INTRODUCTION TO FEDERAL INCOME TAXATION IN
CANADA TEST BANK CH 1 TO 5 46TH EDITION ROBSON
MESCALL JOHNSTONE LIN COURSE UPDATED QUESTION
BANK WITH VERIFIED ANSWERS A+ STUDY COMPANION
2026 2027
Mr. A was born in Canada and has lived in Canada all of his life. On
November 1st of the current year, he was transferred by his employer to
Brussels, Belgium. There is no plan for him to return to Canada in the
foreseeable future. He is not married and has no children. For the current
year, Mr. A's Canadian residence status for tax purposes is most accurately
described as: a) Non-resident
b) Resident by virtue of common law
c) Deemed resident
d) Part-time resident - CORRECT ANSWER -d) Part-time resident
Mr. A is ceasing residency on November 1st therefore we have a situation
where the residency status is changing in the year. Mr. A would be a
resident for the January 1 to November 1 period and a non-resident in the
later part of the year. He would be a part-year resident in the current year.
Mrs. Bee was born in Florence, Italy. She was married for several years to
Mr. Cee and resided with him in the family home in Waterloo, Ontario,
Canada.
Three years ago, Mrs. Bee and Mr. Cee were divorced and she moved back
to Florence at that time, where she continues to reside and own a home.
During the current year, Mrs. Bee spent the full months of February through
April and the full months of August through November in Canada, assisting
a friend of hers who was ill. She resided at the friend's home during her
time in Canada. Mrs. Bee's Canadian residence status for tax purposes,
under the provisions of the Income Tax Act, for the current year is most
accurately described as: a) Non-resident
b) Resident by virtue of common law
,c) Deemed resident
d) Part-time resident - CORRECT ANSWER -c) Deemed resident
Mrs. Bee lives in Florence therefore would be a non-resident were it not for
the sojourner rule. Since she spent a significant amount of time in Canada
during the year (more than 179 days), she would be a deemed resident and
would be taxed on her worldwide income.
Miss Dey is employed by an engineering consulting firm, with its head office
in Mississauga, Ontario, Canada. She rents an apartment near her
employer's office. She is single and has no children. During the current
year, Miss Dey's employer asked her to take on a project for the company in
Alaska, USA. She moved to Alaska on February 1st. She is uncertain when
she will be moving back to Mississauga, but it will be some time prior to the
end of next year. She is maintaining her apartment and has sublet it to a
friend. Miss Dey's Canadian residence status for tax purposes, under the
provisions of the Income Tax Act, for the current year is most accurately
described as: a) Non-resident
b) Resident by virtue of common law
c) Deemed resident
d) Part-time resident - CORRECT ANSWER -b) Resident by virtue of
common law
Mr. Ng is not a resident of Canada. In the year, he had worldwide income of
$250,000, including $70,000 of employment income earned in Canada
(from director's fees) and $20,000 of interest on Government of Canada
bonds. What amount of taxable income must Mr. Ng report on his
Canadian personal income tax return for the year? a) $20,000
b) $70,000
c) $90,000
d) $250,000 - CORRECT ANSWER -b) $70,000
Only the $70,000 of employment income earned in Canada would be
reported on Mr. Ng's Canadian personal income tax return for the year.
, Mr. E moved from Buffalo, New York, USA to Vancouver, British Columbia,
Canada on May 27th of the current year. He commenced employment in
Canada on May 28th. He lived in a hotel until he took possession of his new
home in Vancouver on June 1st. His wife and children accompanied him to
Canada at the end of the school year in June. Mr. E had no income from
Canadian sources prior to moving to Canada. For the current year, Mr. E is
taxable in Canada on:
a) His Canadian source employment income from May 28th to the end of
the year.
b) His Canadian source income from all sources from May 28th to the end
of the year.
c) His worldwide income from all sources from May 28th to the end of the
year.
d) His worldwide income from all sources for the entire year. - CORRECT
ANSWER -c) His worldwide income from all sources from May 28th to the
end of the year.
Corporation F was incorporated in Edmonton, Alberta ten years ago. The
corporation has never carried on business in Canada and the Board of
Directors all reside outside of Canada and hold Board of Director's
meetings in Las Vegas, Nevada, USA. The Canadian residence status of F,
under the provisions of the Income Tax Act, is best described as:
a) Deemed resident by virtue of incorporation.
b) Deemed resident by virtue of common law.
c) Part-time resident.
d) Non-resident. - CORRECT ANSWER -a) Deemed resident by virtue of
incorporation.
CANADA TEST BANK CH 1 TO 5 46TH EDITION ROBSON
MESCALL JOHNSTONE LIN COURSE UPDATED QUESTION
BANK WITH VERIFIED ANSWERS A+ STUDY COMPANION
2026 2027
Mr. A was born in Canada and has lived in Canada all of his life. On
November 1st of the current year, he was transferred by his employer to
Brussels, Belgium. There is no plan for him to return to Canada in the
foreseeable future. He is not married and has no children. For the current
year, Mr. A's Canadian residence status for tax purposes is most accurately
described as: a) Non-resident
b) Resident by virtue of common law
c) Deemed resident
d) Part-time resident - CORRECT ANSWER -d) Part-time resident
Mr. A is ceasing residency on November 1st therefore we have a situation
where the residency status is changing in the year. Mr. A would be a
resident for the January 1 to November 1 period and a non-resident in the
later part of the year. He would be a part-year resident in the current year.
Mrs. Bee was born in Florence, Italy. She was married for several years to
Mr. Cee and resided with him in the family home in Waterloo, Ontario,
Canada.
Three years ago, Mrs. Bee and Mr. Cee were divorced and she moved back
to Florence at that time, where she continues to reside and own a home.
During the current year, Mrs. Bee spent the full months of February through
April and the full months of August through November in Canada, assisting
a friend of hers who was ill. She resided at the friend's home during her
time in Canada. Mrs. Bee's Canadian residence status for tax purposes,
under the provisions of the Income Tax Act, for the current year is most
accurately described as: a) Non-resident
b) Resident by virtue of common law
,c) Deemed resident
d) Part-time resident - CORRECT ANSWER -c) Deemed resident
Mrs. Bee lives in Florence therefore would be a non-resident were it not for
the sojourner rule. Since she spent a significant amount of time in Canada
during the year (more than 179 days), she would be a deemed resident and
would be taxed on her worldwide income.
Miss Dey is employed by an engineering consulting firm, with its head office
in Mississauga, Ontario, Canada. She rents an apartment near her
employer's office. She is single and has no children. During the current
year, Miss Dey's employer asked her to take on a project for the company in
Alaska, USA. She moved to Alaska on February 1st. She is uncertain when
she will be moving back to Mississauga, but it will be some time prior to the
end of next year. She is maintaining her apartment and has sublet it to a
friend. Miss Dey's Canadian residence status for tax purposes, under the
provisions of the Income Tax Act, for the current year is most accurately
described as: a) Non-resident
b) Resident by virtue of common law
c) Deemed resident
d) Part-time resident - CORRECT ANSWER -b) Resident by virtue of
common law
Mr. Ng is not a resident of Canada. In the year, he had worldwide income of
$250,000, including $70,000 of employment income earned in Canada
(from director's fees) and $20,000 of interest on Government of Canada
bonds. What amount of taxable income must Mr. Ng report on his
Canadian personal income tax return for the year? a) $20,000
b) $70,000
c) $90,000
d) $250,000 - CORRECT ANSWER -b) $70,000
Only the $70,000 of employment income earned in Canada would be
reported on Mr. Ng's Canadian personal income tax return for the year.
, Mr. E moved from Buffalo, New York, USA to Vancouver, British Columbia,
Canada on May 27th of the current year. He commenced employment in
Canada on May 28th. He lived in a hotel until he took possession of his new
home in Vancouver on June 1st. His wife and children accompanied him to
Canada at the end of the school year in June. Mr. E had no income from
Canadian sources prior to moving to Canada. For the current year, Mr. E is
taxable in Canada on:
a) His Canadian source employment income from May 28th to the end of
the year.
b) His Canadian source income from all sources from May 28th to the end
of the year.
c) His worldwide income from all sources from May 28th to the end of the
year.
d) His worldwide income from all sources for the entire year. - CORRECT
ANSWER -c) His worldwide income from all sources from May 28th to the
end of the year.
Corporation F was incorporated in Edmonton, Alberta ten years ago. The
corporation has never carried on business in Canada and the Board of
Directors all reside outside of Canada and hold Board of Director's
meetings in Las Vegas, Nevada, USA. The Canadian residence status of F,
under the provisions of the Income Tax Act, is best described as:
a) Deemed resident by virtue of incorporation.
b) Deemed resident by virtue of common law.
c) Part-time resident.
d) Non-resident. - CORRECT ANSWER -a) Deemed resident by virtue of
incorporation.
