Course Name (short): Fund. of Tax Preparation
School: Continuing Ed & Corp Training
Program(s): Accounting Practitioner
Program Coordinator(s): Multiple Coordinators
Course Leader or Contact: N/A
Originator: Ravneet Malhi
Designate: Ravneet Malhi
Version: 3.0
Status: Approved (APPR)

Calendar Description
Students will learn the basic and essential elements required for professional tax preparation related to T1 tax filing for individuals and self-employed business owners. They will be exposed to fundamental income tax topics, and will learn to analyze records of taxable income, and systematically select and record the necessary information to produce T1 tax returns. This is an introductory course.

Typical Instructional Format

Courses may be offered in other formats.

Section I Notes: This course is offered in a blended format that includes online and in class/virtual meeting components. The total instruction time will be 42 hours. The online portions of the course are web-based and offered through Sheridan College's SLATE learning management system. Students taking this course will need a laptop computer, reliable access to the internet, and should have a basic level of comfort using computers as well as the self- discipline to study independently. Students can expect to spend an additional three hours per week for online activities such as postings, discussions, reading, homework and assignments.

Detailed Description
In this introductory course, students explore the field of professional tax preparation services for individuals and self- employed business owners. Students will discover how to apply the principles, rules, and guidelines that govern each type of T1 tax filing. Students will be exposed to fundamental income tax topics, including individual taxpayer rights, taxpayer obligations and requirements. Finally, students will learn to analyze records of taxable income, and systematically evaluate, select, compute, and record the necessary information to produce T1 tax returns. This is an introductory course. Subsequent courses in the Accounting program will focus on more complex tax rules and concepts for filing T2 small business and corporate T2 returns. All courses will prepare students to recognize government requirements for how, when, where, what and how to file the correct tax forms.

Program Context

 1. Research provincial and federal rules and legislation with respect 
to income taxes 
2. Identify the rights and obligations of taxpayers and the CRA as 
they relate to the Income Tax Act.
3. Identify and calculate specific income and deductions from 
employment, business and property revenue sources.
4. Distinguish between personal, business, property, investment and 
other income.
5. Differentiate between the type of tax filing required for 
individuals, Self-Employed Businesses and Corporations.
6. Identify the appropriate situations and supplies requiring 
application of the HST 
7. Calculate and apply the principles and skills related to Input Tax 
Credit and differentiate between 'taxable vs exempt' and allocation 
items.
8. Select and apply an appropriate instalment payment schedule for 
individuals.
9. Complete a payroll report identifying the requirements and 
calculations related to the payroll process.
10. Describe and explain the difference between employees vs 
contractors vs consultants.

Students demonstrate their learning in the following ways:
Quizzes                         15% (3 X 5%)
Assignments                     20% (2 X 10%)
Mid- term                       25%
Comprehensive Final Exam        40%
Total                          100%

N/A

Module 1: Background and Theory of Taxation (LO # 1,4)
What is taxation
Who, What and Where to File
How to locate information

Module 2: Taxpayer Rights and Obligations (LO #2,3, 4, 10)
Describe Taxpayer rights and obligations under CRA (Canada Revenue 
Agency) including:
- CRA Rights and Obligations
- Self assessment
- Reporting
- Books and Records
- Appeals Process
- CRA Responsibility
- Fairness
- Appeals/Ombudsman

Module 3: Employer Reporting  Requirements (LO # 3,4,5 ,8, 9)
Identify and describe employment income ?
Identify all sources of income required for a T1 filing
Identify the relevant, available and eligible deductions from 
employment income
Describe the reporting and filing requirements for an employer

Module 4: Basics of Individual Tax Filing  (LO # 4,5, 9, 10)
Reporting and filing requirements to employee
Review and identify the differences between common tax slips 
individuals receive
Identify the eligible deductions and credits available to individuals
Review and identify the thresholds and rationale behind provincial and 
federal Tax rates
Prepare options for instalment obligations
Prepare a basic T1 return

Module 5: Intro to Business, Property and Capital Gains Tax  (LO # 
4,5, 6)
Identify income from business activities
Identify income from property
Identify income from capital gains
Describe the common capital gain reporting requirement for individuals
Prepare a T1 reporting capital gains

Module 6: Business Income  (LO # 6,7, 8)
Define « business Income »
Identify and describe applicable business expenses allowable under CRA
Differentiate between Taxable Income  vs. Book Income
Prepare a self-employed business return

Module 7 : Property Income  (LO # 4,5, 6)
Identify and describe the type of property income affecting 
Individuals
Describe the allowable CRA deductions from property income
Prepare a T1 reporting property income

Module 8 : Harmonized Sales Tax - HST  (LO # 6,7, 8)
Define HST requirements under CRA
Identify the various type of supplies related to HST charges
Describe HST vs GST and PST
Input Tax Credits into the appropriate section of an ERP system
Prepare an HST Return

Module 9 :Contractors and Commissions (LO # 3,8,9,10)
Distinguish between contractors vs. Employees
Define commissioned vs. salaried Employees
Prepare a T1 for commissioned employee/contractor