Canadian

Please provide the information requested by Mr. Smith:

For 2015, Mr. Smith has combined federal and provincial Tax Payable of $53,000. For

this year, his employer withheld $52,000.

For 2016, his combined federal and provincial Tax Payable is $59,000. For this year, his

employer withheld $52,000.

For 2017, he anticipates having combined federal and provincial tax payable of $64,000.

He expect that his employer will withhold $60,000.

In January 2017, you are asked to provide tax advice to Mr. Smith. He has asked you

whether it will be necessary for him to pay instalments in 2017 and, if so indicate the

amounts that would be required under each of the three alternative methods of

calculating instalments. Indicate which alternative would be preferable.

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