What does the abbreviation 'GRIP' stand for in tax terminology?

The abbreviation 'GRIP' stands for General Rate Income Pool in tax terminology. This concept is used in the context of Canadian taxation, particularly regarding the taxation of private corporations. The General Rate Income Pool is a mechanism that allows a corporation to manage and track its eligible income to determine the appropriate dividend tax credit available to shareholders when dividends are paid out.

This pool essentially reflects the income that has been taxed at the general corporate tax rate, allowing corporations to efficiently allocate distributions to shareholders while minimizing potential double taxation. Understanding how GRIP functions is vital for tax planning and compliance for corporations and their shareholders.

The other terms do not represent an established concept recognized within Canadian tax law, making them less relevant in this context.