Taxation of a CCPC - The Basics

The most common type of corporation that exists in Canada is a Canadian-Controlled Private Corporation (“CCPC”).  Unfortunately, there are a myriad of tax rules that apply specifically to CCPCs, making taxation of them quite complicated and challenging for business owners and advisors alike.  In this course, we will discuss the basics of how a CCPC pays tax in Canada.

Topics covered include:

• What is a CCPC?
• Different types of income earned by a CCPC – how they are determined
• Different types of income earned by a CCPC – how they are taxed (Federal and Ontario)
• What is integration and how does it work?
• Why are dividends “eligible” and “non-eligible”?
• What is GRIP and why does it exist?
• What is RDTOH and why does it exist?
• How is RDTOH calculated?
• Example – RDTOH calculation
• Why is RDTOH split into ERDTOH and NERDTOH?
• Example – ERDTOH and NERDTOH calculation