Taxation

1. Which of the following amounts are deductions in calculating taxable income for both individuals and corporations? a) Charitable donations b) Dividends from taxable Canadian corporations c) Lifetime capital gains deduction d) Losses of other years 2. Which of the following statements concerning a specified investment business (SIB) is true? a) A SIB must have more than five full-time employees. b) Income from a SIB is included in aggregate investment income. c) A SIB derives all of its income from dividends that are not subject to Part 1 tax d) A business that leases movable property could be considered a SIB in certain circumstances 3. Which of the following components of the corporate tax calculation is the same for both private corporations (CCPCs) and public corporations? a) Additional refundable tax b) General rate reduction c) Part IV tax d) Small business deduction 4. Which of the following statements regarding the taxation of aggregate investment income (All) is true? a) All is eligible for the small business deduction. b) All is not eligible for the general rate reduction. c) All is subject to a 10%% tax that is deducted from the other components of Part I tax. d) All is subject to a 30%% tax that is added to Part I tax and eventually refunded. 213 Ta xation 5. The balance of refundable dividend tax on hand (RDTOH) is made up of which two of the following amounts? a) Aggregate investment income (All) and Part IV tax for the year b) All and the refundable portion of Part I tax for the year c)Part IV tax for the year and the refundable portion of Part I tax for the year d) Part IV tax for the year and the dividend refund for the year