2) Daniel Bourne is a U.S. citizen who lives in Fargo, North Dakota. For many years, he has had a cottage on Manitoba's Lake Winnipeg. In recent years, however, he has made little use of this property and, given this, he has sold the property. While there was a gain of $50,000 on the sale, Daniel assumes that he will not pay Canadian taxes on this amount because he is a U.S. citizen.

3)Ms. Michelle Walker, a U.S. citizen, has Canadian employment income of $42,000 and U.S. employment income of $40,000 Canadian. She lives in Seattle, Washington and is a resident of the United States for the entire year. Ms. Walker does not believe that she is subject to taxation in Canada. Is she correct? Explain your conclusion ignoring the tax treaty.

4) Mr. John Lenonovitz is an unemployed poet. As Mr. Lenonovitz has no sources of income, his spouse Natasha, a successful painter, has decided to make contributions to an RRSP on his behalf, rather than making contributions to her own plan. What type of tax planning is involved in this decision? Explain your conclusion.

5) 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 the request would be granted.

6) 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 request?

7) If an individual is required to make quarterly instalment payments, how is the required amount of the instalments determined?

8) On April 30 of the current year, her filing due date, Nicole Houde finds that she has a significant tax balance 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 during its current taxation year?

10) Briefly describe the difference between tax evasion and tax avoidance.