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16

Integration Tables

All calculations are for a twelve-month taxation year ended December 31, 2010.

Table 1

Active Business Income ($) (based on a December 31, 2010 year end and $10,000 of active business income)

This table shows:1

  • the income tax deferral if active business income is earned and retained in a corporation as opposed to being paid out of the corporation as salary to the shareholder; and

  • the tax saving (cost) if instead of being paid out of the corporation as salary, the after-tax corporate income is paid out as a dividend to the shareholder in the same year.

Eligible for Small Business Deduction

New Brunswick

Newfoundland

General

and Labrador

M&P

Alberta British Columbia Manitoba

Northwest Territories Nova Scotia Nunavut

Ontario

General M&P

2,500

117

3,020

104

3,560

195

2,730

140

Deferral

Saving

3,005

485

3,400

358

2,750

289

2,851

219

3,143

407

3,510

31

3,133

188

General

2,850

245

M&P

General

2,740

148

M&P

2,890

253

Prince Edward Island Quebec

Saskatchewan

Yukon

No Small Business Deduction

Deferral

Saving/

(Cost)

1,100

(43)

1,520

(14)

1,752

(5)

1,380

8

1,251

(299) or (162)2

2,151

396 or 5512

1,555

158

1,600

(616)

1,250

(405)

1,644

(190)

1,844

(43)

1,337

(376)

2,043

(108)

1,400

(115)

1,600

42

940

(319)

2,190

696

  • 1.

    This table assumes the individual is taxed at the top marginal income tax rate. Levies other than federal and provincial income tax, the employer portion of provincial health tax and the employee portion of Northwest Territories and Nunavut payroll taxes are not considered (e.g., Canada Pension Plan contributions). Different results may arise in special circumstances (e.g., for credit unions).

  • 2.

    For Newfoundland and Labrador, ($299) and $396 apply if the dividend is paid before July 1, 2010, and ($162) and $551 apply if it is paid after June 30, 2010.

Alberta

(1,745)

Nil

(283)

(58)

(567)

(117)

British Columbia

(1,188)

Nil

(73)

(88)

(147)

(177)

Manitoba

(824)

Nil

(13)

(208)

(27)

(417)

New Brunswick

(1,387)

Nil

(143)

(43)

(286)

(86)

Newfoundland

2 (1,256) (1,054) or

Nil

(263)

(183)

(527)

(367)

and Labrador

Northwest

(1,352)

Nil

(155)

(8)

(312)

(17)

Territories

Nova Scotia

25

Nil

(33)

(148)

(67)

(297)

Nunavut

(969)

Nil

(308)

(133)

(617)

(267)

Ontario

(676)

Nil

(63)

(33)

(125)

(64)

Prince Edward

(738)

Nil

(164)

(417)

(330)

(836)

Island

Quebec

(265)

Nil

83

(38)

165

(76)

Saskatchewan

(1,169)

Nil

(133)

(33)

(267)

(67)

Yukon

(1,453)

Nil

(363)

(250)

(727)

(499)

  • 1.

    This table assumes that:

    • the individual is taxed at the top marginal income tax rate;

    • the portfolio dividends are designated as “eligible” dividends;

    • the capital gains deductions for qualifying small business corporation shares or qualified farming or fishing property are not available; and

    • the taxable dividend paid is sufficient to generate a full refund of refundable tax.

  • 2.

    For Newfoundland and Labrador, ($1,054) applies if the dividend is paid before July 1, 2010, and ($1,256) applies if it is paid after June 30, 2010.

(Cost)

Deferral/

(Cost)

Deferral/

(Cost)

Deferral/

(Prepayment)

(Prepayment)

(Prepayment)

Table 2

Investment Income ($) (based on a December 31, 2010 year end and $10,000 of investment income)

This table shows:1

  • the income tax deferral (prepayment) if investment income is earned and retained in a corporation as opposed to being earned directly by an individual; and

  • the tax (cost) if the after-tax corporate income is paid out as a dividend to the shareholder in the same year.

Portfolio Dividends

Capital Gains

Interest

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