Professional Documents
Culture Documents
= Taxes payable
Employment income
+ Business income
+ Investment income
+ Taxable amount dividend (foreign dividend not eligible)
You must calculate the taxable amount of "other than eligible dividends" by multiplying the actual
amount of "other than eligible dividends" you received by 117%.
You must also calculate the taxable amount of eligible dividends by multiplying the actual amount of
eligible dividends you received by 138%.
-rpp deduction
-child care expense
-annual union
- moving expenses
=net income (line 236)
- Capital gain exemption
- Non capital losses carry forward
- Net capital losses of other years (up to deductible capital gain)
= taxable income (line 260)
Multiply line 260 by the appropriate tax rate and deduct the non-refundable tax credit = taxes payable
A share of a corporation will be considered to be a qualified small business corporation share if all the following
conditions are met:
at the time of sale, it was a share of the capital stock of a small business corporation, and it was owned by
you, your spouse or common-law partner, or a partnership of which you were a member;
throughout that part of the 24 months immediately before the share was disposed of, while the share was
owned by you, a partnership of which you were a member, or a person related to you, it was a share of
a Canadian-controlled private corporation and more than 50% of the fair market value of the assets of the
corporation were:
o used mainly in an active business carried on primarily in Canada by the Canadian-controlled
private corporation, or by a related corporation;
o certain shares or debts of connected corporations; or
o a combination of these two types of assets; and
Throughout the 24 months immediately before the share was disposed of, no one owned the share other
than you, a partnership of which you were a member, or a person related to you.
Incorporate yourself or not
cost of incorporation (lawyer fee, incorporation fee and more administrative requirement like separate
bank accounts)
complexity of operations aka additional deadline, more remittances
salary vs dividend : can pay a dividend
capital gain exemption
income splitting by paying dividends to family member who will have share
Deferral (can deferred paying taxes by keeping amount in corporation)
Look at opportunities to reduce taxes payables (rrsp contribution, paying relatives reasonable salaries,)
Pm
Structure:
Issue
Aspe/analysis
Recommendation
Impact
Put journal entries if possible
Procedure
Risk:
Assertion:
Procedure
Subject Coverage
Government Subsidy ASPE HB 3800 for Hemp co (the subsidy provided more revenue)
Handbook Section 3400, Revenue, paragraph 4 states that transactions shall be recognized
when the requirements as to performance set out in paragraph 3400.05-.06 are satisfied
provided that at the time of performance ultimate collection is reasonably assured.
Handbook Section 3031, Inventories, paragraph 4 states that this Section does not apply to the
measurement of inventories:
(a) held by producers of agricultural and forest products, agricultural produce after
harvest, and minerals and mineral products, to the extent that they are measured at net
realizable value in accordance with well-established practices in those industries; when such
inventories are measured at net realizable value, changes in that value are recognized in net
income in the period of change.
Therefore, if there is a well-established practice in the hemp industry to measure the inventory
at net realizable value,
Bank of procedures
Audit memo
RAMP aka risk, approach, materiality, procedures
A sales sub ledger is a detailed listing of all sales making up the total sales number on the
income statement. This sub ledger should include the date of the sale, the amount of the price
of the product sold.