Fat.rtf 〈2025-2026〉

When searching for lost files, recovery software like DiskInternals lists FAT (the file system) and .rtf (Rich Text Format) as common keywords, which can lead to the combined term appearing in search results.

For example, if a foreign corporation pays $2,500 in foreign tax (FAT) and the RTF is 4.0, the total deduction available to the Canadian parent company would be $10,000 ($2,500 x 4.0). Why "RTF" Has Been in the News fat.rtf

The term refers to the formula used to calculate tax deductions for Foreign Accrual Property Income (FAPI) . When a Canadian taxpayer earns passive income through a Controlled Foreign Affiliate (CFA) , they are taxed on that income in Canada as it is earned. To prevent double taxation, the Canada Revenue Agency (CRA) allows a deduction based on the foreign taxes already paid. When searching for lost files, recovery software like

This reduction essentially increases the net tax paid in Canada because the "shield" provided by the foreign tax deduction is much smaller. Alternative Contexts When a Canadian taxpayer earns passive income through

This is the actual amount of foreign tax paid on the FAPI earned by the foreign affiliate.