In: Accounting
Select the false statement:
F) is False statement
Because
An arrangement of a couple's finances that allows the parties to
separate without any further financial responsibility for each
other.this is called Clean
break(complete separation from something). The
court has a statutory duty to consider if a clean break is
appropriate under section 25A of the Matrimonial Causes Act
1973.
So
The individual leaves Canada,
The individual’s immediate family leaves Canada, or
The individual loses citizenship in Canada.
Is not consider as Clean Break.
Following Statements are true:
A) True,
Because
A part year resident is an individual who was a resident of a
particular state for only part of the tax year*. This includes:
Anyone who moved into a state with the intention of making their home there, or
A resident of a state who moved out of their original state with the intention of making their home elsewhere any time during the income tax year.
B) True,
Because
Your status as a tax resident determines the extent to which Canada
may tax your income. Canada taxes its residents on their worldwide
income. Canada taxes a non-resident’s Canadian-sourced income. In
particular, Canada taxes a non-resident’s income from: (1)
employment in Canada; (2) carrying on a business in Canada; or (3)
disposing of a taxable Canadian property.
Notably, tax residence is unrelated to residence for immigration
purposes. You can be a Canadian tax resident even if you aren’t a
Canadian permanent resident or citizen. Similarly, you can be a
Canadian citizen or permanent resident yet fail to be a Canadian
tax resident.
C) True,
Because
The term “permanent establishment” means a fixed place of business
through which the business of an enterprise is wholly or partly
carried on”. Taken together with the commentary to this
article
Article 5(5) provides that a “dependent agent” can constitute a PE
if they habitually exercise their authority to enter into contracts
in the name of the enterprise.
Under BEPS Action 7, this definition has been extended to include
not just someone who signs the contracts on behalf of the
enterprise, but also to someone who habitually plays the ‘principal
role’ in the formation of contracts, that are then formally
concluded by the enterprise.
D) True,
Because
Even if an enterprise would otherwise meet the definition of a PE,
certain activities are ‘exempted’ from the application of the PE
rules. Under Article 5(4), if the location would be a PE, but it is
used solely for an activity which has for the enterprise an
“incidental, preparatory or ancillary” character, it is deemed not
to be a permanent establishment. This includes:
The use of a storage facility solely for the delivery of goods to customers;
The maintenance of a stock of goods owned by the enterprise, held solely for processing by another enterprise;
The maintenance of a fixed place of business solely for the purpose of purchasing goods, or merchandise, or of collection of information for the enterprise;
Any other activity of an incidental, preparatory, or ancillary nature.
E) True,
Because
Residency is the act of establishing or maintaining a residence in
a given place. Residency is a concept which heavily affects the
legal rights and responsibilities that are available to a person,
including eligibility to vote, eligibility to stand for political
office, eligi bility to access government services, responsibility
to pay taxes, and on and so forth.
So an individual must be resident in at least one country at the
given time.