test bank for Byrd & Chen’s Canadian Tax Principles, 2025-2026 Edition by Gary Donell | Volume 1
test bank for Byrd & Chen’s Canadian Tax Principles, 2025-2026 Edition by Gary Donell | Volume 2
Byrd and Chen’s Canadian Tax Principles, 2025-2026 (Donell)
Chapter 1 Introduction to Federal Taxation in Canada
1.1 Quick Review
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Type: ES
1.2 Self-Study Problems
1) There are no items in this section.
Type: ES
1.3 Practical Case
1) There are no items in this section.
Type: ES
1.4 Online Exercises
1) The major source of federal revenues is the personal income tax. Indicate three other types of taxes that contribute to federal revenues.
Answer: The other sources of federal revenues that are shown in Figure 1-1 of the textbook are:
• Corporate income tax.
• Non-resident income tax.
• GST.
• Customs and import duties.
• Other excise taxes.
• Employment Insurance premiums.
Type: ES
Topic: Federal revenue sources
2) What is the meaning of “person” when the term is used in the ITA?
Answer: In the ITA, the term “person” refers to an individual, a corporation, a trust, or an estate.
Type: ES
Topic: Definition – “Person” ITA 248(1)
3) Briefly describe the procedures used in calculating provincial or territorial income tax for individuals other than for individuals residing in Quebec.
Answer: Provincial or territorial income tax for individuals is calculated by applying a provincial or territorial income tax rates to taxable income for federal income tax purposes. Provincial or territorial personal income tax credits are then applied to the resulting gross provincial or territorial income tax. The provincial and territorial income tax brackets may differ from the federal income tax brackets. In addition, provincial and territorial personal tax credits may be different than the federal personal tax credits.
Type: ES
Topic: Income tax payable – federal income tax
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