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 lax 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 lax 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 carnings 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 $114,159 . His commissions for the totalled S 1,501 . 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 86,531 Canada Pension Plan (CPP) 2,898 Employment Insurance (EI) 856 Registered pension plan contributions (Note 1) 5,708Pension adjustment 11,416 Payments for personal use of company car (Note 2) 412 Union dues (Note 3) 457 Interest paid on employer provided loan (Note 4) Note 1: GAF made a matching contribution to Hums (Note 5) Ronald's pension plan. 884 Note 2: GAF provides Ronald with a vehicle that was purchased several years ago. The current fair market value of the vehicle is $ 14,294 . The vehicle was originally purchased for $ 17,152 , including GST. The vehicle is available for personal and employment use for Ronald During the current year, the vehicle was driven a total of 22,702 km's of which 10,897 are personal in nature. GAF paid all of the operating costs of the car, a total of 4,288 for the current year. While Ron was on vacation for one month, he returned the company car to GAF, even though the employer did not require him to return the car during his absence. Note 3: GAF is a unionized company and therefore Ronald must pay union dues each year. Note 4: On January 1, of the current year, GAF provided Ronald with a low interest loan with a principal amount of 42,881 . The loan requires principal repayments of 4,288 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 57.1745 shares for $ 25.73 per share. At the time the options are issued the shares are trading at $ 25.73 per share. In June of the current year, the shares have increased in value to $ 27.01 per share when Mr. Wong exercises his options to acquire 57 shares. On December 31, he sells all of the shares For $ 30.87 per share. (b) Mr. Wong incurred the following sales expenses related to his commission income: Meals (while out of town) 1,715 Lodging 2,144 Entertainment 772 Total Expenses 4,631 (c) Ronald's employer sent him to a safety in the workplace course. The cost of tuition for this course was $ 156 (d) Ronald's employer provided him with a gift certificate for his birthday with a value of 234 (e) GAF provides Mr. Wong with a membership at the local golf and country club, Seven Oaks. The annual membership costs $ 4,502 and Mr. Wong usesthe 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. Ronald's bonus of $9,133 was included with his regular payroll electronic 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 3,300 Property tax per month 133 Insurance per month 87 Mortgage payments per month 3,170 Principal portion of payments 951 Repair to floor damaged by bathroom flood 6,770 Closing UCC balance from prior year for Class 1 137,219 (h) Mr. Wong received the following amounts from his investment account with TD Waterhouse: (all amounts in Canadian dollars) Dividends received from CCPC subject to low rates of tax 2,698 Dividends received from foreign corporations 1,349 Interest payment received on December 31, 2020 | Note i) 3,678 Note (0): The corporate bond has a maturity value of $ 85,762 and an annual interest rate of 1.72% . 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 4,438 Interest paid on Ronald's credit card balance 403 Interest on a loan used to purchase investments with TD Waterhouse 1,115 (i) In addition to investing using traditional methods, such as purchasing stocks and bonds, Ronald also liked to invest some of his savings into local businesses. In the previous year, he invested funds into a local food truck business. In the current year, the food truck hada net business loss (for tax purposes) of $ 2,968 . As one of two in the business, $ 1,484 partners Ronald's share of the business loss is Exhibit Il 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 S 459 . He made all of the required support payments during the current year