COMMERCE 4SC3 Lecture 2: Chapter 12 Integration for business and investment income of the private corporation
27 Sep 2018
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Chapter 12: integration for business and investment income of the private corporation. Issue is double taxation because the same income is taxed first at the corporate level and then again at the individual level. Total tax should be the same whether the income is earned through the corporation or directly by the individual. Tax neutrality with respect to the form of organization. Equitable system as income earned through a corporation or directly by an individual will attract the same amount of tax. Major tool --> dividend gross up and dividend tax credit. Dividend from the active business of ccpcs not eligible for small business deduction. Dividends from canadian public companies, and other corporation that are not ccpcs that are residents in canada and subject to general income tax rate. Dividend from active business income of ccpcs that is eligible for the small business deduction.
