CPA PEP Taxation Elective case studies
CPA PEP Taxation Elective · Put your knowledge to work in context.
The CPA PEP Taxation Elective is one of the elective modules in the Chartered Professional Accountants Professional Education Program (CPA PEP), the graduate-level professional education component of the CPA certification path in Canada. It is designed for CPA candidates who have completed the common core modules and wish to deepen their technical and enabling competencies in Canadian taxation. Candidates typically include aspiring public accountants, controllers, and finance professionals who expect to advise on tax compliance and planning. The module builds on foundational tax concepts and develops the ability to apply the Income Tax Act and related rules to individuals, corporations, and other entities, while integrating ethical and professional judgment. Topics on this exam: Taxation. The CPA PEP Taxation Elective case studies are 5 cases and about 3,979 words.
1Owner-Manager Compensation and the SBD Retention Constraint
Maple Ridge Consulting Inc. (MRC) is an Ontario CCPC wholly owned by Priya, a solo consultant. For 2024 MRC expects active business income of 210,000 before any salary to Priya. Priya needs about 110,000 after tax for living costs and wants to make an RRSP contribution.
876 words, about 4 min2Share Sale Versus Asset Sale for a CCPC Founder
Northwind Fabrication Ltd. (NFL) is a CCPC owned 80% by Marco and 20% by his brother. Marco's shares have an ACB of 100,000; NFL's fair market value is about 3.2 million. NFL holds land with a 300,000 ACB and 800,000 FMV, equipment with a 200,000 UCC and 600,000 FMV, goodwill, and 100,000 cash.
966 words, about 5 min3Personal Services Business Audit and Shareholder Benefits
Lakeside Data Services Inc. (LDS) is a CCPC owned by Sam. LDS has one major client, which provides 85% of its revenue. Sam works at the client's office four days a week, uses the client's laptop and software, follows the client's project schedule, and cannot assign work to anyone else.
858 words, about 4 min4Estate Planning for a Business Owner with Unequal Bequests
Elena, 78, is a widow and owns all shares of a CCPC, Elmwood Tooling Ltd., with a fair market value of 4 million and a nominal ACB. She has a 600,000 RRIF, a 1.2 million principal residence, a 500,000 cottage, and $200,000 cash. Her will leaves the Elmwood shares to her son, who works in the business, and the residue to her daughter, who is not involved. Elena has no spouse or common-law partner.
682 words, about 3 min5GST/HST and SR&ED for a Cross-Border Software Company
Helio Fleet Analytics Inc. (HFA) is an Ontario CCPC that sells a cloud-based fleet-routing platform. HFA's servers are in the United States, but its developers and support staff work in Ontario. In 2024 HFA billed Canadian customers 300,000 plus HST and US customers US 700,000.
597 words, about 3 min