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Image (4) - General anti-avoidance rule(GAAR in section 245...

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Unformatted text preview: General anti-avoidance rule (GAAR) in section 245 of the Income tax act would apply in a situation where the individual transfers his unincorporated business to a corporation to take advantage of the lower corporate tax rate. True Or 61% 1 (3/ V C.R.A. never imposes penalties in a tax evasion case True Or CE); I/ 1 An individual who is carrying on an unincorporated business has until a) December 31 @ June 30 >< >c) June 15 ' d) Any time next year to file a tax return. Taxpayer invests in a small business corporation (Canadian Controlled Private Corporation) and the small business eventually goes bankrupt. His original investment will be characterized as a: ' a) capital loss \/ b) income loss x63 allowable business investment loss d) none of the above An individual living in Canada decides to ‘move to the USA. He decides not to sell his home in Canada but keep it as an investment (rental) property. He severs all other ties with Canada and his intention is not to come back again. The tax implications of his move are as follows: a) there are none X} Q7) possible withholding tax on gross r ntal income 6) has to pay capital gains tax on the fair value of the rental property at date he moved to the U. S. A )d) B and c An employee had the employer sign and fill out a T2200 stating that employee was required to travel within metropolitan area to fulfil his job duties. The amount spent on travel will be deductible to the employee if: a) employerjust signs the T2200 b)~ employee is reimbursed for the travel costs and the reimbursement is reasonable 0) the employee incurs meal costs the employee is not reimbursed for car expenses incurred for employment purposes ...
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