ABSTRACT
This chapter discusses the predominant tax systems in the North American countries of Canada, the United States, and Mexico. Alternative minimum tax provisions are imposed to ensure collection of a minimum amount of tax from individuals, trusts, estates, and corporate taxpayers. Gross income is likewise the gross profits of the corporation. Taxable income follows the same principles as individual taxpayers. A consolidated return is filed in addition to the parent’s and subsidiaries’ separate returns filed, and income taxes are paid accordingly. The US government has provided incentives for corporations to expend resources in ways that the government sees as beneficial. The government has enacted tax credits available to corporations that meet these defined conditions, called the general business credit. A federal tax unique to Mexico is the tax on business assets. The tax is imposed on most assets used in a trade or business in or outside Mexico if the assets are owned by a Mexican company or resident.
