AFM 361 Chapter Notes - Chapter 11: General Authority, Foreign Tax Credit, Privately Held Company

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM 361
• Professor: Kevin Markle

Document Summary

11,200 basic computation of tax for all corporations. 11,210 objectives of provisions affecting taxation of corporations. In an economic sense the separation of a corporation and its shareholders may be artificial. 10% abatement from federal tax payable, in recognition of provincial income taxes. Small business deduction and manufacturing and processing deduction for certain corporations. 11,250 abatement from federal tax for income earned in a province: purpose of the provision, a federal abatement of 10% of a corporation"s taxable income earned in canada is deducted from income tax otherwise calculated. Who has general authority to contract for his or her employer or principal. The act provides for the following deductions/credits, applicable to all corporations: manufacturing and processing (m&p) profits deduction, foreign tax deduction (credit -- ftc, federal political tax credit. Taxable canadian property -- tax on certain capital gains: non-business income tax deduction, calculation.