COMMERCE 4SC3 Chapter Notes - Chapter 11: Tax Deduction, Double Taxation, Property Income
13 Mar 2018
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Both begin with gaap income and require adjustments. No difference in deductions related to business activities. Charitable gifts (limited to 75% income for tax purposes --> division b income) Aim is to prevent double taxation of corporation income. Foreign affiliates which have been appropriately taxed in a foreign jurisdiction which had a treaty with canada. No carryover rule applies, but can have an impact on non-capital loss carry forward balance. Limited to 75% of corporation"s net income for tax purposes under division. Can carry forward unused donations up to 5 years to be deducted in a carry forward year. If a corporation gives a charitable donation of ,000 to united way from an accounting standpoint. It is added back for to a/c income for tax, deductible under division c income. Non capital loss - business loss or property loss. Disposing off something that was not capital e. g. inventory. Can be generated from business assets and capital assets.
