Question I
Deborah Inc. is a Canadian controlled private corporation. During the taxation year, Deborah Inc. has the following amounts of property income:
Dividends from portfolio investments $21000
Capital gains $80000
Capital losses $6000
Net rental income $9500
Interest income on ten year bond $8700
Assume that the company's taxable income is $76300, which includes a net capital loss deduction of $7800, among other deductions. A $9200 small business deduction served to reduce Tax Payable. Assume that the company's Part I Tax Payable has been correctly determined to be $19500.
Using these assumptions, determine the refundable amount of Part I tax for the year:
Question II
Zebra Inc. is a CCPC with a December 31 year end. Zebra is not associated with any other company. For the 2020 taxation year, its Net Income for Tax Purposes is equal to 286000. Its taxable income is equal to 220000. Its net income for tax purposes includes active business income of $190000 and aggregate investment income of 38000, among other income sources. There is no foreign income this year. In 2019, the corporation's adjusted aggregate investment income was $22,000, and its Taxable Capital Employed in Canada was $8 million.
What is its 2020 additional refundable tax on investment income for the 2020 taxation year?
Question III
Ms. Shelly Daley owns all the shares in a CCPC. The CCPC has investments that generate interest income of $105000 per year. The CCPC is subject to a tax rate on investment income of 50%. She intends to pay out the after-tax corporate income as a dividend to herself each year. She also intends to pay out all of the dividend refund that would be available to the corporation on the payment of any dividends.
Including the dividend refund that would be available on the dividend payment, what is the amount of the cash dividend she could pay out to herself? Do not consider the personal tax she would have to pay on this dividend.