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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 specic 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...
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- Spring '11