CCPC Taxes

John owns 100% of the shares of SaltyCo Inc., a manufacturer of at-home exercise equipment in Ottawa, Ontario. The bookkeeper has already calculated the net income for tax purposes (Div B) for the year ended December 31, 2023, as $980,000. They have asked you to calculate the taxes payable.

The following items were already included in net income for tax purposes (Div B):

Taxable capital gain $23,500

Non-eligible dividends from Canadian corporations $48,000 (see note 1 & 2)

Interest income on a Canadian bond $21,500

You have also compiled the following additional information:

SaltyCo made $10,000 in charitable donations.

SaltyCo did not claim any non-capital loss or net-capital loss carryovers in the year.

PepperyCo is a wholly owned subsidiary of SaltyCo. For the year ended December 31, 2023, PepperyCo earned $120,000 of ABI and will claim the maximum SBD that is available.

Note 1 the non-eligible dividends from Canadian corporates of $48,000 noted above are from two taxable Canadian corporations:

	Ownership % by SaltyCo	Taxable dividend
ABC Ltd.	8%	$18,000
XYZ Ltd.	21%	$30,000

Note 2 ABC Ltd. received a dividend refund of $15,000 and XYZ Ltd. received a dividend refund of $35,000.

Some additional information:

SaltyCo and PepperyCos combined taxable capital is $8M for the preceding year.

The provincial tax rate is 3% on ABI below the business limit and 12% on high-rate income.

SaltyCo paid $11,000 of non-eligible dividends to the current shareholders in 2023.

The balance in NERDTOH on December 31, 2022, was $7,500 and ERDTOH was $0.

SaltyCo made a total of $25,000 in instalments in the current year.

REQUIRED:

A. Calculate the total taxes payable (federal Part 1 and provincial)

B. Calculate the Part IV taxes payable

C. Calculate the Refundable Portion of Part 1 tax

D. Calculate the RDTOH balances at the end of December 31, 2023

E. Calculate the dividend refund for SaltyCo for 2023

Show all Excel Work and Calculations.