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University of Toronto, Mississauga *

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2207

Subject

Economics

Date

Feb 20, 2024

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1

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1. Many corporations carry on business in more than one province. If a corporation from Province 1 wishes to conduct business in Province 2, the corporation will not make any provisional allocation to Province 2 if Multiple Choice e the parent corporation sets up a branch in Province 2. e the permanent establishmentin Province 2 has a lower sales to wage ratio than the ratio in Province 1. e abranch treaty exists between Province 1 and Province 2. e business is conducted in Province 2 by way of direct sales from Province 1. 2. Which of the following tax reductions would apply to all types of taxable income earned by a Canadian controlled private corporation (CCPC) in Canada? Multiple Choice e Federal tax abatement. e Manufacturing and processing deduction. e Small business deduction. e General rate reduction.
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