Reference no: EM132862333
Purpose of the Assignment
The purpose of the assignment is to incorporate the following elements:
1. Application of course concepts, Canadian Income and Excise Tax legislation, and court rulings to real-world taxation issues and scenarios.
2. Further development of analytical, problem-solving, and written business communication skills.
3. Increased working knowledge of Excel worksheet preparation.
General Requirements and Assumptions
Determine Surnak Technologies Ltd's (STL) Net Income for Tax Purposes by providing a breakdown of the various categories of income according to the Ordering Rules in Section 3 of the Income Tax Act. In addition, corporate taxable income and taxes payable must also be determined using the information provided. The results must be communicated in a two page memo to your client that not only addresses the tax payable/(refundable), but also future tax planning advice.
Word document (NO PDFs)- instructions
• Use report format for content.
• Contents - a two page memo to your client outlining the net results of your review. You will need to provide specific details that you feel will help your client gain a better understanding of how taxes payable were determined and future tax planning considerations. You will need to identify the total taxes owing and a description of how you were able to determine them (i.e., adjustments required). Remember, your client may not have a good understanding of the Income Tax legislation, so keep this in mind when preparing your memo.
Excel workbook - instructions
• The Excel worksheets are required for organizing your client's net income for tax purposes, taxable income, and taxes payable calculations according to the relevant provisions.
• All your planning assumptions are to be in one workbook (in a single Excel file.)
• Do not place more tables on any one worksheet than can be printed attractively on a single page. You will probably use several worksheets for your planning assumptions (like tax rates, capital gains rates, etc).
• Change the name on the tabs of the worksheets you use for your planning tables to indicate the Table number and name (i.e. Table 1: Employment Income). You should have one table per subsection ( i.e. Employment Income, Business Income, etc as well as a summary tab).
• Give each worksheet in your workbook a header with your name on the left, and indicate the purpose of the worksheet.
• Feel free to use colors and shading to enhance appearance and readability of your tables.
• Never enter a number in more than one location. For example, if you have calculated the total employment income in the Employment Income table and need that number again in your Summary sheet, use a formula in the summary sheet to link to the original number's location in the Employment Income table (i.e. =$C$18)
• Use View, Page Layout to check that sheets will print readably and attractively.
Client Information - Fast Forward to 2022
Using the legislation in place as at April 20, 2021, perform the required:
a. Under Part I of the Income Tax Act, calculate Surnak Technologies Ltd's (STL) minimum net income for tax purposes and minimum taxable income for the 2022 taxation year.
b. Based on your answer to part (a), calculate the projected minimum Part I and Part IV federal income tax, refundable dividend tax on hand (RDTOH), and dividend refund for the 2022 taxation year.
c. There are five mechanisms that are used in the tax laws to integrate the taxation of investment income earned through a corporation. Advise Andy about any two of these tools emphasizing why it is important for him to consider.
Attachment:- Case Assessment Spring.rar