Canadian Tax Principles (2021)
Preface
2021 Rates, Credits, and Other Data
Chapter 1 Introduction to Federal Taxation in Canada
Chapter 2 Procedures and Administration
Chapter 3 Income or Loss from an Office or Employment
Chapter 4 Taxable Income and Tax Payable for Individuals
Chapter 5 Capital Cost Allowance
Chapter 6 Income or Loss from a Business
Chapter 7 Income or Loss from Property
Chapter 8 Capital Gains and Capital Losses
Chapter 9 Other Income and Deductions, and Other Issues
Chapter 10 Retirement Savings and Other Special Income Arrangements
Chapter 11 Taxable Income and Tax Payable for Individuals Revisited
Chapter 12 Taxable Income and Tax Payable for Corporations
Chapter 13 Taxation of Corporate Investment Income
Chapter 14 Other Issues in Corporate Taxation
Chapter 15 Corporate Taxation and Management Decisions
The Decision to Incorporate Basic Tax Considerations Deferral and Reduction Using Imperfections in the Integration System Income Splitting Other Advantages and Disadvantages Advantages Disadvantages Tax Reduction and Deferral Approach Basic Example Data on the Individual Taxpayer Personal Tax Rates and Tax Payable Corporate Tax Rates Public Corporation M&P Deduction General Results Analysis Integration and Eligible Dividends CCPC—Active Business Income General Results Analysis "Bonusing Down" Active Business Income CCPC—Investment Income Other Than Dividends CCPC—Dividend Income Possible Sources of Dividend Income Analysis Conclusions on Tax Reductions and Deferrals Provincial Taxes and Integration Introduction Tax Deferral Tax Reduction Introduction Provincial Rates on Individuals Provincial Dividend Tax Credit and Provincial Corporate Tax Rates Examples—Effects of Provincial Rates on Integration Data Public Company Paying Eligible Dividends CCPC Paying Non-Eligible Dividends Summary: Tax Deferral and Tax Reduction Tax-Free Taxable Dividends Tax Rates on Dividends Use of Tax Credits Credits in General Special Rules for Dividends Tax-Free Amounts for 2021 Income Splitting Basic Concept Shareholder Benefits—ITA 15(1) General Overview Other Important Shareholder Benefit Issues Automobile Benefit—ITA 15(5) Loan Benefits—ITA 15(9) Benefits to Family Members—ITA 15(1.4)(c) Use of Corporate Property—ITA 15(1) Penalties and Statute-Barred Issues—ITA 163(2) and 152(4)(a)(j) Shareholder Benefit Caution Shareholder Loans and Indebtedness—ITA 15(2) Overview The Mechanics of Shareholder Loans and Indebtedness The Main Exceptions Running Loan Accounts vs. Specific Loans Shareholder Loan Repayments Imputed Interest Benefit—ITA 80.4 Management Compensation General Principles Salary as the Bench Mark Tax Effective Alternatives Salary vs. Dividends Salary vs. Dividends Overview Analysis of the Example Other Considerations Provincial Tax Rates and Credits Dividend Preference—Income Splitting Dividend Benefit—CNIL Reduction Salary Benefit—Earned Income for RRSPs and CPP Salary Benefit—Earned Income for Child Care Expenses (ITA 63) Salary Benefit—Corporate Losses Salary Cost (Possible)—Provincial Payroll Taxes Salary Costs—CPP and EI Salary Benefit—CPP and Canada Employment Tax Credits Example Extended Use of Tax Credits Optimizing a Limited Payment of Cash Conclusion References Chapter 16 Rollovers Under Section 85
Chapter 17 Other Corporate Rollovers and Sale of a Corporate Business
Chapter 18 Partnerships
Chapter 19 Trusts and Estate Planning
Chapter 20 International Issues in Taxation
Chapter 21 GST/HST
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