RSM424H1 Chapter 13: Chapter 13-7
22 Feb 2017
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Basic federal tax 38% * taxable income. Plus refundable tax on investment income - (cid:883)(cid:882)(cid:2870)(cid:2871)% of the least of: Taxable income less amount subject to the small business deduction (below) Less small business deduction 17. 5% of the least of: Taxable income (ti) less (100/28 * foreign tax credit for non-business income and 4 * foreign tax credit for business income) Annual business limit (,000 less amounts allocated to associated corporations and the large-corporation reduction, if applicable) Less manufacturing and processing (m&p) deduction 13% of the least of: M&p profits less amount subject to the small business deduction (above) Amount subject to the small business deduction, plus. Less general tax reduction 13% of the amount by which the ti exceeds of the total of. Income subject to the 13% m&p deduction, plus. Income subject to the 17. 5% small business deduction, plus. Provincial tax provincial rate * taxable income.
