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Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2015
Prerequisites:
(ACCG34780)
Corequisites:
N/A
Equivalents:
N/A
Pre/Co/Equiv Notes: N/A |
Course
Name (short): Taxation 2
School: All Sheridan Schools
Program(s):
Business Admin Accounting
Program Coordinator(s):
Sally Mitzel
Course Leader or Contact: Peter Lade
Originator: Lesley Rumsby
Designate: Lesley Rumsby
Version: 16.0
Status: Approved - Under Rev (AREV)
Calendar Description
Tax 1 and Tax 2 provide an extensive introduction to both personal
and corporate federal income taxation in Canada. This course is a
continuation of Tax 1. Topics covered in Tax 2 include
capital gains/losses, other income and deductions, computation of
Division B and taxable income for individuals and corporations,
computation of taxes payable for individuals and corporations.
Typical Instructional Format
Lecture
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42.0 |
Total hours: |
42.0 |
Courses may be offered in other formats.
Section I Notes:
A minimum "B" grade is required in both courses, ACCG34780 and
ACCG30699, to qualify for partial course exemption towards the CGA
course of study. The CGA challenge exam for CGA Taxation 1 is
required. This course is taught in a mobile computing environment.
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Detailed Description
This course is a continuation of the study of federal income taxation
in Canada started in Taxation 1. The study of sources of net income
continues with the examination of capital gains and losses
and the treatment of miscellaneous sources of income and deductions.
After determining taxable income, students explore various personal
tax credits in order to calculate individual taxes payable. 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.
Program Context
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Business Admin Accounting |
Program Coordinator: Sally Mitzel |
This course is a core
component of the third year
of the Accounting Program.
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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 evaluate the personal and corporate tax consequences
of various situations 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. Classify various types of capital property and apply the specific
provisions for the taxation of capital gains or losses.
2. Identify miscellaneous receipts which are required to be included
in income.
3. Assess whether particular expenditures are deductible as other
deductions and calculate the amount of the deduction.
4. Examine the potential Division C deductions and calculate taxable
income for individuals according to the ordering rules in
Division C.
5. Compute the minimum amount of federal tax payable for individuals
by optimizing personal tax credit claims.
6. Prepare a schedule of net income for tax purposes for a
corporation.
7. Identify and calculate any potential deductions from net income
for tax purposes in the computation of taxable income for a
corporation.
8. Apply the general rate of tax for all corporations and assess
whether the corporation qualifies for any deductions from Part 1
tax (tax credits).
9. Calculate the federal tax abatement, the general rate reduction
and the foreign tax credits (as applicable).
10.Demonstrate the concept of integration.
11.Identify active business income and calculate the small business
deduction.
12.Ascertain the appropriate tax treatment for investment income of
private corporation's and calculate the related refundable taxes.
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Evaluation Plan
Students demonstrate their learning in the following ways:
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Assignments and/or group work 20%
Midterm Exam 40%
Final Exam - Comprehensive 40%
Total 100%
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Provincial Context
The course meets the following Ministry of Training, Colleges and Universities requirements:
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Essential Employability
Skills
Essential Employability Skills emphasized in the course:
X
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Communication
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X
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Critical Thinking & Problem Solving
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X
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Interpersonal
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X
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Numeracy |
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Information
Management |
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Personal
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Notes: N/A
Prior Learning Assessment and Recognition
PLAR Contact: Multiple PLA Contacts
Students may apply to receive credit by demonstrating achievement
of the course learning outcomes through previous life and work experiences.
This course is eligible for challenge through the following
method(s):
Challenge Exam |
Portfolio |
Interview |
Other |
Not Eligible for PLAR |
X |
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Notes: N/A
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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): Textbooks and Instructional Materials
R.E. Beam and S.N.Laiken,Introduction to Federal Income Taxation in
Canada,34th Edition, 2013-2014. CCH Canadian Ltd.
Canadian Income Tax Act, CCH Canadian Ltd, 96th Edition.
(students are allowed to bring the "Act" into tests and examinations)
(Co-op classes will continue to use the textbook acquired for
Taxation 1)
Applicable student group(s): Business Administration - Third Year Accounting
Course Details:Module 1
- Classify various types of capital property and apply the specific
provisions for the taxation of capital gains or losses as they
affect individuals.
- Calculate capital gain reserves.
Text Reference - Chapter 7, Chapter 8 (see 40(a) capital gain
reserves provision only).
Module 2
- Identify miscellaneous receipts which are required to be included
in income including pensions, retiring allowance, support payments,
scholarships and bursaries.
- Assess whether particular expenditures are deductible as other
deductions and calculate the amount of the deduction, specifically
RRSP's, moving expenses, childcare expenses and the disability
support deduction.
Text Reference - Chapter 9
Module 3
- Examine the potential Division C deductions and calculate taxable
income for individuals according to the ordering rules in
Division C.
Text Reference - Chapter 10
Module 4
- Compute the minimum amount of federal tax payable for individuals
by optimizing personal tax credit claims.
Text Reference - Chapter 10
Mid-term Exam (Taxation of Individuals) Modules 1-4
Module 5
- Prepare a schedule of net income for tax purposes for a
corporation.
Text Reference - Chapter 11
Module 6
- Identify and calculate any potential deductions from net income
for tax purposes in the computation of taxable income for a
corporation.
- Apply the general rate of tax for all corporations and
assess whether the corporation qualifies for any deductions from
Part 1 tax (tax credits).
- Determine which activities constitute
manufacturing and processing and calculate the appropriate
deduction from tax. (tax credit)
Text Reference - Chapter 11
Module 7
- Demonstrate the concept of integration.
- Determine how the small business deduction helps to achieve
integration of business income.
- Identify active business income and calculate the small business
deduction.
- Explain the rules for association.
Text Reference - Chapter 12
Module 8
- Ascertain the appropriate tax treatment for investment income of
private corporation's and calculate any refundable taxes.
- Explain the advantages and disadvantages of incorporating sources
of business income and sources of investment income.
Text Reference - Chapter 12
Final Exam (Comprehensive)
Academic Honesty
The principle of academic honesty 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 faculty member, or otherwise submitting work that is not
the student's own violates this principle and will not be tolerated. Instances of academic dishonesty, including
assisting another student to cheat, will be penalized as detailed in the Student Handbook.
Students who have any questions regarding whether or not specific circumstances involve a breach of academic
honesty are advised to discuss them with the faculty member prior to submitting the assignment in question.
Discrimination and Harassment
Sheridan is committed to provide a learning environment that respects 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 are available in the Student Handbook.
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