Figure 7.18 shows a liquid-level system in which two tanks have cross-sectional areas A1 and A2, respectively. The volume flow rate into tank 1 is qi. A pump is connected to the bottom….
Determine his after tax retention and overall tax rate on his foreign source business income.
Jason Abernathy is a Canadian resident. During 2019, he earns $18,000 of business income through a permanent establishment located in the U.S. Income taxes of $1,800 were assessed and withheld at the source on that income. In calculating his foreign tax credit, his Adjusted Division B Income is equal to $100,000 and his Tax Otherwise Payable is equal to $21,000. All amounts are in Canadian dollars. Jason’s marginal combined federal/provincial tax rate is 44 percent. Determine his after tax retention and overall tax rate on his foreign source business income.