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Question 1

When is Taxation Year

Answer 1

Fiscal year for Corporation Calendar year for individual

Question 2

What is Taxable Income

Answer 2

Division B Income (Income for Tax Purposes) - Division C Deductions

Question 3

3 Primary factors to determine RESIDENCE –INDIVIDUAL

Answer 3

Maintain a dwelling suitable for year round occupancy
Spouse or common law
dependent members of family remaining in Canada

Question 4

Deemed Resident Requirements

Answer 4

If an individual “Sojourns” in Canada during a year for a period of 183 days

Question 5

PART-TIME RESIDENT Requirements

Answer 5

Need to establish “Clean Break” or “Fresh Start

Question 6

clean break: what is Departure Tax

Answer 6

Deemed to have disposed of almost all property at FMV on day of departure except property Canada retains right to tax

Question 7

Non resident taxed on:

Answer 7

Interest
Dividends
Rents
Royalties
Personal Benefits
Certain Management Fees
Other income would be subject to withholding tax

Question 8

RESIDENCE - CORPORATE Requirements

Answer 8

Usually where the board of directors meet to establish company policy

Question 9

Deemed Corporate Resident if incorporated on

Answer 9

The corporation was incorporated in Canada after April 26, 1965 or
The corporation was incorporated in Canada before April 27, 1965 and carried on business in Canada in any subsequent fiscal year

Question 10

3 Secondary factors to determine RESIDENCE –INDIVIDUAL

Answer 10

Personal property
Social ties
Economic ties

Question 11

Examples of Secondary residency

Answer 11

• furniture
• cars
• OHIP
• job in Canada
• Bank account/RRSP
• Drivers license
• membership of canadian organization

Question 12

EMPLOYEE VS. SELF EMPLOYED INDEPENDENT CONTRACTOR First steps

Answer 12

STEP 1: Determine Both Parties Intensions
CONTRACT
BEHAVIORS
STEP 2: Economic Reality Test

Question 13

3 EMPLOYEE vs. independent: Economic Reality Tests

Answer 13

CONTROL- Who decides what is done,
where, when and how?
OWNERSHIP of TOOLS – Who bears
the cost of tools
CHANCE OF PROFIT/LOSS – Who
bears the risk of loss/profit

Question 14

4 EMPLOYEE vs. independent: Control Test factors

Answer 14

• Who gives instructions on how the work is to be carried out
• who controls how the work is preformed
• Who controls when work will be preformed
• does the individual control the amount, nature, and manner of completion of the work

Question 15

3 EMPLOYEE vs. independent: Profit Test factors

Answer 15

• Risk of incurring a loss from delay, debt, or asset damage
• who covers operating costs
• is for a job not ongoing