,
,
, TIF Problem Two - 1
Procedures And Administration - Essay Questions
Chapter Two Test Item File Problems
TIF PROBLEM TWO - 1
Procedures And Administration - Essay Questions
1. An individual can request that an employer reduce the amounts withheld for income
taxes. What conditions must be met for this request to be granted? Provide an example of
a situation where this request would be granted.
2. In some situations, an employee may request an increase in the amounts that are withheld
for future income taxes. What circumstances might lead an employee to make such a re-
quest?
3. Under what circumstances must an individual make income tax instalment payments dur-
ing the current year?
4. If an individual is required to make quarterly instalment payments on their income taxes,
how is the required amount of the instalments determined?
5. By making all instalments on the basis of the CRA's instalment reminder, the taxpayer is as-
sured that no interest will be assessed for deficient instalments. However, this may not be
the best alternative for making instalment payments. Explain why this is true.
6. One of your clients has received his instalment notice and has asked your advice as to
whether he should make the payments. Provide the requested advice.
7. How is interest on late instalments calculated?
8. On April 30 of the current year, her filing due date, Nicole Houde finds that she has a sig-
nificant net tax owing. She will not be able to pay this until the beginning of July. She
doesn't want to file her return until she has the funds available to pay the balance. What
advice would you give Ms. Houde in this regard?
9. Under what circumstances must a corporation make income tax instalment payments dur-
ing its current taxation year?
10. If a corporation that is not a small CCPC is required to make instalment payments on their
income taxes, how are the required amounts determined?
11. If a corporation that is a small CCPC is required to make quarterly instalment payments on
their income taxes, how are the required amounts determined?
12. A corporation's balance due date is not the same as its return due date. Explain how these
dates differ.
13. The normal reassessment period is 3 years for individuals and CCPCs and 4 years for other
corporations. Indicate two situations where a reassessment can occur outside the normal
reassessment period.
14. Cases can be heard by the Tax Court of Canada using either the general or the informal
procedures. How do these two procedures differ?
15. Briefly describe the difference between tax evasion and tax avoidance.
Test Item File Problems for Canadian Tax Principles 2019 - 2020 36
,
, TIF Problem Two - 1
Procedures And Administration - Essay Questions
Chapter Two Test Item File Problems
TIF PROBLEM TWO - 1
Procedures And Administration - Essay Questions
1. An individual can request that an employer reduce the amounts withheld for income
taxes. What conditions must be met for this request to be granted? Provide an example of
a situation where this request would be granted.
2. In some situations, an employee may request an increase in the amounts that are withheld
for future income taxes. What circumstances might lead an employee to make such a re-
quest?
3. Under what circumstances must an individual make income tax instalment payments dur-
ing the current year?
4. If an individual is required to make quarterly instalment payments on their income taxes,
how is the required amount of the instalments determined?
5. By making all instalments on the basis of the CRA's instalment reminder, the taxpayer is as-
sured that no interest will be assessed for deficient instalments. However, this may not be
the best alternative for making instalment payments. Explain why this is true.
6. One of your clients has received his instalment notice and has asked your advice as to
whether he should make the payments. Provide the requested advice.
7. How is interest on late instalments calculated?
8. On April 30 of the current year, her filing due date, Nicole Houde finds that she has a sig-
nificant net tax owing. She will not be able to pay this until the beginning of July. She
doesn't want to file her return until she has the funds available to pay the balance. What
advice would you give Ms. Houde in this regard?
9. Under what circumstances must a corporation make income tax instalment payments dur-
ing its current taxation year?
10. If a corporation that is not a small CCPC is required to make instalment payments on their
income taxes, how are the required amounts determined?
11. If a corporation that is a small CCPC is required to make quarterly instalment payments on
their income taxes, how are the required amounts determined?
12. A corporation's balance due date is not the same as its return due date. Explain how these
dates differ.
13. The normal reassessment period is 3 years for individuals and CCPCs and 4 years for other
corporations. Indicate two situations where a reassessment can occur outside the normal
reassessment period.
14. Cases can be heard by the Tax Court of Canada using either the general or the informal
procedures. How do these two procedures differ?
15. Briefly describe the difference between tax evasion and tax avoidance.
Test Item File Problems for Canadian Tax Principles 2019 - 2020 36
