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...
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- Spring '11
- Revenue, Taxation in the United States