1 definition found for this term.
Definitions are presented in the order source books were published (most recent first).
Income Tax Law, 2/e$75.00 – $120.00
Forgone tax revenues, due to special exemptions, deductions, credits, and deferrals that reduce the amount of tax that would otherwise be payable. Examples of tax expenditures include deductions for pension and RRSP contributions, credits for charitable donations, and incentives for firms to invest in research and development. As these examples indicate, tax expenditures are often designed to encourage certain kinds of activities. They may also serve other objectives, such as providing assistance to lower income or elderly Canadians (e.g., the pension and age credits, the GST credit, and the child tax benefit).