Term exam 1 - Reviewer PDF

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CHAPTER 1 Economic Policy - Resource allocation - Distribution effects - Stabilization effects - Fiscal federalism Income Levels - Proportional - Regressive - Progressive Qualitative Characteristics - Equity/Fairness - Neutrality - Adequacy - Flexibility - Simplicity & Ease of compliance - Certainty - Balance between sectors - International competitiveness Tax reference material - Income tax act - Draft legislation - Income tax regulations - International tax treaties - CRA documents - Court decisions Corporate residency - Factual resident: mind and management are resident - Deemed resident:  Incorporated in CA after 1965  Incorporated in CA before 1965 AND carried on business anytime after - Tie breaker: resident in country where they incorporated

CHAPTER 2 Filing requirements - Tax returns: 6 months after YE - Taxes owing:  General: 2 months after YE  CCPC: 3 months after YE Corporate instalments - Last day of month (unless est. tax payable (ETP) is ≤ $3,000 in CY or PY1 - Alternatives (General):  Current Year (CY):  Preceding Year (PY1):  2nd Preceding (PY2): 1st Preceding (PY1): - Alternatives (CCPC):  Current Year (CY):  Preceding Year (PY1):  2nd Preceding (PY2): 1st Preceding (PY1): Disputes and appeals - Notice of Objection: 90 days from Notice of assessment - Tax Court (TCC): 90 days from CRA’s decision - Federal Court of Appeal: 30 days from TCC decision - Supreme Court: if Federal Court refers issue to SC or SC authorized appeal Tax Evasion - Intentional; fraudulent; criminal Tax Avoidance - Within letter of law but violate the spirit; unacceptable; abusive Tax Planning - Defer of minimize taxes

CHAPTER 5 Half-year rule – 2018 and earlier AcII – 2019 to 2027 Short fiscal year – 1st year of ops.

Class 53 – AcII is 100% or (Adds – Disp.) Class 10.1 - Only $30,000 goes in or out - Each vehicle has own Class 10.1 pool - No recapture or terminal loss on disposal - On year of disposal: CCA = Opening UCC * 30% * ½ Ending UCC = 0 Class 13 - CCA = Original Cost / (Lease term + 1st Renewal Option) CCA without table - CCA = [Beg. UCC + ½ (Adds – Disposal)] * CCA Rate

CHAPTER 8 Replacement property rules - Election when there is a disposition of capital property and it is replaced - Realizes TCG and Recaptured CCA - TCG and recapture may be deferred Involuntary disposition - Depreciable property disposed from theft, destruction, or expropriation Voluntary disposition - As a result of business changing locations; only on real property...