ACCG42001D
Advanced Taxation |
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I: Administrative Information II: Course Details
III: Topical Outline(s) Printable Version |
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Section I: Administrative Information
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Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2015
Prerequisites:
(ACCG32000D)
Corequisites:
N/A
Equivalents:
N/A
Pre/Co/Equiv Notes: N/A |
Program(s):
Bach Bus Admin Market Manage, Bach Business Admin Accounting, Bach Business Admin Finance, Bach Human Resources, BachBus Admin Spply Chain Mgmt
Program Coordinator(s):
Tba
Course Leader or Contact: Tba
Version: 1.01
Status: Approved (APPR)
Section I Notes:
This course will be delivered in hybrid format.
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Section II: Course Details
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Detailed Description
Students examine advanced aspects of tax law which serves to
strengthen their tax planning and problem solving skills within the
framework of professional practice. The key areas covered in this
course include the calculation of taxable income and taxes payable for
corporations (Public, Private, Canadian Controlled Private
Corporations), shareholder benefits and tax planning, corporate
distributions / wind-ups / sale of assets and shares, rollover on
transfers to a corporation & related pitfalls, corporate
reorganizations and other rollover provisions used in estate planning,
taxation of partnerships and trusts.
A combination of interactive lectures, classroom problem solving
activities and case studies are employed to facilitate student learning.
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 is an elective course
within the Bachelor of
Business Administration (BBA)
Accounting program, as well
BBA Finance, BBA Human
Resources, BBA Marketing and
BBA Supply Chain Management.
It provides a continuation of
the detailed study of Canadian
tax law and prepares the
student for tax compliance and
planning situations
encountered in practice as a
professional accountant. This
course has been designed to
meet the requirements for
transfer to the professional
accounting program of study.
The outcomes and learning
experiences derived from
successful completion of this
course will contribute to the
students' Creative Learning
Portfolio.
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 assess and deal capably with various tax compliance and planning
situations related to corporations, individuals, partnerships and trusts.
Learning Outcomes
To achieve the critical performance, students will have demonstrated
the ability to:
1. Compute taxable income and taxes payable for public, private and
Canadian Controlled Private Corporations (CCPCs).
2. Evaluate the advantages and disadvantages of incorporating both
business and investment income in a private corporation.
3. Evaluate alternative methods whereby a shareholder-manager is
remunerated by a private corporation.
4. Determine the tax consequences of specific transactions involving
shareholder loans, shareholder appropriations and sale of
Qualifying Small Business Corporation shares.
5. Describe the various rights and obligations of taxpayers and the
Canada Revenue Agency under the Income Tax Act.
6. Compare the after-tax effects of selling assets versus shares on
the disposition of an incorporated business.
7. Identify the tax effects of various corporate distributions and
the winding-up of a corporation.
8. Illustrate the tax effective transfer of assets to a corporation
under s85(1), giving appropriate consideration to various
pitfalls.
9. Outline various rollover provisions available under the Income
Tax Act and under what circumstances they would apply or could be
elected.
10. Describe the nature of partnerships and trusts, various types of
trusts and their uses in tax planning.
11. Compute taxable income of partnerships, the impact on taxable
income of a partner and the adjusted cost base of a partnership
interest.
12. Demonstrate professional behaviors including:
a. meet due dates
b. produce professional quality assignments
c. use reference materials responsibly
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Evaluation Plan
Students demonstrate their learning in the following ways:
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In-class activities 3 x 5% 15%
Assignments 2 x 10% 20%
Midterm Exam 30%
Comprehensive Final Exam 35%
100%
Assignments are to be completed in small groups. All other
evaluations are on an individual basis.
In addition to achieving a minimum 50% overall grade, a student must
have a combined average of at least 50% on the individual supervised
test(s) and exam(s) in order to receive credit for this course.
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Section III: Topical Outline
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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): Textbook(s):
Beam, R.E., Laiken, S.N., & Barnett, J.J. (2014-2015). Introduction to
Federal Income Taxation in Canada, 2014-2015, 35th Edition. CCH
Canadian Limited: Toronto.
Canadian Income Tax Act with Regulations, Annotated, 98th Edition,
2014 Autumn. CCH Canadian Limited: Toronto.
Applicable student group(s): Bachelor of Business Administration
Course Details:Description:
Note: Learning Outcome #12 is inherent in each unit throughout the course.
Module 1: Computation of Taxable Income and Taxes Payable for Corporations
1. Computation of taxable income for a corporation
2. Computation of taxable income deductions
a. Donations
b. Loss carry-overs
c. Dividends, etc
3. Basic computation of tax for all corporations
4. Tax deductions and credits
a. General tax reduction
b. Small business deduction
c. Political contributions credit
d. Foreign tax credit
Learning Outcome: 1
Module 2: Integration of Business & Investment Income of Private
Corporations
1. The Concept of Integration under the ITA
2. Income from an Active Business of a CCPC
a. Non-arm's length and related persons
b. Associated or connected corporations
c. Affiliated persons
d. Personal services business
3. Income from Investments of a CCPC
a. Refundable Dividend Tax on hand (RDTOH)
b. Refundable Portion of Part 1 Tax
c. Part IV tax on portfolio and other dividends
d. Dividend refund
Learning Outcome: 1, 2
Assessment: Assignment #1 (10%)
Module 3: Rights and Obligations under the Income Tax Act
1. Filing deadlines and requirements for Corporations
2. Notice of assessment, interest, penalties, failures and omission
3. Objections to assessments and appeal process
Learning Outcome: 5
Assessment: In-class Activity #1 (5%)
Mid-term Exam - Module 1 - 3 (30%)
Module 4: Tax Planning for Private Corporations and
Shareholder-Manager Remuneration
1. Incorporation and Employment Remuneration
2. Owner/Manager Employment Income versus Dividends
3. Shareholder and employee benefits and loans
a. Deemed interest paid
4. Use of holding companies
5. Tax on split income (kiddie tax)
6. General anti-avoidance rule
Learning Outcome: 2, 3, 4
Assessment: In-class Activity #2 (5%)
Module 5: Corporate Distributions, Wind-ups, Sale of Assets vs Shares
1. Corporate Surplus Balances
2. Use of Corporate Surplus Balance
3. Winding up of a Canadian Corporation
4. Sale of an Incorporated Business
Learning Outcome: 6, 7
Assessment: Assignment #2 (10%)
Module 6: Income Deferral - Rollovers on Transfers to a Corporation
1. Transfer of property to a Corporation by a Shareholder
a. Small business share rollover
2. Transfer of Shares
Learning Outcome: 8, 9
Module 7: Income Deferral - Other Rollovers
1. Rollovers involving Corporations and their shareholders
2. Rollovers involving Shares or Corporate Securities
3. Use of rollovers in Estate Freezes
Learning Outcome: 9
Assessment: In-class Activity #3 (5%)
Module 8: Partnerships and Trusts
1. The nature of Partnerships
a. Transactions between a partnership and its partners
b. Partnership versus joint venture
2. Limited partnership-at-risk rules
3. Partnership interest
a. Transfer of property to partnership
b. Admission or withdrawal of a partner
c. Termination of a partnership
d. Flow-through of partnership income to a corporate partner
e. Allocation of income/loss from a partnership to be recorded on
an individuals' tax return
4. Nature and types of trusts (inter vivos and testamentary trusts)
5. Settlement of a Trust
6. Computation of Income of a Trust
a. Income payable to beneficiaries
b. Attribution and tax on split income (kiddie tax)
7. Computation of Tax for Trusts
8. Impact of distributions from trusts to beneficiaries
a. Family planning uses of a Trust
Learning Outcome: 9, 10, 11
Final Exam - Comprehensive Module 1 - 8 (35%)
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