Why does the Government of Canada make payments in lieu of property taxes?
A. The federal government recognizes the valuable benefits received from both provincial and municipal levels of government in Canada and feels it has a moral obligation to contribute to the cost of local government where federal property is located. However, in light of the federal government’s constitutional exemption from taxation, these payments are made at the discretion of the minister of Public Works and Government Services Canada or the heads of Crown corporations and agencies.
