BUS 329 Chapter Notes - Chapter 12: Net Income, Corporate Tax, Welfare

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 329
• Professor: Susan Bubra

Document Summary

Taxable income xxx xxx (xxx) xxx (xxx) xxx. Deductions not available to corporations: lifetime capital gains deduction, employee stock option deduction, home relocation loan deduction, lump-sum payments, northern residents deductions, social assista(cid:374)ce a(cid:374)d worker"s co(cid:373)pe(cid:374)satio(cid:374) Deductions available to corporations: losses same as for individuals, charitable donations. A deduction rather than a credit: dividends. When the dividends are moved to other corporation, it will charged again for 30% Problem is that the 51% is not consistent with integration: solution. Allow corporations to deduct dividends received from other taxable canadian corporations. A credit against tax payable becomes available. Income: bond interest, dividends, taxable capital gains. Losses: business losses, abil, taxable capital gains. Timing: oldest must be used before others of same type, no other restrictions on order. Constraints: restricted by income type only (net capital, restricted by time only (non-capital, restricted by time and income (restricted farm) Permanent establishment itr 400(2: fixed place of businesses, stock of inventories, land and equipment, activity.