Explain the tax implicatios of the decision on mr laliberte

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Reference no: EM132832440

The Tax Court of Canada has ruled that a trip to outer space by billionaire Quebec businessman Guy Laliberte in 2009 was a taxable benefit. At issue was a $41.8 million price tag for a trip the Cirque du Soleil's founder had been reimbursed for him, as a business expense. In his decision, the judge fixed the amount of the business-related portion of the trip to be about 10 per cent or $4.2 million.

Problem 1: Explain the tax implicatios of the decision on Mr. Laliberte as an employee & the Cirque Du Soliel as the company. Support your explanation by quantitative analysis where applicable

Reference no: EM132832440

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