Amount in income and get credit basic for foreign

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Unformatted text preview: Income Payable Adjusted Adjusted Net Income = Net Income, Reduced By ITA 110.6, 111(1)(b), 110(1)(d), (d.1), (d.3), (f), (j) Reduced Tax Otherwise Payable = Part I Tax Before Dividend Tax Credit, Investment Tax Credit, And Political Contributions Tax Credit Investment Copyright © 2014, Clarence Byrd Inc. 55 Canadian Tax Principles Foreign Business Tax Credit Credit Equals The Least Of: • Actual Withholding Actual • Net Foreign Business Income X Tax Otherwise Adjusted Net Income Payable Adjusted • Tax Otherwise Payable, Less Foreign Non-Business Credit Copyright © 2014, Clarence Byrd Inc. 56 Canadian Tax Principles Alternative Minimum Tax (AMT) • The Problem – High Income Individuals – Little Or No Tax Payable – A Public Relations Issue Copyright © 2014, Clarence Byrd Inc. 57 Canadian Tax Principles AMT - Procedure • The Minimum Tax Is Equal To: [A (B - C) - D] Where: A = 15% B = Adjusted Taxable Income C = The Basic Exemption ($40,000) D = The Basic Minimum Tax Credit Copyright © 2014, Clarence Byrd Inc. 58 Canadian Tax Principles AMT - Adjusted Net Income • Add Back – 30 Percent Of Capital Gains – 3/5 Stock Option Deduction 3/5 – Loss: CCA On Buildings And Films – Loss: Depletion, Exploration, Development – Home Relocation Deduction – Certain Tax Shelter And Limited Partnership Losses Copyright © 2014, Clarence Byrd Inc. 59 Canadian Tax Principles AMT - Adjusted Net Income • Deduct – Gross up of Canadian dividends – 60 percent of ABILs deducted Copyright © 2014, Clarence Byrd Inc. 60 Canadian Tax Principles Basic Minimum Credit • Allowed – Personal Credits – Age Credit – Canada Employment Credit – Adoption Expenses, Transit Pass and Volunteer Firefighter – Child Fitness and Children’s Arts Credits – Charitable Donations – Medical Expense Credit – Disability Credit – Tuition, Education and Textbook Credits – EI And CPP Credits Copyright © 2014, Clarence Byrd Inc. 61 Canadian Tax Principles Minimum Tax Carry Over • Seven Years • Against Any Excess Of Regular Tax Payable Over Minimum Tax Copyright © 2014, Clarence Byrd Inc. 62 Canadian Tax Principles Copyright © 2014, Clarence Byrd Inc. 63...
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This note was uploaded on 09/19/2013 for the course COMM 355 taught by Professor Trancheung during the Fall '10 term at The University of British Columbia.

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