#1) (1 Mark) You are trying to determine when you must file your 2017 T1 Tax Return and pay any related outstanding balance. Your spouse operates a Sole Proprietorship Confectionary Store and you are an Accounts Payable Clerk at a local business. In addition, you have two children (aged 4 and 9). Your children do not have any sources of income. When must the 2017 Return be filed? When must the balance owing for the 2017 Return be paid? #2) (3 Marks) Given each of the following unique scenarios, comment on whether or not the individual is a resident for taxation purposes and what Canadian taxes they are subject to. Ensure you include any time periods in your answer: a) Tom is a citizen of the US, but loves to travel and stay in Canada. His only source of income is part time work in the US. During the taxation year, he was in Canada for 175 days. b) Jimbo was born and raised in Saskatchewan. He has spent his entire life in Canada. He is employed at a local business in Saskatoon, SK. During the tax year, he also had investment income (dividends and interest income) from stocks and bonds of US Companies. c) Samantha was born and raised in the US. She was offered a position at a Canadian Company in Toronto, ON. She accepted the position and moved all he personal belongings to Canada on Sept 1, 2017. Prior to her move, she worked part time at a business in the US. #3) (1 Mark) You're an accountant preparing tax returns for your clients. One of your clients stated that they did not have the money available to pay their taxes owing. Therefore, they instructed you to not file their return yet. Comment on whether or not this is a prudent decision and what impact there is on not filing their tax return before the deadline. #4) (2 Marks) You're an accountant preparing tax returns for your clients. One of your clients has received a letter from CRA indicating their tax return has been reassessed. Your client does not agree with CRA's decision. What can the taxpayer do and when must they do it? - 2017 Tax Return was Reassessed - Date of Original Notice of Assessment for 2017 Return is May 10, 2018 - Date of New Notice of Reassessment for 2017 Return is Oct 1, 2018 - The taxpayer has income from a sole proprietorship #5) (1 Mark) You're the accountant for a taxpayer that realizes they missed claiming a legitimate deduction for a tax return 6 years ago. Would they be able to amend their tax return from 6 years ago? #6) (14 Marks) Compute Net Employment Income: Mrs. Jennifer Sparvier is the Vice President of GPB Inc., a public corporation listed on the Toronto Stock Exchange. During 2017, Jennifer received the following: $85,000 Gross Salary Deductions at Source: CPP Income Tax Withheld RPP Employee Contributions Employee Contributions to Registered Charity Employee Reimbursement for Company Vehicle $2,564 836 20,000 6,000 1,000 500 30,900 $54,100 Net Pay GPB Inc. contributed the following amounts on behalf of Jennifer: Employer RPP Contributions to Pension Plan Employer Dental Plan Premiums Paid Employer Portion of Group Term Life Insurance $3,500 700 250 OTHER INFORMATION: 1. GPB Inc. provided a company car for Jennifer's use throughout the entire year, 2017, and paid all operating costs of $5,500. The car was leased on January 1 of 2017 at a cost of $650 per month (which includes $50 of insurance). During the year, Jennifer drove the car a total of 40,000 km of which 4,000 km were for personal use. 2. In the spring of 2017, Jennifer and her husband Rodger attended a business conference in Florida. Rodger enjoyed Florida and watched the Toronto Blue Jays training camp while Jennifer was busy at the conference. The total cost of the conference, meals and travel, paid by the company, was $7,500. Rodger's portion of the expenses was $3,200. 3. GPB Inc. gave all employees a $450 hamper containing food and wine as a Christmas gift and a gift card of $250 for Jennifer's favourite restaurant. 4. The company paid for a country club membership for Jennifer which cost $1,500. Jennifer plays tennis every morning before work, but uses the club primarily as a means to network with potential business clients. 5. GPB Inc. head office has been evaluating Jennifer's performance over the past few years. They awarded her a bonus of $5,000 in 2016 payable to her during 2017. They also awarded her a bonus of $6,000 in 2017 payable to her during 2018. For clarity, these bonuses have not been included in her gross salary of $85,000. 6. The company paid $1,000 for Jennifer's one-on-one meetings with world renowned clinical psychologist Dr. Seuss. 7. The company allows all employees to receive a 10% discount on store merchandise. This discount saved Jennifer $700 during 2017. REQUIRED: Calculate Mrs. Jennifer Sparvier's net employment income for 2017. Show all calculations. (For simplicity, ignore any GST and PST implications) marks People Tab Window Help and in Assignment #1 (LO 11 X > Tax 1 - Hand-in #1.pdf X + Tax 1 - Hand-in #1.pdf X +
