Personal admin

Question 1

A return is required for an individual if:

Answer 1

• tax is payable
• the individual had TCG/disposes of taxable Cdn property in year
• the minister of national revenue has issued a “demand to file”
• has a positive Home buyers plan or lifelong learning plan bal at year end
• a non-resident individual has a taxable capital gain

Question 2

A return is required for a corporation if:

Answer 2

• tax is payable
• at any time in the year the coporation:
  
  • is resident in Canada
  • is carrying on business in Canada
  • has realized a TCG
  • disposes of taxable Cdn property

Question 3

Individual filing deadline, taxes payable

Answer 3

April 30

June 15 if taxpayer or spouse carried on a business

if passed away during the year, later of:

• 6 months after the date of death
• normal filing deadline

All taxes are payable by April 30

Question 4

Corporation filing deadline, taxes payable

Answer 4

6 months after year end

taxes payable

• two months after year end for public companies
• three months after year end for CCPC

Question 5

Individuals, instalments have to be paid when:

Answer 5

if tax payable is greater than $3000 for current year and and for one of the two previous years

Question 6

Individal: Quarterly instalments

Answer 6

Lesser of:

• 1/4 * tax for current year
• 1/4 * tax for previous year
• first 2 instalments: 1/4 * tax for second preceding year
  last 2 instalments: 1/2 * (tax for preceding year - (first two instalments))

Question 7

Corporations have to make monthly instalments when…

Answer 7

If bal due will be greater than $3000 for the current year and prior year

Question 8

Corporations: monthly tax instalments

Answer 8

Can choose either:

• 1/12 * tax for current year
• 1/12 * tax for preceding year
• first 2 instalments: 1/12 * tax for second preceding year
  last 10 instalments: 1/10 * (tax for preceding year - (first 2 instalments))

Question 9

Eligible CCPCs are eligible for quarterly instalments. An eligible CCPC is a corporation that…

Answer 9

• did not have taxable income exceeding $500,000 in either the current or preceding taxation year
• did not employ more than $10M of taxable capital in Canada
• claimed the SBD in either the current or previous year
• has a perfect compliance history

Question 10

Eligible CCPC quarterly instalments

Answer 10

Lesser of:

• 1/4 * current tax payable
• 1/4 * tax payable for preceding year
• First instalment: 1/4 * tax payable for second preceding year
  Last 3 instalments: 1/3 * (tax payable for preceding year - first instalment)