This Information is intended to facilitate your review of key tax knowledge learned to date, drawing from key concepts you have learned in tax 1, tax 2, and tax 3, with particular focus on those concepts that tend to be recurring in CFE/UFE style cases. It is intended to jump start your tax review and refresh your knowledge of the earlier tax courses, so that when (if) you start case writing, you will be a bit more prepared for the tax-related concepts. My hope is that it will be particularly beneficial for those who intend to pursue their Masters and/or CPA. To complete the assignment, pick from the list of topics below and create some sort of “review notes” for yourself. You can make them how you like—they can be physically written on paper (and scan/take pictures of to hand in), typed on a word document, poster, you could make a video(s), flashcards or a PowerPoint, or a combination—whatever you would like. It should be in your own words and using your own style where reasonable/plausible. It can be in point form, or more of a discussion form, whatever you prefer. The review notes should demonstrate your understanding of the topics in a fashion that would also allow you to quickly review the concepts. These are intended to be your review notes, so feel free to make them your own. I don’t intend for this to be particularly arduous—feel free to have “fun” with it. As long as you complete the assignment in a reasonably thorough fashion, and it’s your own, you should do well on it. Feel free to work on it throughout the semester—you don’t have to wait until we cover all the Tax 3 chapters. The following topics are prompts for what you could talk about related to each concept. You do not have to follow the prompts exactly. Please pick 14 of the 26 concepts below to create “review notes” for. Please ensure these 14 topics include topic #1 and #2 on the list below. The assignment is to be completed independently, in your own words/style, but feel free to use your textbook to help review the concepts you choose as you prepare your notes. I am not looking for anything too particular here, I just expect you to provide some discussion of the concepts you pick with a reasonable level of accuracy/detail. Review Concepts/Prompts (Pick 14):

1. **Independent Contractor vs. Employee: a. What is the difference between the two? b. What are the tests to determine which a worker qualifies as? c. What are the implications to worker and to the company paying them?

2. **Residency→ Discuss residency. What are the factors that you look for the determine whether someone is a resident or non resident of Canada? How does being a Canadian resident or nonresident impact your tax liability? What is the soujourner rule?

3. Standby charge & operating benefit on an employer- provided vehicle (vehicle taxable benefits). What is the formula? How does it work? Give an example.

4. Discuss the main classes of CCA. How do you calculate CCA in a declining balance class? Give an example. How do you calculate CCA in a straight line class? Give an example. What is CCA? What is the accelerated investment incentive?

5. Discuss the rules of employee taxable benefits related to gifts. When an employer gives an employee a gift, is it a taxable benefit to the employee when: a. It is a cash gift? b. It is a near cash gift? (gift cards) c. It is a non-cash gift? d. If it is a gift related to employee performance?

6. Discuss the deductibility of moving expenses incurred for an eligible relocation. What is the definition of an eligible relocation? What kind of expenses can be deducted? What is a limit on the amount of moving expenses that can be deducted in a given year?

7. Discuss various pros and cons of incorporating your company.

8. Discuss the rules related to shareholder loans (i.e. when a corporation loans money to a shareholder- *note this is a tax 3 concept).

9. Discuss the principal residence exemption and how one would calculate the principal residence exemption on the sale of a principal residence. What is the formula, and what does it mean? Give an example.

10. Discuss the rules related to stock options granted from an employer to an employee. Discuss how to calculate the employment income inclusion, and the taxable capital gain. Consider the different treatments depending on if they are options to purchase shares of a CCPC or a public company. Explain.

11. Discuss the taxation of dividend income when a dividend is received by an individual. i.e. discuss the gross up and tax credit for both eligible and other than eligible dividends.

12. What is the difference between a sole proprietorship, a partnership, and a corporation?

13. Compare and discuss the use of RRSPs, TFSAs, and RESPs for saving purposes.

14. If given a taxable income amount of $100,000, in general, discuss how you would calculate federal taxes payable for: a. An individual b. A public company c. A CCPC where the income is from an active business

15. Discuss some of the personal tax credits available to an individual, and how they reduce your taxes payable: Basic personal amount, spousal amount, employment amount, disability amount, medical expense tax credit, etc.

16. Discuss the treatment of dividends when a dividend is received by a corporation from a taxable Canadian corporation. Discuss both part I tax and potential part IV tax implications.

17. Discuss the special rules/limitation related to CCA for real estate income.

18. Discuss the definitions/ differences in the following terms: capital gain, capital loss, taxable capital gain, allowable capital loss, net capital loss, business investment loss, allowable business investment loss. Discuss the 50% inclusion rate applicable to capital income.

19. Discuss how to determine the difference between a capital receipt or business income.

20. Discuss the rules related to loss carryovers: non capital losses, net capital losses, and LPP losses

21. Discuss the taxation of Personal Use Property and Listed Personal Property.

22. What is association? Why do the corporate association rules exist? Give a few examples about two corporations that are associated to demonstrate some of the rules.

23. If an employer provides a low-interest or interest free loan to an employee, how do you calculate the taxable benefit that must be included in the employee’s income as a result? What happens if an employer loans money to an employee, and decides to forgive the loan a few years later?

24. Discuss a few differences between net income for tax purposes and accounting net income. How would you reconcile these differences from accounting net income to net income for tax purposes. For instance: meals and entertainment expenses, accounting depreciation vs. CCA, reserves, late CRA penalties, etc.

25. Discuss when the individual and corporate tax returns are due to be filed, and their balance due dates.

26. Discuss the difference between taxable, zero-rated and exempt supplies for GST/HST purposes. Provide some examples.

Answer rating: 100% (QA)

Answer Review Notes Tax Concepts 1 Independent Contractor vs Employee a Independent contractors are selfemployed individuals who work for multiple clients while employees work under the direction and ... View the full answer