[Verse 1] When you're Canadian controlled and private too Active business income flowing through Up to the limit, there's a break for you Small Business Deduction, tax rate reduced Corporation qualified, ownership's key Fifty percent Canadian residency Active business earnings, not investment gains Lower federal rate is what remains [Chorus] SBD, saves you money Eleven percent federal, isn't that sunny Four hundred thousand business limit cap Associated corps must share that gap CCPC with active income flow Small Business Deduction helps you grow [Verse 2] Associated corporation rules apply When control connects, you can't deny Same people controlling different entities Must share the limit, no duplicities De jure control means more than fifty De facto control can be more shifty Related persons, look-through rules Family connections, these are the tools [Chorus] SBD, saves you money Eleven percent federal, isn't that sunny Four hundred thousand business limit cap Associated corps must share that gap CCPC with active income flow Small Business Deduction helps you grow [Bridge] Active business income defined with care Not specified investment income there Not personal services business disguised Manufacturing, retail, well-advised Taxable capital over fifty million Phases out the deduction, that's the drill then Large corporations lose the small biz rate Income threshold seals their fate [Verse 3] Calculate the deduction, take the least Of active business income, that's the piece Or business limit allocated fair Among associated corps that share Federal rate eleven point five percent Provincial rates vary where you're sent Combined small business rate so low Helps small enterprises grow and grow [Chorus] SBD, saves you money Eleven percent federal, isn't that sunny Four hundred thousand business limit cap Associated corps must share that gap CCPC with active income flow Small Business Deduction helps you grow [Outro] Canadian controlled private corporation Small Business Deduction across the nation Active business income, stay within the limit Tax advantages for those who are in it
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