1. With respect to provincial income taxes, other than Quebec, which of the following statements is NOT correct? A. Each province can establish its own tax credits to apply against income tax payable for individuals. B. Each province can apply different rates to as many brackets for individuals as it wishes. C. Each province can establish rules for determining the taxable income of individuals. D. The federal government collects the provincial income tax for individuals for every province except Quebec.

2. Which of the following goals is NOT a current economic policy objective of the Canadian tax system? A. Redistribute income and wealth among taxpayers B. Ensure fairness in the allocation of resources to different levels of government C. Ensure the continued provision of public goods D. Economic stabilization such as stimulating the economy or creating jobs

3. With respect to the determination of net income (ITA 3), which of the following statements is correct? A. Allowable capital losses can be deducted to the extent of other positive sources of income. B. If a business loss exceeds all other sources of income, net income will be equal to nil. C. Property losses are deducted from business income before the deduction of RRSP contributions. D. If not used during the current period, all subdivision e deductions can be carried forward to subsequent periods.

4. Which of the following amounts is NOT a taxable income deduction? A. Losses of other years B. The excess of allowable capital losses over taxable capital gains for the year C. A stock option deduction D. The lifetime capital gains deduction

5. Consider the following scenario. Svetlana has taxable income of $600,000 and income taxes payable of $60,000. has taxable income of $80,000 and taxes payable of $8,000. This scenario represents which type of tax system? A. flat B. GST C. regressive D. progressive

6. You are provided with the following amounts for Solita DeJesus for the current year: Net employment income (ITA 5 to 8) = $72,000 Interest income (ITA 12) = $7,400 Taxable amount of dividends = $1,460 Taxable capital gains (ITA 38 to 55) = $6,000 Allowable capital losses (ITA 38 to 55) = $8,000 RRSP deduction (allowed pursuant to ITA 60) = $10,000 Based on the above, the net income reported by Solita DeJesus pursuant to ITA 3 for the current year is ________. A. 84,860 B. 76,860 C. 68,860 D. 70,860