Detailed Description
Students examine Canadian federal income tax legislation to determine
income and taxes payable for individuals. Related rules from the Goods
and Services Act are also reviewed. Students develop the techniques
and skills required to apply this tax knowledge to various situations.
Topics include liability for tax; income from employment, business,
property, other income and capital gains; taxable income, taxes
payable; and the rights and obligations of taxpayers.
By comparing and analyzing common layout and structure of the Income
Tax Act and identifying and distinguishing the exceptions, the student
develops a strong framework for making tax related decisions. Through
a combination of interactive lectures, class discussions, in-class
exercises, numerous situational examples, case studies, research and
assignments, students analyze individual circumstances and determine
the applicable legislation. Students predict the tax consequences of
events and propose alternative courses of action which will result in
a more desirable tax treatment.
Program Context
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Bach Bus Admin Market Manage |
Program Coordinator: Tba |
See Program Context for
Accounting.
Bach Business Admin Accounting |
Program Coordinator: Tba |
This course can be used as a
required program course in
Bachelor of Business
Administration (BBA)
Accounting or an elective
course in BBA Accounting, BBA
Finance, BBA Human Resources,
BBA Marketing and BBA Supply
Chain Management. For BBA
Accounting, students must
complete 2 of the following 4
courses (ACCG32000D,
ACCG32006D, ACCG32002D,
ACCG42004D) to graduate. If
students have completed two of
these courses then they can
take either of the remaining
two courses as a business
elective or choose other
courses from the business
elective category.
This course further develops
decision making skills to
interpret Canadian federal
income tax legislation
relating to individuals. The
outcomes and learning
experiences of these course
components will contribute to
the students' Creative
Learning Portfolio. This
course is designed to meet the
requirements for the
professional accounting
program of study.
Bach Business Admin Finance |
Program Coordinator: Tba |
See Program Context for
Accounting.
Bach Human Resources |
Program Coordinator: Tba |
See Program Context for
Accounting.
BachBus Admin Spply Chain Mgmt |
Program Coordinator: Tba |
See Program Context for
Accounting.
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Course Critical Performance and Learning Outcomes
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Critical Performance
By the end of this course, students will have demonstrated the ability
to analyze the tax implications of various situations, using the
Income Tax Act and other Canadian reference materials.
Learning Outcomes
To achieve the critical performance, students will have demonstrated
the ability to:
1. Determine the residency tax status of an individual and the
resulting potential liability for federal income tax.
2. Distinguish between business income, property income and capital
gains.
3. Specify the tax treatment of income and expenses from various
sources.
4. Prepare a capital cost allowance and eligible capital property
schedule according to the capital cost allowance regulations.
5. Interpret compliance regulations in order to minimize a
taxpayer's exposure to interest and penalties.
6. Specify the tax treatment of the disposition of various types of
capital property.
7. Calculate net income for tax purposes (Division B income).
8. Compute taxable income utilizing deductions from net income for
tax purposes.
9. Optimize the use of personal tax credits when determining federal
tax payable.
10. Assess the tax implications of various types of income in order
to maximize an individual's goals.
11. Formulate recommendations using sound research from the Income
Tax Act and Bulletins, Circulars and Rulings from Canada Revenue
Agency.
12. Demonstrate professional behaviours including:
a. work effectively in a team environment.
b. meet due dates.
c. prepare professional quality assignments.
d. use reference materials responsibly
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Evaluation Plan
Students demonstrate their learning in the following ways:
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Students demonstrate their learning in the following ways:
Research Assignment 1 10%
Midterm Exam 20%
Research Assignment 2 (Group) 15%
Final Comprehensive Exam 40%
In-Class Activities (5 x 3%) 15%
Total 100%
In addition to achieving a minimum 50% overall grade, a student must
have a combined average of at least 50% on the non-group components of
the evaluation plan in order to receive credit for this course.
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Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Effective term: Winter 2015
Professor: Multiple Professors
Textbook(s): Beam, R.E., Laiken, S.N., Barnett, J.J. (2013 - 2014). Introduction to
Federal Income Taxation in Canada, 35th Edition. CCH Canadian Limited:
Toronto.
Canadian Income Tax Act with Regulations, 98th Edition, 2014. CCH
Canadian Limited: Toronto.
Recommended Reading:
Bulletins, Circulars and Rulings at http://www.cra-arc.gc.ca/
Applicable student group(s): Bachelor of Business Administration
Course Details:Description:
Module 1: General concepts and principles of taxation
1. History and objectives of Canadian tax system
2. Structure and interpretation of the Income Tax Act
3. Income tax research and reference materials
a. Interpretation Bulletins, Information Circulars, Advanced Tax
Rulings and Case Law
4. Liability for income tax and residency
a. Concept of residency, deemed resident, part-year resident
b. International Tax Treaties
5. Tax evasion, tax avoidance and tax planning
6. Computation of net and taxable income
7. GST/HST considerations
Learning Outcomes: 1, 11
Module 2: Income or loss from an office or employment
1. Employed versus self-employed
2. Inclusions:
a. Salary, wages and other remuneration
b. Board and lodging
c. Automobile benefits
d. Allowances
e. Employment insurance benefits
f. Loans to employees
g. Stock option benefits
h. Other Fringe benefits
i. GST/HST on taxable benefits
3. Deductions and limitations
a. Salespersons
b. Travel and motor vehicle
c. Automobile
d. Home office
Learning Outcomes: 2,3,7,10,11
Assessment: IN-CLASS ACTIVITY #1 (3%)
ASSIGNMENT 1 (10%)
Module 3: Income or loss from a business
1. Types of income-business income, property income, capital gains
2. Sole proprietorship
3. Inclusions
4. Deductibility of expenditures
5. Prohibited deductions
6. Permitted deductions
7. Sales person¿s expenses
8. Professional business
9. Scientific research and experimental development
10. Reconciliation schedule
11. GST/HST considerations
Learning Outcomes: 2,3,7,10,11
Assessment: IN-CLASS ACTIVITY #2 (3%)
Module 4: Capital cost allowance and eligible capital property
Topics included, but not limited to the following:
1. Basic rules of capital cost allowance system and comparison with
accounting rules
2. Capital cost allowance classes
3. Acquisition of depreciable property
4. Additions to capital cost
5. Dispositions of depreciable assets
o Terminal loss
o Recapture
6. CCA schedule
7. Special rules for CCA determination
o Net half-year rule
o Passenger vehicle ¿ luxury
o Short taxation year
o Available for use rule
o Inducement payments
o Disposition of land and building
8. Treatment of eligible capital property
9. GST/HST considerations
Learning Outcomes: 4,7,11
Assessment: IN-CLASS ACTIVITY #3 (3%)
MID-TERM EXAM 20% (Modules 1-4)
Module 5: Income or loss from property
1. Comparison with business income
2. Inclusions
a. Interest
b. Dividends
c. Rent
d. Royalties
e. Income attribution
i. Transfer of property to spouse
ii. Transfer of property to children
iii. Income splitting and attribution rules
f. Shareholder benefits
3. Deductions
4. GST/HST and property income
Learning Outcomes: 2,3,7,10,11
Module 6: Compliance, administration, returns, assessments and appeals
1. Returns and payments
2. Assessment and notice of assessment
3. Interest and penalties, failures and omissions
4. Refunds and interest
5. Objections and appeal process
6. Books and records
7. Source deductions
8. GST/HST obligations
Learning Outcomes: 5,11
Module 7: Capital gains and capital losses
1. History, general rules, definitions and computation
2. Specific provisions
a. Personal-use property
b. Listed personal property
c. Principal residence
d. Options and convertible property
e. Pooling of identical assets
f. Exchange of property - replacement property
g. Change of use - non-arm's length
3. Adjustments to cost base
4. Reserves
5. Business investment losses
6. Capital gains deferral
7. Consideration - FMV rules
8. Non-arm's length transfers
9. GST/HST considerations
Learning Outcomes: 2,3,6,10,11
Assessment: IN-CLASS ACTIVITY #4 (3%)
ASSIGNMENT 2-15%
Module 8: Income from other sources and other deductions
1. Other sources of income
a. Pensions and retiring allowances
b. Support payments
c. Deferred income plans
d. Other inclusions
2. Other deductions in computing income
a. Registered savings plans
b. Moving expenses
c. Child care expenses
d. Other deductions
3. Amounts not included in computing income
4. Net income for tax purposes
Learning Outcomes: 3, 7, 10, 11
Assessment: IN-CLASS ACTIVITY #1 (3%)
Module 9: Taxable income and taxes payable for individuals
1. Computation of taxable income
a. Employee stock options
b. Home relocation loans
c. Miscellaneous receipts
d. Loss carryovers
e. Capital gains deduction
f. Ordering of deductions
2. Computation of tax payable
a. Tax rates
b. Non-refundable tax credits
c. Refundable tax credits
d. Transfer of tax credits
e. Foreign Tax Credits
f. Political contributions credit
g. Tax on split income
h. Minimum tax
Learning Outcomes: 7, 8, 9
Assessment: IN-CLASS ACTIVITY #5 (3%)
FINAL COMPREHENSIVE EXAM 40% (Modules 1-9)
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All Sheridan policies can be viewed on the Sheridan policy website.
Academic Integrity: The principle of academic integrity requires that all work submitted for evaluation and course credit be the original, unassisted work of the student. Cheating or plagiarism including borrowing, copying, purchasing or collaborating on work, except for group projects arranged and approved by the professor, or otherwise submitting work that is not the student's own, violates this principle and will not be tolerated. Students who have any questions regarding whether or not specific circumstances involve a breach of academic integrity are advised to review the Academic Integrity Policy and procedure and/or discuss them with the professor.
Copyright: A majority of the course lectures and materials provided in class and posted in SLATE are protected by copyright. Use of these materials must comply with the Acceptable Use Policy, Use of Copyright Protected Work Policy and Student Code of Conduct. Students may use, copy and share these materials for learning and/or research purposes provided that the use complies with fair dealing or an exception in the Copyright Act. Permission from the rights holder would be necessary otherwise. Please note that it is prohibited to reproduce and/or post a work that is not your own on third-party commercial websites including but not limited to Course Hero or OneNote. It is also prohibited to reproduce and/or post a work that is not your own or your own work with the intent to assist others in cheating on third-party commercial websites including but not limited to Course Hero or OneNote.
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Course Outline Changes: The information contained in this Course Outline including but not limited to faculty and program information and course description is subject to change without notice. Any changes to course curriculum and/or assessment shall adhere to approved Sheridan protocol. Nothing in this Course Outline should be viewed as a representation, offer and/or warranty. Students are responsible for reading the Important Notice and Disclaimer which applies to Programs and Courses.
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