2) Jane Doe of London, Ontario is a car salesperson who earned commissions totaling$300,000 in the tax year 2020. These commissions included vehicle sales andcommissions on warranty sales. On her 2020 personal income tax return, Jane reportedonly the commissions related to the warranty sales in the amount of $100,000.Discuss the following:Were these instances of tax avoidance or evasion (define? Letter of the law vs spirit ofthe law)What was done wrong (how were taxes affected)What possible consequences? (payment-balance, interest, penalties, charges, jail, etc)

A person or any business earns the income or the profit respectively during the year and for which…

Were these instances of tax avoidance or evasion (define? Letter of the law vs spirit of the law) What was done wrong (how were taxes affected) What possible consequences? (payment-balance, interest, penalties, charges, jail, etc)

Were these instances of tax avoidance or evasion (define? Letter of the law vs spirit of the law) What was done wrong (how were taxes affected) What possible consequences? (payment-balance, interest, penalties, charges, jail, etc)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

2) Jane Doe of London, Ontario is a car salesperson who earned commissions totaling
$300,000 in the tax year 2020. These commissions included vehicle sales and
commissions on warranty sales. On her 2020 personal income tax return, Jane reported
only the commissions related to the warranty sales in the amount of $100,000.
Discuss the following:
Were these instances of tax avoidance or evasion (define? Letter of the law vs spirit of
the law)
What was done wrong (how were taxes affected)
What possible consequences? (payment-balance, interest, penalties, charges, jail, etc)

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