DETERMINATION OF INCOME

DETERMINATION OF INCOME - categories are aggregated in...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
DETERMINATION OF INCOME * Each of the primary entities is required to pay a rate of tax on its taxable income in each taxation year * Income for tax purposes included the following: o Each entity subject to tax determines its taxable income on the basis of a taxation year. o Income for each entity includes and is restricted to the world income generated from ±ve general categories. Each category of income is determined in accordance with its own brief set of fundamental principles. o The net incomes (revenues minus expenses) for each of the ±ve
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: categories are aggregated in accordance with a strict formula, the sum of which is referred to as net income for tax purposes o The sum of the ±ve categories of income is then reduced by a limited number of speci±c items. Such items differ for the two primary entities. The total is referred to as taxable income and is the base to which the rate of tax is applied. * Taxable income for a taxation year of an entity subject to tax in Canada can be expressed as: TI = Net income - Special reductions...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online