SMALL BUSINESS DEDUCTION (SBD) – REQUIREMENT TO CLAIM?
preferring to increase the GRIP by not claiming the small business deduction
In a June 20, 2016 French Technical Interpretation (2016-0648481E5, Labarre, Sylvie), CRA confirmed that a corporation eligible to claim the SBD under Subsection 125(1) is not obligated to claim the deduction.
In some cases, a company may prefer to enhance the General Rate Income Pool (GRIP) by forgoing the SBD claim, enabling the corporation to pay out eligible dividends.
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