MML Inc, a CCPC provides you this year’s income tax related information

	Active Business Income	Investment Income	Portfolio dividends (non-connected)	Dividends (connected)
Canadian Active Business Income	500,000
Canadian Interest Income		20,000
Canadian Dividend Income			20,000	10,000 (50% ownership; dividend refund received by subsidiary was $2,000)
Taxable Capital Gain		100,000

• Taxable Income Is $100,000
• The amount used for SBD is $10,000.
• Allowable Capital Loss carry forward applied was $10,000

Please calculate the General Rate Tax reduction for this year

Answer rating: 100% (QA)

The general rate tax reduction is calculated by multiplying the taxable income ... View the full answer