Solutions Manual for Canadian Income Taxation 2023/2024, 26th Edition by William Buckwold, ISBN: 9781264909551, All 23 Chapters Covered, Verified Latest Edition

Canadian Income Taxation, 2023/2024:
t t t




Planning and Decision Making 26t t t t




th Edition t




By William Buckwold t t




Complete Chapter Solutions Manual ar
t t t t



e included (Ch 1 to 23)
t t t t t




** Immediate Download
t t



** Swift Response
t t



** All Chapters included
t t t



** Excel Solutions
t t

, Buckwold,tKitunen,tRomantandtIqbal,tCanadiantIncometTaxation,t2023-2024tEd.

CHAPTERt1

TAXATION―tITStROLEtINtBUSINESStDECISIONtMAKING

ReviewtQuestions

1. Iftincomettaxtistimposedtaftertprofitsthavetbeentdetermined,twhytisttaxationtrelevantttotbusin
esstdecisiontmaking?

2. Mosttbusinesstdecisionstinvolvetthetevaluationtoftalternativetcoursestoftaction.tFortexample
,tatmarketingtmanagertmaytbetresponsibletfortchoosingtatstrategytfortestablishingtsalestintn
ewtgeographicaltterritories.tBrieflytexplainthowtthettaxtfactortcantbetantintegraltparttoftthistdec
ision.

3. Whattaretthetfundamentaltvariablestoftthetincomettaxtsystemtthattdecision-
makerstshouldtbetfamiliartwithtsotthatttheytcantapplyttaxtissuesttottheirtareastoftresponsibilit
y?

4. Whattistant“after-tax”tapproachttotdecisiontmaking?




. 1
InstructortSolutionstManualtChaptertOne

, Buckwold,tKitunen,tRomantandtIqbal,tCanadiantIncometTaxation,t2023-2024tEd.


SolutionsttotReviewtQuestions

R1-
1t Oncetprofittistdetermined,tthetIncometTaxtActtdeterminestthetamounttoftincomettaxtthattres
ults.tHowever,tattalltlevelstoftmanagement,talternativetcoursestoftactiontaretevaluated.tIntman
ytcases,tthetchoicetoftonetalternativetovertthetothertmaytaffecttbothtthetamounttandtthettimingto
ftfuturettaxestontincometgeneratedtfromtthattactivity.tTherefore,tthetpersontmakingtthosetdeci
sionsthastatdirecttinputtintotfuturetafter-
taxtcashtflow.tObviously,tdecisionstthattreducetortpostponetthetpaymenttofttaxtaffecttthetultim
atetreturntontinvestmenttand,tintturn,tthetvaluetoftthetenterprise.tIncludingtthettaxtvariabletasta
tparttoftthetformaltdecisiontprocesstwilltultimatelytleadttotimprovedtafter-taxtcashtflow.



R1-
2tExpansiontcantbetachievedtintnewtgeographictareastthroughtdirecttselling,tortbytestablishin
gtatformaltpresencetintthetnewtterritorytwithtatbranchtofficetortatseparatetcorporation.tThetne
wtterritoriestmaytalsotcrosstprovincialtortinternationaltboundaries.tProvincialtincomettaxtrates
tvarytamongsttthetprovinces.tThetamounttoftincometthattistsubjectttottaxtintthetnewtprovincetw

illtbetdifferenttforteachtoftthetthreetalternativestmentionedtabove.tFortexample,twithtdirecttselli
ng,tnonetoftthetincometisttaxedtintthetnewtprovince,tbuttwithtatseparatetcorporation,talltofttheti
ncometisttaxedtintthetnewtprovince.tBecausetthettaxtcosttistdifferenttinteachtcase,ttaxationtistatr
elevanttparttoftthetdecisiontandtmusttbetincludedtintanytcost-
benefittanalysistthattcomparestthetthreetalternativest[Reg.t400-402.1].

R1-
3tAtbasictunderstandingtoftthetfollowingtvariablestwilltsignificantlytstrengthentatdecisiontmak
er'stabilityttotapplyttaxtissuesttottheirtareatoftresponsibility.

TypestoftIncome -

Employment,tBusiness,tProperty,tCapitaltgainstTax

abletEntities - Individuals,tCorporations,tTrusts

AlternativetBusiness -
Corporation,tProprietorship,tPartnership,tLimitedtStru
ctures partnership,tJointtarrangement,tIncomettrust

TaxtJurisdictions - Federal,tProvincial,tForeign

R1-
4tAlltcashtflowtdecisions,twhethertrelatedttotrevenues,texpenses,tassettacquisitionstortdivesti
tures,tortdebttandtequitytrestructuring,twilltimpacttthetamounttandttimingtoftthettaxtcost.tThere
fore,tcashtflowtexiststonlytontantafterttaxtbasis,tand,tthettaxtimpactstwhethertortnott thet ultimate
t resultt oft thet decisiont ist successful.t Ant after-taxt approacht tot decision-

makingtrequiresteachtdecision-makerttotthinkt"after-
tax"tforteverytdecisiontattthettimetthetdecisiontistbeingtmade,tand,ttotconsidertalternativetcour
sestoftactionttotminimizetthettaxtcost,tintthetsametwaytthattdecisionstaretmadetregardingtothe
rttypestoftcosts.

Failuret tot applyt ant after-
taxt approacht att thet timet thatt decisionst aret madet mayt providetinaccuratetinformationtforteva
. 2
InstructortSolutionstManualtChaptertOne

, Buckwold,tKitunen,tRomantandtIqbal,tCanadiantIncometTaxation,t2023-2024tEd.
luation,tand,tresulttintatpermanentlytinefficientttaxtstructure.
CHAPTERt1

TAXATION―tITStROLEtINtBUSINESStDECISIONtMAKING




. 1
InstructortSolutionstManualtChaptertOne