FACC 300 Lecture Notes - Lecture 7: Taxation In Canada, Form 1040, Canada Revenue Agency
30 Nov 2017
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Document Summary
Show some particularities of the canadian tax system. Show how taxation affects projects and project evaluation. Illustrate how taxation effects can be accounted for in simple cases. Introduction: taxation is an integral part of project evaluation, i. e. an added cost of doing business, the effect on operating expenses versus capital expenditures is not the same because of treatment (expensing versus depreciating). Thus, the preferred alternative on a before-tax basis is not necessarily the same on an after-tax basis. their different tax. Types of taxes: sales and property tax, duties on imports, excise taxes on gasoline, cigarettes and booze , personal income taxes, business taxes corporate income taxes. Tax basis: value of transaction/property or quantity purchased, salary and investment income, profit, i. e. [revenues - costs, profitability, i. e. [revenues - costs - cost of capital] If gasoline price decreases by 5 /l, i. e. to 100. 4 /l, Cash flow = revenue - operating expenses - taxes - capital expenditure.
