Tax exam with complete solutions

Advance tax ruling Interpretations provided, at the request of a taxpayer, by the Income Tax Rulings Directorate as to how a particular transaction will be treated for tax purposes; such interpretations are not binding on the CRA Allowable capital loss The deductible portion (currently one-...

an avoidance transaction A transaction​ (or series of​ transactions) that results in a tax benefit and has no other bona fide purpose is​ ________. Tax planning involves structuring transactions to reduce the tax liability of the taxpayer consistent with the intent of the income tax l...

What is the five-step process to calculate income tax? 1. Calculate all sources of income 2. Make allowable deductions to arrive at taxable income 3. Calculate the gross or basic tax payable on taxable income 4. Claim allowable tax credits on tax payable 5. Calculate the net tax payable...

​________ involves structuring transactions to reduce the tax liability of the taxpayer consistent with the intent of the income tax legislation. Tax Planning Carl works for Sam. Sam pays Carl entirely in cash and does not issue any tax reporting documents to​ Carl, although both know th...

What are some common Tax Bases? Income Property Consumption Value Added Tarriffs and customs duties Transfer User Capital Head What are the Largest Forms of Canadian Tax? Personal Corporate GST Who is Subject to Income Taxation? Individuals Corporations Trusts Referre...

t/f A value added tax is a tax levied on the increase in value of a commodity or service that has been created by the taxpayer's stage of the production or distribution cycle. True t/f Only individuals, corporations, and trusts are taxable entities for income tax purposes False t/f ...

How do you enact a law? The legislation process starts with the proposal, formulation, an drafting of a bill and goes through a number of stages in the HOC and Senate before it becomes a law. The stages in the HOC and Senate before becoming a law 1. Notice of a motion for leave to introduce...