a) In the Income Tax Regulations, where would you find all the CCA classes and their rates? In what class would you find small tools and utensils (<$500)? Regular vehicles?
b) In what Section(s) of the Income Tax Act do you find employment income inclusions and deductions?
c) Can net income for tax purposes be negative? If a negative balance is arrived at, where does it go?
d) Calculate the federal tax on taxable income of the following (show your work):
Taxable Income
i) $82,000
ii) $175,000
e) Alastair is single and does not earn business income. Alastair received a Notice of Reassessment from CRA on October 6, 2016, revising his 2015 tax return and indicating he owed another $3,350. The letter was dated September 30, 2016. Alaistair wishes to contest this reassessment and plans to file a Notice of Objection. What is the due date for the Notice of Objection? (show all your work)
f) Beatrice is also single and does not earn business income (maybe she should meet Alaistair for a date!). Beatrice has always filed her tax returns on time, but she was swamped with work in Spring 2016, and didn’t file her tax return until August 18, 2016. The amount due of $1,700 was paid on August 22, 2016. What amount of penalties and interest will CRA assess? How would these amounts change if Beatrice had late filed last year also?