Coporate Taxation

Question 1

Net income for tax purposes -> Taxable Income

Answer 1

Taxable income = Net income for tax purposes - Division C Deductions

Question 2

3 Division C Deductions

Answer 2

1. Chariable Donations
2. Dividents from Canadian Corporations
3. Loss Carryovers

Question 3

Accounting Depreciation vs CCA

Answer 3

Depreciation for accounting purposes seeks to expense the cost of the asset over its useful life. CCA is the annual deductible portion of capital outlays.

Question 4

Small business Deduction %

Answer 4

17% of the less of active business income and taxable income

Question 5

Deemed Disposition

Answer 5

When poroperty is disposed of even though there are no proceeds of disposition