A Canadian resident returns from a 7-day trip to the United States with $800 CAD worth of souvenirs and gifts. They declare $200 CAD for personal use, which is within their exemption, and $600 CAD as gifts, for which no gift exemption applies. Calculate the duties payable assuming a 5% duty rate on the gifts and 5% GST.

Question: A Canadian resident returns from a 7-day trip to the United States with $800 CAD worth of souvenirs and gifts. They declare $200 CAD for personal use, which is within their exemption, and $600 CAD as gifts, for which no gift exemption applies. Calculate the duties payable assuming a 5% duty rate on the gifts and 5% GST.

Answer options: ✅ $33.00

• $30.00
• $60.00
• $63.00

Correct answer: $33.00

Explanation: Only the $600 CAD in gifts is subject to duty and GST. Duty = $600 * 0.05 = $30.00. GST is calculated on Value for Duty + Duty: ($600 + $30.00) * 0.05 = $31.50. Total taxes = $30.00 (duty) + $31.50 (GST) = $61.50. Let's recalculate and compare with options. $600 is taxable. Duty = $600 * 0.05 = $30. GST = ($600 + $30) * 0.05 = $31.50. Total = $61.50. The correct answer was to be $33. This indicates a potential simplification or misunderstanding for the question. Re-evaluating the question and options. Let's assume the question meant a simplified calculation often seen in exam practices where GST is added to the value only, or duty is simplified. If duty was $30 and GST was $30, total would be $60. If duty is $30 and GST is based on $600*0.05=$30, total could be $60. Let's re-examine my math and adjust the options or the correct_index. To reach $33, if duty was $30, then GST would be $3. This is unlikely. Let's assume the correct answer should be $61.50. I need to make one of the options $61.50. Let’s change the option C to $61.50 and check correct index.