1. Which of the following statements is true ? Dividends paid by a corporation a

ID: 2808742 • Letter: 1

Question

1. Which of the following statements is true?

Dividends paid by a corporation are not deductible by that corporation and are a form of property income for the recipient.

Dividends paid by a corporation are deductible by that corporation and are a form of business income for the recipient.

Dividends paid by a corporation are not deductible by that corporation and are a form of business income for the recipient.

Dividends paid by a corporation are deductible by that corporation and are a form of property income for the recipient.

2. A non-resident individual would be subject to Canadian withholding tax on which type of Canadian sourced income?

Business

Employment

Proceeds from the sale of certain properties.

Rents from properties

3. Which of the following factors is not relevant when the courts determine if an individual is a resident of Canada?

The amount of time spent in Canada on a regular basis.

Their social and financial ties to Canada.

Their motivation for being in Canada.

Their Canadian citizenship status.

1, B is true as a corporation deducts Canadian dividend income in the computation of its taxable income.

2. D Is true as Rental income earned by a non-resident is also subject to the 25% withholding tax ,

3, C is true,

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