Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Determine which, if any, of the Canadian controlled private corporations (CCPCs) mentioned below are associated. You must explain clearly your reasoning. You must give specific

image text in transcribed
Determine which, if any, of the Canadian controlled private corporations (CCPCs) mentioned below are associated. You must explain clearly your reasoning. You must give specific section, subsection and paragraph (where applicable) references from the Income Tax Act to support your answer. When giving references be specific. Don't just list multiple references! Selected parts of the Act are provided after the question. There are no marks for commenting on corporations which are not associated. Note: you may wish to draw a diagram to help you; however, there will be no marks awarded for your diagram. Also note: you will lose 1 mark for every incorrect association that you claim exists. All information about the percentage of shares owned represents both votes and fair market value (except where otherwise noted). Assume all unrelated persons deal with each other and with the parties named below at arm's length. Mr. Chen owns 60% of the shares of 456789 Inc. The remaining shares of 456789 Inc. are owned by unrelated persons Mrs. Chen (Mr. Chen's spouse) owns 40% of Chen Corp (CC) and 35% of Chen Family Investments (CFI). The remaining shares of CC are owned by unrelated persons. Mr. Chen owns 40% of CFI. The remaining shares of CFI are owned by unrelated persons Chen Corp (CC) owns 40% of Oxen Holdings. The remaining shares of Oxen Holdings are owned by unrelated persons Mr. Chen owns 70% of Helium Corp. The remaining shares of Helium Corp. are owned by unrelated persons . . . . . Determine which, if any, of the Canadian controlled private corporations (CCPCs) mentioned below are associated. You must explain clearly your reasoning. You must give specific section, subsection and paragraph (where applicable) references from the Income Tax Act to support your answer. When giving references be specific. Don't just list multiple references! Selected parts of the Act are provided after the question. There are no marks for commenting on corporations which are not associated. Note: you may wish to draw a diagram to help you; however, there will be no marks awarded for your diagram. Also note: you will lose 1 mark for every incorrect association that you claim exists. All information about the percentage of shares owned represents both votes and fair market value (except where otherwise noted). Assume all unrelated persons deal with each other and with the parties named below at arm's length. Mr. Chen owns 60% of the shares of 456789 Inc. The remaining shares of 456789 Inc. are owned by unrelated persons Mrs. Chen (Mr. Chen's spouse) owns 40% of Chen Corp (CC) and 35% of Chen Family Investments (CFI). The remaining shares of CC are owned by unrelated persons. Mr. Chen owns 40% of CFI. The remaining shares of CFI are owned by unrelated persons Chen Corp (CC) owns 40% of Oxen Holdings. The remaining shares of Oxen Holdings are owned by unrelated persons Mr. Chen owns 70% of Helium Corp. The remaining shares of Helium Corp. are owned by unrelated persons

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Managerial Accounting For Managers

Authors: Eric Noreen, Peter C. Brewer, Ray H. Garrison

5th Edition

1260570010, 9781260570014

More Books

Students also viewed these Accounting questions