ACCT 3350 Chapter Notes - Chapter 13: Dividend Tax, Personal Services, Double Taxation
31 Mar 2018
School
Department
Course
Professor
Document Summary
In order to keep track of the amount of tax elgibile for a refund as a result of paying dividends, corporation maintains a running balance called: rdtoh refundable dividend tax on hand. The refund is equal to the lessor of : Or the balance balance in the rdtoh account. 30 2/3% of taxable gain is refunded if the income is distributed to a shareholder. Tax treatment of capital gains earned by a ccpc is identical to tax treatment given specified investment business income(property income) Taxable capital gain in excess of the allowable capital loss for a year is taxed @ high corporate rate of 40% + refundable tax on ccpc investment income of 10 2/3 % In order to avoid double taxation on capital gains: non-taxable portion of the capital gain can be distributed by a means of a capital dividend. Capital dividends received by the shareholder are fully exempt from tax.
