Midterm - Introduction to the Act MC ITA 221 provides that...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Introduction to the Act MC ITA 221 provides that the Governor-in-Council has the power to enact Regulations, which become effective when published in the Canada Gazette. Regulations do not need an Act of Parliament to be changed and can be altered by an Order-in-Council frequently and expeditiously amended than a provision of the Act. Relevant tax cases are published in Carswell’s Canada Tax Cases and CCH’s Dominion Tax Cases Page 5 ITA has different court name and their short name and how to read citations. Bulletins (over 500)( prefix “IT) do not have the authority of the Act, they are considered quasi-legal in nature. Revised ITs are numbered with the suffix “R” for the first revision, “R2” for the second revision (ITA Page 6 has all the details) Information Circulars are prefixed in my class handouts by “IC”, followed by the basic IC numerical reference. Technical News items are prefaced by the notation “TN–. Two reporting services available in Canada: Carswell prepares the Canada Tax Service , CCH Canadian Limited the Canadian Tax Reporter . The Canadian Tax Foundation is an independent tax research organization comprised of tax accountants, lawyers, academics, and government officials. The CRA publishes pamphlets on tax matters intended for the average taxpayer Division summery are Page 8 ITA Division B provides separate rules for the computation of each type of income, that is, employment, business, property, capital gains, and other income. Sections 3 and 4 contain the basic rules for determining income or losses Technical Notations are on ITA page 10. Court uses the object and spirit test to determine the context in which the words are used, the objective of the measure. Ambiguity is often resolved in favour of the taxpayer. Definitions are found in two places in the Act. ITA 248(1) and It is the law in effect when a given transaction was completed that applies to the transaction, not the law as it may currently be written. ITA 9(1) that a taxpayer’s business or property income is the “profit” for the year. Extra-Statutory References are may be used as a guide to interpretation, but not as a replacement for reading the Act. CRA discontinued policy, “an individual absent from Canada for less than two years was considered a resident in the absence of irrefutable proof to the contrary” “Throughout the year” the situation or event must apply for all days in the tax year. At the end of the tax year” means that the situation or event need only apply on the last day of the tax year.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
ITA 2(1) levies an income tax on the taxable income of every person resident in Canada at any time in the year. ITA 2(3) extends the income tax to non-residents.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/07/2012 for the course ACCT 4453 taught by Professor Gorman during the Spring '11 term at Dalhousie.

Page1 / 41

Midterm - Introduction to the Act MC ITA 221 provides that...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online