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Flashcards in Quiz 1 Deck (26):

What are the four objectives of taxation?

1. To maximize the growth of output of goods and services that are in the public interest
2. To redistribute wealth equitably
3. To protect the liberty and rights of the individual
4. To strengthen federal and provincial relations


What is direct tax?

Tax demanded by government for the very person to whom the tax applies


What is indirect tax?

Text demanded from one person in the expectation that he'll reimburse himself at the expense of another


What is value added tax?

Tax levied on the increase in the value of a commodity that's been created by the tax payers stage of the production or distribution cycle


What is consumption tax GST?

Tax levied on the consumption of some products or services


What is user tax!

Tax levied on the user of some facility


What is head tax?

Tax levied on the existence of a classified group


What is a tariff?

Tax imposed on the importation exportation of certain goods and/or services


What is transfer tax?

Tax imposed on the transfer of property from one owner to another


What is property tax

Tax imposed on the ownership of some particular set of goods


What is income tax

Tax imposed on the income of individuals corporations and trusts


What is tax planning

A legitimate way to decrease taxable money to build your wealth
1. Shifting income from one time to another
2. Transfer income to another entity such as trusts
3. converting income from one type to another to get lower taxes for example capital gains


Who pays tax

And income tax shall be paid as hereinafter required upon the taxable income for each taxation year of every person resident in Canada at any time in the year


Who is a resident

Residents where they normally live, everyone is a resident of same country, some persons can be deemed to be resident of more than one country.

Text on world income for the entire year.


What is a nonresident

1. Didn't leave dwelling in Canada available to return to
2. Didn't leaves a spouse or other dependents in Canada
3. Didn't leave personal property in Canada

Somebody who has money the house or property in Canada is text 25% withheld outsource only some profits in Canada.


What is the two-year rule

If a person is out of the country for less than two years there presumed have maintained residence unless they can prove Aultice of been severed. If a person is out of the country for more than two years assumed they are nonresident unless proven otherwise.


What is a part time resident

1. Someone who leaves or enters Canada once like an immigrant coming from Canada in June they wouldn't have to pay taxes before June.

Texting Canada on world income for the part of the year in which they were resident in Canada.


Who is deemed a resident

Someone who doesn't live in Canada at all but they are taxed anyways because they are deemed to be Canadian residents.
1. An agent, officer, ambassador, minister or servant of the province
2. The spouse of the two above provided such spouses for Canadian residents in some year

Taxed on world income for the entire year.
3. A child of the two above provided there also dependent


What is a soujourner?

A person who is temporarily present in Canada for more than 183 days during any calendar year.


What happened prior to April 26, 1965 to corporations in Canada?

Corporations incorporated prior to April 26, 1965 retreated as resident at a resided in Canada they carried on business in Canada and any tax year ending after April 26, 1965 and if they managed their operations in Canada


What are the four primary test to determine if you are an employee or contractor?

Control test, ownership of tools test ,chance of profit or loss test, integration test


What is the control test

Who controls the work when do you do the work he supervises the work


What is the ownership of tools test

Are you doing the work at home on your own computer and on your own time, if you doing the same job at the employers business on their business computer, Who owns the stuff


What is the chance of profit or loss test

Can you lose money employees can't they get paid by the hour regardless, is there a chance you can make more money by working faster


What is the integration test

How important are you to the central function to the business, can't delegate the normal functions of a law firm


What are some examples of taxable benefits

Board and lodging which is provided for free or unreasonably low rate, rent free and low rent housing, travel benefits, personal use of employers automobile, gifts