$($ADMS $3520-$ Overview of Canadian Income Taxation$)$

You, CPA, work for Dollar and Dollar CPAs. It is now March $15,2024$ and you have just finished meeting with Mr$.$ Robins, a new personal tax return $($T$1)$ client of your firm. Mr$.$ Robins is a $35-$year$-$old resident of Canada who is married with $2$ children. Additional information about your client is provided in Exhibit I.

Mr$.$ Robins isn$$t sure if he$$ll be able to file his taxes on time, so he wants you to draft a memo to him describing and calculating an estimate of his minimum net income for tax purposes, taxable income and federal income tax owing for $2023.$ He will use this estimate to make sure his payment is made on time, as he doesn$$t want to pay any interest or penalties. If any amounts received in the year are tax$-$free, then he wants you to tell him. Mr$.$Robins wants you to round your numbers to the nearest dollar. When is his $2023$ income tax balance owing due?

Exhibit I $-$ Additional Information

$-$ Mr$.$ Robins is married to Eliza, who is a stay$-$at$-$home parent. She earned dividend income of $$10,000,$ discussed $-$Mr$.$ Robins and Eliza$$s $2$ children are aged: $8$ and $19.$ The children had very little income in $2023$

$-$ On January $1,2023,$ Mr$.$ Robins lent $$150,000$ to Eliza to have her, the lower$-$income spouse, invest in public company shares and earn dividend income. This loan does not bear interest. In $2023,$ Eliza earned $$10,000$ of eligible dividend income from these investments

$-$ On July $1,2023,$ Mr$.$ Robins gave $$30,000$ to each of his $2$ children. Both children bought Canadian mutual funds that earned: $$3,000$ of capital gains and $$1,000$ of interest $($for each child in $2023)$

$-$ On December $1,2023,$ Mr$.$ Robins sold $1,000$ shares of FGH Inc. $($a public company$)$ to his brother for $$20,000($in total$).$ Mr$.$ Robins$$s adjusted cost base $($ACB$)$ of these shares was $$21,000,$ in total. The fair market value of FGH Inc. on December $1,2023$ was $$30$ per share. Mr$.$ Robins paid $$50($total$)$ of brokerage fees on the sale of shares

$-$ During $2023,$ Mr$.$ Robins paid $$1,250$ in interest expense related to a bank loan that he borrowed in order to invest in shares. He also incurred $$450$ of interest expense on a bank loan used to buy jewelry for himself

$-$ Mr$.$ Robins has summarized his $2023$ net income from various sources as:

Salary $$ $$120,000$

$2022$ Bonus $($paid January $15,2023)$ $$17,000$

$2023$ Bonus $($from GGT Incorporated; paid January $19,2024)$ $$18,500$

Non$-$eligible dividend income $($from Canadian companies$)$ $$3,000$

$-$ On July $3,2020$ Mr$.$ Robins purchased Widget Co$.$ shares as an investment for $$13,000$ Euros. On March $30,2023,$ he sold these shares for $$14,000$ Euros. Assume that $1$ Euro was worth $1\mathrm{.}335$ Cdn$.$ $ on July $3,2020,$ and $1$ Euro was worth $1\mathrm{.}374$ Cdn$.$ $ on March $30,2023.$ Mr$.$ Robins is not a stock broker and is not a day trader

$-$ Mr$.$ Robins has a net capital loss of $$12,500$ carried forward from the prior tax year

$-$ In $2023,$ Mr$.$ Robins had $$17,000$ withheld $($and remitted to the government$)$ in federal income tax by his employer. He also paid $$3,500$ in federal income tax installments in $2023$

$-$ In $2023,$ Mr$.$ Robins and Eliza made charitable donations to Canadian registered charities of $$600($Mr$.$ Robins$)$ and $$400($Eliza$)$

$-$ Mr$.$ Robins$$s $19-$year$-$old incurred $$18,000$ of university tuition fees in $2023$ and is willing to transfer them all to Mr$.$ Robins, if needed

$-$ Mr$.$ Robins paid $$3,754\mathrm{.}45$ in Canada Pension Plan $($CPP$)$ contributions in $2023.$ You can assume that he can deduct $$631$ from his $2023$ income and the rest is eligible for a credit. Also, in $2023$ Mr$.$ Robins paid $$1,002\mathrm{.}45$ of employment insurance $($EI$)$ premiums