Personal tax lessons for residency, income, credits, employment, trusts, non-residents, and integrated planning.
Personal Tax focuses on the individual taxpayer and the relationships that change the answer: employer, spouse, trust, estate, partnership, corporation, family members, and non-resident connections. The case response must classify the taxpayer before calculating, then explain how the result affects cash flow, filing exposure, and planning choices.
The chapter starts with taxpayer identity and income measurement, then moves into relationships, employment, trusts, estate planning, non-residency, and integrated advice. The recurring task is to connect the rule to the person, relationship, deadline, and recommendation.
flowchart LR
A["Individual profile"] --> B["Income source"]
B --> C["Deductions and credits"]
C --> D["Family or trust effect"]
D --> E["Recommendation"]
| Section | Main question | Study focus |
|---|---|---|
| 2.1 Taxpayer Profile | Who is the individual taxpayer? | Determine residency, relationships, income sources, filing requirements, and relevant time period. |
| 2.2 Tax Research | Which authority supports the personal tax treatment? | Use statute, administrative guidance, and the facts to support a concise conclusion. |
| 2.3 Taxable Income | What belongs in taxable income? | Classify income, deductions, credits, timing differences, and adjustments for the individual. |
| 2.4 Taxes Payable | What tax is payable after credits and payments? | Calculate or interpret tax payable, dividend credits, instalments, final payments, and cash effects. |
| 2.5 Partnerships | How does partnership activity flow to the individual? | Allocate income, losses, tax attributes, non-routine consequences, and filing obligations. |
| 2.6 Trusts & Estates | How do trusts, estates, and beneficiaries affect the answer? | Distinguish deceased taxpayers, inter vivos trusts, testamentary trusts, distributions, and reporting. |
| 2.7 Splitting & Plans | Can income be shifted or sheltered appropriately? | Assess attribution, income splitting limits, registered plans, family objectives, and risk. |
| 2.8 Employment Pay | How should employment compensation be taxed? | Analyse salary, benefits, bonuses, stock-based compensation, pensions, payroll deductions, and timing. |
| 2.9 Employment vs Business | Is the person an employee, self-employed, or ready to incorporate? | Compare control, risk, tools, profit opportunity, deductions, compliance, and planning consequences. |
| 2.10 Estate Planning | How should wealth transfer be structured? | Evaluate estate tools, trusts, deferred income plans, family goals, liquidity, and documentation. |
| 2.11 Non-Residents | What Canadian tax applies to non-resident connections? | Identify Canadian-source income, Part I tax, Part XIII withholding, treaty relief, and filing choices. |
| 2.12 Integrated Advice | What advice fits the taxpayer’s objectives? | Combine calculation, family facts, timing, compliance, risk, and implementation into a recommendation. |
| 2.13 Calculation Integration | How do the pieces combine into one answer? | Integrate income, deductions, credits, trusts, employment, planning choices, and cash implications. |
Read each section as a case trigger. Build a short response that identifies the taxpayer, relevant facts, tax treatment, calculation or filing effect, risk, and recommendation. For calculation-heavy issues, show the structure first and then explain what the result means for the taxpayer.
| Trap | Better response |
|---|---|
| Starting with a memorized tax rule. | Begin with taxpayer classification, transaction facts, and timing. |
| Treating the answer as only arithmetic. | Interpret the number as tax payable, cash flow, filing exposure, or planning advice. |
| Recommending a plan without uncertainty. | State the support, documentation, deadline, and CRA challenge risk. |