1. What are the major tax advantages of Tax Free Savings Accounts (TFSAs)? [3 marks]

2. Most tax credits involve applying the minimum tax rate (currently 15 percent) to a specified base. In contrast, the charitable donations credit also uses the rates of 29 and 33 percent. What is the likely reason for this difference? [2 marks]

3. An individual may choose not to claim in the current taxation year, the full amount of a charitable donation made in that year. Explain why this may be an appropriate course of action. [2 marks]

4. A medical expense tax credit, based on the total medical expenses for a family, can be claimed by either spouse. Does it make any difference which spouse makes the claim? [4 marks]

5. Why is the distinction between capital gains and business income important? [4 marks]

6. ITA 67 indicates that no deduction is available for an outlay or expense, except to the extent that the outlay or expense was reasonable in the circumstances. Provide an example of an outlay or expense that would be disallowed by this provision. [2 marks]

7. What is the objective of the Additional Refundable Tax (ART)? Briefly explain your conclusion. [3 marks]