Question 2 Qui Limited was incorporated in Nova Scotia on May21, 1936. The corporation has never carried on business in Canada,but held its annual directors' meeting in Nova Scotia each yearfrom 1936 through 1966. Which one of the following best describesQui Limited's residency status for Canadian income tax purposes for2018? Question 2 options:

1) A full-time resident

2) A part-time resident

3) A deemed resident (sojourner)

4) A non-resident

Question 3 Which of the following statements about the ITA andrelated procedures is correct? Question 3 options:

1) There is no statutory definition of the word "income" in theITA.

2) Courts always make decisions based on GAAP.

3) In tax matters, CRA always has the burden of proving that anassessment is incorrect.

4) An appeal in the Federal Court of Appeal must be made within60 days from the date of the Tax Court of Canada decision.

Question 4 An overloaded external auditor takes home the auditwork related to a client's taxation. Due to time pressure, theauditor asks her husband, who is an accountant too but working foranother company, to help her in completing the working papers.Which of the following best describes your assessment of theauditor's action? Question 4 options:

1) This is acceptable because her husband is not working for herclient.

2) She has most likely violated Canadian Auditing Standards(CAS) only.

3) She has most likely violated the CPA-Alberta Rules ofProfessional Conduct only.

4) She has most likely violated both CPA-Alberta Rules ofProfessional Conduct and CAS.

Question 5 Individuals must file their income tax returns:Question 5 options:

1) On a quarterly basis if self employed or spouse isself-employed.

2) June 15 if self-employed or spouse is self-employed.

3) If an individual's date of death is December 15, by April 30of the following calendar year.

4) If an individual's date of death is November 15, by April 30of the following calendar year.

Question 6 In citing the general restriction on expenses againstbusiness or property income, you would refer to: Question 6options:

1) Subsection 18(1)a)

2) Subparagraph 18(1)a)

3) Paragraph 18(1)a)

4) Clause 18(1)a)

Question 7 Ontario Manufacturing Company is a companyincorporated in the United States. It employs salespeople who livein Canada but does not have an office or any establishment bearingthe company name in Canada. The salespeople visit Canadiancustomers, who then order from Ontario Manufacturing Company andreceive goods directly from the United States. Which of thefollowing best describes the tax status in Canada of OntarioManufacturing Company? Question 7 options:

1) Ontario Manufacturing Company is not taxable in Canada,because it does not have a permanent establishment in Canada.

2) Ontario Manufacturing Company is subject to a withholding taxunder Part XIII of the Income Tax Act on its gross revenue inCanada.

3) Ontario Manufacturing Company is subject to tax only on itsCanadian sales because the location of company employees in Canadaimplies that there is a permanent establishment.

4) Ontario Manufacturing Company is subject to a withholding taxunder Part XIII of the Income Tax Act on its net income earned inCanada.

Question 8 Amy lives in Detroit, Michigan, USA. She commutesdaily to Windsor, Ontario, Canada, where she is employed by FordMotor Company of Canada Limited. She works 9 am to 5 pm, Mondaythrough Friday. Which one of the following best indicates Amy'sresidency status for Canadian income tax purposes for 2018?Question 8 options:

1) A full-time resident

2) A part-year resident

3) A deemed resident (sojourner)

4) A non-resident

Question 9 An auditor reviewing ABC Corporation discovered that$100,000 of corporate revenue was being deliberately recorded inthe books as a debit to Bank and a credit to shareholders loan.Which of the following statements is true? Question 9 options:

1) This transaction is an example of tax avoidance.

2) This transaction is an example of tax planning.

3) This transaction does not fit any the above categories.

4) This transaction is an example of tax evasion.

Question 10 ABC Inc. is a private corporation incorporated inCanada in 1991. All of its income is derived from sourcesoriginating in New Zealand. All the ABC shareholders residepermanently in the United States, where they make all the majordecisions for the company. Which of the following accuratelydescribes ABC's tax status in Canada? Question 10 options: 1) ABCis not a resident of Canada and is taxed in Canada only on incomeearned from its permanent establishment in Canada.

2) ABC is a resident of Canada and taxed in Canada on its worldincome.

3) ABC is not a resident of Canada and is not subject to tax inCanada.

4) ABC is not a resident of Canada but is subject to awithholding tax on dividends paid to its shareholders in the UnitedStates.