BU357 Chapter Notes - Chapter 4: Refinancing, It8, Life Insurance
Document Summary
Slide 51: chapter 4 business income div b subdiv b: Business income defined and general rules for determining. Slide 52: business income defined and general rules for determining the income. A taxpayer"s income for a taxation year from a business is the profit therefrom for the year [9(1)] Business should be carried on with a profit or reop: profit is determined in accordance with well-established business principles. Ifrs/gaap is a good starting point - adjustments are made where the act specifies other requirements. Slide 53: gaap/ifrs and the act: similarities: Net income from a business for tax purposes. Inventory can be valued: value each item of inventory at lcm, or, value all items of inventory at fmv, cost of good sold are calculated by, specific identification, or, average cost, or, fifo. Slide 56: deductions disallowed or restricted deductions [sec. No deduction shall be made in respect of: Slide 61: deductions specifically permitted [sec 20: write-offs of capital expenditures [20(1)(a)(b)]
