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Which of the following statements regarding integration in the income Tax Act is true? a) Wthout the tools of integration, the combination of two levels of taxation on income earned through a corporation is much higher than the tax that would be paid the ncome was eamed drectly by an individual b) Integration works perfectly every time if the federal dividend tax ecredit is equal to the tax paid at the corporate level c) Integration is most important for income earned through a trust d) The tools of the integration system are the gross-up, the dividend tax credit and the smal business deduction. 2. Jelly Lid, is an HST registrant in Ontario, where the HST rate is 13%. The company sels only fully taxable goods and services. The folowing income statement shows all amounts net of HST Sales Expenses: Cost of goods sold (representing inventory purchased $1500,000 in the year) Amortization of building and equipment Salaries and wages Office expenses Business insurance Total expenses excluding HST Net income $2.500,000 250.000 500,000 17,500 $230.000 Which of the following amounts correctly represents the amount of HST that Jelly Ltd. must remit at the end of the fiscal year? a) $29.900 b) $127,400 c) $127,725 d) $325,000 3, Barry owns 23% of the issued and outstanding shares of Hawn Inc, a corpora on with a November 30 year end. On December 31, 2016, he borrows $100,000 from the company on an interest-free basis with no repayment terms. What is the latest date that the loan must be repaid in order for Barry to avoid having to add it to his income? a) November 30, 2017 b) December 31, 2017 c) November 30, 2018 d) December 31, 2018 Which of the following goods and services are zero-rated for GSTIHST purposes? a) Accounting services b) Car repairs c) Child care services d) Hearing aids 5. Reehan iles his 2016 personal tax return late, on December 10, 2017. He had tax owing on the return of $20,000. Reehan's spouse has business income, as she is a self-employed hairdresser. Reehan has never filed late before. How much of a penaity will Reehan be a) $o b) $1,000 c) $2,000 d) $2.,400

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