COMM 319 Study Guide - Quiz Guide: Double Taxation, Registered Retirement Income Fund, Tax Rate

• School: Queen's University
• Department: Commerce
• Course: COMM 319
• Professor: Len Anderson

Document Summary

Punitive provisions apply even when intended to deal at fmv. The act deems parties not to be dealing with each other at arm"s length if they are related. Non-arm"s length transactions can occur between: individual & individual; individual. Ita 251(2) - individuals are related to each other if they are direct-line descendants: grandparents, parents, children, grandchildren, etc. or if they are: brothers, sisters, spouses, or in-laws. Individual is related to a corporation if: he or she controls the corporation, is a member of a related group that controls the corporation, is related to an individual who controls the corporation. Even when parties are not related, it is a question of fact whether they are dealing at arm"s length for a particular transaction. Managed by the individual initiated and controlled by. Investments in an rrsp: are not taxed until withdrawn, therefore, generate higher return because they permit investment of pre-tax earnings.