CPA Tax Module 2026/2027 | 100+ Questions & Answers | CCPC, Corporate Tax, GST/HST, LCGE, CCA & TOSI

This CPA Tax Module 2026/2027 exam study guide contains 100+ questions, correct answers, calculations, formulas and applied tax rules across 42 pages, providing focused preparation in Canadian personal and corporate taxation. The material places particular emphasis on corporate tax calculations, beginning with the General Rate Reduction (GRR), Part I Additional Refundable Tax (ART), Part IV tax, passive investment income and the Small Business Deduction (SBD) before progressing into tax compliance, employment taxation, residency, capital transactions, GST/HST and advanced private-corporation concepts. The corporate taxation material provides detailed coverage of Canadian-Controlled Private Corporations (CCPCs), Active Business Income, Aggregate Investment Income (AII), the SBD, GRR, ART, refundable Part I tax, Part IV tax, GRIP, ERDTOH and NERDTOH. Students practice determining corporate tax consequences for active and passive income and review dividend refunds involving eligible and non-eligible dividends. The guide also addresses the tax advantages of incorporation, including potential tax reduction, tax deferral and income splitting, while emphasizing the restrictions imposed by Tax on Split Income (TOSI) rules. Tax compliance is covered through corporate and individual filing deadlines, balance-due dates, instalment requirements, arrears interest, late or deficient instalments and failure-to-file penalties. The questions distinguish monthly corporate instalments from quarterly instalments available to qualifying small CCPCs and examine alternative methods for calculating instalment payments. Schedule 1 adjustments are also reviewed, including financing expenses, reserves, warranties, unpaid remuneration, unreasonable salaries paid to family members and life-insurance expenses. The personal and employment taxation section examines the seven principal factors used to distinguish an employee from an independent contractor, net employment income, taxable and non-taxable benefits, gifts and awards, health-care plans, life insurance, allowances, automobile benefits and employee loans. Candidates also review deductible home-office expenses for regular employees, commissioned employees and sole proprietors. Dividend taxation is addressed through the gross-up and federal dividend tax-credit mechanisms for eligible and non-eligible dividends. A significant portion of the document addresses Canadian residency and capital-property taxation. Topics include full-year, part-year, non-resident and deemed-resident taxpayers; primary and secondary residential ties; corporate residency; deemed dispositions on departure from Canada; and property excluded from departure-tax treatment. The guide also covers the principal residence exemption, property-flipping rules, personal-use property and listed personal-use property, providing students with formulas and decision criteria for distinguishing capital gains from business income. The business-sale and owner-manager material compares asset sales with share sales, including after-tax cash calculations, deemed dividends, CDA balances, NERDTOH refunds, GRIP, eligible versus non-eligible dividends and the Lifetime Capital Gains Exemption (LCGE). The document explains why purchasers commonly prefer asset transactions while vendors may prefer share transactions and examines issues such as redundant assets, undisclosed liabilities, asset cost-base increases, goodwill, loss carryovers and transaction complexity. Candidates also receive focused preparation on Qualified Small Business Corporation (QSBC) shares and LCGE eligibility, including the 90% small-business-corporation test, the 24-month holding-period requirement and the active-asset test. The guide discusses purification strategies for removing non-eligible assets, including using excess cash to repay liabilities or acquire active business assets, as well as strategies such as dividends and owner-manager compensation that can create additional tax consequences. The guide further addresses income attribution and non-arm's-length transactions, including ITA section 69 treatment, transfers between spouses, the ITA section 73 spousal rollover, transfers involving related minors and circumstances that can create double taxation. TOSI exceptions involving excluded businesses, excluded shares and reasonable returns are included, making the document particularly useful for private-company and family-business tax planning questions. Advanced corporate material includes Acquisition of Control (AOC) rules and their implications for deemed taxation year-ends, short taxation years, accrued losses, expiring losses and restrictions on non-capital loss utilization. The CCA section covers luxury passenger vehicles, Class 10.1, manufacturing equipment under Class 53 and patents under Class 44, while replacement-property rules distinguish voluntary dispositions from involuntary losses, theft, expropriation or destruction. Finally, the GST/HST material covers registration requirements, small-supplier considerations, taxable supplies, place-of-supply rules, input tax credits, filing frequencies, reporting deadlines, late-filing consequences, bad debts and volume rebates. Together, these areas make the document a concentrated CPA taxation revision resource for students who need both computational practice and conceptual understanding of Canadian tax rules. Relevant students: This document is most relevant for CPA PEP Taxation candidates, Canadian CPA students, accounting graduates, public accounting trainees, junior tax accountants, corporate tax students, owner-manager taxation students and learners preparing for Canadian taxation examinations. It is especially valuable for students reviewing CCPC taxation, corporate tax calculations, GST/HST, LCGE and QSBC rules, CCA, employment taxation, residency, TOSI, attribution rules, business sales, dividend taxation and acquisition-of-control concepts. 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