Textbook Notes (368,125)
Canada (161,663)
Finance (37)
MGFB10H3 (19)
Derek Chau (11)
Chapter

Section 3.5 Notes

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Department
Finance
Course
MGFB10H3
Professor
Derek Chau
Semester
Fall

Description
Chapter 3 Financial Statements Notes 3.5 The Canadian Tax System Canadian taxes are levied on both personal and corporate income, but the government recognizes the potential for double taxation of income earned through a corporation and designed a partially integrated system US operates a classical system of double taxation, while Europe, by and large, operates a fully integrated system Corporate Taxes undepreciated capital cost (UCC) the undepreciated cost of assets, calculated by asset class and written off on a declining balance basis; the higher the rate, the faster the assets are depreciated one minor adjustment associated with CCA is that because it is taken on the year-end balance, Canada Revenue Agency allows only one-half of the CCA rate to be applied to net acquisitions to an asset class in the first year the assets are acquired half-year rule CRA allows only one-half of CCA rate to be applied to net acquisitions to class in 1 year assets are acquired one advantage of using CCA asset classes is that individual assets are not amortized separately, unless they are the only one in it capital gain a taxable gain incurred when an asset is sold at a price greater than its original cost capital loss a tax-deductible loss generated when a non-depreci
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