The main purpose of the general anti-avoidance rule (GAAR) is to

Question 31 options:

	provide a definition for the term, "tax avoidance".
	provide legislation that can be used to apply civil penalties on taxpayer's guilty of tax evasion.
	provide legislation that can be used to enforce tax evasion.
	provide legislation that can be used to enforce the concept of tax avoidance.

With regard to refundable tax credits, ________.

Question 15 options:

if the taxpayer does not have tax payable for the year equal to or greater than the credit amount, the excess amount is paid as a refund to the taxpayer

if the taxpayer does not have tax payable for the year equal to or greater than the credit amount, the excess credit amount is lost

if the taxpayer does not have tax payable for the year equal to or greater than the credit amount, the entire amount of the credit is carried forward to a future taxable year

if the taxpayer does not have tax payable for the year equal to or greater than the credit amount, the excess credit amount is carried forward

Which of the following statements related to the ITA 118(3) Pension Income Tax Credit is NOT correct?

Question 16 options:

	The pension income tax credit is calculated based on eligible pension income, which includes foreign and Canadian government pension income such as the Canada Pension Plan.
	The pension income tax credit can be transferred to a spouse orcommon-law partner if the taxpayer does not have enough taxes payable to use the credit.
	The pension income tax credit is calculated based on eligible pension income, which specifically excludes Old Age Security and the Canada Pension Plan, as well as certain provincial pension plans.
	The pension income tax credit is equal to 15% of the first$2,000 of eligible pension income.

Answer rating: 100% (QA)

The answer of question 31 is option 2 that is provide legislation that can be used to apply civil penalties on taxpayers guilty of tax evasion EXPLANA... View the full answer