BUSI 428 - Canadian Taxation exam with complete solutions
6 views 0 purchase
Course
Income tax
Institution
Income Tax
________ 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 t...
BUSI 428 - Canadian Taxation exam with
complete solutions
________ involves structuring transactions to reduce the tax liability of the
taxpayer consistent with the intent of the income tax legislation. - ANSWER- 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 they are supposed to submit
reporting documentation. Carl does not file an income tax return. Carl and Sam
are engaging in ________. - ANSWER- Tax Evasion
A transaction (or series of transactions) that results in a tax benefit and has no
other bona fide purpose is ________. - ANSWER- An avoidance transaction
The largest single source of revenue for the Canadian government is ________. -
ANSWER- Personal income tax
Which of the following taxes combines both federal and provincial sales taxes
into a tax levy? - ANSWER- Harmonized Sales tax (HST)
Which of the following elements, within the organization and structure of the
Income Tax Act, refers to a subparagraph of the Income Tax Act? - ANSWER-
lowercase Roman numeral in parentheses
Canadian individual income tax is an example of a(n) ________ tax system. -
ANSWER- progressive
The primary purpose for the federal government to collect tax revenues is to
________. - ANSWER- provide public goods and services
Which of the following taxes is inherently a regressive tax system? - ANSWER-
Sales tax
, Consider the following scenario.
Linda
has taxable income of
$400,000
and income taxes payable of
$60,000.
Nancy
has taxable income of
$55,000
and taxes payable of
$8,250.
This scenario represents which type of tax system? - ANSWER- flat
Income Tax Regulations ________. - ANSWER- are established to provide specific
details and procedural requirements necessary to enforce the Income Tax Act
Division ________ of the Income Tax Act deals with computing the net income for
a taxpayer resident in Canada. - ANSWER- B
Administrative or informative guides that can assist with filing an individual
income tax return can be found ________. - ANSWER- on CRA websites
CRA publications can best be described as ________. - ANSWER- helpful
interpretations of how the Income Tax Act applies to real-life scenarios; however,
these interpretations do not have the force of law
If a Canadian taxpayer is unsure of the income tax consequences of a proposed
transaction, he or she may choose to pay a fee for the CRA to issue a(n)
________. - ANSWER- Advance Income Tax Ruling
Section 3 of the Income Tax Act describes: - ANSWER- the liability for income tax
for non-residents earning Canadian income
A Taxable Capital Gain is defined as: - ANSWER- 50% of a Capital Gain realized in
a taxation year
When the Income Tax Act refers to a person, it refers to ________. - ANSWER- an
individual person, corporation, or a trust
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tuition. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
