An amalgamation might be an effective loss utilization strategy in circumstances where a business owner has two corporations, and one is expected to be profitable while the other is expected to realize losses. By amalgamating, the losses of one corporation can be used to offset the profits of the other.
DownloadDividends from non-connected corporations are subject to a Part IV Tax rate of 38 1/3%
When the corporation pays dividends to its shareholders, it can recover a portion of tax paid
The refundable portion is typically 38 1/3% of the dividends paid by the corporation.
When the corporation pays dividends to its shareholders, it can recover a portion of the RDTOH account
Tax planning is : to minimize your tax burden or to defer taxes to a later tax year.
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