ACTG 6730 Lecture Notes - Lecture 3: Interest Expense, The Globe And Mail, Withholding Tax
7 Jun 2018
School
Department
Course
Professor
Week 3: Managerial Tax Planning
If you pay $100,
$100 (1-t) = 88 if t=12%
= 89 if t=11%
York Bookstore does not pay income taxes.
ROM vs. small gift shops (Globe & Mail).
Harder for tips to be unrecorded because most are now recorded via debit and credit card, so
that waiters cannot pocket the tips.
• Tips are taxable income
Locked-in effect is not good for society because you are holding back brokers.
Pension Funds are not taxable on an annual basis on investment income
• They would love to pay for dividend
Superficial loss
tcg < tdiv
gcg < gdiv
Investing in shares or debt in SBC, g=1
Paying individual for shares, g=0.5
Pg. 189 of course kit for more on ABIL and capital loss.
R1 = (P1 – P0 + D1) / P0
ABIL: invest directly in the corporation, and not in the individual
PPN
• Not good outside a sheltered plan because you are taxes on interest accrued, even
though you earned 0 interest
• All zero coupon bonds are held under umbrellas
• For people who want the safety of the principal but the action of an equity investment
• Pg. 66 and pg. 60
RRSP
• Contribute early in the year; take receipt to HR in order to reduce your withholding tax
immediately
• Only active/earned income can be contributed
• It is a portable pension plan
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Rom vs. small gift shops (globe & mail). Harder for tips to be unrecorded because most are now recorded via debit and credit card, so that waiters cannot pocket the tips. = 89 if t=11: tips are taxable income. Locked-in effect is not good for society because you are holding back brokers. Pension funds are not taxable on an annual basis on investment income: they would love to pay for dividend. Investing in shares or debt in sbc, g=1. 189 of course kit for more on abil and capital loss. R1 = (p1 p0 + d1) / p0. Abil: invest directly in the corporation, and not in the individual. Rrsp: contribute early in the year; take receipt to hr in order to reduce your withholding tax immediately, only active/earned income can be contributed. It is a portable pension plan: withdrawal: resp is easier than rpp, withholding tax: 10% on ,000; 20% on ,000, strategy, withdraw twice to minimize withholding tax.
