CONTENTS VOLUME II VOLUME I. Detailed contents of Volume II, Chapters 11 to 21 follows. The textbook is published in two Volumes:

Transcription

1 xi CONTENTS The textbook is published in two Volumes: Volume I = Chapters 1 to 10 Volume II = Chapters 11 to 21 Chapter VOLUME I Chapter VOLUME II 1 Introduction To Federal Taxation In Canada 11 Taxable Income and Tax Payable For Individuals Revisited 2 Procedures and Administration 12 Taxable Income and Tax Payable For Corporations 3 Income Or Loss From An Office Or Employment 13 Taxation of Corporate Investment Income 4 Taxable Income and Tax Payable For Individuals 14 Other Issues In Corporate Taxation 5 Capital Cost Allowances And Cumulative Eligible Capital 15 Corporate Taxation and Management Decisions 6 Income Or Loss From A Business 16 Rollovers Under Section 85 7 Income From Property 8 Capital Gains And Capital Losses 9 Other Income, Other Deductions And Other Issues 17 Other Rollovers and Sale Of An Incorporated Business 18 Partnerships 19 Trusts And Estate Planning 10 Retirement Savings And Other Special Income Arrangements Detailed contents of Volume II, Chapters 11 to 21 follows. 20 International Issues In Taxation 21 GST/HST Glossary Located at the back of the print and online Study Guide.

2 xii Table Of Contents (Volume 2) CHAPTER 11 Taxable Income And Tax Payable For Individuals Revisited Introduction Lump-Sum Payments Treatment Of Losses Carry Over Provisions Personal Use Property Losses Listed Personal Property Losses Non-Capital Losses Net Capital Losses Net Capital Losses At Death Allowable Business Investment Losses Farm Losses Lifetime Capital Gains Deduction Current And Future Limits Qualified Property Determining The Deductible Amount Comprehensive Example Ordering Of Deductions And Losses Ordering In Computing Net Income Ordering In Computing Taxable Income Example Tax Payable Overview Tax On Split Income Tax Credits Revisited Transfer Of Dividends To A Spouse Charitable Donations Credit Revisited Foreign Tax Credits Revisited Alternative Minimum Tax Minimum Tax Calculation Tax Credits For AMT Key Terms Used In This Chapter References Appendix - Returns For Deceased Taxpayers Special Rules At Death Procedures For Specific Returns Filing Requirements Payment Of Taxes Problems For Self Study (Online) Assignment Problems CHAPTER 12 Taxable Income And Tax Payable For Corporations Computation Of Net Income Computation Of Taxable Income Deductions Available To Corporations Dividends From Other Corporations Non-Capital Loss Carry Over For A Corporation 565 Ordering Of Taxable Income Deductions. 567 Geographical Allocation Of Income Permanent Establishments Example - Permanent Establishments Federal Tax Payable Basic Rate Federal Tax Abatement General Rate Reduction Provincial Tax Payable Small Business Rate Investment Income Rates Small Business Deduction Canadian Controlled Private Corporation. 573 Active Business Income Annual Business Limit Allocation Among Associated Companies Calculating The Small Business Deduction. 576 Elimination Of Small Business Deduction For Large CCPCs Personal Services Corporations Professional Corporations And Management Companies Manufacturing And Processing Profits Deduction Calculating The Deduction Eligibility General Rate Reduction - ITA 123.4(2) Full Rate Taxable Income Application To Companies Other Than CCPCs 586 Application To CCPCs Foreign Tax Credits For Corporations Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems

3 Table Of Contents (Volume 2) xiii CHAPTER 13 Taxation Of Corporate Investment Income Integration The Basic Concept Dividend Gross Up And Tax Credit Procedures 602 Integration And Business Income Refundable Taxes On Investment Income 606 Meaning Of Aggregate Investment Income. 606 Basic Concepts Refundable Part I Tax On Investment Income Additional Refundable Tax On Investment Income (ART) Problem One: Excessive Tax Rates On Flow Through Of A CCPC s Investment Income. 610 Solution To Problem One: Refundable Portion Of Part I Tax Refundable Part IV Tax On Dividends Received Problem Two: Use Of Multi-Level Affiliations To Defer Taxes On Investment Income Solution To Problem Two: Refundable Part IV Tax Part IV Tax On Portfolio Dividends Received 617 Dividends From A Connected Corporation. 618 Dividends Paid Out Of Mixed Income Of A Connected Corporation Other Part IV Tax Considerations Refundable Dividend Tax On Hand RDTOH - General Definition Refundable Portion Of Part I Tax Payable. 622 The Dividend Refund Example Of RDTOH Calculations Working Through Large Corporate Tax Problems Designation Of Eligible Dividends CCPCs And Their GRIP Non-CCPCs And Their LRIP Part III.1 Tax On Excessive Eligible Dividend Designations Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 14 Other Issues In Corporate Taxation Introduction Acquisition Of Control Rules Economic Background Acquisition Of Control Legislation Deemed Year End Restrictions On Use Of Charitable Donations 650 Restrictions On The Use Of Losses Unrecognized Losses At Deemed Year End. 652 Deemed Disposition Election Associated Companies Definitions Examples - Associated Corporation Rules Investment Tax Credits Procedures Eligible Expenditures Rates Refundable Investment Tax Credits Carry Overs Of Investment Tax Credits Effect Of Acquisition Of Control On Investment Tax Credits Tax Basis Shareholders Equity Shareholders Equity Under GAAP Paid Up Capital (Tax Basis Contributed Capital) 665 Tax Basis Retained Earnings Capital Dividend Account Distributions Of Corporate Surplus Regular Cash Dividends Stock Dividends Dividends In Kind Capital Dividends Under ITA 83(2) Deemed Dividends Under ITA 84(1) - Increase In PUC ITA 84(2) - On Winding-Up ITA 84(3) - On Redemption, Acquisition, Or Cancellation Of Shares ITA 84(4) And ITA 84(4.1) Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems Tax Software Assignment Problem

4 xiv Table Of Contents (Volume 2) CHAPTER 15 Corporate Taxation And Management Decisions The Decision To Incorporate Basic Tax Considerations Other Advantages And Disadvantages Tax Reduction And Deferral Approach Basic Example Public Corporation CCPC - Active Business Income CCPC - Investment Income Other Than Dividends CCPC - Dividend Income Conclusions On Tax Reductions And Deferrals 704 Provincial Taxes And Integration Tax Deferral Tax Reduction Examples-EffectsOfProvincialRates On Integration Summary: Tax Deferral And Tax Reduction. 712 Tax Free Dividends Tax Rates On Dividends Use Of Tax Credits Tax Free Amounts For Income Splitting Basic Concept Example Shareholder Benefits Including Loans The Owner-Manager Environment Shareholder Benefits Other Than Loans Shareholder Loans Management Compensation General Principles Salary Vs. Dividends Salary Vs. Dividends For The Owner - Manager The Basic Trade-Off Other Considerations Conclusion Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 16 Rollovers Under Section 85 Rollovers Under Section General Rules For The Transfer Transferor And Transferee Eligible Property Consideration To Transferor Making The Election Establishing The Transfer Price Transfer Prices - Detailed Rules Rules Applicable To All Assets Accounts Receivable Inventories, Non-Depreciable Capital Property 747 Disallowed Capital Losses Depreciable Property Disallowed Terminal Losses Eligible Capital Property Eligible Capital Property - Disallowed Deductions Summary Of Transfer Price Rules Allocation Of The Elected Value Consideration Received By The Transferor Assets Acquired By The Corporation Paid Up Capital (PUC) Of Shares Issued Paid Up Capital Reduction More Than One Class Of Shares Comprehensive Example - Section 85 Rollovers Gift To Related Party - Section General Rules Example Excess Consideration - Section Shareholder Benefit - ITA 15(1) Dividend Stripping ITA Applicability Of ITA Dividend Stripping Example Capital Gains Stripping ITA 55(2) Application Of ITA 55(2) Capital Gains Stripping - Examples Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems

5 Table Of Contents (Volume 2) xv CHAPTER 17 Other Rollovers And Sale Of An Incorporated Business Introduction Share For Share Exchanges - ITA General Rules Conditions For The Application Of ITA Example Exchange Of Shares In A Reorganization - ITA Conditions For The Reorganization Procedures Example Using ITA 86(1) In An Estate Freeze. 793 Gift To Related Person - ITA 86(2) Using ITA 86(1) - Tax Planning Considerations 798 Amalgamations - ITA Position Of The Amalgamated Company Position Of The Shareholders Vertical Amalgamations Asset Bump-Ups Non-Tax Considerations Amalgamations - Tax Planning Considerations 801 Winding-Up Of A 90% Owned Subsidiary. 802 Acquisition Of Assets Disposition Of Shares Tax Planning Considerations - Amalgamation Vs. Winding-Up Winding-Up Of A Canadian Corporation Example Convertible Properties Application Sale Of An Incorporated Business Restrictive Covenants (a.k.a. Non-Competition Agreements) Sale Of Individual Assets Sale Of Assets As A Going Concern Sale Of Shares Evaluation Of Alternatives Example Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 18 Partnerships Introduction Taxable Entities In Canada Chapter Coverage Partnerships Defined The Importance Of Defining A Partnership Basic Partnership Elements Types Of Partnerships Co-Ownership, Joint Ventures, And Syndicates Introduction Co-Ownership Joint Ventures Syndicates Partnership Income, Losses, And Tax Credits Introduction Applicable Concepts Calculating The Amounts To Be Allocated Methods Of Allocation The Partnership Interest The Concept Acquiring A Partnership Interest Adjusted Cost Base Of Partnership Interest Disposition Of A Partnership Interest Limited Partnerships And Limited Partners 851 Definitions At-Risk Rules Transfer Of Property To And From A Partnership Definition Of Canadian Partnership Transfers With No Rollover Provision Common Partnership Rollovers Specified Investment Flow Through Partnerships Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems

6 xvi Table Of Contents (Volume 2) CHAPTER 19 Trusts And Estate Planning A Note On Changes For Basic Concepts What Is A Trust? Establishing A Trust Returns And Payments - Trusts Non-Tax Reasons For Using Trusts Classification Of Trusts Personal Trusts Testamentary Trusts Vs. Inter Vivos Trusts Taxation Of Trusts Rollovers To A Trust Rollovers To Capital Beneficiaries Year Deemed Disposition Rule Net Income For Tax Purposes Of A Trust. 885 Preferred Beneficiary Election Amounts Deemed Not Paid Amounts Retained For A Beneficiary Taxable Income Of A Trust Income Allocations To Beneficiaries Discretionary And Non-Discretionary Distributions Flow Through Provisions Principal Residence Exemption Tax Payable Of Personal Trusts Calculation Of Basic Amount Other Tax Payable Considerations Income Attribution - Trusts Purchase Or Sale Of An Interest In A Trust 894 Tax Planning Qualifying Spousal Trusts Alter Ego Trusts Joint Spousal Trusts Estate Planning Estate Freeze Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 20 International Issues In Taxation Introduction Residence Residence Of Individuals Residence Of Corporations Residence Of Trusts Part I Tax On Non-Residents Carrying on Business in Canada Canadian Source Employment Income Dispositions of Taxable Canadian Property Part XIII Tax On Non-Residents Interest Payments Dividend Payments Royalty Payments Rental Income Pension Payments, Other Retirement Benefits 930 Shareholder Loans To Non-Residents Immigration And Emigration Entering Canada - Immigration Departures From Canada - Emigration Unwinding A Deemed Disposition Short-Term Residents Foreign Source Income Of Canadian Residents Foreign Investment Reporting Requirements. 936 Foreign Source Employment Income Foreign Source Business Income Foreign Source Interest Income Foreign Source Capital Gains Foreign Source Dividend Income - Problems. 940 Foreign Source Dividends Received By Individuals Foreign Dividends Received From Non-Affiliated Corporations Dividends Received From Non-Controlled Foreign Affiliates Dividends Received From Controlled Foreign Affiliates Foreign Accrual Property Income (FAPI) Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems

7 Table Of Contents (Volume 2) xvii CHAPTER 21 GST/HST Introduction Transaction Tax Concepts Value Added Tax (VAT) Liability For GST/HST The Concept Of Supply Supply Categories Taxable Supplies Exempt Supplies Applying the GST/HST Rate Place Of Supply Applying The Rate Collection And Remittance Of GST/HST Registration Meaning Of Person For GST/HST Who Must Register Exemption For Small Suppliers Input Tax Credits VendorsOfFullyTaxableAnd Zero-Rated Supplies Vendors Of Exempt Supplies Examples Relief For Small Businesses Quick Method Of Accounting Small Suppliers Exemption Streamlined Input Tax Credit Method GST/HST Procedures And Administration. 987 GST/HST Returns And Payments Associated Persons Refunds And Rebates Books And Records Appeals General Anti-Avoidance Rule Employee And Partner GST/HST Rebate General Concept Calculating The GST/HST Rebate Amount Example Residential Property, New Housing Rebate 992 General Rules For Residential Property New Housing Rebate CHAPTER 21, continued Sale Of A Business Specific Applications Partnerships And GST/HST Trusts And GST/HST Key Terms Used In This Chapter Problems For Self Study (Online) Assignment Problems STUDY GUIDE Your two volume textbook is accompanied by a separate Study Guide available in print and online. The chapters of this Study Guide correspond to the chapters of Byrd & Chen's Canadian Tax Principles. Each of these Study Guide chapters contains the following: Detailed guidance on how to work through the text and problems in the chapter. Detailed solutions to the Exercises in the textbook and online Self Study Problems for the chapter. A list of learning objectives for the material in the chapter. In addition, the Study Guide contains: Two sample personal tax returns and two Self Study Tax Software Problems in Chapters 4 and 11. A sample corporate tax return in Chapter 13. An extensive Glossary.