Income tax at 100: Balancing of powerRole of provinces in levying personal income taxes has changed through the centuryBy Sheila Brawn06/01/2017|Canadian Payroll Reporter|Last Updated: 06/01/2017 Today’s payroll professionals know that income tax deductions include both federal and provincial/territorial calculations. It has not always been this way. There was a time when only the federal government levied income tax. As federal income tax marks 100 years in Canada this year, it is a good time to look back on milestones in the history of income tax in Canada. One such turning point came during the Second World War when the federal government got the provinces to temporarily stop levying income tax. For most provinces, the arrangement lasted for close to 20 years and helped to lay the foundation for today’s approach to income tax calculations. To Read the Full Story, Subscribe or Sign In Remember Me Forgot Password If you are a current Subscriber, please click here to set-up or update your login information.