Case A: At the end of the current year, Michael Resner departed from Canada in order to take a permanent position in Mexico. He was accompanied by his common-law partner and their children, as well as what personal property he had not sold. Due to the intent of his neighbour to start a pig farm, he was unable to sell his residence at a satisfactory price. However, he was able to rent it for a period of two years. He also retained his membership in the CPA (Chartered Professional Accountants) Alberta. After his departure, would he still be considered a Canadian resident for tax purposes? Explain your conclusion Case B: Dora Burch files her 2019 income tax return on March 2, 2020. She receives a nil assessment on June 3, 2020. However, on December 28, 2020, she receives a reassessment indicating that she owes a substantial amount of additional tax. She would like to object to this reassessment. Required: Indicate what additional information should be obtained during your next meeting with Dora Burch and what steps should be taken if you decide to accept her as a client. Case C: You, CPA, are the tax partner in your own small accounting firm, You CPA LLP. You have just finished meeting with a new client, Ronald Wong , who is a commission salesperson working for Golden Arches Food ("GAF"), a Canadian controlled private corporation (CCPC). Ronald was unhappy with his previous accountant, who never explained anything and was always filing his tax returns late. During the meeting, Ronald provided you with a copy of his previous year's income tax return as well as an overview of his earnings and |deductions for the current year. He would like you to prepare a preliminary calculation of net income for tax purposes for him for the 2020 taxation year. Applicable information from the previous year's tax return, as summarized by your assistant, is included in Exhibit II. Your assistant's notes from meeting with Ronald regarding his 2020 earnings are included in Exhibit I. Exhibit I 2020 Tax Information for Ronald During 2020 Ronald's gross salary from his sales job at GAF, not including commissions or allowances, was $114,609 . His commissions for the totalled 24 . All of this information has been taken from Ronald's year end paystub as he has not received a T4 slip for the year yet. The following amounts were withheld by GAF from Ronald's gross salary according to the paystub: Federal income tax deducted 36,675 Canada Pension Plan (CPP) 2,898 Employment Insurance (EI) 856 Registered pension plan contributions (Note 1) 5,730 Pension adjustment 11,461 Payments for personal use of company car (Note 2) 4,354 Union dues (Note 3) 458 Interest paid on employer provided loan (Note 4) 408 Life insurance premiums (Note 5) 898 Different vehicle options Leased Vehicle Note 1: GAF made a matching contribution to Ronald's pension plan. Note 2: GAF provides Ronald with a vehicle that was purchased several years ago. The GAF provides Ronald with a vehicle that is leased by the company for current fair market value of the vehicle is 14,514 . The vehicle was originally a monthly lease cost of 348 (not including insurance). The vehicle purchased for 17,417 , including GST. The vehicle is available for personal and 48.000% is currently worth $ 6,967 The vehicle is available for personal and .During the current year, the vehicle was driven a total of employment use for Purchased Vehicle GAF provides employment use for Ronald Ronald .During the current year, the vehicle was driven a total of 22,744 km's of which 10,917 are personal in nature. GAF paid all of the operating costs of the car, a total of 4,354 for the current year. Ronald with a vehicle that was purchased several years ago. The While Ron was on vacation for one month, he returned the company car to GAF, current fair market value of the vehicle is $ 14,514 . The vehicle was originally even though the employer did not require him to return the car during his absence. purchased for $ 17,417 , including GST. The vehicle is available for personal and employment use for Ronald .During the current year, the vehicle was driven a total of Note 3: GAF is a unionized company and therefore Ronald must pay union dues each year. On January 1, of the current year, GAF provided loan with a principal amount of Note 4: Ronald with a low interest 43,543 . The loan requires principal repayments of 4,354 on the first day of each calendar quarter, starting on April 1, 2020 . The loan does not qualify as a home purchase or home relocation loan. Note 5: GAF made a matching premium payments towards Ronald's life insurance. Other Information: (a) On March 1, of the current year, Ronald received stock options from GAF to acquire 26.13 per share. At the time the options are issued the per share. In June of the current year, the shares have exercises his 58.05703 shares for shares are trading at increased in value to 26.13 27.43 per share when Mr. Wong options to acquire 58 shares. On December 31, he sells all of the shares for $ 31.35 per share. (b) Mr. Wong incurred the following sales expenses related to his commission income: Meals (while out of town) 1,742 Lodging 2,177 Different options for different assignments: Entertainment 784 to a safety in the workplace course. The cost of tuition to a wine appreciation course. The cost of tuition to marketing and sale course. The cost of tuition Total Expenses 4,703 Different options for different assignments: employer provided him with a holiday gift basket with a total fair market (c) Ronald's employer sent him to a safety in the workplace course. The cost of tuition for this course was 158 . employer provided him with an award for signing a new customer with a employer provided him with a gift certificate for his birthday with a (d) Ronald's employer provided him with a gift certificate for his birthday with a value of $ 238 (e) GAF provides Oaks. The annual membership costs Mr. Wong with a membership at the local golf and country club, Seven Option 1: Option 2: and Mr. Wong uses the membership primarily (more than 50% of the time) for taking his clients golfing. the membership primarily (more than 50% of the time) for golfing with friends. the membership primarily (more than 50% of the time) for golfing with friends. (f) GAF declared bonuses to all of its employees on December 15, of the current year. $9,169 was included with his regular payroll electronic Ronald's bonus of transfer on Jan.3, 2021 . (g) Mr. Wong purchased a residential property in Edmonton in the prior year. For the current year, the income and expenses related to the rental property are as follows: Rental income per month 3,296 Property tax per month 133 Insurance per month 87 Replacement of wood siding with vinyl siding Repair to floor damaged by bathroom flood Mortgage payments per month 3,174 Options: Principal portion of payments 952 Repair to floor damaged by bathroom flood 6,774 Closing UCC balance from prior year for Class 1 24 $ 139,337 (h) Mr. Wong received the following amounts from his investment account with TD Waterhouse: (all amounts in Canadian dollars) Options: Dividends received from public corporations subject to high rates of tax Dividends received from CCPC subject to low rates of tax 2,740 Dividends received from CCPC subject to low rates of tax Dividends received from foreign corporations 1,370 Interest payment received on December 31, 2020 (Note i) 3,792 Note (i): The corporate bond has a maturity value of $ 87,086 and an annual interest rate of 1.74% . This bond was issued on July 1, 2018 and will mature ten years later on June 30 2028 . The above mentioned payment is the interest payment for the first 2.5 years of the bond, the remaining interest will be paid with the principal on the maturity date. (i) Ronald incurred the following interest expense amounts during the current year: Interest on the mortgage for Ronald's personal home 2$ 4,444 Interest paid on Ronald's credit card balance $ 404 Interest on a loan used to purchase investments with TD Waterhouse 2$ 1,174 (j) In addition to investing using traditional methods, such as purchasing stocks and bonds, Options: Different number of partners in business Ronald also liked to invest some of his savings into local businesses. In the previous year, three he invested funds into a local food truck business. In the current year, the food truck had a two 2 net business loss (for tax purposes) of 3,014 . As one of two partners five in the business, Ronald's share of the business loss is $ 1,507 Exhibit II Prior Year Tax Information for Ronald Wong Ronald is 47 years old in the current year. Ronald was previously married. The divorce agreement, which was issued in 2017 requires Ronald to make monthly spousal support payments to the former spouse in the amount of 466 . He made all of the required support payments during the current year. Required: Please review the detailed instructions on blackboard learn for the requirements for this assignment. Recommended Approach for this Assignment: Before starting the assignment, I strongly recommend that you arrange to virtually meet as a group using Blackboard Collaborate (you can start your own session at any time). Read through the assignment as a group and discuss any issues that are identified. If you group has a lot of questions on the assignment, please feel free to invite me to one of your group's virtual meetings in blackboard collaborate and I will be happy to attend and answer questions. Then, you can divide the assignment into parts (by memo and/or source of income) and assign the parts to different group members to calculate/prepare. Then, meet a second time as a group virtually to compile the assignment components and calculations as a group. To facilitate this process, one person can share their screen in blackboard collaborate with their portion of the tax return completed, then each group member can walk through how to complete their assigned part of the tax return, until the tax returns are complete. One member of each group will submit the completed assignment (memos and calculations for Parts A, B and C) to the link on blackboard learn.