Question 1

With respect to the filing of an individual income tax return, which of the following statements is correct?

Accepted Answer

A) An individual is required to file an income tax return if their only source of income is business income, even if no tax is payable. 
B) An individual is required to file an income tax return if they have reached the age of 18 by the end of the year. 
C) If an individual has disposed of a capital property during the year, they are required to file an income tax return, even if no tax is payable. 
D) An individual is not required to file an income tax return if no tax is payable for the year. 
A) An individual is required to file an income tax return if their only source of income is business income, even if no tax is payable. 
B) An individual is required to file an income tax return if they have reached the age of 18 by the end of the year. 
C) If an individual has disposed of a capital property during the year, they are required to file an income tax return, even if no tax is payable. 
D) An individual is not required to file an income tax return if no tax is payable for the year.

Question 2

PS Swim Inc. has a year end of November 30. It is a small CCPC. For its 2020 taxation year, its income tax return is due on:

Accepted Answer

A) January 31, 2021. 
B) February 28, 2021. 
C) April 30, 2021. 
D) May 31, 2021. 
E) None of the above. 
A) January 31, 2021. 
B) February 28, 2021. 
C) April 30, 2021. 
D) May 31, 2021. 
E) None of the above.

Question 3

Chemco Inc. has a December 31 year end and is not a small CCPC. For 2018, its taxes payable were $146,300, while for 2019, the amount was $94,650. For 2020, its estimated taxes payable are $52,300. What would be the minimum instalment payments for the 2020 taxation year and when would they be due? How would your answer differ if Chemco Inc. qualified as a small CCPC?

Accepted Answer

Not Small CCPC - The minimum instalments

Question 4

Gloria Klump dies on December 1, 2020. Much of her 2020 income resulted from an unincorporated business which she operated. By what date must her representatives file her 2020 income tax return? Explain your answer.

Accepted Answer

Ms. Klump's 2020 tax return must be file

Question 5

The taxation year end for Lawnco Inc. is January 31, 2020. Lawnco Inc. is a Canadian public company and does not qualify for the small business deduction. Indicate the date on which the corporate tax return must be filed, as well as the date on which any final payment of taxes is due.

Accepted Answer

Lawnco Inc.'s tax return is due six mont

Question 6

At the beginning of 2020, the following information relates to Jerry Farrow:   Is Mr. Farrow required to make instalment payments during 2020? If he is required to make instalment payments, indicate the amounts that would be required under each of the three alternative methods of calculating instalments. Indicate which alternative would be preferable.

Accepted Answer

The net tax owing amounts can be calcula

Question 7

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?

Accepted Answer

A corporation that is not a small CCPC c

Question 8

Because the taxation year of an individual must be based on the calendar year, all individuals will have the same filing due date.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is NOT correct?

Accepted Answer

A) When the person filing the return has made any misrepresentation due to neglect, carelessness or wilful default, the normal reassessment period can be extended beyond 3 years. 
B) A taxpayer can choose to file a waiver to extend the 3 year time limit. 
C) When a return has been reassessed once, no further reassessments are permitted. 
D) Reassessment can occur outside the normal reassessment period when reassessment within the normal period affects a balance outside of the normal period. 
A) When the person filing the return has made any misrepresentation due to neglect, carelessness or wilful default, the normal reassessment period can be extended beyond 3 years. 
B) A taxpayer can choose to file a waiver to extend the 3 year time limit. 
C) When a return has been reassessed once, no further reassessments are permitted. 
D) Reassessment can occur outside the normal reassessment period when reassessment within the normal period affects a balance outside of the normal period.

Question 10

A corporation's balance due date is not the same as its return due date. Explain how these dates differ.

Accepted Answer

Corporate tax returns must be filed with

Question 11

Norman Foster filed his 2020 tax return as was required on June 15, 2021. His Notice of Assessment dated August 28, 2021, indicated that his return was accepted as filed. On March 15, 2022, he receives a Notice of Reassessment dated March 8, 2022 indicating that he owes additional taxes, as well as interest on unpaid amounts. What is the latest date for filing a notice of objection for this reassessment? Explain your answer.

Accepted Answer

1)B 2)L 3)

Question 12

Which of the following is NOT one of the criteria that must be met before an adjustment to a previous year tax return is permitted?

Accepted Answer

A) The CRA must be satisfied that the previous assessment was incorrect. 
B) The change is based on a successful appeal to the courts by another taxpayer. 
C) The taxpayer's return was filed within 3 years of the end of the year to which it relates. 
D) The reassessment must be made within the normal assessment period, or under certain permitted extensions to this period. 
A) The CRA must be satisfied that the previous assessment was incorrect. 
B) The change is based on a successful appeal to the courts by another taxpayer. 
C) The taxpayer's return was filed within 3 years of the end of the year to which it relates. 
D) The reassessment must be made within the normal assessment period, or under certain permitted extensions to this period.

Question 13

Tom Arnold filed his 2020 tax return on March 1, 2021. The CRA mailed a notice of assessment to Tom dated May 15, 2021, and Tom received it on May 30, 2021. If Tom disagrees with the notice of assessment, what is the latest date he has to file a notice of objection?

Accepted Answer

A) 90 days from March 1, 2021. 
B) 90 days from April 30, 2021. 
C) 90 days from May 15, 2021. 
D) 90 days from May 30, 2021. 
E) None of the above. 
A) 90 days from March 1, 2021. 
B) 90 days from April 30, 2021. 
C) 90 days from May 15, 2021. 
D) 90 days from May 30, 2021. 
E) None of the above.

Question 14

Dora Burch files her 2020 income tax return on March 2, 2021. She receives a nil assessment on June 3, 2021. However, on December 28, 2021, she receives a reassessment indicating that she owes a substantial amount of additional tax. She would like to object to this reassessment. What is the latest date for her to file a notice of objection? (Ignore the effect of leap year if applicable.)

Accepted Answer

A) March 2, 2022. 
B) April 30, 2022. 
C) March 28, 2022. 
D) December 28, 2022. 
A) March 2, 2022. 
B) April 30, 2022. 
C) March 28, 2022. 
D) December 28, 2022.

Question 15

Which of the following statements is NOT correct?

Accepted Answer

A) If an individual has business income during the year, the due date for their income tax return is June 15 of the following year. 
B) An income tax return may be required of an individual, without regard to their age. 
C) If an individual has no Taxable Income for the year, they do not have to file an income tax return. 
D) If an individual sells a capital property during the year, they are required to file an income tax return, even if there is no gain or loss on the transaction. 
A) If an individual has business income during the year, the due date for their income tax return is June 15 of the following year. 
B) An income tax return may be required of an individual, without regard to their age. 
C) If an individual has no Taxable Income for the year, they do not have to file an income tax return. 
D) If an individual sells a capital property during the year, they are required to file an income tax return, even if there is no gain or loss on the transaction.

Question 16

For the 2020 taxation year, John Bookman had a taxable capital gain of $45,000 and a net business loss of $45,000, resulting in a Taxable Income of nil. Which of the following statements is correct?

Accepted Answer

A) John is not required to file a tax return for 2020. 
B) John must file a tax return on or before June 15, 2021. 
C) John must file a tax return on or before December 31, 2021. 
D) John must file a tax return on or before April 30, 2021. 
A) John is not required to file a tax return for 2020. 
B) John must file a tax return on or before June 15, 2021. 
C) John must file a tax return on or before December 31, 2021. 
D) John must file a tax return on or before April 30, 2021.

Question 17

Dustin Inc. has a September 30 year end and is not a small CCPC. For its taxation year ending September 30, 2018, its tax payable was $33,500. The corresponding figure for the year ending September 30, 2019 was $93,400. It is estimated that, for the year ending September 30, 2020, its tax payable will be $56,200. What would be the minimum instalment payments for the taxation year that ends on September 30, 2020, and when would they be due? How would your answer differ if Dustin Inc. qualified as a small CCPC?

Accepted Answer

Not Small CCPC - Minimum instalments wou

Question 18

At the beginning of 2020, the following information relates to Sarah Elmsley:   Indicate whether Ms. Elmsley is required to make instalment payments during 2020. Explain your conclusion and, if your answer is positive, indicate the minimum instalments that will be required and when they are due.

Accepted Answer

As the net tax owing for the current yea

Question 19

Mr. Finlay, a retired individual whose only source of income was pension receipts, dies on August 15, 2020. By what date must Mr. Finlay's final tax return be filed?

Accepted Answer

A) April 30, 2021. 
B) February 28, 2021. 
C) February 15, 2021. 
D) December 31, 2020. 
E) None of the above. 
A) April 30, 2021. 
B) February 28, 2021. 
C) February 15, 2021. 
D) December 31, 2020. 
E) None of the above.

Question 20

Jason Marks has to pay his tax by instalments as a result of his significant investment income. His net tax owing in 2018 was $13,600. In 2019, it was $15,000. His estimate for 2020 is $17,000. If he decides to pay his 2020 tax instalments according to the prior year option, how much should he pay on September 15, 2020?

Accepted Answer

A) $3,400. 
B) $3,750. 
C) $4,250. 
D) $6,500. 
A) $3,400. 
B) $3,750. 
C) $4,250. 
D) $6,500.

With respect to the filing of an individual income tax return, which of the following statements is correct?

PS Swim Inc. has a year end of November 30. It is a small CCPC. For its 2020 taxation year, its income tax return is due on:

Gloria Klump dies on December 1, 2020. Much of her 2020 income resulted from an unincorporated business which she operated. By what date must her representatives file her 2020 income tax return? Explain your answer.

The taxation year end for Lawnco Inc. is January 31, 2020. Lawnco Inc. is a Canadian public company and does not qualify for the small business deduction. Indicate the date on which the corporate tax return must be filed, as well as the date on which any final payment of taxes is due.

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?

Because the taxation year of an individual must be based on the calendar year, all individuals will have the same filing due date.

Which of the following statements is NOT correct?

A corporation's balance due date is not the same as its return due date. Explain how these dates differ.

Which of the following is NOT one of the criteria that must be met before an adjustment to a previous year tax return is permitted?

Tom Arnold filed his 2020 tax return on March 1, 2021. The CRA mailed a notice of assessment to Tom dated May 15, 2021, and Tom received it on May 30, 2021. If Tom disagrees with the notice of assessment, what is the latest date he has to file a notice of objection?

Which of the following statements is NOT correct?

For the 2020 taxation year, John Bookman had a taxable capital gain of $45,000 and a net business loss of $45,000, resulting in a Taxable Income of nil. Which of the following statements is correct?

At the beginning of 2020, the following information relates to Sarah Elmsley: Indicate whether Ms. Elmsley is required to make instalment payments during 2020. Explain your conclusion and, if your answer is positive, indicate the minimum instalments that will be required and when they are due.

Mr. Finlay, a retired individual whose only source of income was pension receipts, dies on August 15, 2020. By what date must Mr. Finlay's final tax return be filed?

Introduction to Federal Taxation in Canada

Income or Loss From an Office or Employment

Taxable Income and Tax Payable for Individuals

Capital Cost Allowance

Income or Loss From a Business

Income From Property

Capital Gains and Capital Losses

Other Income, Other Deductions, and Other Issues

Retirement Savings and Other Special Income Arrangements

Taxable Income and Tax Payable for Individuals Revisited

Taxable Income and Tax Payable for Corporations

Taxation of Corporate Investment Income

Other Issues in Corporate Taxation

Corporate Taxation and Management Decisions

Rollovers Under Section 85

Other Rollovers and Sale of an Incorporated Business

Partnerships

Trusts and Estate Planning

International Issues in Taxation

Gst-Hst

Filters

Exam 2: Procedures and Administration

With respect to the filing of an individual income tax return, which of the following statements is correct?

PS Swim Inc. has a year end of November 30. It is a small CCPC. For its 2020 taxation year, its income tax return is due on:

Gloria Klump dies on December 1, 2020. Much of her 2020 income resulted from an unincorporated business which she operated. By what date must her representatives file her 2020 income tax return? Explain your answer.

The taxation year end for Lawnco Inc. is January 31, 2020. Lawnco Inc. is a Canadian public company and does not qualify for the small business deduction. Indicate the date on which the corporate tax return must be filed, as well as the date on which any final payment of taxes is due.

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?

Because the taxation year of an individual must be based on the calendar year, all individuals will have the same filing due date.

Which of the following statements is NOT correct?

A corporation's balance due date is not the same as its return due date. Explain how these dates differ.

Which of the following is NOT one of the criteria that must be met before an adjustment to a previous year tax return is permitted?

Tom Arnold filed his 2020 tax return on March 1, 2021. The CRA mailed a notice of assessment to Tom dated May 15, 2021, and Tom received it on May 30, 2021. If Tom disagrees with the notice of assessment, what is the latest date he has to file a notice of objection?

Which of the following statements is NOT correct?

For the 2020 taxation year, John Bookman had a taxable capital gain of $45,000 and a net business loss of $45,000, resulting in a Taxable Income of nil. Which of the following statements is correct?

At the beginning of 2020, the following information relates to Sarah Elmsley: Indicate whether Ms. Elmsley is required to make instalment payments during 2020. Explain your conclusion and, if your answer is positive, indicate the minimum instalments that will be required and when they are due.

Mr. Finlay, a retired individual whose only source of income was pension receipts, dies on August 15, 2020. By what date must Mr. Finlay's final tax return be filed?

Introduction to Federal Taxation in Canada

Income or Loss From an Office or Employment

Taxable Income and Tax Payable for Individuals

Capital Cost Allowance

Income or Loss From a Business

Income From Property

Capital Gains and Capital Losses

Other Income, Other Deductions, and Other Issues

Retirement Savings and Other Special Income Arrangements

Taxable Income and Tax Payable for Individuals Revisited

Taxable Income and Tax Payable for Corporations

Taxation of Corporate Investment Income

Other Issues in Corporate Taxation

Corporate Taxation and Management Decisions

Rollovers Under Section 85

Other Rollovers and Sale of an Incorporated Business

Partnerships

Trusts and Estate Planning

International Issues in Taxation

Gst-Hst

Filters