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There are 4 questions each is worth 3 mark each- Answer 3out of the 4 -9 marks

For each of the following persons, indicate how they would be taxed in Canada for

the current year. Your answer should explain whether the person is a Canadian

resident, what parts of their income would be subject to Canadian taxation, and the

basis for your conclusions. Ignore any possible implications related to Tax Treatie

a) Adanac Industries Ltd. was incorporated in British Columbia on September 29, 1973. However, the directors of the corporation have always lived in Blaine, Washington. All of their meetings have been held at a large waterfront property just south of Blaine.

b) Jay Peek Inc. was incorporated in Vermont in 1980 by two U.S. citizens who were residents of Quebec. All of the directors are residents of Quebec and all meetings of the Board of Directors have been held in Montreal since incorporation.

c) Bobby Darren is a Canadian citizen living and working in Sault Ste. Marie, Michigan. He has a summer cottage in Sault Ste. Marie, Ontario, where he spent July and August. As his only sister lives in Sault Ste. Marie, Ontario, he spent a total of 27 days during the year staying with her in her home.

d) Julie Sommers was born in Vancouver, British Columbia. On October 31, after a very serious dispute with her fianc, she quit her job, left Vancouver and moved all her belongings to San Francisco , California. She has vowed to never set foot in Canada again.

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