Match the following objectives of the federal income tax system to the appropriate explanation:

Prompts

Flexibility

Neutrality

International competitiveness

Equity

Answers

Select match

The income tax system should not interfere with the decision making

process of taxpayers

Businesses and individuals do not feel the need to leave Canada for other

countries with more favourable income tax rules

Ensures that income tax legislation in Canada has the ability to evolve and

grow with the Canadian economy

Taxpayers in similar scenarios should be subject to similar amounts of

income tax