BU547 Lecture Notes - Lecture 6: Corporate Tax, Tax Credit, Small Business
Document Summary
An individual that owns >10% of the shares of the corporation performs services on behalf of the corporation and. The individual would be reasonably regarded as an employee of the person to whom the services are provided. Corporation employs more than 5 full-time employees in the business throughout the year. Services are provided to an associated corporation. Effective federal tax rate for psb is 33%. No outlay or expense deductible except: salary paid to incorporated employee, cost associated with any benefit/allowance provided to incorporated employee, expenses allowed as an employee. Deduction limited to 75% of net income for tax purposes. Can carry unused amounts forward five years. Qualifying dividends include: dividends from taxable canadian corporations, dividends from taxable subsidiary corporations resident in canada, dividends from non-resident corporations carrying on business in canada, dividends from some foreign affiliates. Taxes payable corporate ebook summary chapter 24. Calculate part i tax payable using detailed or simplified approach.
