ownership of votin taxation years that e Assignment Problem

ownership of votin taxation years that e Assignment Problem Fourteen -3 Associated Companies nd Each of the following is an independent Case involving the Canadian controlled private corporations. All of the corpo mon-law on December 31 and have only one class of shares. owns 100 percent of the voting shares of SB In 1. Ms. Sarah Brandt partner, Ms. Melissa Frank, owns 100 percent of the shares of MF Inc His spouse 85 percent of the shares of Porter Inc. John and Jessica each own 35 pe 3. Surcal Inc. y, ason td. 2. John Brody owns 65 percent of the shares of Heresy Inc. rcent of the owns 75 percent of the shares of Basik Inc. Basik Inc. o shares of Freon Ltd Martin Friedman owns 75 percent of the shares of Bloc Ltd. and 20 Lorne Inc. Bloc Ltd. owns 25 percent of the shares of Lorne Inc. 4. owns 25 percent of the share of Lorne Inc. There are no other shareholdeysar o s Martin\'s 12 year old son eholders who hold shares in both companies 5. Ms. Bright owns 75 percent of the shares of Aurora Ltd. and 2 hares of Bock Inc. Ms. Favreau owns 80 percent of the shares of Bock Inc. and 20so 0 percent of the shares of Aurora Ltd. Ms. Bright and Ms. Favreau are not related. percent of the

Solution

1. Ms. Sarah Brandt owns 100% shares of SB inc. and her partner Ms. Melissa Frank owns 100% shares of MF inc. Ms. Sarah Brandt and Ms. Melissa pay taxes acc. to their share in Partnership. 80% percent of their combined shares are secured for investments. others are taxable acc. to their partnership percentage in shares.

2. John Brody and Jessica Brody is a spouse. when john transferred his share capital to Jessica\'s account. they will exempted from capital gains tax upto $ 14500.

3. both of industries pay taxes according to their stock ownership. Real owners will pay taxes according to their stock percentage . when shares are transfered, their owneship is also transfered.

4. Martin transfered 25% of shares in her minor son, will not decrease any tax liability.

5. Ms. Bright and Ms. Favreau are not related with each other. So they will pay their taxes according to their liabilities. They will pay tax according to their own liablities not depend upon each other.