Investor Presentaiton
CORPORATE LAW
BY ALAIN RANGER
BRAZIL - CANADA COMPARATIVE LAW
of the fair market value of the share (or unit) is derived (or was derived at
any time in the previous 60-month period) from real property in Canada,
Canadian resource properties, timber resource properties; and
.
Options in respect of any above listed property.
Much of the tax payable by non-residents is collected through
Canadian withholding taxes on passive income such as royalties and
dividends for Canadian payors.
Residents of Canada are taxed on their worldwide income.
The Canadian tax base is comprehensive, taxing income and specifically
including capital gains. All business, property and employment income,
whether active or passive, falls within the scope of Canadian taxation.
One-half of capital gains are included in income, and accordingly only
one-half of capital losses may be off-set.
2.2 Taxation of Individuals
Individuals, like corporations, are taxed on the basis of their residency.
Residency for individuals is determined on the basis of a person's
centre of vital interest, such as the location of the family home,
property and place of employment. An individual who sojourns in
Canada for 183 days or more during a year will be deemed to be
resident in Canada for that entire year. Both federal and provincial
income taxes are imposed upon individuals, at graduated rates, and
the rate brackets are indexed for inflation.
The combined federal and provincial top marginal tax rates for individuals
for 2016 for ordinary income vary from 48% to 54%.
(1) Death Taxes
Neither the federal government nor any provincial government currently
impose succession duties, or estate or gift taxes. Instead, individuals at
death are usually subject to federal and provincial income taxation on
accrued but unrealized income and capital gains, and on income received
in the taxation year prior to the date of death. Probate fees may be levied
by certain provinces where letters of probate are required to administer
an estate. These fees vary from province to province.
2.3 Taxation of Corporations and Other Entities
(A) Corporate Income Tax
The federal and provincial corporate tax rates vary, depending on the
industry and type of corporation involved. Federal income taxation is
levied on resident corporations on their worldwide income.
For 2016, the combined federal and Ontario rate for non-Canadian
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