Description
Byrd & Chen’s Canadian Tax Principles, 2016 – 2017 Edition, by Clarence Byrd EBOOK PDF Instant Download
Table of Contents
Title Page for Study Guide
Copyright Page for Study Guide
Preface for Study Guide
Contents for Study Guide
Chapter 1
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 2
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 3
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 4
How To Work Through The Chapter
Sample Tax Return For Chapter 4
Suggestions For Working With ProFile Software
Self Study Tax Software Problem
Solutions To Exercises and Problems
Learning Objectives
Chapter 5
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 6
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 7
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 8
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 9
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 10
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 11
How To Work Through The Chapter
Sample Tax Return For Chapter 11
Self Study Tax Software Problem
Solutions To Exercises and Problems
Learning Objectives
Chapter 12
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 13
How To Work Through The Chapter
Sample Corporate Tax Return
Solutions To Exercises and Problems
Learning Objectives
Chapter 14
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 15
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 16
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 17
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 18
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 19
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 20
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Chapter 21
How To Work Through The Chapter
Solutions To Exercises and Problems
Learning Objectives
Glossary
Title Page for Volume I
Copyright Page for Volume I
Preface for Volume I
Acknowledgments
Contents for Volume I
Chapter 1: Introduction To Federal Taxation In Canada
The Canadian Tax System
Alternative Tax Bases
Taxable Entities In Canada
Federal Taxation And The Provinces
Tax Policy Concepts
Taxation And Economic Policy
Taxation And Income Levels
Tax Incidence
Tax Expenditures
Qualitative Characteristics Of Tax Systems
Income Tax Reference Materials
Introduction
The Income Tax Act
Other Income Tax Legislation
Other Sources Of Income Tax Information
Liability For Income Tax
Charging Provision For Canadian Residents
Charging Provision For Non-Residents
Alternative Concepts Of Income
The Economist’s View
The Accountant’s View
The Income Tax Act View
Net Income For Tax Purposes
Structure
Components
Combining The Components – ITA Section 3
Loss Carry Overs
Net Income For Tax Purposes – Example
Net Income To Taxable Income
Principles Of Tax Planning
Introduction
Tax Avoidance Or Reduction
Tax Deferral
Income Splitting
Abbreviations To Be Used
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 2: Procedures And Administration
Administration Of The Department
Returns And Payments – Individuals
Requirement To File- ITA 150
Due Date For Individual Returns
Withholdings For Income Tax – ITA 153
Instalment Payments For Individuals – ITA 156
Interest
Penalties
Due Date For Balance Owing – Living Individuals
Deceased Taxpayers – Due Dates And Returns
Returns And Payments -Corporations
Due Date For Corporate Returns – ITA 150
Filing Alternatives For Corporations
Instalment Payments For Corporations
Due Date For Balance Owing – Corporations
Interest And Penalties For Corporations
Returns And Payments – Trusts
Income Tax Information Returns
Books And Records
Assessments And CRA My Account Service
CRA Website – My Account Service
Notice Of Assessment
Notice Of Reassessment
Refunds
Adjustments To Income Tax Returns
Disputes And Appeals
Representation By Others
Informal Request For Adjustments
Notice Of Objection
Tax Court Of Canada
Federal Court And Supreme Court Of Canada
Tax Evasion, Avoidance And Planning
Collection And Enforcement
Taxpayer Relief Provisions (Fairness Package)
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 3: Income Or Loss From An Office Or Employment
Employment Income Defined
Cash Basis And The Use Of Bonus Arrangements
Net Concept
Employee Versus Self-Employed
Employee Perspective
Employer Perspective
Making The Distinction
Inclusions – Salaries And Wages
Inclusions – Fringe Benefits
Amounts To Be Included In Income – ITA 6(1)
CRA Administrative Practice On Fringe Benefits (IT-470R)
Tax Planning Considerations
Inclusions – GST/HST On Taxable Benefits
Inclusions – Board And Lodging
Inclusions – Automobile Benefits
Employees And Automobiles
Taxable Benefits-Standby Charge
Operating Cost Benefit
Summary Of Automobile Benefit Calculations
Payments By Employee For Automobile Use
Example – Employer Owned Automobile
Example – Employer Leased Vehicle
Employer Provided Cars And Tax Planning
Inclusions – Allowances
Allowance Vs. Reimbursement
General Rules
Taxable Vs. Non-Taxable Allowances
Reasonable Allowances For Motor Vehicles
Employer’s Perspective Of Allowances
Employee’s Perspective Of Allowances
Inclusions – Employee Insurance Benefits
Life Insurance
Disability Insurance (a.k.a. Group Sickness Or Accident Insurance Plan)
Health Care Insurance
Loans To Employees
General Rules
Home Relocation Loans
Tax Planning For Interest Free Loans
Inclusions – Stock Option Benefits
The Economics Of Stock Option Arrangements
Overview Of The Tax Rules
CCPCs Vs. Public Companies
Rules For Public Companies
Rules For CCPCs
Other Inclusions
Payments By Employer To Employee
Forgiveness Of Employee Loans
Housing Loss Reimbursement
Discounts On Employer’s Merchandise
Club Dues And Recreational Facilities
Specific Deductions
Salesperson’s Expenses Under ITA 8(1)(f)
Travel Expenses And Motor Vehicle Costs
The Salesperson’s Dilemma
Automobile And Aircraft Expenses
Work Space In Home Costs For Employees
Key TermsUsed In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 4: Taxable Income And Tax Payable For Individuals
Note On Changes For 2016
Taxable Income Of Individuals
Available Deductions
Ordering Of Deductions
Deductions For Payments – ITA 110(1)(f)
Home Relocation Loan – ITA 110(1)(j)
Northern Residents Deductions – ITA 110.7
Calculation Of Tax Payable
Federal Tax Payable Before Credits
Provincial Tax Payable Before Credits
Types Of Income
Taxes On Income Not Earned In A Province
Calculating Tax Credits
Provincial Amounts
Personal Tax Credits – ITA 118(1)
Family Caregiver Amount (FCA)
Individuals With A Spouse Or Common-Law Partner – ITA 118(1)(a)
Individuals Supporting A Wholly Dependent Person – ITA 118(1)(b)
Family Caregiver Amount For Child
Single Persons (Basic Personal Tax Credit)
Caregiver Tax Credit – ITA 118(1)(c.1)
Infirm Dependant Over 17 Tax Credit
Other Tax Credits For Individuals
Age Tax Credit – ITA 118(2)
Pension Income Tax Credit – ITA 118(3)
Canada Employment Tax Credit – ITA 118(10)
Adoption Expenses Tax Credit – ITA 118.01
Public Transit Passes Tax Credit – ITA 118.02
Children’s Arts Tax Credit – ITA 118.031
Home Accessibility Tax Credit – ITA 118.041
First Time Home Buyer’s Tax Credit
Volunteer Firefighters And Volunteer Search And Rescue Workers Tax Credits
Charitable Donations Tax Credit – ITA 118.1
Medical Expense Tax Credit – ITA 118.2
Disability Tax Credit – ITA 118.3
Education Related Tax Credits
EI And CPP Tax Credits – ITA 118.7
Overpayment Of EI And CPP Contributions
Transfers To Spouse Or Common-Law Partner
Political Contributions Tax Credits – ITA 127(3)
Labour Sponsored Venture Capital Credit
Refundable Credits
GST/HST Credit – ITA 122.5
Refundable Medical Expense Supplement
Working Income Tax Benefit – ITA 122.7
Refundable Children’s Fitness Credit
Refundable Teacher And Early Childhood Educator School Supply Tax Credit
Social Benefits Repayment (OAS And EI)
Comprehensive Example
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Tax Software Assignment Problems
Chapter 5: Capital Cost Allowances And Cumulative Eligible Capital
Capital Cost Allowance System
Additions To Capital Cost
Determination Of Amounts
Available For Use Rules
Segregation Into Classes
Capital Cost Allowances
Rates For Commonly Used CCA Classes
Half-Year Rules (a.k.a. First Year Rules)
Short Fiscal Periods
Tax Planning Considerations
Dispositions Of Depreciable Assets
Capital Gains
Recapture Of Capital Cost Allowance
Terminal Losses
Summary Of Tax Consequences
CCA Schedule
CCA Determination – Special Situations
Separate Class Election
Cumulative Eligible Capital (CEC)
Eligible Capital Expenditures Defined
Additions, Amortization, And Dispositions
The Future Of Cumulative Eligible Capital (2016 Budget)
Key Terms Used In This Chapter
References
Appendix – CCA Rates For Selected Assets
Problems For Self Study (Online)
Assignment Problems
Chapter 6: Income Or Loss From A Business
Overview
Business Income Vs. Property Income
Tax Consequences Of Classification
Business Income Defined
Property Income Defined
Business Income Vs.Capital Gains
Tax Consequences Of Classification
Capital Gains Defined
Criteria For Identifying Capital Gains
Business Income And GAAP
Business Income – Inclusions (Revenues)
Amounts Received And Receivable
Reserves
Limitations On Deductions From Business And Property Income
General Approach-Restrictions
Specific Limiting Items Under ITA18
Foreign Media Advertising – ITA 19 And 19.1
Limitations On Deductions From Business, Property, And Employment Income
Reasonableness
Meals And Entertainment
“Luxury” Automobile Costs
Automobiles Owned By The Taxpayer
Automobile Leasing Costs- ITA 67.3
Leasing Property
Illegal Payments, Fines And Penalties – ITA 67.5 And 67.6
Business Income – Specific Deductions
Inventory Valuation (Cost Of Sales)
Other Deductions
Reconciliation Schedule
Business Income – Example
Taxation Year
General Rules
Unincorporated Businesses – Non-Calendar Fiscal Year
Special Business Income Situations
Income For Farmers
Professional Income (Billed Basis)
Sale Of A Business
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 7: Income From Property
Property Income: General Concept
Interest As A Deduction
IT Folio S3-F6-C1 “Interest Deductibility”
What Is Interest?
Direct Or Indirect Use
Discount And Premium On Issued Debt
Interest Income
Corporations And Partnerships – Accrual
Individuals – Modified Accrual Method
Discount And Premium On Debt Holdings
Accrued Interest At Transfer
Payments Based On Production Or Use (Royalties)
Rental Income
Capital Cost Allowances
Rental Income Example
Cash Dividends From Taxable Canadian Corporations
The Concept Of Integration
Implementing Integration
Gross Up And Tax Credit Procedures – Eligible Dividends
Non-Eligible Dividends
Comparison Of Investment Returns
Income Trusts
How Do Trusts Work?
Investments In Publicly Traded Trusts
Taxation Of Income Trusts
Mutual Funds
Distributions
Adjusted Cost Base
Capital And Stock Dividends
Foreign Source Income
Foreign Non-Business (Property) Income
Foreign Business Income
Shareholder Benefits
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 8: Capital Gains And Capital Losses
Economic Background
General Rules
Capital Gains Defined
Dispositions
Proceeds Of Disposition
Adjusted Cost Base
Calculating The Capital Gain Or Loss
Detailed Application Of The Rules
Identical Properties
Partial Dispositions
Warranties On Capital Assets
Capital Gains Reserves
Bad Debts On Sales Of Capital Property
Special Rule For Sales Of Real Property
Provisions For Special Assets
Principal Residence
Personal Use Property
Listed Personal Property
Gains And Losses On Foreign Currency
Options
Deemed Dispositions – Change In Use
Example-Change In Use
Special Rules For Principal Residences
Special Rules For Automobiles
Deemed Dispositions – Departures From Canada
Small Business Investments – Deferral Provisions
Replacement Property – Deferral Provisions
The Problem
Voluntary And Involuntary Dispositions
Timing Considerations
Application Of ITA 44(1) To Capital Gains
Application Of ITA 13(4) To Recapture Of CCA
Combined Application Of ITA 13(4) And 44(1)
Capital Gains And Tax Planning
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 9: Other Income, Other Deductions, And Other Issues
Introduction
Other Income – Subdivision d Inclusions
Pension Benefits – ITA 56(1)(a)(i)
Retiring Allowances – ITA 56(1)(a)(ii)
Death Benefits – ITA 56(1)(a)(iii)
Income Inclusions From Deferred Income Plans
Scholarships And Prizes – ITA56(1)(n)
Research Grants – ITA56(1)(o)
Social Assistance And Workers’ Compensation
Universal Child Care Benefit (UCCB)
Other Deductions – Subdivision e
CPP Contributions On Self-Employed Earnings
Moving Expenses – ITA62
Child Care Expenses – ITA63
Disability Supports Deduction – ITA 64
Related Inclusions And Deductions
Employment Insurance Benefits
Pension Income Splitting
Spousal And Child Support
Annuity Payments Received
Registered Savings Plans
Tax Free Savings Accounts (TFSAs)
Registered Education Savings Plans (RESPs)
Registered Disability Savings Plans (RDSPs)
Non-Arm’s Length Transfers Of Property
Inadequate Considerations – ITA 69
Inter Vivos Transfers To A Spouse
Non-Arm’s Length Transfers Of Depreciable Assets- ITA 13(7)(e)
Inter Vivos Transfer Of Farm Or Fishing Property To A Child
Death Of A Taxpayer
Income Attribution
Basic Rules – ITA 74.1(1) And (2)
Avoiding Income Attribution
Anti-Avoidance Provisions
Tax Planning And Income Attribution
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 10: Retirement Savings And Other Special Income Arrangements
Planning For Retirement
Tax Deferred Savings
Defined Benefit Vs. Money Purchase Plans
Registered Retirement Savings Plans (RRSPs)
RRSP Deduction Limit
Examples Of RRSP Deduction Calculations
Undeducted RRSP Contributions
RRSP And RRIF Administration Fees
RRSP Withdrawals And Voluntary Conversions
Involuntary Termination Due To Age Limitation
Spousal RRSP
Home Buyers’ Plan (HBP)
Lifelong Learning Plan (LLP)
Departure From Canada
Death Of The RRSP Registrant
Registered Pension Plans (RPPs)
Establishing An RPP
Employer Contributions To The RPP
Employee Contributions To The RPP
Options At Retirement
Phased Retirement
Inadequate Retirement Savings
Registered Retirement Income Funds (RRIFs)
RRIF Withdrawals
Death Of The RRIF Registrant
Evaluation Of RRIFs
Deferred Profit Sharing Plans
Profit Sharing Plans
Transfers Between Plans
Retiring Allowances
Retirement Compensation Arrangements
Salary Deferral Arrangements
Individual Pension Plans (IPPs)
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Index
Title Page for Volume II
Copyright Page for Volume II
Preface for Volume II
Contents for Volume II
Chapter 11: Taxable Income And Tax Payable For Individuals Revisited
Introduction
Lump-Sum Payments
Treatment Of Losses
Carry Over Provisions
Personal Use Property Losses
Listed Personal Property Losses
Non-Capital Losses
Net Capital Losses
Net Capital Losses At Death
Allowable Business Investment Losses
Farm Losses
Lifetime Capital Gains Deduction
Current And Future Limits
Qualified Property
Determining The Deductible Amount
Comprehensive Example
Ordering Of Deductions And Losses
Ordering In Computing Net Income
Ordering In Computing Taxable Income
Example
Tax Payable Overview
Tax On Split Income
Tax Credits Revisited
Transfer Of Dividends To A Spouse
Charitable Donations Credit Revisited
Foreign Tax Credits Revisited
Alternative Minimum Tax
Minimum Tax Calculation
Tax Credits For AMT
Key Terms Used In This Chapter
References
Appendix – Returns For Deceased Taxpayers
Special Rules At Death
Procedures For Specific Returns
Filing Requirements
Payment Of Taxes
Problems For Self Study (Online)
Assignment Problems
Chapter 12: Taxable Income And Tax Payable For Corporations
Computation Of Net Income
Computation Of Taxable Income
Deductions Available To Corporations
Dividends From Other Corporations
Non-Capital Loss Carry Over For A Corporation
Ordering Of Taxable Income Deductions
Geographical Allocation Of Income
Permanent Establishments
Example – Permanent Establishments
Federal Tax Payable
Basic Rate
Federal Tax Abatement
General Rate Reduction
Provincial Tax Payable
Small Business Rate
Investment Income Rates
Small Business Deduction
Canadian Controlled Private Corporation
Active Business Income
Annual Business Limit
Allocation Among Associated Companies
Calculating The Small Business Deduction
Elimination Of Small Business Deduction For Large CCPCs
Personal Services Corporations
Professional Corporations And Management Companies
Manufacturing And Processing Profits Deduction
Calculating The Deduction
Eligibility
General Rate Reduction – ITA 123.4(2)
Full Rate Taxable Income
Application To Companies Other Than CCPCs
Application To CCPCs
Foreign Tax Credits For Corporations
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 13: Taxation Of Corporate Investment Income
Integration
The Basic Concept
Dividend Gross Up And Tax Credit Procedures
Integration And Business Income
Refundable Taxes On Investment Income
Meaning Of Aggregate Investment Income
Basic Concepts
Refundable Part I Tax On Investment Income
Additional Refundable Tax On Investment Income (ART)
Problem One: Excessive Tax Rates On Flow Through Of A CCPC’s Investment Income
Solution To Problem One: Refundable Portion Of Part I Tax
Refundable Part IV Tax On Dividends Received
Problem Two: Use Of Multi-Level Affiliations To Defer Taxes On Investment Income
Solution To Problem Two: Refundable Part IV Tax
Part IV Tax On Portfolio Dividends Received
Dividends From A Connected Corporation
Dividends Paid Out Of Mixed Income Of A Connected Corporation
Other Part IV Tax Considerations
Refundable Dividend Tax On Hand
RDTOH -General Definition
Refundable Portion Of Part I Tax Payable
The Dividend Refund
Example Of RDTOH Calculations
Working Through Large Corporate Tax Problems
Designation Of Eligible Dividends
CCPCs And Their GRIP
Non-CCPCs And Their LRIP
Part III.1 Tax On Excessive Eligible Dividend Designations
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 14: Other Issues In Corporate Taxation
Introduction
Acquisition Of Control Rules
Economic Background
Acquisition Of Control Legislation
Deemed Year End
Restrictions On Use Of Charitable Donations
Restrictions On The Use Of Losses
Unrecognized Losses At Deemed Year End
Deemed Disposition Election
Associated Companies
Definitions
Examples – Associated Corporation Rules
Investment Tax Credits
Procedures
Eligible Expenditures
Rates
Refundable Investment Tax Credits
Carry Overs Of Investment Tax Credits
Effect Of Acquisition Of Control OnInvestment Tax Credits
Tax Basis Shareholders’ Equity
Shareholders’ Equity Under GAAP
Paid Up Capital (Tax Basis Contributed Capital)
Tax Basis Retained Earnings
Capital Dividend Account
Distributions Of Corporate Surplus
Regular Cash Dividends
Stock Dividends
Dividends In Kind
Capital Dividends Under ITA 83(2)
Deemed Dividends Under ITA 84(1) – Increase In PUC
ITA 84(2) -On Winding-Up
ITA 84(3) – On Redemption, Acquisition, Or Cancellation Of Shares
ITA 84(4) And ITA 84(4.1)
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Tax Software Assignment Problem
Chapter 15: Corporate Taxation And Management Decisions
The Decision To Incorporate
Basic Tax Considerations
Other Advantages And Disadvantages
Tax Reduction And Deferral
Approach
Basic Example
Public Corporation
CCPC – Active Business Income
CCPC – Investment Income Other Than Dividends
CCPC – Dividend Income
Conclusions On Tax Reductions And Deferrals
Provincial Taxes And Integration
Tax Deferral
Tax Reduction
Examples – Effects Of Provincial Rates On Integration
Summary: Tax Deferral And Tax Reduction
Tax Free Dividends
Tax Rates On Dividends
Use Of Tax Credits
Tax Free Amounts For 2016
Income Splitting
Basic Concept
Example
Shareholder Benefits Including Loans
The Owner-Manager Environment
Shareholder Benefits Other Than Loans
Shareholder Loans
Management Compensation
General Principles
Salary Vs. Dividends
Salary Vs. Dividends For The Owner – Manager
The Basic Trade-Off
Other Considerations
Conclusion
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 16: Rollovers Under Section 85
Rollovers Under Section 85
General Rules For The Transfer
Transferor And Transferee
Eligible Property
Consideration To Transferor
Making The Election
Establishing The Transfer Price
Transfer Prices – Detailed Rules
Rules Applicable To All Assets
Accounts Receivable
Inventories, Non-Depreciable Capital Property
Disallowed Capital Losses
Depreciable Property
Disallowed Terminal Losses
Eligible Capital Property
Eligible Capital Property -Disallowed Deductions
Summary Of Transfer Price Rules
Allocation Of The Elected Value
Consideration Received By The Transferor
Assets Acquired By The Corporation
Paid Up Capital (PUC) Of Shares Issued
Paid Up Capital Reduction
More Than One Class Of Shares
Comprehensive Example – Section 85 Rollovers
Gift To Related Party – Section 85
General Rules
Example
Excess Consideration – Section 85
Shareholder Benefit – ITA 15(1)
Dividend Stripping — ITA 84.1
Applicability Of ITA 84.1
Dividend Stripping Example
Capital Gains Stripping — ITA 55(2)
Application Of ITA 55(2)
Capital Gains Stripping-Examples
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 17: Other Rollovers And Sale Of An Incorporated Business
Introduction
Share For Share Exchanges – ITA 85.1
General Rules
Conditions For The Application Of ITA 85.1 .
Example
Exchange Of Shares In A Reorganization – ITA 86
Conditions For The Reorganization
Procedures
Example Using ITA 86(1) In An Estate Freeze
Gift To Related Person- ITA 86(2)
Using ITA 86(1) – Tax Planning Considerations
Amalgamations – ITA 87
Position Of The Amalgamated Company
Position Of The Shareholders
Vertical Amalgamations
Asset Bump-Ups
Non-Tax Considerations
Amalgamations – Tax Planning Considerations
Winding-Up Of A 90% Owned Subsidiary
Acquisition Of Assets
Disposition Of Shares
Tax Planning Considerations – Amalgamation Vs. Winding-Up
Winding-Up Of A Canadian Corporation
Example
Convertible Properties
Application
Sale Of An Incorporated Business
Restrictive Covenants (a.k.a. Non-Competition Agreements)
Sale Of Individual Assets
Sale Of Assets As A Going Concern
Sale Of Shares
Evaluation Of Alternatives
Example
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 18: Partnerships
Introduction
Taxable Entities In Canada
Chapter Coverage
Partnerships Defined
The Importance Of Defining A Partnership
Basic Partnership Elements
Types Of Partnerships
Co-Ownership, Joint Ventures, And Syndicates
Introduction
Co-Ownership
Joint Ventures
Syndicates
Partnership Income, Losses, And Tax Credits
Introduction
Applicable Concepts
Calculating The Amounts To Be Allocated
Methods Of Allocation
The Partnership Interest
The Concept
Acquiring A Partnership Interest
Adjusted Cost Base Of Partnership Interest
Disposition Of A Partnership Interest
Limited Partnerships And Limited Partners
Definitions
At-Risk Rules
Transfer Of Property To And From A Partnership
Definition Of Canadian Partnership
Transfers With No Rollover Provision
Common Partnership Rollovers
Specified Investment Flow Through Partnerships
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 19: Trusts And Estate Planning
A Note On Changes For 2016
Basic Concepts
What Is A Trust?
Establishing A Trust
Returns And Payments-Trusts
Non-Tax Reasons For Using Trusts
Classification Of Trusts
Personal Trusts
Testamentary Trusts Vs. Inter Vivos Trusts
Taxation Of Trusts
Rollovers To A Trust
Rollovers To Capital Beneficiaries
21 Year Deemed Disposition Rule
Net Income For Tax Purposes Of A Trust
Preferred Beneficiary Election
Amounts Deemed Not Paid
Amounts Retained For A Beneficiary
Taxable Income Of A Trust
Income Allocations To Beneficiaries
Discretionary And Non-Discretionary Distributions
Flow Through Provisions
Principal Residence Exemption
Tax Payable Of Personal Trusts
Calculation Of Basic Amount
Other Tax Payable Considerations
Income Attribution – Trusts
Purchase Or Sale Of An Interest In A Trust
Tax Planning
Qualifying Spousal Trusts
Alter Ego Trusts
Joint Spousal Trusts
Estate Planning
Estate Freeze
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 20: International Issues In Taxation
Introduction
Residence
Residence Of Individuals
Residence Of Corporations
Residence Of Trusts
Part I Tax On Non-Residents
Carryingon Business in Canada
Canadian Source Employment Income
Dispositions Of Taxable Canadian Property
Part XIII Tax On Non-Residents
Interest Payments
Dividend Payments
Royalty Payments
Rental Income
Pension Payments, Other Retirement Benefits
Shareholder Loans To Non-Residents
Immigration And Emigration
Entering Canada- Immigration
Departures From Canada – Emigration
Unwinding A Deemed Disposition
Short-Term Residents
Foreign Source Income Of Canadian Residents
Foreign Investment Reporting Requirements
Foreign Source Employment Income
Foreign Source Business Income
Foreign Source Interest Income
Foreign Source Capital Gains
Foreign Source Dividend Income – Problems
Foreign Source Dividends Received By Individuals
Foreign Dividends Received From Non-Affiliated Corporations
Dividends Received From Non-Controlled Foreign Affiliates
Dividends Received From Controlled Foreign Affiliates
Foreign Accrual Property Income (FAPI)
Key Terms Used In This Chapter
References
Problems For Self Study (Online)
Assignment Problems
Chapter 21: GST/HST
Introduction
Transaction Tax Concepts
Value Added Tax (VAT)
Liability For GST/HST
The Concept Of Supply
Supply Categories
Taxable Supplies
Exempt Supplies
Applying the GST/HST Rate
Place Of Supply
Applying The Rate
Collection And Remittance Of GST/HST
Registration
Meaning Of Person For GST/HST
Who Must Register
Exemption For Small Suppliers
Input Tax Credits
Vendors Of Fully Taxable And Zero-RatedSupplies
Vendors Of Exempt Supplies
Examples
Relief For Small Businesses
Quick Method Of Accounting
Small Suppliers Exemption
Streamlined Input Tax Credit Method
GST/HST Procedures And Administration
GST/HST Returns And Payments
Associated Persons
Refunds And Rebates
Books And Records
Appeals
General Anti-Avoidance Rule
Employee And Partner GST/HST Rebate
General Concept
Calculating The GST/HST Rebate Amount
Example
Residential Property, New Housing Rebate
General Rules For Residential Property
New Housing Rebate
Sale Of A Business
Specific Applications
Partnerships And GST/HST
Trusts And GST/HST
Key Terms Used In This Chapter
Problems For Self Study (Online)
Assignment Problems
Index
