale transactions. The article begins by providing an overview of the commercial environment driving the earnout structure in recent transactions and the resulting tax impact. It then examines the legislative history and income tax treatment of earnouts, including the cost recovery method and the most recent view of the Canada Revenue Agency, followed by a comparison of royalties with earnouts. Next, the definition and valuation of goodwill are explored in relation to the impact of goodwill on the characterization of earnouts. The article then provides an overview of a reverse earnout as an alternative to a standard earnout structure, its tax implications, and the most recent court case on a reverse earnout. Finally, the article discusses the nuances of the tax treatment of earnout payments to purchasers after the acquired property to which the earnout relates has disappeared or has been disposed of.

Differences in site-specific cancer incidence by individual- and area-level income in Canada from 2006 to 2015.

Income, a component of socioeconomic status, influences cancer risk as a social determinant of health. We evaluated the independent associations between individual- and area-level income and site-specific cancer incidence in Canada. We used data from the 2006 and 2011 Canadian Census Health and Environment Cohorts, which are probabilistically linked datasets constituted by 5.9 million and 6.5 million respondents of the 2006 Canadian long-form census and 2011 National Household Survey, respectively. Individuals were linked to the Canadian Cancer Registry through 2015. Individual-level income was derived using after-tax household income adjusted for household size. Annual tax return postal codes were used to assign area-level income quintiles to individuals for each year of follow-up. We calculated age-standardized incidence rates (ASIR) and rate ratios for cancers overall and by site. We conducted multivariable negative binomial regression to adjust these rates for other demographic and socioeconomic variables. Individuals of lower individual- and area-level income had higher ASIRs compared to those in the wealthiest income quintile for head and neck, oropharyngeal, esophageal, stomach, colorectal, anal, liver, pancreas, lung, cervical and kidney and renal pelvis cancers. Conversely, individuals of wealthier individual- and area-level income had higher ASIRs for melanoma, leukemia, Hodgkin's lymphoma, non-Hodgkin's lymphoma, breast, uterine, prostate and testicular cancers. Most differences in site-specific incidence by income quintile remained after adjustment. Although Canada's publicly funded healthcare system provides universal coverage, inequalities in cancer incidence persist across individual- and area-level income gradients. Our estimates suggest that individual- and area-level income affect cancer incidence through independent mechanisms.

Health care expenditure and income in Canada: Evidence from panel data.

This paper investigates the long-run relationship between health care expenditures (HCE) and income using Canadian provincial data spanning a period of 40years from 1981 to 2020. We study the non-stationary and cointegration properties of HCE and income and estimate the long-run income elasticities of HCE. Using heterogeneous panel models that incorporate cross-section dependence via unobserved common correlated factors to capture global shocks, we estimate long-run income elasticities that lie in the 0.11-0.16 range. Our results indicate that health care is a necessity good for Canada. These elasticity estimates are much smaller than those estimated in other studies for Canada. We find that HCE and income in Canada are cointegrated and that short-run changes in federal transfers significantly and positively affect HCE.

Prevalence and sociodemographic correlates of food insecurity among post-secondary students and non-students of similar age in Canada

BackgroundThe results of several recent campus-based studies indicate that over half of post-secondary students in Canada are food insecure, but the vulnerability of this group has not been considered in research on predictors of food insecurity in the Canadian population. Our objectives were to (1) compare the prevalence of food insecurity among post-secondary students and non-students of similar age; (2) examine the relationship between student status and food insecurity among young adults while accounting for sociodemographic characteristics; and (3) identify the sociodemographic characteristics associated with food insecurity among post-secondary students.MethodsUsing data from the 2018 Canadian Income Survey, we identified 11,679 young adults aged 19–30 and classified them into full-time postsecondary students, part-time post-secondary students, and non-students. Food insecurity over the past 12 months was assessed with the 10-item Adult Scale from the Household Food Security Survey Module. Multivariable logistic regression analyses were used to estimate the odds of food insecurity by student status while accounting for sociodemographic characteristics, and to identify sociodemographic characteristics predictive of food insecurity among post-secondary students.ResultsThe prevalence of food insecurity was 15.0% among full-time postsecondary students, 16.2% among part-time students, and 19.2% among non-students. After adjusting for sociodemographic factors, full-time postsecondary students had 39% lower odds of being food insecure as compared to non-students (aOR 0.61, 95% CI 0.50–0.76). Among postsecondary students, those with children (aOR 1.93, 95%CI 1.10–3.40), those living in rented accommodation (aOR 1.60, 95%CI 1.08–2.37), and those in families reliant on social assistance (aOR 4.32, 95%CI 1.60-11.69) had higher adjusted odds of food insecurity, but having at least a Bachelor’s degree appeared protective (aOR: 0.63, 95% CI 0.41–0.95). Every $5000 increase in adjusted after-tax family income was also associated with lower adjusted odds of food insecurity (aOR 0.88, 95%CI 0.84–0.92) among post-secondary students.ConclusionsIn this large, population-representative sample, we found that young adults who did not attend post-secondary school were more vulnerable to food insecurity, particularly severe food insecurity, than full-time post-secondary students in Canada. Our results highlight the need for research to identify effective policy interventions to reduce food insecurity among young, working-age adults in general.

Policy Forum: The Income Taxation of Crypto Contracts

Current Canada Revenue Agency (CRA) guidance suggests that cryptoassets (such as bitcoin) should generally be taxed as commodities for the purposes of the Income Tax Act. However, recent changes in the regulation of entities that facilitate the purchase and sale of cryptoassets (crypto trading platforms) under securities law have introduced new ways of understanding transactions involving cryptoassets. Many crypto trading platforms hold cryptoassets on behalf of users rather than delivering the cryptoassets directly to them, and the Canadian Securities Administrators has taken the position that this relationship among crypto trading platforms and their users itself constitutes a security. To date, there has been no guidance from the CRA relating to the taxation of these securities, which are known as "crypto contracts." This article considers potential income tax implications arising from the existence of crypto contracts by exploring how income taxation would differ for users of crypto trading platforms if they were taxed on crypto contracts rather than cryptoassets. Specifically, the article considers the treatment of transactions as being on income or capital account, the availability of elections to treat transactions on capital account, the applicability of section 49.1 of the Income Tax Act, and the income taxation of staking rewards earned through crypto trading platforms. Rather than offering conclusions on these topics, this article aims to provide a framework for thinking about crypto contracts from a Canadian income tax perspective and to provoke further thought from Canadian tax professionals.

Personal Tax Planning: Foreign Tax Credits for Taxpayers with Cross-Border Employment Income

Foreign tax credits are an important mechanism to provide relief from double taxation of foreign-source income. With respect to cross-border employment income earned by Canadian taxpayers, there are multiple issues that may create significant complexity and potentially limit the availability of foreign tax credits. In this article, the authors provide an overview of the mechanics of claiming foreign tax credits under the Canadian Income Tax Act and the relevant provisions in certain bilateral income tax treaties. They also review some relevant technical interpretations issued by the Canada Revenue Agency and legislative jurisprudence in Canada with respect to cross-border employment income sourcing and the availability of foreign tax credits on such income.

Canadian QDMTT Challenges

Nobody believes that Canada is a tax haven. The fact remains that the effective tax rate of certain entities could be less than 15 percent. If nothing is done, pillar two could therefore apply, and taxes that naturally accrue to Canada could end up in foreign hands. We must therefore find a solution, and the most obvious is that of adopting a qualified domestic minimum top-up tax (QDMTT). Other solutions are possible, but they seem less attractive. A QDMTT still presents some challenges. These challenges include sharing with the provinces, determining the priority to be given to certain foreign taxes relating to Canadian income (that is, whether those foreign taxes take priority over the QDMTT or vice versa), and estimating certain foreign taxes.

Employment Insurance may mitigate impact of unemployment on food security: Analysis on a propensity-score matched sample from the Canadian Income Survey

Food insecurity, the inadequate access to food due to financial constraints, affects one-sixth of Canadian households, with substantial health implications. We examine the impact of unemployment and the mitigating effect of Employment Insurance (EI) on household food insecurity in Canada. Using the Canadian Income Survey 2018–2019, we sampled 28,650 households with adult workers 18–64 years old. We used propensity score matching to pair the 4085 households with unemployed workers with 3390 households with only continuously employed workers on their propensity towards unemployment. Among unemployed households, we also matched 2195 EI recipients with 950 nonrecipients. We applied adjusted logistic regression to the two matched samples. Food insecurity affected 15.1% of the households without unemployed workers and 24.6% of their unemployed counterparts, including 22.2% of EI recipients and 27.5% of nonrecipients. Unemployment was associated with 48% (adjusted odds ratio [aOR] 1.48, 95% confidence interval [CI] 1.32–1.66; 5.67 percentage points) higher likelihood of food insecurity. This association was significant and similar across income levels, full-time and part-time workers, and household compositions. EI receipt was associated with 23% (aOR 0.77, 95% CI 0.66–0.90; 4.02 percentage points) lower likelihood of food insecurity, but this association was only significant among households with lower income, full-time workers, and children under 18. The findings suggest a broad impact of unemployment on working adults' food insecurity and a substantial mitigating effect by EI on select unemployed workers. Making EI more generous and accessible for part-time workers may help alleviate food insecurity.

Effect of Canada Child Benefit on Food Insecurity: A Propensity Score−Matched Analysis

Food insecurity-the inadequate access to food due to financial constraints-affects 1 in 6 households in Canada, with serious health implications. Family benefit programs supplementing income have shown potential in mitigating the risk of food insecurity, but there is little understanding of their protective effects. The authors aimed to estimate the impacts of the additional Canada Child Benefit provided to families with children aged <6 years on household food insecurity. The authors sampled 28,435 households receiving Canada Child Benefit with children aged <8 years from the Canadian Income Survey 2018-2020 fielded in 2019-2021 and analyzed in 2022. Households without children aged <6 years were 1:1 propensity-score matched to those with children aged <6 years, who received up to $1,068 in additional Canada Child Benefit per child annually. The authors compared the 2 groups' 12-month food insecurity likelihood after matching. Subsample analyses were performed by household income, housing tenure, and household type. Receipt of the additional Canada Child Benefit ($724 on average) was associated with 2.89 (95% CI=1.35, 4.42) percentage points lower probability of experiencing food insecurity among recipients with children aged <6 years (from 24.30% to 21.42%). The association was similar across socioeconomic subgroups and significant among all but high-income earners and mortgage-free homeowners. The authors found plausibly causal evidence that the more generous Canada Child Benefit for Canadian families with young children reduces their probability of food insecurity. Increasing benefits for economically disadvantaged households, characterized by low incomes, single parenthood, and renting (versus owning), may improve the program's efficiency and equity in supporting families' food security.

Access to health and social services by women living on a low income in Canada: a scoping review protocol.

The objective of this scoping review is to map the current evidence about access to health and social services for women living on a low income in Canada. Women, especially those living on a low income, are disproportionately likely to suffer inequities in access to health and social services. There is insufficient understanding of how the interaction of socioeconomic factors and gender can affect women's access to these services. This review will provide an initial picture of what exists in the literature about access to health and social services for women living on a low income in Canada. The results of this scoping review may be used to inform subsequent qualitative and quantitative reviews on this subject. Literature addressing access to health and social services by women who are 18 years or older and living on a low income in Canada will be considered for inclusion. Health services will include health promotion and disease prevention; treatment of medical conditions; and rehabilitation, palliative, and end-of-life care. Social services are non-medical services designed to help members of a society who may need extra support or are considered to have social or behavioral risk factors. We will search relevant electronic databases (eg, MEDLINE, CINAHL, PsycINFO) and gray literature. The review will include all study designs, including qualitative, quantitative, and mixed methods methodologies (excluding economic analyses or clinical practice guideline development documents). Two reviewers will test the screening criteria and data extraction protocol.

Working Hard or Hardly Working? Who are Canada’s Working Poor?

ABSTRACT Working poverty in Canada is shrouded in mystery and misconception due to the little attention given to this area in research and policy-making. We performed an analysis of working poverty in Canada by using data from the Canadian Income Survey and conducted a binomial logistic regression to discuss the general profile of the working poor and the determinants of working poverty. We found that the working poor have high rates of post-secondary education and worked full-time hours. Moreover, being an immigrant, a single-earner (e.g., unattached individual, lone-parent family, single-earning household), and being self-employed were determinants of working poverty.

Social well-being among children with vs without food allergy before and during coronavirus disease 2019

Social well-being among children with vs without food allergy before and during coronavirus disease 2019