You, CPA, work for Anderson and Smith Chartered Professional Accountants (CPAs). It is now September 30, 2023 and you have just finished meeting with Annabelle Banks, a shareholder and the vice president (VP) of finance of Balloons by Annabelle Inc. (BAI). BAI operates an active business in Canada and is a new client of your accounting firm. BAI was incorporated in Canada by Annabelle in 2019 and has an August 31st year end. BAI grew quickly after incorporation and Annabelle is having difficulty keeping up with her tax related knowledge - especially where it relates to her employees. While she owns 100% of the shares of BAI, she has realized she relies very heavily on her recently hired employees to keep the business running smoothly and wants to offer them some incentives to stay long-term. Before doing so, she wants you to explain to her the tax implications to the employees. Additional information about BAI and Annabelle's plans are provided in Exhibit I. Annabelle would also like you to draft a memo to her letting her know if corporate instalments are required for the 2024 year-end, and if so, what amount of income tax instalments BAI will need to pay?

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Memo To Annabelle Banks From Your Name CPA Date September 30 2023 Subject Tax Implications for Employees and Corporate Instalments for BAI Dear Annabe... View the full answer