ACTG 3P41 Lecture 1: Week 1 Notes
30 Jan 2019
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Someone liable for tax has to pay income taxes to the government of canada. Canadian federal and provincial taxes are imposed on 3 types of taxpayers: An artificial person formally separated from shareholders. Individual can receive income from a corporation by being paid directly (e. g. salary or bonus), receiving dividends, or by disposing of shares: trusts. A legal entity in which property is managed by one person or entity for the benefit of another. Other entities are not directly taxable, but have profits/losses allocated to owners (e. g. proprietorships, partnerships, joint ventures) Liability for tax in canada is based on residency. Ita 2(1) - canadian residents (individuals, corporations, trusts) are subject to tax in canada on their worldwide income. Ita 2(3) - non-residents are subject to tax in canada on income from: employment in canada, carrying on business in canada (generally through a permanent establishment , disposing of certain canadian property.
