ADMS 3520 Lecture Notes - Lecture 9: Montreal Exchange, Dividend Tax, Flat Tax

• School: York University
• Department: Administrative Studies
• Course: ADMS 3520
• Professor: Joe Frankovic

Document Summary

Lecture 9: taxable income and tax for corporations. Corporations are taxed as separate entities & are taxpayers [see definitions of taxpayer & person in ita 248 (1)] Corporations file t2 returns (individuals file t1 returns) & include their financial statements with their tax returns. There are three main types of corporations [ita 89(1)] Public corporations resident in canada, listed on a designated canadian stock exchange (all canadian exchanges are designated) Canadian controlled private corporations (ccpcs) = a special type of private corporation. = a private corporation that is not controlled by public companies or non-residents. Income earned by a ccpc is eligible for special tax treatment. Canadian active business income is eligible for the small business deduction. Investment income is eligible for other special treatment that results in lower tax rates. Research & development tax incentives are more generous. Corporations use financial statement income to calculate division b income (also called net income for tax purposes)