Chapter 1_ Intro to Federal Taxation in Canada exam with complete solutions.
6 views 0 purchase
Course
Income tax
Institution
Income Tax
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
Referr...
Chapter 1: Intro to Federal Taxation in
Canada exam with complete solutions
Accountant's View of Income - ANSWER- Recognize revenue
Match expenses
GAAP based
Carry Forward Allowable Capital Losses - ANSWER- Unused capital losses can
be carried forward and used in the calculation of future taxable income
Charging Provision for Non-Residents ITA 2(3) - ANSWER- Types of Taxable
Income:
- Employment in Canada
- Carried on Business in Canada
- Disposition of Taxable Canadian Property
Corporate Income Tax - ANSWER- Similar system to personal
Levied on taxable income
Generally is collected by the federal government on behalf of the provinces
CRA View of Income - ANSWER- Employment income
Business income
Property income
Net taxable capital gains
Other inclusion and deductions
Deemed resident - ANSWER- Taxed as a resident
Economic Objectives of Tax - ANSWER- Resource allocation
Distribution effects
Stabilization effects
Fiscal federalism
, Economist's View of Income - ANSWER- Not very specific
Based on wealth or assets
Evaluation of Canada with the Qualitative Characteristics - ANSWER- Equity -
high income individuals and corporations pay little
Balance between sectors - heavy reliance on personal
Complexity - very complex and is become more so
Dependability of revenues - too much reliance on the resource sector
International competitiveness - with corporations was good and competitive with
the US; with individuals, not competitive with the US
HST = - ANSWER- GST + PST
Harmonized sales tax
Is administered by the federal government
Income Tax Act Part 1 - ANSWER- Division A - Liability for Tax
Division B - Net income for tax purposes
Division C - Taxable income
Division E - Tax payable
Individuals with Dual Residency - ANSWER- Tax treaties have tie breakers
Factors include:
- permanent home
- centre of vital interests
- habitual abode
- citizenship
ITA 3(a) - ANSWER- Includes positive income from:
- Employment
- Business
- Property
- Other positive, non-capital sources
Does NOT include employment, business, or property losses
ITA 3(b) - ANSWER- Includes
- Excess (if any) of taxable capital gains over allowable capital losses
- If losses > gains in current year, amount is nil
ITA 3(c) - ANSWER- The sum of ITA 3(a) and ITA 3(b)
Less division B, subdivision e deductions
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 $10.49. You're not tied to anything after your purchase.
