FIN 502 Study Guide - Interest Rate
Document Summary
Prescribed forms: canadian income taxation based on self-assessment completed on income tax return. Progressive: for canadian system for individuals that higher levels of taxable income are taxed at higher rates. Lower rate applies to all income up to a specific level, then al income above that level is taxed at the higher level. Average tax rate: total tax payable divided by total income. Marginal tax rate: rate applied to one more dollar of income: average tax rate will be equal to or less than the marginal rate. Marginal after-tax rate = (1 marginal tax rate) x (interest rate) Surtaxes: taxes based on the tax, they are temporary and usually apply most heavily on upper tax brackets. 1. 25) and grossed-up amount, called taxable amount, is included in income. Deduct federal tax payable a dividends tax credit equal to 2/3 of gross-up. Deduct federal tax payable a dividends tax credit equal to 1/6 of actual dividends paid.
