Question

1.   For a public corporation, which of the following statements is correct with respect to filing a notice of objection?

A. It must be filed no later than 180 days from the date on the notice of assessment.

B.   It must be filed the later of 90 days after the date on the notice of assessment and one year from the filing date for the return under assessment.

C.   It must be filed the later of 180 days after the date on the notice of assessment and one year from the filing date for the return under assessment.

D. It must be filed no later than 90 days after the date on the notice of assessment.

2.   Which of the following is NOT a taxable entity for Canadian income tax purposes?

A. Darklyn Ltd., a Canadian resident corporation.

B.   Ms. Sarah Bright, a Canadian resident.

C.   Walters and Walters, a group of CPAs operating as a partnership.

D. The Martin family trust.

3.   For its 2018 taxation year, its first year of operation, PS Swim Inc. filed its return three months late. The unpaid tax at the due date for the return was $2,500. This amount was not paid until the return was filed. What would its penalty be?

A. Nil.

B.   $75.

C.   $125.

D. $200.

E.   $500.

4.   The balance due date for a corporation is:

A. April 30 of the following year.

B.   The same as the filing deadline.

C.   Three months after the end of the fiscal year, or two months after the end of the fiscal year if the corporation is a small CCPC.

D. Two months after the end of the fiscal year, or three months after the end of the fiscal year if the corporation is a small CCPC.

Answer 1

1- option D :- when an assessment is completed,CRA issue a notice of assessment. Filing a notice of objection the appeal must be filed within 90 days from the date of the notice.

2- option C :- A partnership is not taxable entities for income tax purposes and it's income is taxed in hands of its partners.

3- option A :- If the CRA charged a late filing penalty on your return for 2016,2017,2018, your late filing penalty for 2019 may be 10% of your 2019 balance Owing,plus 2% of your 2019 balance owing for each full month your return is late to a maximum of 20 months.

Even if you cannot pay your full balance owing on or before April 30,2020 you can avoid the late filing penalty by filing your return in time.

4- option D :-Generally all corporation taxes(except part ||| and part x||.6) charged the income tax act are due two months after the end of the tax year.

If corporation is a small CCPC,the balance of tax is due three months after the end of the tax year.