Note: Learning Outcome #10 is inherent in each unit throughout the course.
Module 1: General Income Tax Concepts
- Individual and corporate residency
- Full year, part-year and deemed residents
- Purpose of tax treaties
- Compliance requirements
- Deemed acquisition/disposition rules
- Availability of elections
Textbook Reference: Chapter(s) 1, 2, 3, Appendix C
Learning Outcomes: 1, 2, 5
Module 2: General principles of income from office or employment
- Employed versus self-employed status
- Common employment taxable benefits (automobiles, allowances and reimbursements, 6(1)(a) exclusions, group plans, stock options)
- Common employment income deductions (legal expenses, sales expenses, automobiles, meals, dues, home office)
- Interest-free/low interest loans
Textbook Reference: Chapter(s) 4
Learning Outcomes: 2, 3, 5
Assessment: Quiz 2%
Module 3: Income or loss from a business
- Types of income-business income, property income, capital gains
- General principles of income from business
- Common Schedule 1 adjustments including inclusions and deductions
- Reconciliation schedule
Textbook Reference: Chapter(s) 5
Learning Outcomes: 2, 3, 5, 6
Assessment: Quiz 2%
Module 4: Capital cost allowance system for depreciable property including intangibles
- General principles and definitions related to CCA (UCC, recapture, terminal loss)
- Acquisition and disposition of depreciable capital property
- Common CCA classes
- Separate CCA classes
- Replacement property
- Change in use
- Inducement payments
- Available for use
- Short taxation year
Textbook Reference: Chapter(s) 6
Learning Outcomes: 3, 4, 5,
Assessment: Quiz 2%
Assessment: Assignment / Research (10%)
Module 5: Income or loss from property
- General principles of income from property
- Dividends (eligible, non-eligible, capital)
- Integration concept
- Existence and purpose of GAAR and anti-avoidance provisions
Textbook Reference: Chapter(s) 7
Learning Outcomes: 2, 3, 5,
Assessment: Quiz 2%
MIDTERM EXAMINATION (Modules 1-5) 25%
Module 6: Capital gains and capital losses
- History, general rules, definitions and computation
- Personal-use and listed personal property
- Principal residence
- Dispositions of land and building
- Adjusted cost base
- Proceeds of disposition
- Capital gains/losses
- Identical property
- Business investment loss
- Capital gains reserve
Textbook Reference: Chapter(s) 8
Learning Outcomes: 2, 3,5
Assessment: Quiz 2%
Module 7: Income from other sources and other deductions
- Other income and deductions (retiring allowances, support payments received and paid, pension income, moving expenses, childcare expenses, RRSPs)
- Tax deferral and saving opportunities with e.g. RRSPs, RRIFs, TFSA's
- Amounts not included in computing income
- Net income for tax purposes
- Indirect payments
- Inadequate consideration
- Basic stakeholder relationships (affiliated, non-arm’s length, related)
- Non arm’s length transactions and attribution rules
- Income splitting opportunities with family members
- Tax on split income (TOSI)
Textbook Reference: Chapter(s) 9
Learning Outcomes: 2, 3, 5
Module 8: Taxable income and taxes payable for individuals
- Taxable income adjustments
- Loss carry overs
- Capital Gains Deduction - availability, limits, basic computations
- Stock option deductions
- 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
Textbook Reference: Chapter(s) 10
Learning Outcomes: 3, 5, 6
Assessment: Quiz 2%
Module 9: Computation of Taxable Income and Taxes Payable for Corporations
- Computation of taxable income deductions
- Donations
- Loss carry-overs
- Dividends
- Acquisition of control issues:
- Deemed taxation year with tax return
- Automatic recognition of accrued losses
- Election to recognize accrued gains
- Tax deductions and credits
- General tax reduction
- Provincial abatement
- General rate reduction
- M&P and SRED credits
- Foreign tax credit
Textbook Reference: Chapter(s) 11
Learning Outcomes: 2, 3, 5, 6, 7,
Assessment: Quiz 2%
Assessment: Assignment / Research (10%)
Module 10: Integration of Business &Investment Income of Private Corporations
- The Concept of Integration under the ITA
- Business and property income (Active business income, aggregate investment
- Income, specified investment business income, eligible and non-eligible dividends)
- Personal services business income
- Small business deduction
- General rate reduction
- Additional tax on personal services business income
- RDTOH
- Refundable Part 1
- Part IV
- Dividend refund
- Basic stakeholder relationships (affiliated, associated, connected, non-arm's length, related)
Textbook Reference: Chapter(s) 13
Learning Outcomes: 2, 3, 5, 6, 7
Assessment: Quiz 2%
Module 11: Tax Planning for Private Corporations and Shareholder-Manager Remuneration
- Tax implications of dividends
- Capital dividends
- Eligible and non-eligible dividends
- Paid-up Capital vs. Adjusted Cost Base
- Sale of an Incorporated Business
- Corporate income effect on sale of assets
- Corporate tax payable on sale of assets
- Vendor Shareholder tax payable on distribution
- Calculation of taxable capital gain on share sale
- Calculation of capital gains deduction
- Vendor Shareholder tax payable
Textbook Reference: Chapter(s) 12 (select sections), 13, 18
Learning Outcome: 2, 5, 6, 7, 8
Assessment: Quiz 2%
Module 12: Income Tax Compliance
- Basic compliance requirements (e.g. T1, T2, T4, T5)
- Filing deadlines for income tax returns and objections
- Retention of books and records
- Directors liability
- Instalments and final tax payments
- Deadlines for instalments and final tax payments
- Interest and penalties
- Preparer penalties
Textbook Reference: Chapter(s) 3
Learning Outcomes 3, 5, 6
Module 13: General GST/HST Concepts
- 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
- GST Implications from Tax Planning for Shareholders and a Closely Held Corporation
Textbook Reference: Chapter(s) 22
Learning Outcomes: 9, 11
Assessment: Quiz 2%
FINAL EXAMINATION (CUMULATIVE) –35%