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Integration—Cost and Benefit of Incorporation
for Investment Income
B.C.
Alta.
Sask.
Man.
Ont.
Income earned through a corporation
Corporate income
$1,000
$1,000
$1,000
$1,000
$1,000
Corporate tax
(454)
(447)
(467)
(467)
(462)
After-tax amount
(A)
546
553
533
533
538
Dividend refund
4
267
267
267
267
267
Available for distribution
813
820
800
800
805
Personal tax of individual
(274)
(227)
(267)
(313)
(294)
Net cash to individual
(B)$ 539
$ 593
$ 533
$ 487
$ 511
Income earned directly by an individual
Personal income
$1,000
$1,000
$1,000
$1,000
$1,000
Personal tax
(437)
(390)
(440)
(464)
(495)
Net cash to individual
(C)$ 563
$ 610
$ 560
$ 536
$ 505
Summary
Tax savings (cost)
of incorporation
1
(B) – (C) $ (24)
$ (17)
$ (27)
$ (49)
$ 7
Tax deferral
(pre-payment)
2
(A) – (C)$ (17)
$ (57)
$ (27)
$ (3)
$ 33
See the table "Integration—Cost and Benefit of Incorporation" and related notes on the
following pages.
Current as of September 30, 2013
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