Study guides, Class notes & Summaries

Canadian Tax Principles, , Vol 2 (Byrd/Chen) (Answers at the end of each chapter) 11.1 Online Exercises 1) ITA 110.2 provides for a deduction of "lump-sum payments", for example a court ordered termination benefit. What tax policy objective is served by this provision? Answer: Such lump-sum payments often reflect compensation for services rendered over several years. The fact that it is received in a single year can result in significant portions of it being subject to income tax rat...

Canadian Tax Principles, , Vol 2 (Byrd/Chen) (Answers at the end of each chapter) Chapter 11 11.1 Online Exercises 1) ITA 110.2 provides for a deduction of "lump-sum payments", for example a court ordered termination benefit. What tax policy objective is served by this provision? Answer: Such lump-sum payments often reflect compensation for services rendered over several years. The fact that it is received in a single year can result in significant portions of it being subject to incom...