Superior Travel Agency is a CCPC that was incorporated 25 years ago. Its head office is situated in Calgary, Alberta and
Posted: Fri Mar 04, 2022 9:39 am
Superior Travel Agency is a CCPC that was incorporated 25 years
ago. Its head office is situated in Calgary, Alberta and it has
branches (permanent establishments (PEs)) in both Denver Colorado
and Austin, Texas. Its taxation year end is December
31. All of the Company's Canadian income is active business
income.
The Company's 2021 net and taxable income is $219,000.
This amount includes $32,000 (Canadian) in active business income
that was earned by the two PEs in the United States. U.S.
income taxes of $9,600 were paid with respect to the $32,000 earned
in the U.S.
For purposes of calculating the federal abatement, assume that
90% of the Company's taxable income is allocated to a province.
Superior Travel Agency’s Taxable Capital Employed In Canada
(TCEC) was $11 million in 2020 and 13 million in 2021.
Adjusted Aggregate Investment Income (AAII) was nil in both 2020
and 2021.
Required: Calculate Superior
Agency’s Part I income tax payable for the 2021 taxation year.
Assume the foreign business income tax credit is equal to the
foreign income tax withheld. YOU MUST SHOW ALL
OF YOUR CALCUATIONS FOR FULL MARKS. FOR FULL MARKS YOUR WORK
MUST ALSO BE PROPERLY LABELLED.
This is the Canadian Taxation. I need an urgent solution
so can you help me as soon as possible? Thank you so
much!
ago. Its head office is situated in Calgary, Alberta and it has
branches (permanent establishments (PEs)) in both Denver Colorado
and Austin, Texas. Its taxation year end is December
31. All of the Company's Canadian income is active business
income.
The Company's 2021 net and taxable income is $219,000.
This amount includes $32,000 (Canadian) in active business income
that was earned by the two PEs in the United States. U.S.
income taxes of $9,600 were paid with respect to the $32,000 earned
in the U.S.
For purposes of calculating the federal abatement, assume that
90% of the Company's taxable income is allocated to a province.
Superior Travel Agency’s Taxable Capital Employed In Canada
(TCEC) was $11 million in 2020 and 13 million in 2021.
Adjusted Aggregate Investment Income (AAII) was nil in both 2020
and 2021.
Required: Calculate Superior
Agency’s Part I income tax payable for the 2021 taxation year.
Assume the foreign business income tax credit is equal to the
foreign income tax withheld. YOU MUST SHOW ALL
OF YOUR CALCUATIONS FOR FULL MARKS. FOR FULL MARKS YOUR WORK
MUST ALSO BE PROPERLY LABELLED.
This is the Canadian Taxation. I need an urgent solution
so can you help me as soon as possible? Thank you so
much!