[Verse 1] Start with net income from the books you've reconciled But taxable income tells a different tale Add back amortization that you've filed Replace with CCA without fail Meals entertainment cut in half the cost Club dues and fines are permanently lost [Chorus] Net to tax, add and subtract Permanent and timing facts CCA replaces depreciation Taxable income calculation Times the rate, less credits wait That's your tax bill, don't be late [Verse 2] Warranty reserves get added to the pile Since accounting estimates don't count for tax Golf memberships denied with legal guile Political donations, no deduction backs Reserve for doubtful debts must be reversed Till actual write-offs make the ledger cursed [Chorus] Net to tax, add and subtract Permanent and timing facts CCA replaces depreciation Taxable income calculation Times the rate, less credits wait That's your tax bill, don't be late [Bridge] Federal rate twenty seven percent they say Provincial rates will vary by location Manufacturing gets a discount on their pay Small business deduction saves the nation Investment tax credits slice the final sum Installments due before year-end has come [Verse 3] Taxable income multiplied by rates combined Federal and provincial jurisdiction Less the credits that the law's designed Tax payable emerges from deduction Compare to instalments that you've paid before Refund or balance owing at the door [Chorus] Net to tax, add and subtract Permanent and timing facts CCA replaces depreciation Taxable income calculation Times the rate, less credits wait That's your tax bill, don't be late [Outro] From accounting profit to the CRA's demand The reconciliation's in your hand
← Other Deductions & Income Sources | Non-Refundable Tax Credits →