3520-09-f-midterm-marking key

3520-09-f-midterm-marking key - Question1 a...

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Question 1 a reduce income inequality 2 b progressive income tax 2 c 2 d it's flat tax so it's regressive 2 d 2 the more you earn the more you  will pay no power concentration in the top  end of the income distribution
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Question 2 purpose: neutrality 2 3 no matter whether income is  received directly by an  individual or indirectly via a  corporation the tax  consequences will be the  same 
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Question 3 a 2 b 2 c 1 it is a taxable benefit  that should be  included in income cannot  enforce/collect not to tax the points  as in the case of  frequent flyer miles
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Question 4 gross salary 53000 1 commissions 34,500 1 rpp contributions -3200 1 disability benefit 2650 1 -472 2178 1 auto benefit 1222 1 loan benefit 50000 x 1 (5% - 4%) x 2 half a year 250 1 87950 stock option benefit: not included because issuer is a CCPC 2 travel expenses: not included because reimbursed 2 Employee rpp contributions deductible to encourage saving for retire 2 available 16 max 15
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3520-09-f-midterm-marking key - Question1 a...

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