Notes: Chapter 13
Planning the Use of a Corporation and Shareholder-Manager Remuneration
If you are business- owner of your corporation, you have great flexibility in making
decisions about your remuneration from the company
As a shareholder-m
Notes: Chapter 11-Computation of Taxable Income and Tax after General reductions for
1. Basic difference between Personal and corporate taxation
A corporation, a trust and an individual are all subject to basic tax rules.
Chapter 14: Rights and Obligations under the Income tax
A. Filing Deadlines
See page no 635 para no 14015.10
B. Requirements to file a return
See page no 635 para no 14015.20
I if you do not comply with the requirements and regulations under
Notes: Chapter12: Integration for Business and Investment Income of the Private
1. Basics of Integration
Integration is an important principle in the Canadian tax system, especially for Canadiancontrolled private corporations (CCPCs) and their
Computation of Taxable Income and
Tax After General Reductions for
Incorporation vs. Proprietorship
Both begin with GAAP income and require
No difference in deductions related to
Computation of Taxable Income and Tax After
General Reductions for Corporations
Type 1 Problems
Solution 1: Taxable Income
Income from business . $
Income from property .
Taxable capital gains .
Homework Solutions-CH 11
Solution 4: Acquisition of Control
The deemed year-end, by virtue of s. 249(4) as a result of the acquisition of control, coincides with the normal year end
The following losses are restricted because of the acquisition
Homework solutions-CH 11
Prob. 7 and 8
Solution to Problem 7: Schedule 1 Reconciliation and Taxable Income
Net income before income taxes .
Add: Loss on the sale of investment [ssec. 9(3)]. $
Amortization [par. 18(1)(b)] .
Interest on incom