Introduction to Federal Income Taxation in Canada 43rd Edition 2022-2023 Edition by Nathalie Johnstone , Devan Mescall , Julie Robson Test bank Sample

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Introduction to Federal Income Taxation in Canada 43rd Edition 2022-2023Edition by Nathalie Johnstone , Devan Mescall , Julie Robson Test bank Sample25) An auditor reviewing French Corporation discovered that $100,000 of corporate revenue wasbeing deliberately recorded in the books as a debit to Bank and a credit to shareholders loan.Which of the following statements is true?(a) This transaction is an example of tax planning.(b) This transaction is an example of tax avoidance.(c) This transaction is an example of tax evasion.(d) This transaction does not fit any the above categories.26) Western Corporation and Eastern Corporation are both owned by the same sole shareholder. Anauditor reviewing Western Corporation discovers that the sole shareholder took steps to directincome earned by Eastern Corporation to Western Corporation to prevent losses from expiring inWestern Corporation.Which of the following statements is true:(a) This transaction is an example of tax planning.(b) This transaction is an example of tax avoidance.(c) This transaction is an example of tax evasion.(d) This transaction does not fit any the above categories.27) An auditor reviewing Mary's personal tax return sees that she purchased an RRSP to lower herpersonal taxes.Which of the following statements is true:(a) This transaction is an example of tax planning.(b) This transaction is an example of tax avoidance.(c) This transaction is an example of tax evasion.(d) This transaction does not fit any the above categories.28) Francis moved to Canada from India on April 30 20, 2022. Which of the following accuratelydescribes Frank's tax status for 2022?(a) Francis will be taxed in Canada on all her worldwide income earned in 2022 because the timeshe spent in Canada exceeds 183 days.(b) Franciswill be taxed in Canada on all her worldwide income earned in 2022, multiplied by thenumber of days spent in Canada and divided by 365.(c) Francis will be taxed in Canada on all her worldwide income earned from April 30, 2022 toDecember 31, 2022, except for gains or losses on the sale of capital property owned prior toentering Canada.(d) Francis will be taxed in Canada on all his worldwide income earned from Aprl 30 20, 2022 toDecember 31, 2022.
Introduction to Federal Income Taxation in Canada 43rd Edition 2022-2023Edition by Nathalie Johnstone , Devan Mescall , Julie Robson Test bank Sample29) Mountain Company is a company incorporated in the United States. It employs salespeople wholive in Canada but does not have an office or any establishment bearing the company name inCanada. The salespeople visit Canadian customers, who then order from Mountain Company andreceive goods directly from the United States. Which of the following best describes the tax statusin Canada of Mountain Company?(a) Mountain Company is not taxable in Canada, because it does not have a permanentestablishment in Canada.(b) Mountain Company is subject to a withholding tax under Part XIII of the Income Tax Act onits gross revenue in Canada.(c) Mountain Company is subject to tax only on its Canadian sales because the location of companyemployees in Canada implies that there is a permanent establishment.(d) Mountain Company is subject to a withholding tax under Part XIII of the Income Tax Act onits net income earned in Canada.30) CBS Inc. is a private corporation incorporated in Canada in 1996. All of its income is derived fromsources originating in Australia. All the CBS shareholders reside permanently in the UnitedStates, where they make all the major decisions for the company. Which of the following accuratelydescribes CBS's tax status in Canada?(a) CBS is not a resident of Canada and is taxed in Canada only on income earned from itspermanent establishment in Canada.(b) CBS is a resident of Canada and taxed in Canada on its world income.(c) CBS is not a resident of Canada and is not subject to tax in Canada.(d) CBS is not a resident of Canada but is subject to a withholding tax on dividends paid to itsshareholders in the United States.31) Which one of the following would be considered employment income for Canadian income taxpurposes for 2022?(a) Amounts paid by your employer for counselling services in respect of mental and physicalhealth.(b) A private health services plan premium paid by your employer.(c) Benefits paid by your employer to a deferred profit sharing plan that does not pay out until2030.(d) An all-expense-paid trip to Europe provided to you by a supplier of your company for reachinga sales quota.32) George moved from Quebec to Ontario in 2022, as a result of a promotion by his employer to opena new branch plant. When he sold his house in Quebec he incurred a loss of $100,000 on the sale.George’s employer decided to reimburse him for the housing loss of $100,000 in 2022. Which of thefollowing amounts represent the increase to George’s employment income in 2022?(a) No change to employment income(b) $42,500 added to employment income(c) $85,000 added to employment income(d) $100,000 added to employment income
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