Past Exams

Topics: Taxation, Tax, Income tax Pages: 16 (4447 words) Published: August 22, 2013
CGA-CANADA PERSONAL & CORPORATE TAXATION [TX1] EXAMINATION March 2012 Time: 3 Hours Notes:
1. 2. 3. This examination is based on the Canadian Income Tax Act with Regulations (CCH 92nd Edition). Round all calculations to the nearest dollar, except price per share. The following items, applicable to the 2011 taxation year, are provided for reference: Federal Income Tax Rates — 2011 2011 Taxable Income Up to $41,544 $41,545 – $83,088 $83,089 – $128,800 $128,801 and over Personal Tax Credits 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Federal Marginal Tax Rate 15% 22% 26% 29% 2011

Single status — basic personal amount (paragraph 118(1)(c)).................................................................................. $ 1,579 Spouse or common law partner amount (paragraph 118(1)(a)) ................................................................................. 1,579 Eligible dependant (paragraph 118(1)(b)) Same as for spouse or common-law partner in (2) above. Infirm dependants 18 years of age or older (paragraph 118(1)(d)) ............................................................................ 642 The credit is reduced if dependant’s net income exceeds ......................................................................................... 6,076 Age amount — taxpayer is 65 years of age or over (subsection 118(2)) ................................................................... 981 Child amount (paragraph 118(1)(b.1) — each child under 18 320 Canada employment amount (paragraph 118(10) – lesser of 15% of employment income for the year and ............ 160 Medical expenses credit (subsection 118.2(1)) The threshold is the lesser of 3% of net income and ........................................................................................ 2,052 Mental or physical impairment (subsection 118.3(1)) ................................................................................................. 1,101 Caregiver — parent/grandparent (maximum) (paragraph 118(1)(c.1)) ...................................................................... 642 14,624 The credit is reduced if dependant’s net income exceeds ......................................................................................... Education credit for each qualifying month — full-time (paragraph 118.6(2)(a)) ....................................................... 60 Education credit for each qualifying month — part-time (paragraph 118.6(2)(b)) ...................................................... 18 Textbook credit for each qualifying month — full-time (paragraph 118.6(2.1)(a))...................................................... 10 Textbook credit for each qualifying month — part-time (paragraph 118.6(2.1)(b)) .................................................... 3

Continued...

ETX1M12

©CGA-Canada, 2012

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Marks
30 Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note: 2 marks each

a.

Which of the following institutions is responsible for the development and evaluation of taxation policy in Canada? 1) 2) 3) 4) Canada Revenue Agency (CRA) Minister of National Revenue Department of Finance Tax Court of Canada

b. Wong received $850 as a dividend from a U.S. corporation. This dividend is net of 15% withholding tax. What amount needs to be included in income? 1) 2) 3) 4) c. $ 850 $1,000 $1,225 $1,441

Which of the following statements is true? 1) 2) 3) 4) An attempt to deceive by omitting revenue is an example of tax avoidance. The basic concept behind tax planning arrangements involves the deferral of tax payments. Tax evasion is only enforced under...
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