Question 1

In some situations, an employee may request an increase in the amounts that are withheld for future income taxes. What circumstances might lead an employee to make such a request?

Accepted Answer

While there are other possibilities, the ones that are mentioned in the text are:
• Normal withholding is based on rates in a low tax rate province, but the individual resides in a high tax rate province (e.g., the individual works in Alberta, but lives in Saskatchewan).
• An individual receives large amounts of taxable spousal support payments that are not subject to withholding.

Question 2

If quarterly instalments must be paid by an individual, they can be calculated as one-quarter of the net tax owing for the preceding year.

Accepted Answer

Quarterly instalments are typically calculated as one-quarter of the net tax owing for the preceding year.

Question 3

If a corporation that is a small CCPC is required to make quarterly instalment payments on their income taxes, how are the required amounts determined?

Accepted Answer

A corporation that is a small CCPC can choose from three different methods in determining their instalment payments. Method 1 - The instalments can be based on one -fourth of the estimated taxes payable for the current taxation year. Method 2 - The instalments can be based on one -fourth of the taxes payable for the previous taxation year. Method 3 - The first instalment can be based on one -fourth of the taxes payable for the second previous year. The remaining three instalments will then be based on the taxes payable for the previous taxation year reduced by the amount paid in the first instalment, with this amount divided by three.

Question 4

Under what circumstances must an individual make income tax instalment payments during the current year?

Accepted Answer

The answer of Under what circumstances must an individual make...

Question 5

Because the taxation year of an individual must be based on the calendar year, all individuals will have the same filing due date.

Accepted Answer

While the taxation year of an individual is typically based on the calendar year, the due date for filing taxes may vary depending on the specific circumstances of the individual and any applicable extensions or changes to the deadline.

Question 6

Cases can be heard by the Tax Court of Canada using either the general or the informal procedures. How do these two procedures differ?

Accepted Answer

The answer of Cases can be heard by the Tax...

Question 7

On April 30 of the current year, her filing due date, Nicole Houde finds that she has a significant net tax owing. She will not be able to pay this until the beginning of July. She doesn't want to file her return until she has the funds available to pay the balance. What advice would you give Ms. Houde in this regard?

Accepted Answer

The answer of On April 30 of the current year,...

Question 8

If a corporation that is not a small CCPC is required to make instalment payments on their income taxes, how are the required amounts determined?

Accepted Answer

The answer of If a corporation that is not a...

Question 9

If an individual dies after October in a particular taxation year, his legal representatives must file his tax return by the later of his normal filing due date and six months after the date of his death.

Accepted Answer

This is true according to IRS regulations.

Question 10

By making all instalments on the basis of the CRA's instalment reminder, the taxpayer is assured that no interest will be assessed for deficient instalments. However, this may not be the best alternative for making instalment payments. Explain why this is true.

Accepted Answer

The answer of By making all instalments on the basis...

Question 11

An individual can request that an employer reduce the amounts withheld for income taxes. What conditions must be met for this request to be granted? Provide an example of a situation where this request would be granted.

Accepted Answer

The answer of An individual can request that an employer...

Question 12

A corporation's balance due date is not the same as its return due date. Explain how these dates differ.

Accepted Answer

The answer of A corporation's balance due date is not...

Question 13

The normal reassessment period is 3 years for individuals and CCPCs and 4 years for other corporations. Indicate two situations where a reassessment can occur outside the normal reassessment period.

Accepted Answer

The answer of The normal reassessment period is 3 years...

Question 14

Briefly describe the difference between tax evasion and tax avoidance.

Accepted Answer

The answer of Briefly describe the difference between tax evasion...

Question 15

Under what circumstances must a corporation make income tax instalment payments during its current taxation year?

Accepted Answer

The answer of Under what circumstances must a corporation make...

Question 16

One of your clients has received his instalment notice and has asked your advice as to whether he should make the payments. Provide the requested advice.

Accepted Answer

The answer of One of your clients has received his...

Question 17

If an individual believes that the amount of income taxes withheld by his employer is greater than the amount that he will have to pay in a particular year, he can make a request to the CRA to have his source deductions reduced.

Accepted Answer

The answer of If an individual believes that the amount...

Question 18

How is interest on late instalments calculated?

Accepted Answer

The answer of How is interest on late instalments calculated?...

Question 19

If an individual is required to make quarterly instalment payments on their income taxes, how is the required amount of the instalments determined?

Accepted Answer

The answer of If an individual is required to make...

Question 20

If an individual is required to make income tax instalment payments, one acceptable pattern of payments is to base each payment on one-quarter of the estimated Tax Payable for the current taxation year.

Accepted Answer