Question

37.In some cases, a withdrawal from a spousal registered retirement savings plan (RRSP) is taxable to the original contributing spouse, rather than to the recipient spouse. To which situation does this apply?

1. When the contributing spouse is in a higher tax bracket than the recipient spouse
2. In all cases of a withdrawal from a spousal RRSP
3. When the withdrawal is made within a three-year timeframe from contribution
4. Upon the death of the contributing spouse

43.Which statement correctly describes the taxation of eligible dividends for 2020?

1. Dividends are 100% taxed
2. Dividends are grossed up and then a tax credit is given to the taxpayer
3. No tax is paid on dividends because the corporation has already paid tax on them
4. They are taxed at 50%

58.Identify the statement that is not a principle of professional and ethical decision making:

1. Always disclose what led to your recommendation and product details to your clients
2. Provide your clients a clear and explicit explanation of your fee structure
3. Keep you client’s goals, values and risk tolerance foremost
4. Clearly outline the services you will and will not provide
5. Never refer your client’s to other experts

Answer 1

37. "When the withdrawal is made within a three-year timeframe from contribution", a withdrawal from a spousal registered retirement savings plan (RRSP) is taxable to the original contributing spouse, rather than to the recipient spouse.[c]

43. "Dividends are grossed up and then a tax credit is given to the taxpayer", correctly describes the taxation of eligible dividends for 2020 [b]

58. "Never refer your client’s to other experts" is the statement that is not a principle of professional and ethical decision making. [e]