If Canadians believe that they pay more taxes than citizens elsewhere in the world, it’s interesting to note that our tax rate is right in the middle of the Group of Seven (G7) industrialized countries.

According to a report from the Organization for Economic Co-operation and Development, Canada’s total tax burden was 33.3 percent of its Gross Domestic Product in 2006, which is the most recent year the publication compares statistics. This places Canada in the middle of the G7 countries, which includes Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Among the G7, France has the highest total tax burden at 43.9 percent and Japan has the lowest at 27.9 percent.

The Government of Canada’s Annual Financial Report shows total tax revenues were $191.6 billion in 2008-09. The federal government collects its tax through personal and corporate income tax; the Goods and Services Tax (GST); excise taxes on gasoline and other fuels; and excise duties on tobacco and alcohol products.

Sometimes there is some confusion about the role of different government tax-related agencies. The Department of Finance is responsible for developing and evaluating federal taxation policies and legislation. Meanwhile, the Canada Revenue Agency (CRA) is responsible for interpreting tax law, as well as assessing and collecting taxes and levies.

The CRA falls under the purview of the Minister of National Revenue and deals with Canadian tax administration. It also delivers social and economic programs, such as the GST credit, through the tax system on behalf of the federal government. The CRA also delivers federal programs such as the Canada Child Tax Benefit. Information about tax support for individuals and businesses is available on the CRA web site at www.cra-arc.gc.ca.

Here’s another interesting distinction: The Department of Finance Canada is a federal government department, whereas the Ministry of Finance is a department in several provinces. Administering taxation is a very complex undertaking because great care must be taken to treat taxpayers with respect, yet we must pay for the programs and amenities that we have come to expect in Canada.

To learn more about Canada’s finances, check out www.fin.gc.ca.

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The audio version of Garry's November 30, 2009 op-ed column can be heard by clicking here