Which of the Following Is True Regarding the Right of the Federal

question 62

Multiple Choice

Which of the following is true regarding the right of the federal government to obtain business books and records?

• A) The government has an absolute right to business books and records so long as a subpoena is issued by a grand jury.
• B) The government has no rights to such records without a search warrant, and a grand jury subpoena is insufficient regardless of whether a sole proprietor or a corporate shareholder is involved.
• C) Obtaining books and records from a sole shareholder of a corporation and also from a sole proprietor based only upon a subpoena issued by a grand jury violates the right against self-incrimination.
• D) Obtaining books and records from a sole proprietor based only on a subpoena from a grand jury violates the owner's rights against self-incrimination, but seizing records from a sole shareholder of a corporation in that manner does not violate rights against self-incrimination.
• E) Obtaining books and records from a sole shareholder of a corporation based only on a subpoena from a grand jury violates the shareholder's rights against self-incrimination, but seizing records from a sole proprietor in that manner does not violate rights against self-incrimination.

---

Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government, varying based on income or profit levels.

Present Value CCA Tax Shield (PVCCATS)

The present value of potential tax savings obtained from the capital cost allowance on depreciable assets, discounted back to the present.

Capital Cost Allowance (CCA)

A taxable expense in Canada that allows a business to claim depreciation on capital assets according to the rates prescribed by the Canada Revenue Agency.

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put their money into a particular security or project.