Matching
For each of the key terms listed, indicate the BEST definition of that term, or that none of the definitions apply.
Premises:
Transferee
Subject Corporation
Dividend Stripping
Non-Share Consideration
Capital Gains Stripping
Boot
Superficial Loss - ITA 54
Rollover
Responses:
None of the definitions apply. (This answer can be used more than once.)
For purposes of the Part IV tax, a public corporation that is controlled by, or for the benefit of, an individual or a related group of individuals.
A taxpayer to whom a transfer is made.
A tax free transfer of assets under circumstances that, in the absence of a special provision, would be considered a taxable transfer.
Consideration received by a taxpayer from a corporation that is in the form of assets other than shares of the corporation.
Procedures designed to allow an individual to remove accumulated income from a corporation in the form of tax-free capital gains, while still retaining control of the corporation.
A colloquial term used by tax practitioners to refer to non-share consideration.
Procedures designed to allow a corporation to convert a taxable capital gain resulting from the disposition of investment shares to an arm's length party, into a tax free intercorporate dividend.
A loss on the disposition of property that is disallowed for tax purposes because the taxpayer has acquired an identical property, either 30 days before the disposition or, alternatively, 30 days after the disposition.
A deduction in the calculation of business and property income which arises when the last asset in a CCA Class is retired and a positive balance is left in the Class.
A taxpayer who makes a transfer.
Correct Answer:
Premises:
Responses:
None of the definitions apply. (This answer can be used more than once.)
For purposes of the Part IV tax, a public corporation that is controlled by, or for the benefit of, an individual or a related group of individuals.
A taxpayer to whom a transfer is made.
A tax free transfer of assets under circumstances that, in the absence of a special provision, would be considered a taxable transfer.
Consideration received by a taxpayer from a corporation that is in the form of assets other than shares of the corporation.
Procedures designed to allow an individual to remove accumulated income from a corporation in the form of tax-free capital gains, while still retaining control of the corporation.
A colloquial term used by tax practitioners to refer to non-share consideration.
Procedures designed to allow a corporation to convert a taxable capital gain resulting from the disposition of investment shares to an arm's length party, into a tax free intercorporate dividend.
A loss on the disposition of property that is disallowed for tax purposes because the taxpayer has acquired an identical property, either 30 days before the disposition or, alternatively, 30 days after the disposition.
A deduction in the calculation of business and property income which arises when the last asset in a CCA Class is retired and a positive balance is left in the Class.
A taxpayer who makes a transfer.
Premises:
None of the definitions apply. (This answer can be used more than once.)
For purposes of the Part IV tax, a public corporation that is controlled by, or for the benefit of, an individual or a related group of individuals.
A taxpayer to whom a transfer is made.
A tax free transfer of assets under circumstances that, in the absence of a special provision, would be considered a taxable transfer.
Consideration received by a taxpayer from a corporation that is in the form of assets other than shares of the corporation.
Procedures designed to allow an individual to remove accumulated income from a corporation in the form of tax-free capital gains, while still retaining control of the corporation.
A colloquial term used by tax practitioners to refer to non-share consideration.
Procedures designed to allow a corporation to convert a taxable capital gain resulting from the disposition of investment shares to an arm's length party, into a tax free intercorporate dividend.
A loss on the disposition of property that is disallowed for tax purposes because the taxpayer has acquired an identical property, either 30 days before the disposition or, alternatively, 30 days after the disposition.
A deduction in the calculation of business and property income which arises when the last asset in a CCA Class is retired and a positive balance is left in the Class.
A taxpayer who makes a transfer.
Responses:
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