[Verse 1] Maria earns in Tokyo, profits flowing overseas Canadian residence means worldwide income squeeze Double taxation lurking, governments both want their share Foreign tax credit mechanism shows us how to care Calculate the lesser amount, foreign paid or limit true Prevents excessive burden when the borders blur for you [Chorus] Foreign paid or limit - take the lesser of the two Sourced income ratio times domestic tax that's due Credit pools and carryovers, seven years to use Double tax elimination, that's the game we never lose [Verse 2] Separate the income streams, employment rent and biz Active business foreign source gets different treatment fizz Investment income clustering in separate baskets neat Carryforward unused credits when the years compete Calculate your foreign ratio, numerator clear Denominator total income, keep the fraction near [Chorus] Foreign paid or limit - take the lesser of the two Sourced income ratio times domestic tax that's due Credit pools and carryovers, seven years to use Double tax elimination, that's the game we never lose [Bridge] Underlying tax calculations when subsidiaries pay Gross up and credit method shows the corporate way Treaty shopping strategies, permanent establishment rules Source country versus residence, competing fiscal tools [Verse 3] Non-business income pooling, separate from the rest Business income carryovers put your planning to the test Withholding taxes captured, documentation filed Foreign tax receipt required, audit trails compiled Integration mechanisms prevent the double hit Cross-border income flowing through the credit permit [Chorus] Foreign paid or limit - take the lesser of the two Sourced income ratio times domestic tax that's due Credit pools and carryovers, seven years to use Double tax elimination, that's the game we never lose [Outro] Lesser amount selection keeps the taxpayer whole Foreign tax credit mastery, international control
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