All of the following people will have to pay tax by instalments this year, except:

a.

Terri Jones, who has had net taxable capital gains on real estate in excess of $40,000 in each of the last two years, and who expects to have similar gains this year.

b.

Blake Fortin, who established a sole proprietorship two years ago. Blake had a very successful first year and, as result, he had net tax owing that year of $85,000. Business dropped in his second year, resulting in net tax owing of only $1,500. This year, business has picked up again and he expects to have net tax owing of $53,000.

c.

Jane White, who received a one-time bonus of $60,000 last year and, because her employer had not deducted enough tax, found herself with net tax owing of $8,200.

d.

Karen Phillips, who has started to earn investment income, which resulted in net tax owing of $3,100 last year. Her investment income is expected to be even greater this year.

One of the disadvantages of being an independent contractor rather than an employee is that you do have to register for GST.

a.

True

b.

False

Which of the following statements with respect to dividends is NOT correct?

a.

Capital dividends can be received by individuals without tax consequences.

b.

Dividend tax credits are based on a percentage of the gross up on dividends received.

c.

Stock dividends are subject to the same gross up and tax credit procedures as cash dividends.

d.

All taxable dividends paid by Canadian controlled private corporations are non-eligible dividends.

All of the following statements are true, except:

a.

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

b.

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

c.

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

d.

Canadian residents must report their worldwide income for tax purposes.

Which of the following statements with respect to capital gains is correct?

a.

The lifetime capital gains deduction is no longer available to Canadian individuals.

b.

The inclusion rate for taxable capital gains has always been one-half of the capital gain.

c.

All gains on the sale of Canadian securities are treated as capital gains.

d.

The calculation of capital gains for depreciable and non depreciable assets is the same.