1 answer

PROBLEM TWO o what extent, if any, are the following individuals or corporations liable for tax...

Question:

PROBLEM TWO o what extent, if any, are the following individuals or corporations liable for tax in Canada? 1. An individual who lives and works in Canada received an inheritance from an uncle in France. The inheritance consists of shares, bonds, and French real estate. During the year, the investments generated interest, dividends, and rents, which were retained in France and reinvested. 2. A large corporation based in Alabama operates a branch in Winnipeg that employs Canadian staff, holds a supply of inventory, and sells to the Canadian market. 3. An American citizen, who normally resides in New York and has extensive American income, for health reasons takes an extended vacation of six-and-a-half months in Banff, Alberta, in the current calendar year. 4. A Manitoba corporation is controlled and managed by its British parent corporation. 5. A Canadian individual, who is a student at the University of Saskatchewan, earns income during the summer by operating a street-vending unit in Boulder, Colorado. 6. An individual has been employed in Canada by a large Canadian corporation. He accepts a transfer to manage, on a permanent basis, the corporations operations irn Denver, Colorado. He leaves Canada with his family on March 31, 20XO. 7. An individual who resides in England receives annual dividend income from an invest- ment in a Canadian corporation.
PROBLEM TWO o what extent, if any, are the following individuals or corporations liable for tax in Canada? 1. An individual who lives and works in Canada received an inheritance from an uncle in France. The inheritance consists of shares, bonds, and French real estate. During the year, the investments generated interest, dividends, and rents, which were retained in France and reinvested. 2. A large corporation based in Alabama operates a branch in Winnipeg that employs Canadian staff, holds a supply of inventory, and sells to the Canadian market. 3. An American citizen, who normally resides in New York and has extensive American income, for health reasons takes an extended vacation of six-and-a-half months in Banff, Alberta, in the current calendar year. 4. A Manitoba corporation is controlled and managed by its British parent corporation. 5. A Canadian individual, who is a student at the University of Saskatchewan, earns income during the summer by operating a street-vending unit in Boulder, Colorado. 6. An individual has been employed in Canada by a large Canadian corporation. He accepts a transfer to manage, on a permanent basis, the corporation's operations irn Denver, Colorado. He leaves Canada with his family on March 31, 20XO. 7. An individual who resides in England receives annual dividend income from an invest- ment in a Canadian corporation.

Answers

1) An Individual is a Resident and works in Canada.So, He is liable to pay tax With Holding any Gift Received from The Party Is taxable but The inheritance consists of shares ans investments.these generate the Revenue in the form of Interest and Dividends .Including these Funds also Reinvested by Individual.So,Finally it is not Treated as a gift then it is taxable.

2) The Company Operates Branch in the Winnipeg then it is liable to pay tax to canada Government because the operations and revenue are generated in the canada and it is a resident .Compulsory Corporation Paid tax to Government

3) As per Income Tax rules of canada,If a person takes an extended vacation in canada because of health reasons there is no Liable to Pay tax to the canada Government,he is also an US Citizen it is Specially Mention in the Canada Income Tax.

4) If the Control and managed by the British Based organisation,the Business Runs in the Canada and it is a seperate legal entity then the organisation is liable to pay the Tax.

5)In this Case, Individual is a resident but income earned in United states and as per canadian Government the Individual Is liable to Pay Tax Because of his resident

6) He is resident upto the period so he is liable to pay tax upto the preceding Financial Year and file the income tax return in canada and also liable to pay tax regarding the year 20X0 Also

7) He is not liable to pay the tax to the candian Government because he is non Resident and eaning income from the investments and plac eof receiving also England.

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