su 09 midterm 1 - YORK UNIVERSITY MID-TERM EXAM SUMMER 2009...

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YORK UNIVERSITY MID-TERM EXAM – SUMMER 2009 AK/ADMS 4561 TAXATION OF PERSONAL INCOME IN CANADA Number of Questions: 5 Number of Pages: 10 including cover (please ensure you have all pages) Time allowed: 2.5 hours (80 marks) ________________________________________________________________ Instructions (Please read before you start the test) : 1. You may use a non-programmable calculator and the Mid-term Exam Information Sheet included in this exam. You may use your Income Tax Act. Highlighting, underlining, and the use of tabs with section numbers only are allowed. Nothing can be written in your Act or on the tabs (other than section numbers) and no other materials can be inserted in your Act. Use of unauthorized aids is considered to be a breach of the Senate Policy on Academic Honesty. Acts that contain unauthorized writing or materials will be confiscated in the exam and used as evidence. You cannot use a dictionary or any other aids. 2. Time allotments are provided for each question as a guide to ensure that you spend the appropriate amount of time on each question. 3. The exam must be prepared in ink and “whiteout” not used for the exam to be considered for remarking. If the exam is not prepared in ink or if whiteout is used, it will not be remarked 4. You only need to cite sections of the Act in Question 4. 5. Questions 1, 2 and 3 are to be answered in your solution booklet. ONLY ONE SOLUTION BOOKLET IS ALLOWED. If you feel you require more information in a fact situation, outline the exact nature of the information CLEARLY and specify how it would affect your decision, but do not contradict facts or assume the abnormal. 6. Questions 4 and 5 are to be answered on this question paper. This question paper must be handed in inside the solution booklet. 7. Please raise your hand if you have any questions during the exam. 8. The prescribed interest rate applicable to interest-free and low-interest loans throughout the 2008 calendar year is 4% for the purposes of this exam. ____________ ___________ _________ LAST NAME FIRST NAME SECTION # YOU MUST HAND IN THIS QUESTION PAPER 1
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Question 1 ( 23 marks; suggested time 43 minutes): Bela is the vice-president of sales for Maximum Manufacturing Inc (“Maximum”), which is located in Toronto. The corporation is a Canadian public corporation whose shares are listed on the Toronto Stock Exchange. The following information relates to her 2008 taxation year. 1. She received a salary of $150,000 and a commission of $20,000 based on sales in her department. 2. Her employer paid the following amounts for her benefit: a. Extended health care insurance premiums 550 b. Group term life insurance premiums 250 c. Membership in tennis club 4,000 d. Financial counselling fees for her investments 2,000 Bela uses the tennis club to entertain her friends and family. 3.
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This note was uploaded on 03/24/2012 for the course ADMS 4561 taught by Professor Josephfrankovic during the Summer '10 term at York University.

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su 09 midterm 1 - YORK UNIVERSITY MID-TERM EXAM SUMMER 2009...

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