M
Mbotha
Member
According to ch7 pg 11:
"If the minimum profits test does not bite (ie the minimum profit is lower than the adjusted "I-E" figure) then:
- an amount of the I-E equal to that part of the minimum profit not derived from dividends is taxed at the corporation rate
- the balance is taxed at the policyholder rate"
Does this mean that:
"If the minimum profits test does not bite (ie the minimum profit is lower than the adjusted "I-E" figure) then:
- an amount of the I-E equal to that part of the minimum profit not derived from dividends is taxed at the corporation rate
- the balance is taxed at the policyholder rate"
Does this mean that:
- Min. Profit less dividend income (called shareholders' unfranked profit) is taxed at the shareholder rate?
- Unadjusted I-E (ie. No dividends added back) less shareholders' unfranked profit is taxed at the policyholder rate?