RSM324H1 Chapter Notes - Chapter 10: Gie, Unemployment Benefits, Alternative Minimum Tax
22 Feb 2017
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Chapter 10 individuals: determination of taxable income and taxes payable. There are 2 basic areas where the normal tax calculation may be adjusted to a higher amount. These areas relate to what are sometimes (cid:272)alled the (cid:862)gi(cid:448)e a(cid:374)d take-(cid:271)a(cid:272)k rules(cid:863). O(cid:374)e is the alternative minimum tax; the other is the special tax on old age security benefits. The entire income is then subject to a federal tax rate of 15%, rather than the graduated rates that normally apply (15%, 20. 5%, 26%, and 29%) The dividend tax credit is also excluded (as a result of the elimination of the gross-up) If the revised federal tax is greater than the normal federal tax, the former applies. Provincial taxes are then calculated on the revised amount: some of the tax preference items referred are listed. Deductions claimed from certain specified tax-shelter investments, including. Canadian exploration expenses, canadian oil and gas property expenses, and.
