Permanent Differences definition
Permanent Differences means expenditures that are not deductible for income tax purposes either in the current year or in future years and/or income and/or gains (other than taxable capital gains and gains from the disposition of eligible capital property as provided in subsection 14(1) of the Income Tax Act (Canada)) which are not fully taxable for income tax purposes either in the current year or a future year. If a portion of an expenditure is deductible over time and a portion of an expenditure is not deductible, then the Permanent Difference in a year in respect of that expenditure will be the deduction which would be determined if the non-deductible portion of the expenditure was deductible on the same basis as the portion of the expenditure which is deductible, and the non-taxable portion of an item of income/gain will be calculated on the same basis. Permanent Differences exclude the difference between the fair market value of a property and the elected amount, where an asset is transferred to the Limited Partnership on a tax deferred basis pursuant to subsection 97(2) of the Income Tax Act (Canada);
Permanent Differences means differences between taxable income or tax loss and pre-tax accounting profit or loss arising from the existence of:
Examples of Permanent Differences in a sentence
Differences between Net Cash Flow distributions and taxable income (created, for example, by Permanent Differences and non-taxable portions of realized gains on the disposition of capital property and eligible capital property) must be allocated in a reasonable manner.
W The Tax Effect of Permanent Differences captures the differences in the income taxes due under the Federal and State calculations and the income taxes calculated in Attachment H that are not the result of a timing difference.