AFF 502 Chapter Notes - Chapter 7: Dividend Tax, Hectare, Ordinary Income
1 Jun 2017
School
Department
Course
Professor
Document Summary
Income tax act: change frequently since different parts of them are affected by every federal government budget, as well as many other pieces of legislation. Taxable income x income tax rate = income tax payable before credits. Income tax payable before credits tax credits = send cheque to government. Based on self-assessment, everyone required to complete an income tax return on prescribed forms. Basic outline of personal income taxation keyed to t1 form. For individuals: add all sources of income deductions = taxable income, all add personal tax credits = p (tax credit is 15% or . 15p) Add all charitable donations = d (tax credit for d is 15% on first , 29% on the rest) = 0. 15 x minimum (d, 200) + maximum [0, (0. 29 x (d 200))} Total non-refundable tax credits = 0. 15p + 0. 15 x minimum (d, 200) + maximum [0, (0. 29 x (d 200)): federal tax.
