Corporate Tax Notes

Prepared by HTK Consulting

Our Canadian Corporate Taxation summary notes contain a variety of complex topics found in the Income Tax Act (ITA) in plain, easy-to-understand language. These notes are perfect for those writing the CA Exams (Modules, CKE, SOA, and UFE), for university students, and for accounting professionals who need a refresher on topics. We are always updating and adding new notes, so please keep checking!

General Corporate Tax Topics

General Corporate Tax Topics
Understanding Division A, B, C and E
Residency of Corporations
Taxable Canadian Property Defined
Advantages and Disadvantages of Incorporation
Canadian Controlled Private Corporation (CCPC) and Implications
Active Business Income (ABI)
Personal Service Business (PSB) and Specified Investment Business (SIB)
Shareholder Loans - Loans made by corporation to shareholders
Affiliated Parties, Related Parties, and Associated Corporations
Related Corporations and Implications
Affiliated Corporations and Implications
Associated Corporations and Implications

Division B Income: Income for Tax Purposes

Business Income Earned by Corporations
Business Income vs. Capital Gains
Income or Loss from a Business
Reserves for Tax Purposes
Capital Cost Allowance for Depreciable Capital Properties
CCA Classes and Rates
Cumulative Eligible Capital Deduction for Unlimited Life Intangible Assets
Property Income Earned by Corporations
Income from Property | Interest, Dividends, Rent, and Royalties
Capital Transactions: Corporations
Capital Gains and Capital Losses
Replacement Property Rules
Allowable Business Investment Losses (ABIL)
Disposal of Land and Adjacent Building

Taxable Income for Individuals: Division C Deductions

Taxable Income for Corporations: Division C Deductions
Division C Deductions for Corporations

Tax Payable for Corporations: Division E

Tax Payable for Corporations
Overview of Federal and Provincial Corporate Tax Rates
Federal Taxes Payable Calculation | Provincial Abatement | Small Business Deduction | Additional Refundable Taxes | M&P Deduction | General Rate Reduction
Refundable Taxes | Part I Refundable Tax | Part IV Refundable Tax | Refundable Dividend Tax on Hand (RDTOH)| Dividend Refund
Scientific Research And Experimental Development (SRED) & Investment Tax Credit (ITC)
Deadlines, Installments, Interest and Penalties

Corporate Distributions - Dividends

Corporate Distributions - Dividends
General Rate Income Pool (GRIP) - Canadian Controlled Private Corporation (CCPC)
Lower Rate Income Pool (LRIP) - Non-Canadian Controlled Private Corporation (Non-CCPC)
Capital Dividend Account (CDA)

Corporate Reorganization

Tax Free Rollovers
Section 85(1) Rollover: Tax Free Rollover to Corporations
Section 85.1 Rollover: Share for Share Exchange
Section 86 Rollover: Exchange of Shares in an Internal Reorganization
Section 87 Rollover: Amalgamations
Section 88(1) Rollover: Winding-up of a Subsidiary
Tax Planning: Vertical Amalgamation vs. Winding-up
Dividend Stripping: Section 84.1
Capital Gains Stripping: Section 55(2)
Other Reorganization Issues
Acquisition of Control (AOC) Rules
Sale of Assets of a Corporation vs. Sale of Shares of the Corporation

Spread the word!

If you find our work useful, please like, share and spread the word!