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Characteristics of a Corporation
Corporate Taxation
Shares and Dividends
Wealth Accumulation
Financial Statements
100
In the event that a business corporation is to fail, this amount is the most a shareholder can lose
What is the amount of his/her investment
100
A corporation’s taxation year is no more than this amount of time…
What is 53 weeks
100
What type of dividend is distributed from a portion of corporation’s after-tax profit?
What are Regular dividends
100
This is a Corporation whose sole purpose is to hold investment properties
What is a holding company
100
The Federal Tax Corporate rate?
What is 38%
200
This group of people decide who the directors of the corporation will be through an election
Who are the Shareholders
200
If an owner of a corporation chooses not to draw a salary from his business, at what tax rate will the funds be taxed while remaining in the corporation?
What is 15%
200
What type of dividend is non-taxable dividend paid by private corporations?
What are Capital dividends
200
A tax planning strategy that freezes the value of an asset
What is an Estate Freeze
200
The financial term for the loss in value of an asset which is deductible from Net Income?
What is CCA - Capital Cost Allowance
300
Name one of the four main characteristics of a corporation covered in the CIFP material
What is Limited liability/ Continuous existence/ Separation of management and ownership/ Ease of transfer of ownership
300
This type of corporation may claim the small business deduction
What is a Canadian Controlled Private Corporation (CCPC)
300
What type of dividend is subject to 50% income inclusion rate?
What are Capital gains dividends
300
In this structure, a professional holds limited liability with regards to the financial obligations of their business, but still holds unlimited liability for professional negligence.
What is an Incorporated Professional Practice
300
The result of the Federal tax payable being multiplied by the taxable income of a corporation.
What is tax payable
400
An open-ended investment corporation is also known as this
What are Mutual funds
400
This is a tax relief measure that effectively reduces the taxable income earned by the corporation in a Canadian province or territory by 10%
What is the Federal tax abatement
400
What type of dividend is paid by emerging companies that prefer to capitalize retained earnings?
What are Stock dividends
400
The transfer of funds between two holding corporations is done by paying dividends, these dividends avoid what type of tax?
What is Part IV and Part 1 tax
400
These two tax reductions reduce the corporate tax rate to 15% from 38%
What is the general rate reduction (13%) and what is the Federal abatement (10%)
500
This type of plan is an agreement between the shareholders and the corporation, so that in the case a shareholder passes away, the corporation is obliged to purchase the interest of the shareholder at a fixed price
What is the Share Redemption plan
500
What is the enhanced gross up rate and dividend tax credit as of 2012
What is 138% gross up and 15.02% tax credit
500
What kind of shares represent the true ownership with all the benefits and risks of the corporation?
What are Common shares
500
What is the amount of the Lifetime capital gains exemption as of 2007?
What is $750,000
500
What is the result of provincial corporate tax payable + federal corporate tax payable?
What is total tax payable