Question 1 :

Laura Bennett is reviewing a non-registered account that holds only units of a Canadian-resident mutual fund trust investing in foreign equities. The draft includes the units on T1135 because of the fund's foreign exposure. What correction is required before release?

Keep the units on T1135 because foreign underlying assets flow through to the holder for specified-foreign-property testing

Keep the units on T1135 unless the fund paid only Canadian-source distributions

Remove the units because the property held is an interest in a Canadian-resident mutual fund trust, not direct specified foreign property

Move the units to Category 7 because a Canadian account allows aggregate reporting of all foreign exposure

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Question 2 :

After a 15% Regulation 105 withholding on fees paid to a non-resident engineering corporation for services performed in Canada, the draft memo says the withholding settles the Canadian tax issue and no T2 return is needed. What correction is required before sign-off?

The memo must address that Regulation 105 withholding is only on account and does not by itself remove a Canadian T2 filing requirement

The memo can stop at withholding if the corporation expects no net Canadian income after direct costs

The memo can skip the T2 if a treaty exemption should eliminate Part I tax and no refund claim is expected

The memo can skip the T2 if the only Canadian activity was the service contract that triggered the withholding

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Question 3 :

Under a foreign assessment notice, C$4,760 of wealth tax on overseas securities and C$2,980 of income tax on foreign investment income are both included in the draft Canadian foreign tax credit claim. What must be revised before filing?

Separate the wealth tax from the income-tax claim and analyze it independently before filing

Keep the wealth tax in the claim because it was assessed on assets that generated foreign investment income

Include the wealth tax to the extent the client has enough Canadian tax otherwise payable on that income

Keep the wealth tax in the current claim if the foreign notice does not issue a separate wealth-tax receipt

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Question 4 :

During year-end review for a certified non-resident employer, salary allocated to Canadian duties is C$8,940 and a taxable housing benefit of C$760 is included, but a company-paid personal weekend hotel extension in Canada has not yet been assessed. The draft file concludes no T4 is needed because Canadian taxable income is below C$10,000. What blocks sign-off on that conclusion?

The unresolved taxable benefit must be assessed before relying on the no-reason-to-believe under-C$10,000 position

A T4 is required because the C$10,000 threshold is tested before adding any unassessed taxable benefits

No T4 is needed because certified non-resident employer status removes year-end slip obligations while the employee remains treaty-exempt

No T4 is needed because only salary and regular housing benefits count toward the under-C$10,000 position, not personal travel benefits

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Question 5 :

Camille Renaud finds a prior election that changed the normal surplus ordering on dividends from the affiliate, but the draft T1134 Supplement marks Section 3.A as if no such election exists. What prevents release?

Leave the draft unchanged because the election affects the Canadian deduction claim rather than the T1134 surplus reporting

Hold the draft because the surplus reporting must be reconciled to the election before filing

Leave the draft unchanged because taxable surplus also exists in the affiliate

Update Section 3.A only if the current-year dividend was paid after the election year rather than in it

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International & Cross-Border Tax

Laura Bennett is reviewing a non-registered account that holds only units of a Canadian-resident mutual fund trust investing in foreign equities. The draft includes the units on T1135 because of the fund's foreign exposure. What correction is required before release?

MCQ

0

5

After a 15% Regulation 105 withholding on fees paid to a non-resident engineering corporation for services performed in Canada, the draft memo says the withholding settles the Canadian tax issue and no T2 return is needed. What correction is required before sign-off?

MCQ

0

5

Under a foreign assessment notice, C$4,760 of wealth tax on overseas securities and C$2,980 of income tax on foreign investment income are both included in the draft Canadian foreign tax credit claim. What must be revised before filing?

MCQ

0

5

MCQ

0

5

Camille Renaud finds a prior election that changed the normal surplus ordering on dividends from the affiliate, but the draft T1134 Supplement marks Section 3.A as if no such election exists. What prevents release?

MCQ

0

5