[Verse 1] Start with accounting income on your books Add back what CRA overlooks Depreciation becomes CCA Non-deductible meals, half goes away Political donations, fines and fees These adjustments are the keys From GAAP to taxable, we reconcile Corporate income, line by line [Chorus] One-one-two deduction, dividends flow free Part Four tax when passive, twenty-six point six-seven you see RDTOH refundable, integration's the game Corporate income tax, remember the name Deduct what's allowed, add back what's not Canadian corporate tax, connect every dot [Verse 2] Deductible expenses have their rules Interest deduction, thin cap tools Reasonable salaries to family members Entertainment fifty percent, always remember Business meals and conference fees Half deductible, if you please Capital gains inclusion rate Fifty percent, don't calculate late [Chorus] One-one-two deduction, dividends flow free Part Four tax when passive, twenty-six point six-seven you see RDTOH refundable, integration's the game Corporate income tax, remember the name Deduct what's allowed, add back what's not Canadian corporate tax, connect every dot [Bridge] CCPC investment income flows Through refundable tax, here's how it goes Pay high rate up front, get refund back When dividends paid, stay on track Eligible RDTOH, non-eligible too Integration theory working through Active business income, small biz rate Passive income, different fate [Verse 3] Inter-company dividends received Section one-one-two, tax relieved But if it's passive investment income Part Four tax, here it will come Twenty-six point six-seven percent Refundable when dividends are sent Connected corporations, related too These rules apply through and through [Final Chorus] One-one-two deduction, dividends flow free Part Four tax when passive, twenty-six point six-seven you see RDTOH refundable, integration's the game Corporate income tax, remember the name From accounting to taxable income we go Canadian corporate tax, now you know [Outro] Reconcile the differences, line by line Corporate taxation, by design Integration theory, tax paid once Canadian corporate tax, you've got the response
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