{"id":115525,"date":"2023-08-24T12:06:39","date_gmt":"2023-08-24T12:06:39","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=115525"},"modified":"2023-08-24T12:06:42","modified_gmt":"2023-08-24T12:06:42","slug":"test-bank-for-byrd-chens-canadian-tax-principles-2022-2023-1st-edition-volume-1-all-chapters-1-10-full-complete-2023","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2023\/08\/24\/test-bank-for-byrd-chens-canadian-tax-principles-2022-2023-1st-edition-volume-1-all-chapters-1-10-full-complete-2023\/","title":{"rendered":"Test Bank for Byrd &amp; Chen&#8217;s Canadian Tax Principles 2022 &#8211; 2023 1st edition Volume 1 \/ All Chapters 1 &#8211; 10 \/ Full Complete 2023"},"content":{"rendered":"\n<p>1<br>Byrd &amp; Chen&#8217;s Canadian Tax Principles 2022 &#8211; 2023 1st edition<br>Volume 1 Test Bank<br>Canadian Tax Principles, 2022-2023 (Byrd\/Chen)<br>Chapter 1 Introduction to Federal Taxation in Canada<br>1.1 Online Exercises<br>1) The major source of federal revenues is the personal income tax. Indicate three other types of taxes that<br>contribute to federal revenues.<br>Answer: The other sources of federal revenues that are shown in Figure 1-1 of the text are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Corporate income taxes.<\/li>\n\n\n\n<li>Non-resident income taxes.<\/li>\n\n\n\n<li>GST.<\/li>\n\n\n\n<li>Customs and import duties.<\/li>\n\n\n\n<li>Other excise taxes.<\/li>\n\n\n\n<li>EI premiums.<br>Type: ES<br>Topic: Federal revenue sources<br>2) What is the meaning of &#8220;person&#8221; when the term is used in the ITA?<br>Answer: In the ITA, the term &#8220;person&#8221; refers to an individual, a corporation, a trust or an estate.<br>Type: ES<br>Topic: Definition &#8211; &#8220;Person&#8221; ITA 248(1)<br>3) Briefly describe the procedures used in calculating provincial or territorial income tax for individuals<br>in other than individuals residing in Quebec.<br>Answer: Provincial or territorial income taxes for individuals are calculated by applying a provincial or<br>territorial income tax rates to taxable income for federal income tax purposes. Provincial or territorial<br>personal income tax credits are then applied to the resulting gross income tax. The provincial and<br>territorial income tax brackets may differ from the federal income tax brackets. In addition, provincial<br>and territorial personal tax credits may be different than the federal personal tax credits.<br>Type: ES<br>Topic: Income tax payable &#8211; federal income tax<br>4) The Canadian income tax system is often used to achieve various economic objectives. Give three<br>examples that illustrate this point.<br>Answer: There are many examples that could be cited. The text divides them into resource allocation<br>(e.g., public health care), distribution effects (e.g., federal GST credit), stabilization effects (e.g., deficit<br>reduction), and fiscal federalism (e.g., allocations to various levels of government).<br>Type: ES<br>Topic: Canadian income tax system &#8211; objectives<br>5) Provide an example of how taxation policy can be used to influence resource allocation.<br>Answer: Examples provided in the text are as follows:<\/li>\n\n\n\n<li>Tax revenues are used to provide public goods and services.<\/li>\n\n\n\n<li>Excise taxes are used to discourage the consumption of alcohol and tobacco products. There are, of<\/li>\n<\/ul>\n\n\n\n<p>2<br>course, many other examples that could be cited.<br>Type: ES<br>Topic: Canadian income tax system &#8211; objectives<br>6) The government pays a Canada Child Benefit to the parents of children who are under 18 years of age.<br>The payments are reduced by a percentage of income above a certain amount. What objectives are<br>achieved by this benefit system?<br>Answer: The Canada Child Benefit system is designed to assist low income families with children. The<br>government is encouraging population growth. In addition the benefits are targeted to those most in need<br>being low income families.<br>Type: ES<br>Topic: Canadian income tax system &#8211; objectives<br>7) Indicate three disadvantages of a tax system that uses progressive rates.<br>Answer: There are a number of possibilities here. They include that progressive rates:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Increase the complexity of the system.<\/li>\n\n\n\n<li>Are unfair to individuals with highly variable income streams.<\/li>\n\n\n\n<li>Are unfair to single income family units.<\/li>\n\n\n\n<li>Lead to pressure for various types of tax concessions.<\/li>\n\n\n\n<li>Discourage high income individuals from making additional efforts.<\/li>\n\n\n\n<li>Encourage tax evasion.<br>Type: ES<br>Topic: Canadian income tax system &#8211; objectives<br>8) A regressive tax is one that taxes high income individuals at lower effective rates. Explain why a sales<br>tax levied at a flat rate of 8% can be regressive.<br>Answer: While the sales tax rate is the same for all individuals without regard to their income level,<br>lower income individuals normally spend a higher percentage of their total income. Since the sales tax is<br>charged on the amounts spent, this means that the sales tax paid by lower income individuals represents<br>a larger percentage of their total income. As a consequence, they are generally considered to be<br>regressive in nature.<br>Type: ES<br>Topic: Canadian income tax system &#8211; regressive vs progressive rates<br>9) Distinguish between horizontal equity and vertical equity as these terms are used in describing tax<br>systems.<br>Answer: Horizontal equity is achieved when taxpayers in similar economic circumstances are subject to<br>similar levels of tax. Vertical equity is achieved when taxpayers in different economic circumstances are<br>subject to taxes in a different manner.<br>Type: ES<br>Topic: Canadian income tax system &#8211; objectives<\/li>\n<\/ul>\n\n\n\n<p>3<br>10) What are some of the factors that have led to the entrenched use of tax expenditures as opposed to<br>program spending?<br>Answer: The reasons that are listed in the text are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is less costly to administer tax expenditures than it is to administer government funding programs.<\/li>\n\n\n\n<li>More decisions are left to the private sector so that funds may be allocated more efficiently.<\/li>\n\n\n\n<li>Tax expenditures reduce the visibility of certain government actions. This is particularly beneficial if<br>some social stigma is attached to the programs. For example, a child tax benefit system is more acceptable<br>than increasing social assistance (welfare) payments.<\/li>\n\n\n\n<li>Tax expenditures reduce the progressivity of the tax system. As many of the tax expenditures, such as<br>tax shelters, are more available to higher income taxpayers, they serve to reduce effective tax rates in the<br>higher rate brackets.<br>Type: ES<br>Topic: Canadian income tax system &#8211; objectives<br>11) While the Sections of the ITA are numbered 1 through 281, there are actually more than 281 Sections.<br>Explain why this is the case.<br>Answer: This situation reflects the fact that when a new Section is added, it has been more convenient to<br>attach a decimal designation to the new Section, as opposed to renumbering all of the Sections that follow<br>the new Section. As an example, over several years, the Department of Finance has added six new<br>Sections after Section 12. They have been numbered Section 12.1 through Section 12.6. If they had used<br>whole numbers for these new Sections, it would have been necessary to renumber all of the remaining<br>Sections in the Act each time a new Section was added.<br>Type: ES<br>Topic: The ITA &amp; income tax reference materials<br>12) What purposes are served by Canada&#8217;s international tax treaties?<br>Answer: The purposes of these treaties are as follows:<\/li>\n\n\n\n<li>They impose measures on countries to avoid double taxation where a person is liable for income tax on<br>the same income in both countries<\/li>\n\n\n\n<li>They tare used to create an exchange of information for the purposes of combatting tax evasion.<br>Type: ES<br>Topic: International &#8211; income tax treaties<\/li>\n<\/ul>\n\n\n\n<p>4<br>13) List four non-legislative sources of income tax information.<br>Answer: The required four items can be selected from the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CRA Web Site<\/li>\n\n\n\n<li>Interpretation Bulletins<\/li>\n\n\n\n<li>Income Tax Folios<\/li>\n\n\n\n<li>Information Circulars<\/li>\n\n\n\n<li>Income Tax Technical News<\/li>\n\n\n\n<li>CRA News Releases, Tax Tips, and Fact Sheets<\/li>\n\n\n\n<li>CRA Guides<\/li>\n\n\n\n<li>Advance Income Tax Rulings<\/li>\n\n\n\n<li>Technical Interpretations<br>Type: ES<br>Topic: The ITA &amp; income tax reference materials<br>14) What is the meaning of &#8220;taxation year&#8221; as the expression is used in the ITA?<br>Answer: For individuals and trusts (except graduated rate estates), the taxation year is the calendar year<br>of January 1 to December 31. In contrast, the taxation year for corporations are defined in terms of a fiscal<br>period which generally relates to a business. A fiscal period can end on any date, with the only constraint<br>being that it cannot exceed 53 weeks. Graduated rate estates are permitted to use a non-calendar taxation<br>year.<br>Type: ES<br>Topic: Definition &#8211; &#8220;Taxation Year&#8221; ITA 249<br>15) Under what circumstances will a person who is not resident in Canada be liable for Canadian income<br>tax?<br>Answer:<\/li>\n\n\n\n<li>The non-resident person earns employment income in Canada.<\/li>\n\n\n\n<li>The non-resident person carries on a business in Canada.<\/li>\n\n\n\n<li>The non-resident person has a gain on the disposal of taxable Canadian property.<br>Type: ES<br>Topic: Non-resident liability for income tax<br>16) What is the importance of residence in Canadian income taxation?<br>Answer: As stated in the text, residence is the cornerstone of Canadian income taxation. If a person is<br>considered a resident of Canada in a given year, that person will be subject to Canadian income tax for<br>that year on all sources of income. Alternatively, if the person is a non-resident, Canadian Part I tax will<br>only apply to Canadian employment income, Canadian business income, and gains on the disposition of<br>Taxable Canadian Property.<br>Type: ES<br>Topic: Residency &#8211; general concepts<br>17) When an individual leaves Canada, the CRA may take the position that the individual has retained<br>Canadian residence status. What are the three primary factors that the CRA considers in determining<br>whether an individual has, in fact, ceased to be a resident of Canada?<br>Answer: As stated in S5-F1-C1, the primary factors that will be considered by the CRA are as follows:<\/li>\n\n\n\n<li>Whether the individual is continuing to maintain a dwelling in Canada.<\/li>\n\n\n\n<li>Whether the spouse or common-law partner of the individual remains in Canada.<\/li>\n\n\n\n<li>Whether the individual has dependants who remain in Canada.<br>Type: ES<br>Topic: Residential ties<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>1Byrd &amp; Chen&#8217;s Canadian Tax Principles 2022 &#8211; 2023 1st editionVolume 1 Test BankCanadian Tax Principles, 2022-2023 (Byrd\/Chen)Chapter 1 Introduction to Federal Taxation in Canada1.1 Online Exercises1) The major source of federal revenues is the personal income tax. Indicate three other types of taxes thatcontribute to federal revenues.Answer: The other sources of federal revenues that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-115525","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/115525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=115525"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/115525\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=115525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=115525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=115525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}