The Comprehensive Integrated Tax Coordination Agreement (CITCA) is a framework that outlines the collaborative efforts between the federal government and the British Columbia government for the administration of taxes in the province.
This agreement was signed in 2009 to address the overlapping administrative responsibilities between the two governments and to streamline the tax collection process for individuals and businesses in British Columbia.
Under the CITCA, the federal government is responsible for the administration of the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) in the province, while the provincial government is responsible for the administration of all other taxes, including provincial sales tax, property tax, and personal income tax.
The CITCA also establishes common rules and procedures for tax collection and enforcement, simplifying the compliance process for taxpayers in British Columbia. This includes standardizing tax return forms, harmonizing audit and appeals procedures, and sharing information between the two governments.
Since the implementation of the CITCA, taxpayers in British Columbia have benefitted from more efficient tax administration and enforcement, and businesses have experienced reduced compliance costs and increased certainty in tax compliance.
Overall, the Comprehensive Integrated Tax Coordination Agreement is an important framework that promotes collaboration between the federal and provincial governments to simplify the tax system and improve compliance for individuals and businesses in British Columbia.