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Tax Article

2012 Tax Facts

Published: 2012-01-15

2012 Tax Facts

Personal Tax



Personal Income Tax Rates
Taxable IncomeMarginal RateDividends**
fromtoTax*EligibleIneligible
039,020-20.05%-1.89%2.77%
39,02142,7075,72524.15%3.77%7.90%
42,70868,7196,61631.15%13.43%16.65%
68,72078,04314,71932.98%14.19%17.81%
78,04480,96317,79435.39%17.52%20.82%
80,96485,41418,82739.41%19.88%23.82%
85,415132,40620,58143.41%25.40%28.82%
132,407Excess40,98046.41%29.54%32.57%


* calculated on the base amount ("from" column) allowing for the basic personal credit only and excludes Ontario Health Premium

**actual dividends received from Canadian companies Max. tax free dividend receipt (assuming dividend inc. only and excl. Ontario Health Premium) Elig - $50,820 InElig - $39,300


Individual Tax Credits
 Federal Base AmountOntario Base AmountTax ReductionIncome Threshold
 FederalOntario
Basic10,8229,4052,098--
Spouse/Equiv*10,8227,9862,027-798
Child*2,191-329--
Caregiver*4,4024,43388415,03315,165
Infirm > 18 years*4,4024,4338846,2406,301
Age6,7204,5921,24033,88434,183
Pension2,0001,300366--
Disability7,5467,5981,516--
Employment1,095-164--
Child Fitness & Arts500526102--
Max tuition transfer5,0006,5031,078--
Education - full465/mo506/mo96/mo--
Education - part140/mo151/mo29/mo--
Adoption expenses11,44011,4742,295--
Donations & gifts
     
<= $20015%5.05%   
>  $20029%11.16% - 17.41%  
Med exp threshold2,1092,128   
Max med dependentRepealed11,474 --
Public Transit15%- --
First time home buy5,000-750--


* Family caregiver amount of $2,000 added to base if for infirm dependent

Automobile Limits





Travel allowances (tax exempt)


First 5,000 kms$0.53/km
Thereafter$0.47/km


Deduction limits (plus applicable taxes)


Capital$30,000
Leasing$800/month
Interest$300/month

CPP & EI Contributions




CPPMax. pensionable earnings$50,100
Basic exemptions$3,500
Contribution rate4.95%
Max. contribution$2,306.70
EIMax. insurable earnings$45,900
Contribution rate1.83%
Max. premium$840.00

Other




OAS repayment (15% of excess)$69,562
EI claw back limit (1.25 x max insurable earnings)$57,375
2012 RRSP contribution $ limit$22,970
2013 RRSP contribution $ limit$23,820
Basic GST Credit (phase out after $33,884)$260
Ontario Sales Tax Credit (phase out $21,032 [$26,290 family])$273
Gross up for eligible dividends38% for 2012
Ontario senior Healthy Homes Credit Max $10,000 x 15%
If under 65 and working CPP contributions mandatory
If 65 - 70 and working can elect not to contribute to CPP

Corporate Tax



Corporate Income Tax Rates (calendar year)
 FederalOntarioCombined
Basic15.00%11.25%26.25%
Manufacturing15.00%10.00%25.00%
Small Business11.00%4.50%15.50%
Investment - CCPC34.67%11.25%45.92%
Investment - Non-CCPC15.00%11.25%26.25%
Future corporate tax rates (calendar year ends)
 201320142015
Basic25.50%25.00%25.00%
Manufacturing25.00%25.00%25.00%
Small Business15.50%15.50%15.50%
Investment - CCPC45.17%44.67%44.67%
Investment - Non-CCPC25.50%25.00%25.00%

 




Assume calendar year ends for the following: 
ABI Eligible for SBD (<$500,000) 
Initial corp. tax15.50
Tax on distribution27.52
 43.02
Deferral30.91
(Cost)/Savings3.39
  
M&P Income not eligible for SBD 
Initial corp. tax25.00
Tax on distribution (eligible dividends only22.16
 47.16
Deferral21.41
(Cost)/Savings(0.74)
  
General Rate Income 
Initial corp. tax26.25
Tax on distribution (eligible dividends only)21.79
 48.04
Deferral20.16
(Cost)/Savings(1.63)
  
Canadian invest. income w/ refundable Part I tax 
Initial corp. tax45.92
Net of RDTOH refund19.25
Tax on distribution26.30
 45.55
Deferral/(Prepayment)0.49
(Cost)/Savings0.86
  
Canadian dividend income subject to Part IV tax 
Initial corp. tax 33.33
Net of RDTOH refund***-
Tax on distribution (eligible dividends)29.54
 29.54
Deferral/(Prepayment)(3.79)
(Cost)/Savings-
*** assumes full recovery of RDTOH 


Compiled by: Jeremy Doan, MAcc, CA

Date updated: January 15, 2012



This information is provided by Crawford, Smith and Swallow Chartered Accountants LLP for informational purposes only and must not be relied upon as professional advice.  Readers should not initiate any action on the basis of this information without the consultation and direction of a qualified professional advisor.




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