Taxation Modules

Question 1

Total Income consists of 3 items

Answer 1

1) Employment income
2) Interest earned on certificates of deposit
3) Taxable capital gain

Question 2

Common types of non-refundable tax credits

Answer 2

• Basic personal amount (everyone qualifies)
• Spouse, common-law partner of eligible dependent
• Employment amount
• Disability
• Caregiver
• Medical expense credit

(total of non-refundable tax credits is multiplied by 15%)

Question 3

Difference between Accounting Income and Taxable Income

Answer 3

• Accounting income is based on ASPE
• Taxable income is based on rules specified in the income tax act
• accounting income must be adjusted to determine taxable income