Canadian Income Tax
How do you enact a law? - ✔✔ correct answer The legislation process starts with the proposal,
formulation, an drafting of a bill and goes through a number of stages in the HOC and Senate before it
becomes a law.
The stages in the HOC and Senate before becoming a law - ✔✔ correct answer 1. Notice of a motion for
leave to introduce and placement on Order Paper
2. Preparation of a bill by a committee (where applicable)
3. Introduction and first reading
4. Reference to a committee before second reading (where applicable)
5. Second reading (debate the scope) and reference to a committee
6. Report stage (further study as necessary)
7. Third reading (and passage)
8. Consideration and passage by the Senate
9. Passage of Senate amendments by the HOC (where applicable)
10. Royal Assent and Coming into force
Double Taxation - ✔✔ correct answer is a taxation principle referring to income taxes paid twice on the
same source of earned income.
Three levels of court for tax - ✔✔ correct answer Tax Court of Canada, Federal Court of Appeal, The
Supreme Court of Canada
What are the regulations of the Income Tax Act (Section 221) - ✔✔ correct answer It gives the Governor
General the right to prescribe further detail, definition, administrative filings or requirements.
Enables Parliament to delegate powers to the Cabinet Ministers who approve before going to the
Governor General
Example of a regulation of the Income Tax Act - ✔✔ correct answer Rules on capital allowance (how to
depreciate your capital asset)
, Canadian Income Tax
Advance Tax Ruling - ✔✔ correct answer In advance of a contemplated transaction a tax payer will
submit a series of transactions and his interpretation of the Tax law to rulings directorate of the CRA.
CRA will decide whether this interpretation is valid.
There is a fee!!
How does a Tax treaty come into force? - ✔✔ correct answer It is signed and negotiated and must
receive ratification by Parliament to be effective. Treaty will contain an article for a mutual agreement
procedure to exchange information.
What are the Tax Information Exchange Agreements for? - ✔✔ correct answer Promote and provides for
the mutual exchange of tax information that is possessed by, or accessible to, the tax authorities of
either jurisdiction in order to better administer and enforce taxation laws to prevent international fiscal
evasion,
Interpretation Bulletins - ✔✔ correct answer CRA's interpretation of the Tax law
Information Circulars - ✔✔ correct answer CRA's administrative procedures
Folios - ✔✔ correct answer CRA organizing into 7 series
When does the Federal Budget Process begin - ✔✔ correct answer Starts in June of each fiscal year
through till March
What are the steps for the Federal Budget Process - ✔✔ correct answer 1. Budget Preparation
2. Budget Consultation
3. Budget Strategy and Speech
If an individual is an resident in Canada, they are taxed on what income? - ✔✔ correct answer
Worldwide income, including non Canadian sourced income (reported in CDN$)
Ties that are significant - ✔✔ correct answer 1. Dwellings: If a persona maintains his dwelling in Canada
(exception is renting while away)
How do you enact a law? - ✔✔ correct answer The legislation process starts with the proposal,
formulation, an drafting of a bill and goes through a number of stages in the HOC and Senate before it
becomes a law.
The stages in the HOC and Senate before becoming a law - ✔✔ correct answer 1. Notice of a motion for
leave to introduce and placement on Order Paper
2. Preparation of a bill by a committee (where applicable)
3. Introduction and first reading
4. Reference to a committee before second reading (where applicable)
5. Second reading (debate the scope) and reference to a committee
6. Report stage (further study as necessary)
7. Third reading (and passage)
8. Consideration and passage by the Senate
9. Passage of Senate amendments by the HOC (where applicable)
10. Royal Assent and Coming into force
Double Taxation - ✔✔ correct answer is a taxation principle referring to income taxes paid twice on the
same source of earned income.
Three levels of court for tax - ✔✔ correct answer Tax Court of Canada, Federal Court of Appeal, The
Supreme Court of Canada
What are the regulations of the Income Tax Act (Section 221) - ✔✔ correct answer It gives the Governor
General the right to prescribe further detail, definition, administrative filings or requirements.
Enables Parliament to delegate powers to the Cabinet Ministers who approve before going to the
Governor General
Example of a regulation of the Income Tax Act - ✔✔ correct answer Rules on capital allowance (how to
depreciate your capital asset)
, Canadian Income Tax
Advance Tax Ruling - ✔✔ correct answer In advance of a contemplated transaction a tax payer will
submit a series of transactions and his interpretation of the Tax law to rulings directorate of the CRA.
CRA will decide whether this interpretation is valid.
There is a fee!!
How does a Tax treaty come into force? - ✔✔ correct answer It is signed and negotiated and must
receive ratification by Parliament to be effective. Treaty will contain an article for a mutual agreement
procedure to exchange information.
What are the Tax Information Exchange Agreements for? - ✔✔ correct answer Promote and provides for
the mutual exchange of tax information that is possessed by, or accessible to, the tax authorities of
either jurisdiction in order to better administer and enforce taxation laws to prevent international fiscal
evasion,
Interpretation Bulletins - ✔✔ correct answer CRA's interpretation of the Tax law
Information Circulars - ✔✔ correct answer CRA's administrative procedures
Folios - ✔✔ correct answer CRA organizing into 7 series
When does the Federal Budget Process begin - ✔✔ correct answer Starts in June of each fiscal year
through till March
What are the steps for the Federal Budget Process - ✔✔ correct answer 1. Budget Preparation
2. Budget Consultation
3. Budget Strategy and Speech
If an individual is an resident in Canada, they are taxed on what income? - ✔✔ correct answer
Worldwide income, including non Canadian sourced income (reported in CDN$)
Ties that are significant - ✔✔ correct answer 1. Dwellings: If a persona maintains his dwelling in Canada
(exception is renting while away)
