ACCT 3204 Taxation 1 Assignment 1 17 marks (no part marks) Name and Student Number Which of the following groups of entities are all subject to taxation on income A Individuals, proprietorships and corporations B Individuals, trusts and corporations C Proprietorships, corporations and trusts D Individuals, partnerships and corporations The following facts relate to an employer provided automobile Original cost of automobile, including HST $40,000 Replacement value of car at time of providing it to employee $30,000 Capital cost allowance claimed by employer $ 3,000 Personal use kilometers driven by employee during the year 2,000 km Total kilometers driven by employee during the year 30,000 km Number of months automobile was used by employee 12 What is the employee's minimum standby charge in 2020 A) $720 B) $960 C) $640 D) $9,600 All the following statements are true, except A Canadian residents must report their worldwide income for tax purposes B If an individual is a resident of Canada for part of the calendar year, that individual only has to report his or her worldwide income during the period of residency for Canadian tax purposes C An individual who immigrates to Canada during the year is a resident of Canada for tax purposes for the full calendar year D An individual can be a resident of Canada for tax purposes, even if she is not a Canadian citizen A partnership can be a taxable entity for income tax purposes True or False Tax avoidance is deliberately ignoring a specific provision in the Income Tax Act True or False Margret had employment income of $52,100, a loss from her unincorporated business of $51,000 and interest income of $8,200 As the result of dispositions of capital property, she had capital gains of $22,400 and capital losses of $28,200 During the year she also paid childcare costs of $3,100 and paid spousal support to her ex husband of $5,100 Based on the above information answer the following three (3) questions Margrets total income under ITA 3(a) is A $1,100 B $9,300 C $52,100 D $60,300 Margrets income under ITA 3(b) and allowable capital loss carry over are A nil ($0) and $5,800 B negative $5,800 and $0 C nil ($0) and $2,900 D negative $2900 and $0 Margrets Net Income for Tax Purposes is A A loss of $4,700 B $1,100 C A loss of $1,800 D $0 An individual is required to make instalments payments for 2020 if their net tax owing in 2020 is more than $3,000 and they had net tax owing in 2019 of $2,800 and in 2018 of $1500 True or False John ran a small unincorporated business His income tax return and balance owing for the 2020 taxation year must be filed and paid by April 30, 2021 True or False Which of the following considerations is not relevant in the determination of whether an individual performing work is an employee or an independent contractor Opportunity for profit Hours per week spent at the work site Ability to subcontract to others Ownership of tools Mary Smith is employed at XYZ Limited, a manufacturer of party supplies During the year she received various benefits from her employer These included gift certificates to Hudson Bay store valued at $300 a cash performance award for exceeding her sales target of $200 a 10 discount on all her purchases (worth $500) which was available to all employees a wedding gift of $300 a holiday gift (fruit basket) worth $400 and the payment of her private health care premiums worth $500 Her employer also contributed $3,000 into her Registered Pension Plan (RPP) during the year Based on the above information answer the following three (3) questions The payment of the private health care premium must be included in income True or False The contribution made by the employer to Marys registered pension plan must be included in income True of False The total value of the gifts and awards which must be included in income as a taxable benefit is A) $1,500 B) $1,200 C) $700 D) $500 Mr As employer provides him with an automobile for his personal use and pays all operating costs for that vehicle The vehicle, used by Mr A throughout 2020, cost his employer $31,500, including HST of $1,500 Mr A drove the vehicle 45,000 km during the year, of which 9,000 km were for personal purposes His employer paid $12,750 in operating costs for the year Mr A paid nothing to his employer for the use of the vehicle Which one of the following amounts represents the minimum taxable benefit that Mr A must include in his employment income for the use of this vehicle in 2020 A) $2,268 B) $4,859 C) $5,102 D) $5,921 Which of the following groups or factors are used by the courts to determine a taxpayers status as an employee or self employed contractor A) Intent, control test, ownership of tools, number of hours worked per week B) Intent, ability to subcontract test, the type of work being undertaken, ownership of tools test C) Intent, control test, ownership to tools test, opportunity for profit D) Intent, ability to subcontract test, the location of the work site, opportunity for profit Which of the following benefits provided by an employer is considered part of employment income Subsidized meals provided in the employers facilities Low rent housing Premiums under private health service plans Uniforms and special clothing

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ACCT 3204 Taxation 1 Assignment #1 17 marks (no part marks) Name and Student Number: Which of the following groups of entities are all subject

ACCT 3204 Taxation 1 Assignment #1 17 marks (no part marks)

Name and Student Number:

Which of the following groups of entities are all subject to taxation on income?

A: Individuals, proprietorships and corporations

B: Individuals, trusts and corporations

C: Proprietorships, corporations and trusts

D: Individuals, partnerships and corporations

The following facts relate to an employer provided automobile.

Original cost of automobile, including HST $40,000

Replacement value of car at time of providing it to employee $30,000

Capital cost allowance claimed by employer $ 3,000

Personal use kilometers driven by employee during the year 2,000 km

Total kilometers driven by employee during the year 30,000 km

Number of months automobile was used by employee 12

What is the employee's minimum standby charge in 2020?

A) $720.

B) $960.

C) $640.

D) $9,600.

All the following statements are true, except:

A: Canadian residents must report their worldwide income for tax purposes.

B: If an individual is a resident of Canada for part of the calendar year, that individual only has to report his or her worldwide income during the period of residency for Canadian tax purposes.

C: An individual who immigrates to Canada during the year is a resident of Canada for tax purposes for the full calendar year.

D: An individual can be a resident of Canada for tax purposes, even if she is not a Canadian citizen.

A partnership can be a taxable entity for income tax purposes.

True or False

Tax avoidance is deliberately ignoring a specific provision in the Income Tax Act.

True or False

Margret had employment income of $52,100, a loss from her unincorporated business of $51,000 and interest income of $8,200. As the result of dispositions of capital property, she had capital gains of $22,400 and capital losses of $28,200. During the year she also paid childcare costs of $3,100 and paid spousal support to her ex-husband of $5,100. Based on the above information answer the following three (3) questions

Margrets total income under ITA 3(a) is:

A: $1,100

B: $9,300

C: $52,100

D: $60,300

Margrets income under ITA 3(b) and allowable capital loss carry over are:

A: nil ($0) and $5,800

B: negative $5,800 and $0

C: nil ($0) and $2,900

D: negative $2900 and $0

Margrets Net Income for Tax Purposes is:

A: A loss of $4,700

B: $1,100

C: A loss of $1,800

D: $0

An individual is required to make instalments payments for 2020 if their net tax owing in 2020 is more than $3,000 and they had net tax owing in 2019 of $2,800 and in 2018 of $1500.

True or False

John ran a small unincorporated business. His income tax return and balance owing for the 2020 taxation year must be filed and paid by April 30, 2021.

True or False

Which of the following considerations is not relevant in the determination of whether an individual performing work is an employee or an independent contractor?

Opportunity for profit
Hours per week spent at the work site
Ability to subcontract to others
Ownership of tools

Mary Smith is employed at XYZ Limited, a manufacturer of party supplies. During the year she received various benefits from her employer. These included gift certificates to Hudson Bay store valued at $300; a cash performance award for exceeding her sales target of $200; a 10% discount on all her purchases (worth $500) which was available to all employees; a wedding gift of $300; a holiday gift (fruit basket) worth $400 and the payment of her private health care premiums worth $500. Her employer also contributed $3,000 into her Registered Pension Plan (RPP) during the year. Based on the above information answer the following three (3) questions:

The payment of the private health care premium must be included in income.

True or False

The contribution made by the employer to Marys registered pension plan must be included in income.

True of False

The total value of the gifts and awards which must be included in income as a taxable benefit is:

A) $1,500

B) $1,200

C) $700

D) $500

Mr. As employer provides him with an automobile for his personal use and pays all operating costs for that vehicle. The vehicle, used by Mr. A throughout 2020, cost his employer $31,500, including HST of $1,500. Mr. A drove the vehicle 45,000 km during the year, of which 9,000 km were for personal purposes. His employer paid $12,750 in operating costs for the year. Mr. A paid nothing to his employer for the use of the vehicle. Which one of the following amounts represents the minimum taxable benefit that Mr. A must include in his employment income for the use of this vehicle in 2020?

A) $2,268.

B) $4,859.

C) $5,102.

D) $5,921.