ACCG53329
Taxation		 Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 

Land Acknowledgement

Sheridan College resides on land that has been, and still is, the traditional territory of several Indigenous nations, including the Anishinaabe, the Haudenosaunee Confederacy, the Wendat, and the Mississaugas of the Credit First Nation. We recognize this territory is covered by the Dish with One Spoon treaty and the Two Row Wampum treaty, which emphasize the importance of joint stewardship, peace, and respectful relationships.

As an institution of higher learning Sheridan embraces the critical role that education must play in facilitating real transformational change. We continue our collective efforts to recognize Canada's colonial history and to take steps to meaningful Truth and Reconciliation.
Section I: Administrative Information
  Total hours: 56.0
Credit Value: 4.0
Credit Value Notes: N/A
Effective: Spring/Summer 2020
Prerequisites: ACCG53855
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Professional Accounting Grad
Program Coordinator(s): Lorraine Alyea
Course Leader or Contact: Humayun Chaudhary
Version: 20200519_00
Status: Approved (APPR)

Section I Notes: Allowable calculator: Texas Instruments BAII Plus.
 
 
Section II: Course Details

Detailed Description
Students examine Canadian federal income tax legislation to determine income and taxes payable for individuals and corporations. 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 and taxes payable; and the rights and obligations of taxpayers. Students learn through interactive lectures, computer exercises, case studies, and classroom activities.

Program Context

 
Professional Accounting Grad Program Coordinator(s): Lorraine Alyea
This course is a required course in the Professional Accounting Ontario College Graduate Certificate.


Course Critical Performance and Learning Outcomes

  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 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 in preparation for annual tax filing.
  5. Calculate net income for tax purposes.
  6. Compute taxable income utilizing deductions from net income for tax purposes.
  7. Compute taxable income and taxes payable for public, private and Canadian controlled private corporations.
  8. Identify the tax effects of various corporate distributions and the winding-up of a corporation.
  9. Analyze GHT/HST obligations and calculate net tax for an individual.
  10. Formulate sound financial recommendations using research derived from the Income Tax Act and Bulletins, Circulars and Rulings from Canada Revenue Agency.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION
 In-class Activities (2x3%, 1x4%)10.0%
 Quizzes (3x5%)15.0%
 Research Report (Group)15.0%
 Midterm Exam25.0%
 Final Exam Comprehensive35.0%
Total100.0%

Evaluation Notes and Academic Missed Work Procedure:
In addition to achieving a minimum 50% overall grade, a student must achieve a grade of at least 50% on the final comprehensive exam in order to receive credit for this course.

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

 

Prior Learning Assessment and Recognition
PLAR Contact (if course is PLAR-eligible) - Office of the Registrar

  • Not Eligible for PLAR
 
 
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.
Instruction Mode: In-class & Online Instruction
Professor: N/A
Resource(s):
 TypeDescription
RequiredTextbookIntroduction to Federal Income Taxation in Canada, Beam, Laiken, Barnett, Wolters Kluwer, 40th Edition, 2019-2020 with Study Guide.
RequiredOtherCanadian Income Tax Act with Regulations, Annotated,108th Edition 2019
OptionalOtherRecommended Reading: Bulletins, Circulars and Rulings at http://www.cra-arc.gc.ca/

Applicable student group(s): Professional Accounting Ontario College Graduate Certificate
Course Details:

Description:
Note: Learning Outcome #10 is inherent in each unit throughout the course.
 

Module 1: General Income Tax Concepts

  1. History and objectives of Canadian tax system
  2. Structure and interpretation of the Income Tax Act
  3. Income tax research and reference materials
  4. Tax evasion, tax avoidance and tax planning
  5. Legal forms and structures: Sole proprietorship, corporation, partnership, trust
  6. Computation of net and taxable income
  7. Taxation of various types of income
  8. How and why tax legislation exists; various revenue sources; responsibilities of taxpayers, their advisors, and CRA
  9. Individual and corporate residency
    1. Full year, part-year and deemed residents
    2. Purpose of tax treaties
    3. Compliance requirements
    4. Deemed acquisition/disposition rules
    5. Availability of elections

 Learning Outcomes: 1, 2, 5

 

Module 2: General principles of income from office or employment

  1. Employed versus self-employed status
  2. Common employment taxable benefits (automobiles, allowances and reimbursements, 6(1)(a) exclusions, group plans, stock options)
  3. Common employment income deductions (legal expenses, sales expenses, automobiles, meals, dues, home office)

Learning Outcomes: 2, 3, 5

 

Module 3: Income or loss from a business

  1. Types of income-business income, property income, capital gains
  2. General principles of income from business
  3. Common Schedule 1 adjustments including inclusions and deductions
  4. Reconciliation schedule

Learning Outcomes: 2, 3, 5

Assessments: In-class activity 1 (3%)
 

Module 4: Capital cost allowance system for depreciable property including intangibles

  1. General principles and definitions related to CCA (UCC, recapture, terminal loss)
  2. Acquisition and disposition of depreciable capital property
  3. Common CCA classes
  4. Separate CCA classes
  5. Replacement property
  6. Change in use
  7. Inducement payments
  8. Available for use
  9. Short taxation year

Learning Outcomes: 3, 4, 5

Assessments: In-class Activity 2 (3%)

 

Module 5: Income or loss from property

  1. General principles of income from property
  2. Dividends (eligible, non-eligible, capital)
  3. Indirect payments
  4. Interest free / low interest loans
  5. Integration concept
  6. Basic stakeholder relationships (affiliated, non-arm’s length, related)
  7. Attribution (spouses and children)
  8. Existence and purpose of GAAR and anti-avoidance provisions
  9. Income splitting opportunities with family members
  10. Tax on split income

Learning Outcomes: 2, 3, 5

Assessments: Quiz 1 (5%)

MIDTERM EXAMINATION (Modules 1-5) 25%

 

Module 6: Capital gains and capital losses

  1. History, general rules, definitions and computation
  2. Personal-use and listed personal property
  3. Principal residence
  4. Dispositions of land and building
  5. Adjusted cost base
  6. Proceeds of disposition
  7. Capital gains/losses
  8. Identical property
  9. Inadequate consideration
  10. Business investment loss
  11. Capital gains reserve
  12. Non-arm’s length transactions and attribution rules

Learning Outcomes: 2, 3,5

Assessments: Research Report (Group) (15%)

 

 Module 7: Income from other sources and other deductions

  1. Other income and deductions (retiring allowances, support payments received and paid, pension income, moving expenses, child care expenses, RRSPs)
  2. Tax deferral and saving opportunities with e.g. RRSPs, RRIFs, TFSA’s
  3. Amounts not included in computing income
  4. Net income for tax purposes

Learning Outcomes: 2, 3, 5

 

Module 8: Taxable income and taxes payable for individuals

  1. Computation of taxable income
  2. Taxable income adjustments
  • Loss carry overs
  • Capital Gains Deduction - availability, limits, basic computations
  • Stock option deductions
  1. Elements of taxes payable
  • Graduated tax rates
  • Refundable tax credits
  • Non-refundable tax credits including
  • charitable donations
  • Alternative minimum tax – purpose and when it applies
  • Dividend tax credit (eligible and non)
  • Foreign tax credits
  • Political tax credits
  • OAS claw back

Learning Outcomes: 3, 5, 6

Assessments: Quiz 2 (5%)

 

Module 9: Income Tax Compliance and Death of a Taxpayer

  1. Basic compliance requirements (e.g. T1, T2, T4, T5)
  2. Filing deadlines for income tax returns and objections
  3. Retention of books and records
  4. Directors liability
  5. Instalments and final tax payments
  6. Deadlines for instalments and final tax payments
  7. Interest and penalties
  8. Preparer penalties
  9. Income tax implications of death
  10. Returns - final return, elective returns
  11. Deemed disposition on death
  12. Spousal rollover

Learning Outcomes: 3, 5, 6

 

Module 10: Corporations 1

  1. Corporate types (private, CCPC, public)
  2. Computation of taxable income for a corporation
  3. Computation of taxable income deductions
  • Donations
  • Loss carry-overs
  • Dividends
  1. Acquisition of control issues:
  • Deemed taxation year with tax return
  • Automatic recognition of accrued losses
  • Election to recognize accrued gains
  1. Tax deductions and credits
  • General tax reduction
  • Provincial abatement
  • M&P and SRED credits
  • Foreign tax credit
  1. The Concept of Integration under the ITA
  2. Business and property income (Active business income, aggregate investment income, specified investment business income, eligible and nonżeligible dividends)
  3. Personal services business income
  4. Small business deduction
  5. General rate reduction
  6. Additional tax on personal services business income
  7. RDTOH
  8. Refundable Part 1
  9. Part IV
  10. Dividend refund
  11. Basic stakeholder relationships (affiliated, associated, connected, nonżarm’s length, related)
  12. Employment income vs. dividends
  13. Shareholder loans
  14. Alternative compensation options - stock options, bonuses, fringe benefits
  15. Tax implications of dividends
  • Capital dividends
  • Eligible and non-eligible dividends
  1. Tax on split income
  2. General anti-avoidance rule

 

Module 11: Corporations 2

  1. Paid-up Capital vs. Adjusted Cost Base
  2. Sale of an Incorporated Business
  3. Corporate income effect on sale of assets
  4. Corporate tax payable on sale of assets
  5. Vendor Shareholder tax payable on distribution
  6. Calculation of taxable capital gain on share sale
  7. Calculation of capital gains deduction
  8. Vendor Shareholder tax payable
  9. Corporate Surplus Balances
  10. Use of Corporate Surplus Balance
  11. Capital dividends
  12. Transfer of property to a Corporation by a Shareholder
  13. Transfer of Shares
  14. Basic rules of sections 51, 85 and 86
  15. Basic application of sections 51, 85 and 86
  16. Rollovers involving Corporations and their shareholders
  17. Rollovers involving Shares or Corporate Securities

Learning Outcomes: 2, 5, 6, 7, 8

Assessments: In-class Activity 3 (4%)

 

Module 12: General GST/HST Concepts

  1. GST system in Canada
  2. Basics of GST – key definitions
  3. Legislative framework – Regulations, legislation
  4. Entities subject to different rules
  5. GST obligations – collection and remittance
  6. GST calculations
  7. GST treatment for specific items (bad debts, allowances, reimbursements, volume rebates, club dues, meals & entertainment)
  8. GST Administration
  • Basic compliance requirements
  • Filing deadlines for returns and objections
  • Retention of books and records
  • Directors’ liability
  • Instalments and final GST payments
  • Deadlines for instalments and final GST payments
  • Interest and penalties for late filed returns and payments
     
  1. GST Implications from Tax Planning for Shareholders and a Closely Held Corporation
  2. Impact of a supply being considered incurred in Canada when transacting with non-residents

Learning Outcomes: 9

Assessments: Quiz 3 (5%)

FINAL EXAMINATION (CUMMULATIVE) – 35%

Sheridan Policies

It is recommended that students read the following policies in relation to course outlines:

  • Academic Integrity
  • Copyright
  • Intellectual Property
  • Respectful Behaviour
  • Accessible Learning
All Sheridan policies can be viewed on the Sheridan policy website.

Appropriate use of generative Artificial Intelligence tools: In alignment with Sheridan's Academic Integrity Policy, students should consult with their professors and/or refer to evaluation instructions regarding the appropriate use, or prohibition, of generative Artificial Intelligence (AI) tools for coursework. Turnitin AI detection software may be used by faculty members to screen assignment submissions or exams for unauthorized use of artificial intelligence.

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. 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.