Which policy instrument defined the boundary of federal and provincial taxation powers after Confederation?

• A. The charter of rights and freedoms.
• B. The division of powers under sections 91 (federal) and 92 (provincial) of the BNA Act.
• C. The Treaty of Paris.
• D. The Westminster Statute.

Answer: (B)

The boundary between federal and provincial taxation powers was set by the constitutional division of powers in the British North America Act. This framework assigns taxing authority through two mains sections: the federal Parliament’s powers (Section 91) and the provincial legislatures’ powers (Section 92). Provinces retain direct taxation within their borders for provincial purposes, while the federal government handles broader revenue-raising powers. This division, established at Confederation, defined who could tax what and shaped how fiscal powers were shared.

The other options don’t define this boundary: the charter focuses on rights, not taxation; the Treaty of Paris predates Confederation and concerns earlier territorial issues; the Westminster Statute concerns independence from the Crown but not the split of tax powers between federal and provincial governments.