RSM424H1 Study Guide - Final Guide: Foreign Tax Credit, Property Income, Life Insurance
11 Jun 2017
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Basic federal tax 38% * taxable income. Plus refundable tax onccpc"s investment income - % of the least of: Taxable income less amount subject to the small business deduction (below) Less small business deduction 17. 5% of the least of: Active business income (abi): abi is technically defined as any business carried on by the corp other than a specified investment business or a personal services business (psb). It is determined by net income for tax purposes - corp"s property income (interest, dividends, rents, and royalties) Net tcgs (gains - losses) ; it includes property income closely related or incidental to business activities (such as interest income earned on overdue a/r) *sib: business with a primary purpose to earn property income, including interest, rents, royalties, and dividends from non-affiliated foreign corps; dividends from other canadian corps and foreign affiliates [>10%] are excluded).
