1. Award:g
WhichgofgthegfollowinggisgnotgconsideredgtogbegagseparategentitygforgtaxgpurposesgingCanada?
g Angindividual
g
g Agproprietorshipg
g Agcorporationg
g Agtrust
AgproprietorshipgisgcorrectgasgthegentitiesgsubjectgtogtaxgongincomegingCanadagaregindividuals,gcorporations
2. Award:g
Whichgofgthegfollowinggattitudesgandgactionsgisgmostglikelygtoghelpgdecision-makersgdevelopgangefficientgapp
g Cashgflowsgshouldgbegconsideredgfromgagbefore-taxgperspectivegwhengmakinggdecisions.
g Functionalgmanagersgshouldgnotgbegheldgresponsiblegforgthegtaxgeffectsgofgdecisionsgwithingtheirgd
g Taxgcostsgtogagbusinessgshouldgbegregardedgasgcontrollablegexpenses,gmuchglikegproductgcostsga
g
g AllgmanagersgshouldgowngagcopygofgthegIncomegTaxgAct.
Taxationgshouldgbegconsideredgingallgaspectsgofgbusinessgplanninggongangongoinggbasis.
3. Award:g
Whichgofgthegfollowinggstatementsgisgtrue?
g Dividendsgpaidgbygagcorporationgaregdeductiblegbygthatgcorporationgandgaregagformgofgpropertygincom
g
g Dividendsgpaidgbygagcorporationgaregdeductiblegbygthatgcorporationgandgaregagformgofgbusinessgincom
g Dividendsgpaidgbygagcorporationgaregnotgdeductiblegbygthatgcorporationgandgaregagformgofgbusinessgincom
g g Dividendsgpaidgbygagcorporationgaregnotgdeductiblegbygthatgcorporationgandgaregagformgofgpropertygi
,5. Award:g
Incomegtaxgisgcalculatedgforgwhichgofgthegfollowinggjurisdictionalggroups?
g Municipal,gprovincial,gandgfederalg
g Municipal,gfederal,gandgforeign
g g Provincial,gfederal,gandgforeigng
g Municipal,gprovincial,gandgforeign
Canadiangtaxpayersgaregusuallygsubjectgtogprovincial,gfederal,gandgforeigngtaxgonginternationalgincome.
6. Award:g
Twoginvestorgcorporationsgmaygnotgentergjointlygintogwhichgofgthegfollowing?
g Jointgventureg
g Partnership
g Separategcorporationg
g Proprietorship
g
Agproprietorship,gsincegitgisgangoperationgrungbygonegindividual.
7. Award:g
Whichgofgthegfollowinggstatementsgisgtrue?
g Cashgflowgshouldgnevergbegcalculatedgongangafter-taxgbasis.
g Thegtaxgcostgtogagbusinessgshouldgbegregardedgasgagcostgofgdoinggbusiness.
g
g Incomegtaxgcannotgbegtreatedgasgagcontrollablegcost.
g Thegvaluegofgangenterprisegshouldgbegbasedgongpre-taxgcashgflow.
Taxgcostsgaregagregulargpartgofgdoinggbusinessgandgthereforeghavegangimpactgongcashgflow.
8. Award:g
,9. Award:g
Whichgofgthegfollowingglistsgaccuratelygnamesgthegfiveggeneralgincomegcategoriesgforgtaxgpurposes?
g Business,gInterest,gEmployment,gCapitalgGains,gOtherg
g Business,gProperty,gEmployment,gCapitalgGains,gForeign
g Business,gProperty,gEmployment,gCapitalgGains,gOtherg
g
g Business,gProperty,gEmployment,gInvestments,gOther
IncomegforgtaxgpurposesgisgcategorizedgasgBusiness,gProperty,gEmployment,gCapitalgGains,gandgOther.
10. Award:g
Proprietorships,gcorporations,gpartnerships,glimitedgpartnerships,gjointgventures,gandgincomegtrustsgareg
allg g categoriesgofgincomegforgtaxgpurposes.
g taxgjurisdictions.
g examplesgofgfinancialginstruments.g
g formsgofgbusiness.
g
Thisglistgcomprisesgthegmanygformsgofgbusinessesgthatgmaygbegcreated.
11. Award:g
WhichgofgthegfollowinggstatementsgregardinggtaxationgwithingjurisdictionsgingCanadagisgtrue?
g
g Federalgandgprovincialgorgterritorialgtaxgbracketsgaregalwaysgidenticalgtogoneganother.
g Onlygfederalgtaxesgapplygtogindividualsgwhilegbothgfederalgandgprovincialgorgterritorialgtaxesgapplyg
g BothgfederalgandgprovincialgorgterritorialgtaxesgapplygtogCanadiangtaxpayers.
g
g Onlygfederalgtaxesgapplygtogcorporationsgwhilegbothgfederalgandgprovincialgtaxesgapplygtogindividu
Canadiangtaxpayersgaregsubjectgtogbothgfederalgandgprovincialgorgterritorialgtaxes,gandgthegschedulegofgrate
Award:g
, 13. Award:g
SimonegisgangemployeegatgXYZgLtd.gandgisgingag45%gtaxgbracket.gXYZgLtd.ghasgagtaxgrategofg27%.gThegcomp
imone'sgcurrentgsalarygisg$50,000.gWhatgisgafter-taxgvaluegofgthegraisegtogSimone?
g $1,350g
g
g $2,750g
g $2,858
g $3,650
After-taxgvaluegforgSimone:g($50,000g×g10%)g×g(1g-g.45)g=g$2,750.
14. Award:g
Allgcashgflowgmustgbegconsideredgongangafter-
taxgbasisgbecauseg
g companiesgwantgagpositivegcashgflow.
g thegvaluegtogagbusinessgmustgbegconsidered.g
g theginvestor'sgtaxgrategisgirrelevant.
g decisionsgthatgappeargfavourablegongagpre-taxgbasisgmaygbegunfavorablegorgmarginallygfavourable
g
Taxesgmustgformgpartgofgthegcashgflowgdecision.
15. Award:g
Whichgofgthegfollowinggisgnotgagseparategentitygforgtaxgpurposes?
g Corporationg
g Trust
g Partnershipg
g
g Individual
Thegindividualgpartnergisgtaxedgongtheirgsharegofgthegpartnershipgincome.
WhichgofgthegfollowinggisgnotgconsideredgtogbegagseparategentitygforgtaxgpurposesgingCanada?
g Angindividual
g
g Agproprietorshipg
g Agcorporationg
g Agtrust
AgproprietorshipgisgcorrectgasgthegentitiesgsubjectgtogtaxgongincomegingCanadagaregindividuals,gcorporations
2. Award:g
Whichgofgthegfollowinggattitudesgandgactionsgisgmostglikelygtoghelpgdecision-makersgdevelopgangefficientgapp
g Cashgflowsgshouldgbegconsideredgfromgagbefore-taxgperspectivegwhengmakinggdecisions.
g Functionalgmanagersgshouldgnotgbegheldgresponsiblegforgthegtaxgeffectsgofgdecisionsgwithingtheirgd
g Taxgcostsgtogagbusinessgshouldgbegregardedgasgcontrollablegexpenses,gmuchglikegproductgcostsga
g
g AllgmanagersgshouldgowngagcopygofgthegIncomegTaxgAct.
Taxationgshouldgbegconsideredgingallgaspectsgofgbusinessgplanninggongangongoinggbasis.
3. Award:g
Whichgofgthegfollowinggstatementsgisgtrue?
g Dividendsgpaidgbygagcorporationgaregdeductiblegbygthatgcorporationgandgaregagformgofgpropertygincom
g
g Dividendsgpaidgbygagcorporationgaregdeductiblegbygthatgcorporationgandgaregagformgofgbusinessgincom
g Dividendsgpaidgbygagcorporationgaregnotgdeductiblegbygthatgcorporationgandgaregagformgofgbusinessgincom
g g Dividendsgpaidgbygagcorporationgaregnotgdeductiblegbygthatgcorporationgandgaregagformgofgpropertygi
,5. Award:g
Incomegtaxgisgcalculatedgforgwhichgofgthegfollowinggjurisdictionalggroups?
g Municipal,gprovincial,gandgfederalg
g Municipal,gfederal,gandgforeign
g g Provincial,gfederal,gandgforeigng
g Municipal,gprovincial,gandgforeign
Canadiangtaxpayersgaregusuallygsubjectgtogprovincial,gfederal,gandgforeigngtaxgonginternationalgincome.
6. Award:g
Twoginvestorgcorporationsgmaygnotgentergjointlygintogwhichgofgthegfollowing?
g Jointgventureg
g Partnership
g Separategcorporationg
g Proprietorship
g
Agproprietorship,gsincegitgisgangoperationgrungbygonegindividual.
7. Award:g
Whichgofgthegfollowinggstatementsgisgtrue?
g Cashgflowgshouldgnevergbegcalculatedgongangafter-taxgbasis.
g Thegtaxgcostgtogagbusinessgshouldgbegregardedgasgagcostgofgdoinggbusiness.
g
g Incomegtaxgcannotgbegtreatedgasgagcontrollablegcost.
g Thegvaluegofgangenterprisegshouldgbegbasedgongpre-taxgcashgflow.
Taxgcostsgaregagregulargpartgofgdoinggbusinessgandgthereforeghavegangimpactgongcashgflow.
8. Award:g
,9. Award:g
Whichgofgthegfollowingglistsgaccuratelygnamesgthegfiveggeneralgincomegcategoriesgforgtaxgpurposes?
g Business,gInterest,gEmployment,gCapitalgGains,gOtherg
g Business,gProperty,gEmployment,gCapitalgGains,gForeign
g Business,gProperty,gEmployment,gCapitalgGains,gOtherg
g
g Business,gProperty,gEmployment,gInvestments,gOther
IncomegforgtaxgpurposesgisgcategorizedgasgBusiness,gProperty,gEmployment,gCapitalgGains,gandgOther.
10. Award:g
Proprietorships,gcorporations,gpartnerships,glimitedgpartnerships,gjointgventures,gandgincomegtrustsgareg
allg g categoriesgofgincomegforgtaxgpurposes.
g taxgjurisdictions.
g examplesgofgfinancialginstruments.g
g formsgofgbusiness.
g
Thisglistgcomprisesgthegmanygformsgofgbusinessesgthatgmaygbegcreated.
11. Award:g
WhichgofgthegfollowinggstatementsgregardinggtaxationgwithingjurisdictionsgingCanadagisgtrue?
g
g Federalgandgprovincialgorgterritorialgtaxgbracketsgaregalwaysgidenticalgtogoneganother.
g Onlygfederalgtaxesgapplygtogindividualsgwhilegbothgfederalgandgprovincialgorgterritorialgtaxesgapplyg
g BothgfederalgandgprovincialgorgterritorialgtaxesgapplygtogCanadiangtaxpayers.
g
g Onlygfederalgtaxesgapplygtogcorporationsgwhilegbothgfederalgandgprovincialgtaxesgapplygtogindividu
Canadiangtaxpayersgaregsubjectgtogbothgfederalgandgprovincialgorgterritorialgtaxes,gandgthegschedulegofgrate
Award:g
, 13. Award:g
SimonegisgangemployeegatgXYZgLtd.gandgisgingag45%gtaxgbracket.gXYZgLtd.ghasgagtaxgrategofg27%.gThegcomp
imone'sgcurrentgsalarygisg$50,000.gWhatgisgafter-taxgvaluegofgthegraisegtogSimone?
g $1,350g
g
g $2,750g
g $2,858
g $3,650
After-taxgvaluegforgSimone:g($50,000g×g10%)g×g(1g-g.45)g=g$2,750.
14. Award:g
Allgcashgflowgmustgbegconsideredgongangafter-
taxgbasisgbecauseg
g companiesgwantgagpositivegcashgflow.
g thegvaluegtogagbusinessgmustgbegconsidered.g
g theginvestor'sgtaxgrategisgirrelevant.
g decisionsgthatgappeargfavourablegongagpre-taxgbasisgmaygbegunfavorablegorgmarginallygfavourable
g
Taxesgmustgformgpartgofgthegcashgflowgdecision.
15. Award:g
Whichgofgthegfollowinggisgnotgagseparategentitygforgtaxgpurposes?
g Corporationg
g Trust
g Partnershipg
g
g Individual
Thegindividualgpartnergisgtaxedgongtheirgsharegofgthegpartnershipgincome.
