question 4.5 and 6

Question 4 (1 point) Which of the following statements is true? A) Payment of the return on equity is not deductible by the corporation and is a form of business income for the individual. Payment of the return on equity is deductible by the corporation and is a form of B) property income for the individual. Payment of the return on equity is deductible by the corporation and is a form of C) business income for the individual. D Payment of the return on equity is not deductible by the corporation and is a form of property income for the individual. Question 5 (1 point) Regarding taxation years, which of the following statements is TRUE? A) Individual taxpayers may choose any twelve month period as their taxation year. B) The taxation year for an individual taxpayer ends on April 30th C) Corporate taxpayers must use the calendar year as their taxation year. D) A corporation may have a taxation year less than twelve months during a year the corporation is formed, dissolved, or is granted a change in its year end. Question 6 (1 point) Which of the following statements regarding GAAR is true? A) Individuals who organize their affairs in order to pay as little tax as possible will automatically be subject to GAAR. The Canada Revenue Agency states that "A transaction will not be an avoidance B) transaction if the taxpayer establishes that it is undertaken primarily for bona fide business, investment or family purposes. C) The purpose of GAAR is to catch tax evaders. D)When an avoidance transaction takes place, the anti-avoidance rule is automatically applied in all circumstances