Integration—Cost and Benefit of Incorporation / 73
Qué.
N.B.
N.S.
P.E.I.
Nfld.
Income earned through a corporation
Corporate income
$1,000
$1,000
$1,000
$1,000
$1,000
Corporate tax
(466)
(457)
(507)
(507)
(487)
After-tax amount
(A)
534
543
493
493
513
Dividend refund
4
267
267
247
247
257
Available for distribution
801
810
740
740
770
Personal tax of individual
(309)
(268)
(268)
(285)
(231)
Net cash to individual
(B)$ 492
$ 542
$ 472
$ 455
$ 539
Income earned directly by an individual
Personal income
$1,000
$1,000
$1,000
$1,000
$1,000
Personal tax
(500)
(451)
(500)
(474)
(423)
Net cash to individual
(C)$ 500
$ 549
$ 500
$ 526
$ 577
Summary
Tax savings (cost)
of incorporation
1
(B) – (C)$ (8)
$ (7)
$ (28)
$ (71)
$ (38)
Tax deferral
(pre-payment)
2
(A) – (C)$ 34
$ (6)
$ (7)
$ (33)
$ (64)
Current as of September 30, 2013
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