Learn about Association, GRIP and RDTOH.
Topics include:
Association
• Tax implications of being "associated"
• Who is "associated" for income tax purposes?
• Basic rules of association
• Advanced rules of association 3rd corporation rule, election Specified class shares Shares held by corporations, partnerships, trusts, minors
• Control Legal ("de jure") vs. factual ("de facto") Simultaneous Control by group Control by value
• Examples of application - various scenarios
• Recent developments in association SBD grind due to AAII SR&ED expenditure limit CCA immediate expensing limit
General Rate Income Pool (GRIP)
• What is integration? How does it work? Why are dividends "eligible" and "non-eligible"?
• What is GRIP and why does it exist?
• How is GRIP calculated? Formula Example - GRIP computation
• GRIP anomalies in Ontario 26.5% (actual) vs. 28% (expected) provincial tax rate Impact of AAII rules - federal but not provincial
Refundable Dividend Tax on Hand (RDTOH)
• What is RDTOH and why does it exist?
• How is RDTOH calculated? Refundable Part I tax on AII Part IV tax on "portfolio" dividends Part IV tax on "connected" dividends Example - RDTOH computation
• New RDTOH regime - 2 is better than 1? Purpose of the new regime ERDTOH NERDTOH Dividend refund Example - ERDTOH & NERDTOH computation
Educator and Tax Advisor
Alex Garber, CPA, CA, MTax has been working in public accounting since 2004, focusing primarily on income taxation for Canadian owner-managed businesses and their shareholders. Alex presents PD seminars for CPA Ontario and facilitates at the CPA Canada In-Depth Tax Program. Alex is also a faculty member at the Schulich School of Business, York University, where he teaches income taxation at both undergraduate and master's levels. Alex started his career with Deloitte and Touche LLP in Toronto. He is currently an independent tax advisor, assisting various clients, sole-practitioners and CPA firms in Ontario.
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