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Unformatted text preview: million and $15 million have reduced access to the small business deduction. The tax rate on capital gains is 38%-10%+10.5% = 38.5%. 1 This tax rate applies to investment income other than capital gains and dividends from Canadian corporations. 2 If a corporate pays investment income to shareholders as dividends then this tax is effectively not paid. Otherwise, this tax accumulates in what is called a Refundable Dividend Tax on Hand account, which is refunded to the corporation when eventually this corporation pays dividends to its shareholders....
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This note was uploaded on 02/10/2011 for the course BUS 312 taught by Professor Alan during the Spring '03 term at Simon Fraser.
- Spring '03