دانلود کتاب Canadian Tax Principles

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Byrd & Chen’s Canadian Tax Principles 2020–2021 Edition, Volume I Copyright Contents Preface Acknowledgments CHAPTER 1: Introduction To Federal Taxation In Canada The Canadian Tax System Alternative Tax Bases Taxable Entities In Canada Federal Taxation And The Provinces Tax Policy Concepts Taxation And Economic Policy Taxation And Income Levels Tax Incidence Tax Expenditures Qualitative Characteristics Of Tax Systems Income Tax Reference Materials Introduction The Income Tax Act Other Income Tax Legislation Other Sources Of Income Tax Information Liability For Part I Income Tax Background Charging Provision For Canadian Residents Charging Provision For Non-Residents Residence Importance Residence Of Individuals Residence Of Corporations Residence Of Trusts Alternative Concepts Of Income The Economist’s View The Accountant’s View The Income Tax Act View Net Income For Tax Purposes Structure Components Combining The Components - ITA Section 3 Loss Carry Overs Net Income For Tax Purposes - Example Net Income To Taxable Income Principles Of Tax Planning Introduction Tax Avoidance Or Reduction Tax Deferral Income Splitting Abbreviations To Be Used Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 2: Procedures And Administration Introduction Administration Of The Department Returns And Payments - Individuals Requirement To File - ITA 150 Due Date For Individual Returns Withholdings For Income Tax - ITA 153 Instalment Payments For Individuals - ITA 156 Interest Penalties Due Date For Balance Owing - Living Individuals Deceased Taxpayers - Balance Due Dates And Final Returns Returns And Payments - Corporations Due Date For Corporate Returns - ITA 150 Filing Alternatives For Corporations Instalment Payments For Corporations Due Date For Balance Owing - Corporations Interest And Penalties For Corporations Returns And Payments - Trusts Types Of Trusts Filing Requirements Due Dates For Returns Payment Of Taxes Interest And Penalties Income Tax Information Returns Books And Records Assessments And The CRA My Account Service CRA Website - My Account Service Notice Of Assessment Notice Of Reassessment Refunds Adjustments To Income Tax Returns Disputes And Appeals Representation By Others Informal Request For Adjustments Notice Of Objection Tax Court Of Canada Federal Court And Supreme Court Of Canada Tax Evasion, Avoidance, And Planning Tax Evasion Tax Avoidance And Tax Planning General Anti-Avoidance Rule (GAAR) Collection And Enforcement Taxpayer Property Collections Other Penalties Taxpayer Relief Provisions Fairness Package Voluntary Disclosure Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 3: Income Or Loss From An Office Or Employment Employment Income Defined General Rules Cash Basis And The Use Of Bonus Arrangements Net Concept Employee Versus Self-Employed Introduction Employee Perspective Employer Perspective Making The Distinction Inclusions - Employee Benefits Basic Concepts Inclusions - Salaries And Wages Inclusions - Non-Salary Benefits Introduction Legislative Guidance Non-Legislative Guidance Tax Planning Considerations Inclusions - GST/HST/PST On Taxable Benefits Inclusions - Automobile Benefits Employees And Automobiles Taxable Benefits - Standby Charge Operating Cost Benefit Payments By Employee For Automobile Use Summary Of Automobile Benefit Calculations Example - Employer Owned Automobile Example - Employer Leased Vehicle Employer Provided Cars And Tax Planning Inclusions - Allowances Allowance Vs. Reimbursement General Rules Taxable Vs. Non-Taxable Allowances Reasonable Allowances For Motor Vehicles Employer’s Perspective Of Allowances Employee’s Perspective Of Allowances Inclusions - Employee Insurance Benefits Life Insurance Disability Insurance (a.k.a. Group Sickness Or Accident Insurance Plans) Loans To Employees General Rules Tax Planning For Interest Free Loans Inclusions - Stock Option Benefits The Economics Of Stock Option Arrangements Overview Of The Tax Rules CCPCs Vs. Public Companies Rules For Public Companies Rules For Canadian Controlled Private Corporations (CCPCs) Other Inclusions Payments By Employer To Employee Forgiveness Of Employee Loans Housing Loss Reimbursement Discounts On Employer’s Merchandise Specific Deductions Overview Salesperson’s Expenses Under ITA 8(1)(f) Travel Expenses And Motor Vehicle Costs Under ITA 8(1)(h) and 8(1)(h.1) The Salesperson’s Dilemma Other Expenses Of Performing Duties Under ITA 8(1)(i) Automobile And Aircraft Expenses Under ITA 8(1)(j) Work Space In The Home Costs For Employees Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 4: Taxable Income And Tax Payable For Individuals Introduction Taxable Income Of Individuals Available Deductions Ordering Of Deductions Deductions For Payments - ITA 110(1)(f) Northern Residents Deductions - ITA 110.7 Calculation Of Tax Payable Federal Tax Payable Before Credits Provincial Tax Payable Before Credits Types Of Income Taxes On Income Not Earned In A Province Calculating Tax Credits Federal Amounts Provincial Amounts Personal Tax Credits - ITA 118(1) Basic Personal Amount (BPA) - ITA 118(1.1) Individuals With A Spouse Or Common-Law Partner - ITA 118(1)(a) Individuals Supporting A Dependent Person - ITA 118(1)(b) Canada Caregiver Amount For Child - ITA 118(1)(b.1) Single Persons (Basic Personal Tax Credit) - ITA 118(1)(c) Canada Caregiver Tax Credit - ITA 118(1)(d) Other Tax Credits For Individuals Age Tax Credit - ITA 118(2) Pension Income Tax Credit - ITA 118(3) Canada Employment Tax Credit - ITA 118(10) Adoption Expenses Tax Credit - ITA 118.01 Digital News Subscriptions Credit - ITA 118.02 Home Accessibility Tax Credit - ITA 118.041 First-Time Home Buyer’s Tax Credit - ITA 118.05 Volunteer Firefighters And Volunteer Search And Rescue Workers Tax Credits - ITA 118.06 And 118.07 Charitable Donations Tax Credit - ITA 118.1 Medical Expense Tax Credit - ITA 118.2 Disability Tax Credit - ITA 118.3 Education Related Tax Credits Employment Insurance (EI) And Canada Pension Plan (CPP) Tax Credits - ITA 118.7 Overpayment Of EI Premiums And CPP Contributions Transfers To A Spouse Or Common-Law Partner - ITA 118.8 Political Contributions Tax Credits - ITA 127(3) Labour Sponsored Venture Capital Corporations Credit - ITA 127.4 Dividend Tax Credit Foreign Tax Credits Investment Tax Credits Refundable Credits Introduction GST/HST Credit - ITA 122.5 Refundable Medical Expense Supplement - ITA 122.51 Canada Workers Benefit - ITA 122.7 (Formerly Working Income Tax Benefit) Refundable Teacher And Early Childhood Educator School Supply Tax Credit - ITA 122.9 Climate Action Incentive Payments Canada Training Credit - ITA 122.91 Social Benefits Repayment (OAS And EI) Basic Concepts Employment Insurance (EI) Benefits Clawback Old Age Security (OAS) Benefits Clawback Comprehensive Example Key Terms Used In This Chapter References Sample Tax Return And Tax Software SS Problem Problems For Self Study (Online) Assignment Problems Tax Software Assignment Problems CHAPTER 5: Capital Cost Allowance Note On Eligible Capital Expenditures Capital Cost Allowance System General Rules Tax And Accounting Procedures Compared Additions To Capital Cost Determination Of Amounts Available For Use Rules Segregation Into Classes Capital Cost Allowances General Overview Rates For Commonly Used CCA Classes Half-Year Rules (a.k.a. First Year Rules) Accelerated Investment Incentive (AccII) Zero Emission Vehicles Short Fiscal Periods Class 14.1 Tax Planning Considerations For CCA Dispositions Of Depreciable Assets Overview Of Procedures Capital Gains Recapture Of Capital Cost Allowance Terminal Losses Dispositions Of Class 54 Assets (Zero Emission Vehicles) Dispositions Of Class 14.1 – Differences From Other Classes Summary Of Disposition Tax Consequences CCA Schedule CCA Determination - Special Situations Separate Class Election Change In Use For Automobiles Other Special Situations Key Terms Used In This Chapter References Appendix - CCA Rates For Selected Assets Problems For Self Study (Online) Assignment Problems CHAPTER 6: Income Or Loss From A Business Overview Classification Of Income Business Income Vs. Property Income Tax Consequences Of Classification Business Income Defined Property Income Defined Business Income Vs. Capital Gains Tax Consequences Of Classification Capital Gains Defined Criteria For Identifying Capital Gains Business Income And GAAP Business Income - Inclusions (Revenues) Inclusions In Business Income -Income Tax Act Provisions Amounts Received And Receivable Reserves Other Inclusions Limitations On Deductions From Business And Property Income General Approach - Restrictions In ITA 18 Through ITA 19.1 Specific Limiting Items Under ITA 18 Foreign Media Advertising - ITA 19 And 19.1 Limitations On Deductions From Business, Property, And Employment Income Introduction Reasonableness Meals And Entertainment “Luxury” Automobile Costs Automobiles Owned By The Taxpayer Automobile Leasing Costs - ITA 67.3 Leasing Property Illegal Payments, Fines And Penalties - ITA 67.5 And 67.6 Business Income - Specific Deductions Inventory Valuation (Cost Of Sales) Other Deductions Reconciliation Schedule Business Income - Example Example Data Example Analysis Taxation Year General Rules Unincorporated Businesses - Non-Calendar Fiscal Year Special Business Income Situations Income For Farmers Professional Income (Billed Basis Of Recognition) Sale Of A Business Scientific Research And Experimental Development Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 7: Income From Property Introduction Property Income: General Concept Interest As A Deduction The Problem IT Folio S3-F6-C1 “Interest Deductibility” What Is Interest? Legislation Borrowed To Produce Income Direct Or Indirect Use Discount And Premium On Long Term Issued Debt Interest Income General Provision Corporations And Partnerships - Full Accrual Method Individuals - Modified Accrual Method Discount And Premium On Long Term Debt Holdings Accrued Interest At Transfer Payments Based On Production Or Use (Royalties) Rental Income General Rules Capital Cost Allowances Rental Income Example Cash Dividends From Taxable Canadian Corporations The Concept Of Integration Implementing Integration Gross Up And Tax Credit Procedures-Eligible Dividends Gross Up And Tax Credit Procedures-Non-Eligible Dividends Income Trusts How Do Trusts Work? Investments In Publicly Traded Trusts Taxation Of Real Estate Investment Trusts (REITs) Mutual Funds Objective Organization Distributions Adjusted Cost Base Other Types Of Dividends Capital Dividends Stock Dividends Foreign Source Income General Rules Foreign Non-Business (Property) Income Foreign Business Income Shareholder Benefits Tax Credits Revisited Dividend Tax Credits Foreign Income Tax Credits Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 8: Capital Gains And Capital Losses Economic Background Capital Assets And Income Taxation Policy Lifetime Capital Gains Deduction Changes In The Inclusion Rate General Rules Capital Gains In The Income Tax Act Capital Gains Defined Dispositions Proceeds Of Disposition Adjusted Cost Base Calculating The Capital Gain Or Loss Detailed Application Of The Rules Identical Properties Partial Dispositions Warranties On Capital Assets Capital Gains Reserves Bad Debts On Sales Of Capital Property Special Rule For Sales Of Real Property Provisions For Special Assets Principal Residence Personal Use Property Listed Personal Property Gains And Losses On Foreign Currency Options - ITA 49 Deemed Dispositions - Change In Use General Rules Business To Personal Use Personal To Business Use Example - Change In Use Special Rules For Principal Residences Special Rules For Automobiles Deemed Dispositions - Departures From Canada Deferral Provisions On Small Business Investments Basic Provision Definitions Example Deferral Provisions On Replacement Property The Problem Voluntary And Involuntary Dispositions Timing Considerations Application Of ITA 44(1) To Capital Gains Application Of ITA 13(4) To Recapture Of CCA Combined Application Of ITA 13(4) And 44(1) Capital Gains And Tax Planning Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 9: Other Income, Other Deductions, And Other Issues Introduction Coverage Of Chapter 9 Other Income - Subdivision d Inclusions Pension Benefits - ITA 56(1)(a)(i) Retiring Allowances - ITA 56(1)(a)(ii) Death Benefits - ITA 56(1)(a)(iii) Income Inclusions From Deferred Income Plans -ITA 56(1)(h), (h.1), (h.2), (i), and (t) Scholarships And Prizes - ITA 56(1)(n) Research Grants - ITA 56(1)(o) Social Assistance And Workers’ Compensation Payments - ITA 56(1)(u) And (v) Other Deductions - Subdivision e Deductions CPP Contributions On Self-Employed Earnings - ITA 60(e) and ITA 60(e.1) Moving Expenses - ITA 62 Child Care Expenses - ITA 63 Disability Supports Deduction - ITA 64 Related Inclusions And Deductions Introduction Employment Insurance Benefits - ITA 56(1)(a)(iv) And 60(n) Pension Income Splitting - ITA 56(1)(a.2) And 60(c) Spousal And Child Support - ITA 56(1)(b) And 60(b) Annuity Payments Received - ITA 56(1)(d) And 60(a) Registered Savings Plans Introduction Tax Free Savings Accounts (TFSAs) Registered Education Savings Plans (RESPs) Registered Disability Savings Plans (RDSPs) Non-Arm’s Length Transfers Of Property Introduction Inadequate Considerations - ITA 69 Inter Vivos Transfers To A Spouse - ITA 73(1) And 73(1.01) Non-Arm’s Length Transfers Of Depreciable Assets - ITA 13(7)(e) Inter Vivos Transfer Of Farm Or Fishing Property To A Child Death Of A Taxpayer Income Attribution The Problem Basic Rules - ITA 74.1(1) And (2) Avoiding Income Attribution Income Attribution - Other Related Parties Anti-Avoidance Provisions Tax Planning And Income Attribution Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 10: Retirement Savings And Other Special Income Arrangements Planning For Retirement Introduction Providing Consistency Tax Deferred Savings Defined Benefit Vs. Money Purchase Plans Registered Retirement Savings Plans (RRSPs) Basic Operations RRSP Deduction Limit Examples Of RRSP Deduction Calculations Undeducted RRSP Contributions RRSP And RRIF Administration Fees RRSP Withdrawals And Voluntary Conversions Involuntary Termination Due To Age Limitation Spousal RRSP Home Buyers’ Plan (HBP) Lifelong Learning Plan (LLP) Departure From Canada Death Of The RRSP Registrant Registered Pension Plans (RPPs) Establishing An RPP Employer Contributions To The RPP Employee Contributions To The RPP Options At Retirement Phased Retirement Inadequate Retirement Savings Registered Retirement Income Funds (RRIFs) Establishment RRIF Withdrawals Death Of The RRIF Registrant Evaluation Of RRIFs Deferred Profit Sharing Plans General Rules Tax Planning Profit Sharing Plans General Rules Part XI.4 Tax On Excess PSP Contributions Transfers Between Plans Accumulated Benefits Retiring Allowances Retirement Compensation Arrangements The Problem Arrangements Defined Part XI.3 Refundable Tax Salary Deferral Arrangements The Problem The Solution Individual Pension Plans (IPPs) Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems Index Byrd & Chen’s Canadian Tax Principles 2020–2021 Edition, Volume II Copyright Contents Preface CHAPTER 11 : Taxable Income And Tax Payable For Individuals Revisited Introduction The Problem Our Solution Taxable Income Overview Lump Sum Payments The Problem Treatment Of Losses Carry Over Provisions Personal Use Property Losses Listed Personal Property Losses Non-Capital Losses Net Capital Losses Net Capital Losses At Death Allowable Business Investment Losses Farm Losses Lifetime Capital Gains Deduction Background Current And Future Limits Qualified Property Determining The Deductible Amount Comprehensive Example Ordering Of Deductions And Losses Significance Of Ordering Ordering In Computing Net Income For Tax Purposes Ordering In Computing Taxable Income Example Tax Payable Overview General Basic Federal Tax Payable Tax On Split Income (TOSI) A Note Of Caution Background Determining Applicability Excluded Amounts Calculation Of The Tax Tax Credits Revisited Transfer Of Dividends To A Spouse Or Common-Law Partner Charitable Donations Credit Revisited – Introduction Foreign Tax Credits Revisited Alternative Minimum Tax General Concept Minimum Tax Calculation Tax Credits For AMT AMT Carry Forward - ITA 120.2 Sample Comprehensive Personal Tax Return Key Terms Used In This Chapter References Appendix - Returns For Deceased Taxpayers Special Rules At Death Representation Procedures For Specific Returns Filing Requirements Use Of Deductions And Credits Payment Of Taxes Sample Tax Return and Tax Software SS Problem Problems For Self Study (Online) Assignment Problems Tax Software Assignment Problems CHAPTER 12: Taxable Income And Tax Payable For Corporations Recent Developments In Corporate Taxation Small Business Deduction Rate Tax Planning By Private Corporations Computation Of Net Income Computation Of Taxable Income Deductions Available To Corporations Dividends From Other Corporations Non-Capital Loss Carry Over For A Corporation Ordering Of Taxable Income Deductions Geographical Allocation Of Income Permanent Establishments Activity At Permanent Establishments Example - Permanent Establishments Federal Tax Payable Basic Rate Federal Tax Abatement General Rate Reduction Provincial Tax Payable General Rules General Rate Manufacturing And Processing Rate Small Business Rate Investment Income Rates Other Provincial Taxes Other Goals Of The Corporate Tax System Small Business Deduction Introduction Canadian Controlled Private Corporation (CCPC) Active Business Income Annual Business Limit Allocation Among Associated Companies Calculating The Small Business Deduction Annual Business Limit Reduction Personal Services Corporations Professional Corporations And Management Companies Manufacturing And Processing Profits Deduction Introduction Calculating The Deduction Eligibility M&P Profits Defined General Rate Reduction - ITA 123.4(2) Approach To Rate Reductions Full Rate Taxable Income Application To Companies Other Than CCPCs Application To CCPCs Foreign Tax Credits For Corporations Introduction Calculation Of Foreign Tax Credits Refundable Journalism Labour Tax Credit Described Definitions - ITA 125.6 Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 13: Taxation Of Corporate Investment Income Note On Current Developments Integration The Basic Concept Eligible Vs. Non-Eligible Dividends Rates Required For Integration Refundable Taxes On Investment Income Meaning Of Aggregate Investment Income Basic Concepts Refundable Part I Tax On Investment Income Additional Refundable Tax On Investment Income (ART) Problem One: Excessive Tax Rates On The Flow Through Of A CCPC’s Investment Income Solution To Problem One: Refundable Portion Of Part I Tax Refundable Part IV Tax On Dividends Received Problem Two: Use Of Multi-Level Affiliations To Defer Taxes On Investment Income Solution To Problem Two: Refundable Part IV Tax Part IV Tax On Portfolio Dividends Received Dividends From A Connected Corporation Dividends Paid Out Of Mixed Income Of A Connected Corporation Other Part IV Tax Considerations Designation Of Eligible Dividends Basic Concepts CCPCs And Their GRIP Non-CCPCs And Their LRIP Part III.1 Tax On Excessive Eligible Dividend Designations A Final Word On Eligible Dividends Refundable Dividend Tax On Hand (RDTOH) Background Transitional Provision Part IV Tax Payable Refundable Part I Tax Payable RDTOH Balances Defined The Dividend Refund Economic Impact Of Changes Example Of RDTOH Calculations Working Through Large Corporate Tax Problems Key Terms Used In This Chapter References Sample Corporate Tax Return For Chapter 13 Problems For Self Study (Online) Assignment Problems CHAPTER 14: Other Issues In Corporate Taxation Introduction Acquisition Of Control Rules Economic Background Acquisition Of Control Legislation Deemed Year End Restrictions On The Use Of Losses Unrecognized Losses At Deemed Year End Deemed Disposition Election Associated Companies The Problem Definitions Examples - Associated Corporation Rules Investment Tax Credits Background Procedures Eligible Expenditures Rates Refundable Investment Tax Credits Carry Overs Of Investment Tax Credits Effect Of Acquisition Of Control On Investment Tax Credits Tax Basis Shareholders’ Equity Shareholders’ Equity Under GAAP Paid Up Capital (Tax Basis Contributed Capital) Tax Basis Retained Earnings Capital Dividend Account (CDA) Distributions Of Corporate Surplus Introduction Regular Cash Dividends Stock Dividends Dividends In Kind Capital Dividends Under ITA 83(2) Deemed Dividends Under ITA 84(1) -Increase In PUC Deemed Dividends Under ITA 84(2) -On Winding-Up Deemed Dividends Under ITA 84(3) -On Redemption, Acquisition, Or Cancellation Of Shares Deemed Dividends Under ITA 84(4) And ITA 84(4.1) Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems Tax Software Assignment Problem CHAPTER 15: Corporate Taxation And Management Decisions The Decision To Incorporate Basic Tax Considerations Other Advantages And Disadvantages Tax Reduction And Deferral Approach Basic Example Public Corporation CCPC - Active Business Income CCPC - Investment Income Other Than Dividends CCPC - Dividend Income Conclusions On Tax Reductions And Deferrals Provincial Taxes And Integration Introduction Tax Deferral Tax Reduction Examples - Effects Of Provincial Rates On Integration Summary: Tax Deferral And Tax Reduction Tax Free Dividends Tax Rates On Dividends Use Of Tax Credits Tax Free Amounts For 2020 Income Splitting Basic Concept Shareholder Benefits Including Loans The Owner-Manager Environment Shareholder Benefits Other Than Loans Shareholder Loans Management Compensation General Principles Salary Vs. Dividends Salary Vs. Dividends For The Owner-Manager The Basic Trade-Off Other Considerations Conclusion Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 16: Rollovers Under Section 85 Rollovers Under Section 85 Introduction General Rules For The Transfer Transferor And Transferee Eligible Property Consideration To Transferor Making The Election Selecting The Transfer Price Transfer Prices - Detailed Rules Rules Applicable To All Assets Accounts Receivable Inventories And Non-Depreciable Capital Property Non-Depreciable Capital Property -Disallowed Capital Losses Depreciable Property Depreciable Property – Disallowed Terminal Losses Summary Of Transfer Price Rules Allocation Of The Elected Value Consideration Received By The Transferor (Shareholder) Assets Acquired By The Corporation Paid Up Capital (PUC) Of Shares Issued General Rules Paid Up Capital Reduction More Than One Class Of Shares Comprehensive Example - Section 85 Rollovers Basic Information Excluded Assets Implementing The Election Gift To Related Party - Section 85 General Rules Example Excess Consideration - Section 85 Introduction Shareholder Benefit - ITA 15(1) Dividend Stripping — ITA 84.1 Background Applicability Of ITA 84.1 Dividend Stripping Example Capital Gains Stripping — ITA 55(2) The Problem Application Of ITA 55(2) Capital Gains Stripping - Example One Capital Gains Stripping - Example Two Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 17: Other Rollovers And Sale Of An Incorporated Business Introduction Share For Share Exchanges - ITA 85.1 Background General Rules Conditions For The Application Of ITA 85.1 Example Exchange Of Shares In A Reorganization - ITA 86 Application Of ITA 86(1) Conditions For The Reorganization Procedures Example Using ITA 86(1) In An Estate Freeze Gift To Related Person - ITA 86(2) Using ITA 86(1) - Tax Planning Considerations Amalgamations - ITA 87 The Nature Of An Amalgamation Position Of The Amalgamated Company Position Of The Shareholders Vertical Amalgamations Asset Bump-Ups Non-Tax Considerations Amalgamations - Tax Planning Considerations Winding-Up Of A 90 Percent Owned Subsidiary The Nature Of A Winding-Up Acquisition Of Assets Disposition Of Shares Tax Planning Considerations - Amalgamation Vs. Winding-Up Winding-Up Of A Canadian Corporation The Nature Of The Transaction Example Convertible Properties Application Other Considerations Sale Of An Incorporated Business Alternatives Restrictive Covenants (a.k.a. Non-Competition Agreements) Sale Of Individual Assets Sale Of Assets As A Going Concern Sale Of Shares Evaluation Of Alternatives Example Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 18: Partnerships Introduction Taxable Entities In Canada Chapter Coverage Partnerships Defined The Importance Of Defining A Partnership Basic Partnership Elements Types Of Partnerships Co-Ownership, Joint Ventures, And Syndicates Introduction Co-Ownership Joint Ventures Syndicates Partnership Income, Losses, And Tax Credits Introduction Applicable Concepts Calculating The Amounts To Be Allocated Methods Of Allocation The Partnership Interest The Concept Acquiring A Partnership Interest Adjusted Cost Base Of The Partnership Interest Disposition Of A Partnership Interest Limited Partnerships And Limited Partners Definitions At-Risk Rules Transfer Of Property To And From A Partnership Definition Of Canadian Partnership Transfers With No Rollover Provision Common Partnership Rollovers Specified Investment Flow Through Partnerships Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 19: Trusts And Estate Planning Introduction Basic Concepts What Is A Trust? Establishing A Trust Returns And Payments - Trusts Non-Tax Reasons For Using Trusts Classification Of Trusts Introduction Personal Trusts Testamentary Trusts Inter Vivos Trusts Taxation Of Trusts Taxation Year The Basic Taxation Model Rollovers To A Trust Rollovers To Capital Beneficiaries 21 Year Deemed Disposition Rule Other Deemed Dispositions Net Income For Tax Purposes Of A Trust Basic Rules Preferred Beneficiary Election Amounts Deemed Not Paid Amounts Retained For A Beneficiary Under 21 Years Of Age Taxable Income Of A Trust Income Allocations To Beneficiaries General Rules Discretionary And Non-Discretionary Distributions Flow Through Provisions Principal Residence Exemption Tax Payable Of Personal Trusts Calculation Of Basic Amount Other Tax Payable Considerations Income Attribution - Trusts General Rules Attribution To Settlor (Reversionary Trust) Purchase Or Sale Of An Interest In A Trust Income Interest Capital Interest Tax Planning Family Trusts Qualifying Spousal Or Common-Law Partner Trusts Alter Ego Trusts Joint Spousal Or Joint Common-Law Partner Trusts Estate Planning Non-Tax Considerations Tax Considerations Estate Freeze Objectives Of An Estate Freeze Techniques Not Involving Rollovers Section 86 Share Exchange Rollover Provisions - Section 85 vs. Section 86 SIFT Partnerships And Trusts Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 20: International Issues In Taxation Introduction Subjects Covered The Role of International Tax Treaties Part I Tax On Non-Residents Introduction Carrying on Business in Canada Canadian Source Employment Income Dispositions of Taxable Canadian Property Part XIII Tax On Non-Residents Introduction Interest Payments Dividend Payments Royalty Payments Rental Income Pension Payments And Other Retirement Related Benefits Shareholder Loans To Non-Residents Immigration And Emigration Entering Canada - Immigration Departures From Canada - Emigration Unwinding A Deemed Disposition Short-Term Residents Foreign Source Income Of Canadian Residents Introduction Foreign Investment Reporting Requirements Foreign Source Employment Income Foreign Source Business Income (Unincorporated Sources) Foreign Source Interest Income Foreign Source Capital Gains Foreign Source Dividend Income - Problems Foreign Source Dividends Received By Individuals Foreign Dividends Received From Non-Affiliated Corporations Dividends Received From Non-Controlled Foreign Affiliates Dividends Received From Controlled Foreign Affiliates Foreign Accrual Property Income (FAPI) Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 21: GST/HST Introduction Background The Current Situation How This Text Deals With This Complexity Transaction Tax Concepts General Description Types Of Transaction Taxes Liability For GST/HST Basic Charging Provision The Concept Of Supply Supply Categories Taxable Supplies Exempt Supplies Applying The GST/HST Rate Place Of Supply Applying The Rate Collection And Remittance Of GST/HST Registration Meaning Of Person For GST/HST Who Must Register Exemption For Non-Residents Exemption For Small Suppliers Input Tax Credits Vendors Of Fully Taxable And Zero-Rated Supplies Vendors Of Exempt Supplies Accounting vsIncome Tax vs. GST/HST Example One - Fully Taxable And Zero-Rated Supplies Example Two - Fully Taxable And GST Exempt Supplies Relief For Small Businesses Quick Method Of Accounting Small Suppliers Exemption Simplified Input Tax Credit Method GST/HST Procedures And Administration GST/HST Returns And Payments Associated Persons Refunds And Rebates Books And Records Appeals General Anti-Avoidance Rule Employee And Partner GST/HST Rebate General Concept Calculating The GST/HST Rebate Amount Example Residential Property And New Housing Rebate General Rules For Residential Property New Housing Rebate Sale Of A Business Sale Of Assets Sale Of Shares Other Situations Specific Applications Partnerships And GST/HST General Rules Partner Expenses Disposition Of A Partnership Interest Transfers Between Partners And Partnerships Reorganization Of The Partnership Trusts And GST/HST Key Terms Used In This Chapter Problems For Self Study (Online) Assignment Problems Index Byrd & Chen’s Canadian Tax Principles 2020–2021 Edition (Study Guide) Copyright Contents Preface CHAPTER 1 Chapter 1 Learning Objectives How to Work Through Chapter 1 Solutions to Chapter 1 Exercises CHAPTER 2 Chapter 2 Learning Objectives How to Work Through Chapter 2 Solutions to Chapter 2 Exercises CHAPTER 3 Chapter 3 Learning Objectives How to Work Through Chapter 3 Solutions to Chapter 3 Exercises CHAPTER 4 Chapter 4 Learning Objectives How to Work Through Chapter 4 Sample Personal Tax Return For Chapter 4 Suggestions For Working With ProFile Software Tax Software Self Study Problem - Chapter 4 Solutions to Chapter 4 Exercises Solution to Tax Software Self Study Problem - Chapter 4 CHAPTER 5 Chapter 5 Learning Objectives How to Work Through Chapter 5 Solutions to Chapter 5 Exercises CHAPTER 6 Chapter 6 Learning Objectives How to Work Through Chapter 6 Solutions to Chapter 6 Exercises CHAPTER 7 Chapter 7 Learning Objectives How to Work Through Chapter 7 Solutions to Chapter 7 Exercises CHAPTER 8 Chapter 8 Learning Objectives How to Work Through Chapter 8 Solutions to Chapter 8 Exercises CHAPTER 9 Chapter 9 Learning Objectives How to Work Through Chapter 9 Solutions to Chapter 9 Exercises CHAPTER 10 Chapter 10 Learning Objectives How to Work Through Chapter 10 Solutions to Chapter 10 Exercises CHAPTER 11 Chapter 11 Learning Objectives How to Work Through Chapter 11 Sample Personal Tax Return For Chapter 11 Tax Software Self Study Problem - Chapter 11 Solutions to Chapter 11 Exercises Solution to Tax Software Self Study Problem - Chapter 11 CHAPTER 12 Chapter 12 Learning Objectives How to Work Through Chapter 12 Solutions to Chapter 12 Exercises CHAPTER 13 Chapter 13 Learning Objectives How to Work Through Chapter 13 Sample Corporate Tax Return Solutions to Chapter 13 Exercises CHAPTER 14 Chapter 14 Learning Objectives How to Work Through Chapter 14 Solutions to Chapter 14 Exercises CHAPTER 15 Chapter 15 Learning Objectives How to Work Through Chapter 15 Solutions to Chapter Fifteen Exercises CHAPTER 16 Chapter 16 Learning Objectives How to Work Through Chapter 16 Solutions to Chapter 16 Exercises CHAPTER 17 Chapter 17 Learning Objectives How to Work Through Chapter 17 Solutions to Chapter 17 Exercises CHAPTER 18 Chapter 18 Learning Objectives How to Work Through Chapter 18 Solutions to Chapter 18 Exercises CHAPTER 19 Chapter 19 Learning Objectives How to Work Through Chapter 19 Solutions to Chapter Nineteen Exercises CHAPTER 20 Chapter 20 Learning Objectives How to Work Through Chapter 20 Solutions to Chapter 20 Exercises CHAPTER 21 Chapter 21 Learning Objectives How to Work Through Chapter 21 Solutions to Chapter 21 Exercises Glossary