BUSI 4005 Study Guide - Spring 2018, Comprehensive Midterm Notes - Dividend, Full Motion Video, Income Tax
12 Oct 2018
School
Department
Course
Professor
BUSI 4005
MIDTERM EXAM
STUDY GUIDE
Fall 2018
1. Type of deduction
a. Foreign tax credit
i. Include full amount of income
ii. Get credit for foreign withholding
b. FNB
i. Lesser of
1. Foreign income tax paid
2. Foreign non business income/ taxable income x tax
payable
c. FB tax credit
i. Lesser of
1. Total business income paid + unused foreign tax
credit
2. Foreign business income/ taxable income – tax
payable
3. Tax payable - FNB
2. Political contribution tax credit
a. To register federal political party
Amount
Tax credit
<400
314
401-750
300+1/2 over 400
751-1275
475 + 1/3 pver 750
>1275
650
3. Investment tax credit
a. SRED
i. Expense of ecientific research and experimental
expenditure
ii. Rate
1. Others = 15%
2. CCPC= 35%
a. Limit to 3 mil
b. 8mil -10% greater of 500k/ PY tax income
c. 3/40 x greater of 10bil / taxable capital PY
iii. Refundable
1. 100% deductible on 35% ITC
2. 40% on 15% ITC
iv. c/b=3, c/f= 20
v. SRED pool
1. Claim deduction
2. No carryover limit
3. Keep and use in next year
4. If no money in pool, ITC include in income
5. Against income
vi. ITC pool
find more resources at oneclass.com
find more resources at oneclass.com
1. Claim against tax payable
b. Apprenticeship expenditure
i. Encourage to hire new apprentice
ii. Not refundable ITC
iii. ITC, lesser of 10% eligible salary
iv. 2k / person/ year
c. Child care space tax credit
i. Encourage to create child care space
ii. Recapture if property dispose
iii. ITC, lesser of 10k or 25% eligible expenditure
d. Qualified property
i. UCC beg – CCA claim = end
4. Prescribed proxy amount
a. Overhead SRED
b. Determine ITC, not deduct overhead
c. Related expenditure
i. 55%
ii. direct wage
iii. leasing expense
iv. 3rd party payment
d. specify employee
i. eligible portion, lesser of 3 quarter full salary
ii. 2.5 x max CPP
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Step: corporate dispose asset at fmv, shareholder acquire asset, consider paid and dividend receive = fmv asset, deny loss of transfer asset. Share consideration: must receive share as part of consideration. Fmv: fmv of non, fmv of non, fmv of non share consideration share consideration, lesser of share consideration, lesser of. Estate freeze freeze all or part of value of growing asset at current fmv in order to allow future growth of these asset accrue to next generation. Generate future cg for next generation retain source of income income tax splitting. Variation: partial freeze predecessor keep percentage of growth, melts- percentage appreciation back, thaw- unwound freeze, refreeze- new freeze estate, downstream- freeze subsidiary, deduction of taxable dividend. Qualified: taxable cad corp, taxable subsidiary reside in cad, foreign affliates taxed in foreign jurisdiction & has treaty with cad. Purpose: prevent double taxation of corp y. Rate (federal + provincial: ccpc -14. 5, others- 27. 5%
