Question
The controller of G Ltd. (a Canadian-controlled private corporation) provided you with the following selected information related to the 2022 taxation year ending December 31,
The controller of G Ltd. (a Canadian-controlled private corporation) provided you with the following selected information related to the 2022 taxation year ending December 31, 2022.
Canadian retail business income $492,500
Taxable capital gains(non-active) 4,500
Interest income on Canadian long-term bonds 40,000
Interest income on overdue accounts receivable 5,000
Dividend income: a) From taxable Canadian corporations(eligible dividend) (G owns less than 5% of the shares of these corporations) 21,000
b) From ABC company (Non-eligible dividend) (G owns 80% share of 40,000
ABC company and ABC claimed a dividend refund of $15,000 after the payment of this dividend, ABC company claimed small business deduction on business income of $200,000)
Net Income for Income Tax Purposes (Division B Income) $603,000
Miscellaneous Items
Non-capital losses from prior years 37,500
Net capital losses from prior years 6,500
Refundable dividend tax on hand as of December 31, 2021 (non-eligible) $5,000
Taxable dividends paid during 2022 (non-eligible) 120,000
Capital Dividend Account as of December 31, 2021 20,000
Required:
The amount of the dividend refund for 2022 using the RDTOH account. Use all the tax-free amounts if available. Formula to use to calculate the Refundable portion of Part 1 Tax
- 30% AII (Aggregate Investment Income)
- 30% Taxable income minus the amount on which the SBD is based
- Part I tax
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