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Let's Talk Money!

Total questions: 21

Worksheet time: 13mins

Name
Class
Date
1.

Basic Personal Tax Questions (10 Points!):

What is the deadline for filing your personal income tax return in Canada?

a)

May 1st

b)

April 30th

c)

April 1st

d)

June 30th

2.

Basic Personal Tax Question (10 Points):

Which form do you use to report employment income in Canada?

a)

T4

b)

T3

c)

Tax File

d)

S3

3.

Basic Personal Tax Question (10 Points): In Canada, you must report all income, including tips, on your tax return.

a)

TRUE

b)

FALSE

4.

Basic Personal Tax Question (10 Points): What is the term for a tax-saving investment account where your money grows tax-free?

a)

RRSP

b)

TFSA

c)

RTSP

d)

RESP

5.

Basic Personal Tax Question (10 Points): List the THREE residency status for individuals in Canada

a)

Resident, Part Year (Deemed) Resident, Non Resident

b)

Resident, Primary Resident, Secondary Resident

c)

Resident, Part time Resident, Dwelling Resident

d)

Resident, Deemed Resident, Secondary Resident

6.

CASE TIME!

You are hired at AOA to help a client with their tax planning as they are looking to open and start their own business soon in Canada. Arno is currently dissatisfied with his previous tax planning consultant and wants your help. Arno is a Canadian citizen who has been living in Canada for the past ten years. However, as part of Arno's job with AOA, he travels to US for 75 days each year due to employment. Before going further, Arno asked you to advise him on which type of resident he is.

a)

Non Resident

b)

Resident

c)

Part time Resident

d)

Resident of US

7.

CASE TIME Cont'd: Arno is super worried as he does not know if he should report his US income on his tax return for Canada.

a)

Yes, Arno should report it as worldwide income on his Canadian tax Return

b)

No, because employment income is earned in the US, therefore Arno does not need to report it as they are two seperate obligations

8.

CASE TIME cont'd: Arno is a sales employee and works hard to promote AOA's initiatives. AOA sees Arno's hard work and efforts and granted Arno a trip to Hawaii worth $5500. Arno is asking if it is necessary to report this on his income as it is a gift from AOA.

a)

Only a partial amount of $2500 should be recorded.

b)

Yes, this is considered a taxable benefit. Gifts or prizes received by employer should be included in the income tax return.

c)

No! As per the ITA, only gifts that exceeds $10,000 should be reported as part of income.

9.

Arno's employment income for the year is $87,000. During the year, Arno made charitable donations worth $5600. What amount is deductible for Charitable donations? (ITA mentions that individuals can claim donations up to 75% of his net income in the year of donation)

a)

$2800

b)

$5600

c)

$4200

d)

$65,250

10.

During the year, Arno travelled to UTSC campus for employment reasons due to his sales work. To get to work, Arno have to ride his scooter vehicle. Arno incurred $150 for automobile and 75% of that was used for employment. In addition he also incurred $65 for meals and entertainment at La Prep. What amount is deductible?

a)

$145

b)

$150

c)

$65

d)

$215

11.

During the year, Arno incurred telephone expenses used to earn employment income. Is this expense deductible for Arno's case?

a)

Yes

b)

No

12.

Arno's friend wants your advice on whether he can deduct his meals & entertainment expenses. Arno told him he can deduct the meals & entertainment expenses even though he is not earning commission income. is this true or false?

a)

True

b)

False

13.

Arno wants to know the HST / GST rate for Ontario

a)

5%

b)

13%

c)

15%

d)

10%

14.

Arno wants know whether taxable supplies are subject to HST / GST

a)

Yes, taxable supplies in Canada are subject to HST / GST but cannot claim input tax credits.

b)

Yes, taxable supplies in Canada are subject to HST / GST and subject to input tax credits.

c)

No, they are only limited to input tax credits.

d)

No, not required to pay HST / GST on taxable items

15.

Basic groceries are zero-rated supplies

a)

True

b)

False

16.

Exempt supplies are subject to GST / HST, and can claim input tax credits on these supplies.

a)

True

b)

False

17.

In Canada, individuals and businesses are subject to penalty's if they file their taxes to CRA late

a)

True

b)

False

18.

AOA provided $650 of moving allowance to Arno. Is the $650 of moving allowance taxable?

a)

Yes, the $650 will be included in taxable income. The ITA states that the first $650 is taxable.

b)

No, the $650 will not be included in taxable income since the ITA mentioned the first $650 is not taxable.

c)

Half of the $650 would be taxable.

19.

AOA gave $1000 of moving allowance to Arno. How much of this amount is taxable?

a)

$5000

b)

$350

c)

$1000

d)

$400

20.

Lastly, Arno is planning to retire from the 2023-2024 team soon. AOA provided Arno with financial planning in respect of his retirement. Is this a taxable benefit?

a)

Arno should not retire.

b)

It is a taxable benefit

c)

It is a non taxable benefit.

d)

Half of the amount is considered taxable.

21.

BONUS: What is one key takeaway from today's event?

21.

BONUS QUESTION: What is one key takeaway from today's event?

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