COMMERCE 4SC3 Lecture 2: continuation of chapter 11
24 Jan 2019
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Exact same rate (13%) as general rate deduction. If you carry on manufacturing and processing business, you can get this. Receiving raw materials is considered m&p, manufacturing those goods is m&p, but selling /shipping those finished goods is no longer considered m&p. Reasons why they do this calculation: some provinces will give you a provincial tax credit for being in this business, increases ability to get a higher foreign tax credit this year because not taking the general rate deduction. Non-refundable tax credits that corporations get (pg. 668); help stimulate investment in canada: investment tax credit; can get this if you do one of 4 things: Qualified property; 10% tax credit if you buy qualified property in atlantic provinces or gaspe peninsula. (i. e. wouldn"t get this in ontario) Buy building for million in nb, take 10% so get 100k tax credit to apply against part 1 tax return at the federal level.
