Please help with this assignment question $-$ Canadian tax laws MUST be applied to the case, thanks: 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?

Mr$.$ Robins is also planning to start a new consulting business this year. He has provided you with a list of his expected income and expenses in Exhibit II$.$ Based on the information provided in the exhibit, please explain $($briefly$)$ to Mr$.$ Robins whether you recommend that he incorporate his business at this time, or whether he should operate as a sole proprietor. If he is a sole$-$proprietor in $2024,$ when is his $2024$ tax return, and $2024$ income tax balance owing, due?

Your client wants to minimize his $2023$ taxable income and tax owing and wants to see all your detailed calculations. You can ignore HST$/$GST and provincial income tax. You do not need to calculate his spouse$$s$,$ or children$$s$,$ tax owing. You do not need to do any tax planning at this time.

Note: you will lose $1$ mark for each incorrect addition$/$subtraction from income$/$taxes owing.

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 below, and no other income.

$$ Mr$.$ Robins and Eliza$$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 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:

o Salary $$120,000$

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

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

o 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 instalments 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

Exhibit II$-$ New Business $(2024)$

$$ Mr$.$ Robins is starting a new consulting business at the end of this year and is anticipating the following income and expenses.

$$ Anticipated revenue:

November $$1,250$

December $$1,800$

$$ Anticipated expenses:

o Advertising $$300$

o Accounting and bookkeeping fees $$750$

o Insurance $($relating to business$)$ $$625$

o Meals $($relating to meetings with clients$)$ $$550$

o Office supplies $$1,000$

o Computer software costs $$3,000$