Factors influence the tax rates tax Rates 1.Highest margin rates.47-54 %Aggregate investment income of CCPC. In general 50% 2.Corp. tax rates in major trading partners range of 20-30%.In General 25% 3.Ceratin incentives. There was myth that small business is best one so we have small business deduction but that is deeply wedded in Canadian taxation system. Low rates for ABI & CCPC. In general 12-15%. M+P lower rate provincial 4.There was Double taxation. Section 821) -12 (1)(j) , Two methods of integration: Exemption 112(1) its actually included and deducted. Created a new problem Tax credit - gross up should reflect the corp. tax rates – CRIP. (individuals 121) , inter corporate dividends 82(1) Refund of corporate tax- section 129(1) Deductible, interest grading LCGD. Subdivision B Section 123, S.124(1), S125(1) Tax credit sets off the tax, section 125.1(1). Roman numeral 21 look at the tables given in the bare act, next pages CCPC income tax rates. Preference shares have little better footing then the common shares. Dividends are declared by the directors.
Factors influence the tax rates tax Rates 1.Highest margin rates.47-54 %Aggregate investment income of CCPC. In general 50% 2.Corp. tax rates in major trading partners range of 20-30%.In General 25% 3.Ceratin incentives. There was myth that small business is best one so we have small business deduction but that is deeply wedded in Canadian taxation system. Low rates for ABI & CCPC. In general 12-15%. M+P lower rate provincial 4.There was Double taxation. Section 821) -12 (1)(j) , Two methods of integration: Exemption 112(1) its actually included and deducted. Created a new problem Tax credit - gross up should reflect the corp. tax rates CRIP. (individuals 121) , inter corporate dividends 82(1) Refund of corporate tax- section 129(1) Deductible, interest grading LCGD. Subdivision B Section 123, S.124(1), S125(1) Tax credit sets off the tax, section 125.1(1). Roman numeral 21 look at the tables given in the bare act, next pages CCPC income tax rates. Preference shares have little better footing then the common shares. Dividends are declared by the directors. –
Duff_87_Fall_2016_Manmeet_Khaira.docx