HOMEWORK:

Corp is a CCPC and has year ended 31 Dec 2020. It has the following

NIFTP = Active Business Income $347679 + Net Taxable Capital Gains $39048

On 1 Jan 2020, Corp had non-capital loss carry forward of $70000 and net capital loss carry forward of $120000. What is the minimum taxable income?

Individual A owns 100% of Corporation B. Corporation B pays Individual A monthly amounts to achieve the payment of a gross annual salary of $100000 per year. EI does not apply to Individual A and CPP is not relevant. In addition to the salary, Individual A requires $43554 in after-tax cash as soon as possible. How much salary would need to be paid for the individual to obtain $43554 after-tax cash? The marginal tax rate is 41% (including Federal + Provincial). Tax credits (Except Dividend Tax Credit) are not relevant on additional amounts earned by Individual A because all tax credits are consumed by the $100000 salary earned by Individual A.

An individual owns 100% of a corporation.

ERDTOH - $97967

NERDTOH - $100743

CDA - $45000

GRIP - $85000

Cash - $103559

He wants to get $14004 cash out of the corporation and into his personal bank account as soon as possible. The individual earns more than $215000 income per calendar year and pays provincial tax rate of 19% on any additional income. What amount of capital dividends should the corporation pay to meet the individual's needs?