Corporate Tax Assignment -
It is now May 2017 and you, CPA, have just finished meeting with your client, Mrs. Branch and your partner, Tom. Mrs. Branch lives in Toronto and she owns all the shares of Branch Factories Inc. (BFI). Additional information about BFI is provided in Exhibit I.
Mrs. Branch has provided you with BFI's draft income statement for its year ended April 30, 2017 in Exhibit II and she wants you to compute BFI's minimum net income for tax purposes, taxable income and federal income taxes payable for its 2017 year-end. Mrs. Branch also wants you to tell her when specifically (i.e., month, day and year) BFI's balance of tax owing is due and when BFI's corporate tax return is due.
Mrs. Branch has decided to not take any salary or dividends from BFI in 2017 and accordingly she wants you to explain whether or not she will have any income in 2017 that will be subject to personal income tax.
Tom wants you to draft a memo to him answering Mrs. Branch's questions. Tom says you can ignore provincial income taxes and ignore any income tax treaties. When discussing any personal income earned by Mrs. Branch in 2017, Tom says you do not need to calculate her personal income taxes owing, but you should explain your answer in depth.
Tom says you must explain your answers, show all your detailed calculations and give Income Tax Act (ITA) section, subsection and paragraph (where applicable) references and Income Tax Regulations section and subsection references in order to support your answers. When giving references you must be specific. Do not just list multiple references!
Attachment:- Assignment File.rar