a) Tang is a full-time employee but does some consulting work on the side which often results in a balance payable upon filing his tax return. In 20x7, Tang owed $9,000 on filing. In 20x8, Tang owed $2,800. He estimated that he would owe $2,500 on filing in 20x9 but ended up owing $3,900 due to some unexpected income that came his way in December of that year.

Tang did not make any instalments in 20x9. Will CRA assess interest on given the lack of instalments? Why or why not?

Regardless of your answer above, assume instalments were required. Calculate the instalment amounts using the three options. Which base would CRA likely use to calculate instalment interest? Why?

b) How would your answer to ALL of (a) change if Tang was actually "Tang Co", an eligible CCPC with November 30th year end? When would instalments, in a year when they are required, be due for Tang?

Answer rating: 100% (QA)

a If Tang did not make any instalments in 20x9 the CRA may assess interest on the unpaid amounts Int... View the full answer