The Entities

The Entities - separate from the affairs of its owner(s) -...

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The Entities * Federal and provincial income taxes are imposed on 3 basic types of entities: o individuals o corporations o trusts * Trusts have a limited application to business and investment structures * Proprietorships, partnerships, joint ventures, and limited partnerships are not directly taxable; rather, they are organizational structures who pro±ts (or losses) are allocated to the participating owners for tax purposes * The participating owners of the non-taxable structures are either individuals or corporations, and therefore all income is subject to tax regardless of the organizational structure that is used to earn it * A corp. is considered to be an arti±cial person having the same legal rights and responsibilities as an individual and its affairs are formally
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Unformatted text preview: separate from the affairs of its owner(s) - the shareholder(s) * For tax purposes, corporate pro±ts earned or losses incurred belong to the corp.; however, at some point individual shareholders will realize pro±ts of the crop. by receiving dividends and /or by disposing of their shares, if and when they rise in value * While the individual and the corp. are separate taxable entities, there is only one recipient of pro±t and cash ²ow- the individual * Therefore, the separate taxation of the two primary entities is only temporary and that ultimately the two will be integrated * The Canadian income tax system taxes two primary entities - the individual and the corp....
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This note was uploaded on 02/05/2012 for the course ACC 522 taught by Professor A.vena during the Spring '11 term at Ryerson.

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The Entities - separate from the affairs of its owner(s) -...

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