Calculate the paid tax, Taxation

Many years ago, in an effort to keep its costs down, Prince Enterprises hired a bookkeeper rather than a fully qualified accountant to prepare its accounting records and corporate tax returns. In a recent audit by Canada Revenue Agency of the past seven years it was discovered that the bookkeeper did not prepare the corporate returns properly.

For 2004 to 2009 inclusive, the bookkeeper calculated earnings before taxes correctly and paid the required 30% tax on these.   Prince enterprises is a Canadian controlled private corporation. The company uses CCA rates as its amortization rates. In 2010 the bookkeeper paid no taxes as there was a loss before taxes.

The earnings before taxes, capital gains (losses) and dividends received are as follows:

                                                          Capital                 Dividends

                                EBT                    Gains                   Received

2010                   ($  60,000)             $6,000                  $2,000

2009                     $135,000              $6,000                  $3,000

2008                     $  67,500            ($6,000)                 $7,000

2007                     $  75,000              $7,500                  $2,000

2006                     $120,000              $12,000                      0

2005                     $ 97,500                    0                      $3,000

2004                     $ 90,000               $9,000                  $4,000

Canada Revenue Agency has indicated that, after its review of the seven years of information, it will be notifying Prince Enterprises of how much tax is due.

How much tax was paid from 2004 to 2010 inclusive?

How much tax should have been paid from 2004 - 2010?

Posted Date: 2/23/2013 7:30:16 AM | Location : United States







Related Discussions:- Calculate the paid tax, Assignment Help, Ask Question on Calculate the paid tax, Get Answer, Expert's Help, Calculate the paid tax Discussions

Write discussion on Calculate the paid tax
Your posts are moderated
Related Questions
During 2011, C Ltd. A public corporation has net income for tax purposes of $600,000 including $100,000 of dividends from taxable Canadian corporations and $500,000 of retailing pr

kindly please help me in getting the valuation methods under other methods for the assessment year 2012-13.

Using tax software, file out federal and california tax form! Plus cover letter

Donald, a 40-year-old married taxpayer, has a salary of $55,000 and interest income of $6,000. What is the maximum amount Donald can contribute to a Roth IRA?

a) Using the above information you are to construct Fiona's Cash Flow Statement and then explain to her the importance of creating a surplus budget. b) The Net Worth Statement e

Prepare answers to each of the following questions.  Assume a tax rate of 30%. (i) Harry Ltd has a balance of prepaid rent in the balance sheet amounting to $100 000 as at 30 Ju


In an effort to reduce alcohol consumption, the government is considering a $1 tax on each gallon of liquor sold (the tax is levied on producers). Suppose that the supply curve for

The XYZ Corporation has total earnings of $20 million and decides to pay its stockholders a dividend of $8 million. If the corporate tax rate is 30% and the personal tax rate on in

Exhibit Additional information • Andy currently owns all of the shares of Grand Inc., a CCPC with 1,000 common shares issued and outstanding. Grand Inc. operates an active business