1. Which of the following events would generally result in a capital gain?

a. A payment of a one-time bonus to an employee.

b. The receipt of alimony from a former spouse.

c. The sale of an apartment building by a real estate construction company.

d. The sale of an apartment building by a real estate rental company.

2. A Canadian corporation has a branch office in England. It earns CDN $1,000,000 and pays 40% UK taxes. The Canadian corporate tax rate is 25%. Why would Canada not collect taxes on the UK branch income?

a. The UK branch would be responsible for paying Canada's share of the taxes it collects, under the terms of the tax treaty between the two countries.

b. Canada has no right to tax the income under the terms of the tax treaty between the two countries.

c. Canada taxes only Canadian sourced income of Canadian corporations.

d. The UK tax rate is higher than the Canadian tax rate on the income.

3. The tax return filing deadline and the balance of tax due date for individuals, other than deceased individuals, is

a. Either April 30 or June 15, (if the individual or their spouse carries on a business) of the following year.

b. April 30th of the following year.

c. June 15th of the following year.

d. Either April 30 or June 15 (if the individual or their spouse carries on a business,) of the following year. April 30th of the following year is the balance of tax due date in all cases.

4. A Canadian corporation has a branch office in England. It earns CDN $1,000,000 and pays 40% UK taxes. The Canadian corporate tax rate is 25%. Why would Canada not collect taxes on the UK branch income?

a. The UK branch would be responsible for paying Canada's share of the taxes it collects, under the terms of the tax treaty between the two countries.

b. Canada has no right to tax the income under the terms of the tax treaty between the two countries.

c. Canada taxes only Canadian sourced income of Canadian corporations.

d. The UK tax rate is higher than the Canadian tax rate on the income.