Quiz 1

Question 0

What is direct tax?

Answer 0

Tax demanded by government for the very person to whom the tax applies

Question 1

What are the four objectives of taxation?

Answer 1

1. To maximize the growth of output of goods and services that are in the public interest
2. To redistribute wealth equitably
3. To protect the liberty and rights of the individual
4. To strengthen federal and provincial relations

Question 2

What is indirect tax?

Answer 2

Text demanded from one person in the expectation that he’ll reimburse himself at the expense of another

Question 3

What is value added tax?

Answer 3

Tax levied on the increase in the value of a commodity that’s been created by the tax payers stage of the production or distribution cycle

Question 4

What is consumption tax GST?

Answer 4

Tax levied on the consumption of some products or services

Question 5

What is user tax!

Answer 5

Tax levied on the user of some facility

Question 6

What is head tax?

Answer 6

Tax levied on the existence of a classified group

Question 7

What is a tariff?

Answer 7

Tax imposed on the importation exportation of certain goods and/or services

Question 8

What is transfer tax?

Answer 8

Tax imposed on the transfer of property from one owner to another

Question 9

What is property tax

Answer 9

Tax imposed on the ownership of some particular set of goods

Question 10

What is income tax

Answer 10

Tax imposed on the income of individuals corporations and trusts

Question 11

What is tax planning

Answer 11

A legitimate way to decrease taxable money to build your wealth

1. Shifting income from one time to another
2. Transfer income to another entity such as trusts
3. converting income from one type to another to get lower taxes for example capital gains

Question 12

Who pays tax

Answer 12

And income tax shall be paid as hereinafter required upon the taxable income for each taxation year of every person resident in Canada at any time in the year

Question 13

Who is a resident

Answer 13

Residents where they normally live, everyone is a resident of same country, some persons can be deemed to be resident of more than one country.

Text on world income for the entire year.

Question 14

What is a nonresident

Answer 14

1. Didn’t leave dwelling in Canada available to return to
2. Didn’t leaves a spouse or other dependents in Canada
3. Didn’t leave personal property in Canada

Somebody who has money the house or property in Canada is text 25% withheld outsource only some profits in Canada.

Question 15

What is the two-year rule

Answer 15

If a person is out of the country for less than two years there presumed have maintained residence unless they can prove Aultice of been severed. If a person is out of the country for more than two years assumed they are nonresident unless proven otherwise.

Question 16

What is a part time resident

Answer 16

1. Someone who leaves or enters Canada once like an immigrant coming from Canada in June they wouldn’t have to pay taxes before June.

Texting Canada on world income for the part of the year in which they were resident in Canada.

Question 17

Who is deemed a resident

Answer 17

Someone who doesn’t live in Canada at all but they are taxed anyways because they are deemed to be Canadian residents.

1. An agent, officer, ambassador, minister or servant of the province
2. The spouse of the two above provided such spouses for Canadian residents in some year

Taxed on world income for the entire year.
3. A child of the two above provided there also dependent

Question 18

What is a soujourner?

Answer 18

A person who is temporarily present in Canada for more than 183 days during any calendar year.

Question 19

What happened prior to April 26, 1965 to corporations in Canada?

Answer 19

Corporations incorporated prior to April 26, 1965 retreated as resident at a resided in Canada they carried on business in Canada and any tax year ending after April 26, 1965 and if they managed their operations in Canada

Question 20

What are the four primary test to determine if you are an employee or contractor?

Answer 20

Control test, ownership of tools test ,chance of profit or loss test, integration test

Question 21

What is the control test

Answer 21

Who controls the work when do you do the work he supervises the work

Question 22

What is the ownership of tools test

Answer 22

Are you doing the work at home on your own computer and on your own time, if you doing the same job at the employers business on their business computer, Who owns the stuff

Question 23

What is the chance of profit or loss test

Answer 23

Can you lose money employees can’t they get paid by the hour regardless, is there a chance you can make more money by working faster

Question 24

What is the integration test

Answer 24

How important are you to the central function to the business, can’t delegate the normal functions of a law firm

Question 25

What are some examples of taxable benefits

Answer 25

Board and lodging which is provided for free or unreasonably low rate, rent free and low rent housing, travel benefits, personal use of employers automobile, gifts