Reference no: EM132924647

Purpose of the Assessment

The purpose of the assessment is to integrate the following:

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 Upcycled Solutions Ltd (USL) 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 based on questions asked of your client and issues you feel are important to ensure your client is prepared to make well informed future business decisions.

Submission Instructions

Memo:
» For the memo, please submit a Word document only (NO PDFs).
» 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 was 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:
» 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: Net Income for Tax Purposes Reconciliation). You should have one table per subsection (i.e., Business Income, Taxable Capital Gains, 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 taxable income in the Taxable 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 Taxable Income table (i.e., =$C$18)
» Use View, Page Layout to check that sheets will print readably and attractively.

Attachment:- Case Assessment.rar