CACC522-Week10-chapter 11

CACC522-Week10-chapter 11 - Chapter 11 no progressive tax...

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Chapter 11 - no progressive tax system for corporations - start with basic rate and then may be able to reduce that rate - corps and indv separate taxable entities, so we need integration to make the 2 systems work. - Copr entities legally distinct from shareholder, therefore an idv can’t use corp losses - Acquisition of control o Someone else acquires control (someone else loses control) non- related party o Has significant tax consequences o Before businesses had trapped losses so it was popular to buy these companies for their losses o Revenue Canada didn’t like this o Limit the use of those losses now. They can only be used against a same or similar business. o Capital losses on the other hand do not get forward, or any other property losses like ABIL or rental o Only thing allowed is to carry forward the business losses, but must meet same business and continue the loss business o The company you acquire will also have a deemed year end – ………. o
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This note was uploaded on 04/14/2011 for the course ACC 522 taught by Professor A.vena during the Winter '11 term at Ryerson.

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CACC522-Week10-chapter 11 - Chapter 11 no progressive tax...

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