ACCG70025
Income Taxation 2 - Corporate Tax Preparation
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: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2023
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: 20230109_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 Small Business Booking Sheridan Certificate


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%
 Quizzes10.0%
 Midterm Exam* (Chapters 7 - 10)40.0%
 Final Exam* (Comprehensive)40.0%
Total100.0%

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%
Total100.0%

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
    Notes:  

 
 
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

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.


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