Income Taxation 2 - Corporate Tax Preparation
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
Section I: Administrative Information
  Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2022
Prerequisites: ACCG70024
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Tax Accounting
Program Coordinator(s): Ruxandra Dunn
Course Leader or Contact: N/A
Version: 20220110_00
Status: Approved (APPR)

Section I Notes: Access to course materials and assignments will be available on Sheridan's Learning and Teaching Environment (SLATE). Students will need reliable access to a computer and the internet.

Section II: Course Details

Detailed Description
Students continue to build on their knowledge of federal income taxation in Canada. Studies include how to calculate business and property income and how to compute deductions associated with depreciable capital property and eligible capital property. The study of Corporate income tax is introduced and students learn to analyze the corporation and its activities, to determine the optimal tax deductions (or tax credits) to minimize corporate taxes payable. Students will also learn the planning of a corporation and shareholder-manager remuneration. Basic Goods and Services Tax/Harmonized Sales Tax concepts are also introduced, covering topics such as general structure, registration, liability for tax and basic provisions of GST/HST for business activity.

Program Context

Tax Accounting Program Coordinator(s): Ruxandra Dunn
This is a compulsory course for the Tax Accounting Certificate program.

Course Critical Performance and Learning Outcomes

  Critical Performance:
By the end of this course, students will have demonstrated the ability to evaluate corporate tax consequences and to compute taxable income and taxes payable for individuals and corporations, using the Income Tax Act and other reference material.
Learning Outcomes:

To achieve the critical performance, students will have demonstrated the ability to:

  1. Distinguish between income from business, income from property, and a capital gain.
  2. Calculate income or loss from a business for tax purposes.
  3. Classify depreciable capital property and eligible capital property for tax purposes.
  4. Prepare a capital cost allowance schedule and a schedule calculating the balance of the cumulative eligible capital account.
  5. Evaluate and compute the tax consequences of alternative investments.
  6. Assess whether transactions are subject to income attribution.
  7. Calculate income from property for tax purposes.
  8. Distinguish between non-arm's lengths, related, associated, connected and affiliated persons under the Income Tax Act. Identify characteristics of personal service corporations.
  9. Prepare a schedule of net income for tax purposes for a corporation, recognizing differences in the calculation of income for a Corporation and an individual. Identify and calculate any potential deductions in the computation of taxable income for a corporation.
  10. Apply the general rate of tax for all corporations and assess whether the corporation qualifies for any deductions from Part 1 tax (tax credits).
  11. Calculate the federal tax abatement, the general rate reduction and the foreign tax credits (as applicable).
  12. Identify active business income and calculate the small business deduction.
  13. Ascertain the appropriate tax treatment for investment income of private corporations and calculate the related refundable taxes.
  14. Understand the issues related to the choice of different types of compensation for a shareholder-manager (salary vs dividends) and the rewards and risks of income splitting using a corporation.
  15. Know the general structure of the GST/HST, registration requirements, liability for tax, basic provisions of GST/HST for business activity, and basic provisions for GST pertaining to the treatment of depreciable and capital property.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: ONLINE
 Assignments (8 x 1.25%)10.0%
 Midterm Exam* (Chapters 7 - 10)40.0%
 Final Exam* (Comprehensive)40.0%

Evaluation Notes and Academic Missed Work Procedure:
Please note that for the online course section, the completion of assignments, discussions, quizzes and exams will be done online. Students are allowed to bring the Income Tax Act into the final examination.

Evaluation Plan: IN-CLASS
 Assignments and/or group work20.0%
 Midterm Exam (Chapters 7-10)40.0%
 Final Exam - Comprehensive40.0%

Provincial Context
The course meets the following Ministry of Colleges and Universities requirements:


Essential Employability Skills
Essential Employability Skills emphasized in the course:

  • Communication Skills - Communicate clearly, concisely and correctly in the written, spoken, visual form that fulfills the purpose and meets the needs of the audience.
  • Numeracy - Execute mathematical operations accurately.

Prior Learning Assessment and Recognition
PLAR Contact (if course is PLAR-eligible) - Office of the Registrar
Students may apply to receive credit by demonstrating achievement of the course learning outcomes through previous relevant work/life experience, service, self-study and training on the job. This course is eligible for challenge through the following method(s):

  • Challenge Exam

Section III: Topical Outline
Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Print Instruction Mode Professor Applicable Student Group(s)
In-Class Multiple Professors In-class Students
Online Multiple Professors Online Students

Sheridan Policies

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.

Intellectual Property: Sheridan's Intellectual Property Policy generally applies such that students own their own work. Please be advised that students working with external research and/or industry collaborators may be asked to sign agreements that waive or modify their IP rights. Please refer to Sheridan's IP Policy and Procedure.

Respectful Behaviour: Sheridan is committed to provide a learning environment that supports academic achievement by respecting the dignity, self-esteem and fair treatment of every person engaged in the learning process. Behaviour which is inconsistent with this principle will not be tolerated. Details of Sheridan's policy on Harassment and Discrimination, Academic Integrity and other academic policies are available on the Sheridan policy website.

Accessible Learning: Accessible Learning coordinates academic accommodations for students with disabilities. For more information or to register, please see the Accessible Learning website (Statement added September 2016)

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.

[ Printable Version ]

Copyright © Sheridan College. All rights reserved.