Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Taxation Expert

Many years ago, in an effort to keep its costs down, Prince Enterprises hired a bookkeeper rather than a fully qualified accountant to prepare its accounting records and corporate tax returns. In a recent audit by Canada Revenue Agency of the past seven years it was discovered that the bookkeeper did not prepare the corporate returns properly.

For 2004 to 2009 inclusive, the bookkeeper calculated earnings before taxes correctly and paid the required 30% tax on these.   Prince enterprises is a Canadian controlled private corporation. The company uses CCA rates as its amortization rates. In 2010 the bookkeeper paid no taxes as there was a loss before taxes.

The earnings before taxes, capital gains (losses) and dividends received are as follows:

                                                          Capital                 Dividends

                                EBT                    Gains                   Received

2010                   ($  60,000)             $6,000                  $2,000

2009                     $135,000              $6,000                  $3,000

2008                     $  67,500            ($6,000)                 $7,000

2007                     $  75,000              $7,500                  $2,000

2006                     $120,000              $12,000                      0

2005                     $ 97,500                    0                      $3,000

2004                     $ 90,000               $9,000                  $4,000

Canada Revenue Agency has indicated that, after its review of the seven years of information, it will be notifying Prince Enterprises of how much tax is due.

How much tax was paid from 2004 to 2010 inclusive?

How much tax should have been paid from 2004 - 2010?

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M9524072

Have any Question?


Related Questions in Taxation

Taxation theory practice amp law assignment -question 1 -

Taxation Theory, Practice & Law Assignment - Question 1 - You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a busines ...

Taxation assignment -the tax system is not delivering the

Taxation Assignment - "The tax system is not delivering the potential revenue in Sri Lanka. Sri Lanka's per capita income has increased from US$ 720 in 1995 to US$ 3,625 in 2014 but our tax revenue has declined from 20.4 ...

Partnership taxable incomepartner d is a 10 percent general

Partnership Taxable Income Partner D is a 10 percent general partner in ABCD Partnership. The partnership's financial records for the current tax year reveal the following: Gross receipts from sales . . . . . . . . . . . ...

Tax policy is defined as which taxes the government chooses

Tax policy is defined as which taxes the government chooses to levy, in what amounts and on whom. Elements of this decision are based on both the amount needed to pay for expenditures as well as the effect taxes can have ...

Taxation theory practice amp law assignment -question 1 -

Taxation Theory, Practice & Law Assignment - Question 1 - You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a busines ...

Taxation theory practice amp law assignment -question 1 -

Taxation Theory, Practice & Law Assignment - Question 1 - You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a busines ...

Taxation law assignment -elwood blues is an australian

Taxation Law Assignment - Elwood Blues is an Australian resident for tax purposes and one of your best clients. Elwood has a varied portfolio and usually has a number of interesting questions to ask about the tax implica ...

Questionan entity which is gst registered or which needs to

Question An entity which is GST registered (or which needs to be registered) needs to charge GST on its taxable supplies (s.9.70, A New Tax System (Goods and Services Tax) Act 1999 ("GSTA")). While some transactions may ...

Question - corporate taxation please respond to the

Question - "Corporate Taxation" Please respond to the following: Analyze the significant rules concerning the manner in which corporations treat the dividends that they are paying. Based on your analysis, recommend at le ...

Question - in june 2016 tom had signed an agreement in

Question - In June 2016 Tom had signed an agreement in Sydney with XYZ Ltd to act as the company's plantation manager in Brunei until June 2018. At the time of signing the agreement, Tom was advised that it was possible ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As