ACCG32000D
Taxation
Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 
Section I: Administrative Information
  Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2021
Prerequisites: ACCG32004D
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: 45 credits including ACCG32004D

Program(s): Bach Bus Admin Market Manage, Bach Business Admin Accounting, Bach Business Admin Finance, Bach Human Resources, BachBus Admin Spply Chain Mgmt
Program Coordinator(s): Lorraine Alyea, Sathy Sritharakumar, Carol Bureau, Maryam Hafezi, Mark Weaver
Course Leader or Contact: Humayun Chaudhary
Version: 20210118_00
Status: Approved (APPR)

Section I Notes: This course will be delivered in a face-to-face or hybrid format.

 
 
Section II: Course Details

Detailed Description
Students examine Canadian federal income tax legislation to determine income and taxes payable for individuals. Related rules from the Goods and Services Act are also reviewed. 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, taxes payable; and the rights and obligations of taxpayers. By comparing and analyzing common layout and structure of the Income Tax Act and identifying and distinguishing the exceptions, the student develops a strong framework for making tax related decisions. Through a combination of interactive lectures, class discussions, in-class exercises, numerous situational examples, case studies, research and assignments, students analyze individual circumstances and determine the applicable legislation. Students predict the tax consequences of events and propose alternative courses of action which will result in a more desirable tax treatment.

Program Context

 
Bach Bus Admin Market Manage Program Coordinator(s): Carol Bureau
This course further develops decision making skills to interpret Canadian federal income tax legislation relating to individuals. This course is designed to meet the requirements for the professional accounting program of study. For students admitted prior to Fall 2020, this course can be used as an elective course in BBA Accounting, BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. For students admitted from Fall 2020 onward, this is a required course in the Bachelor of Business Administration (BBA) Accounting program and can be used as an elective in the BBA Finance program.

Bach Business Admin Accounting Program Coordinator(s): Lorraine Alyea
This course further develops decision making skills to interpret Canadian federal income tax legislation relating to individuals. This course is designed to meet the requirements for the professional accounting program of study. For students admitted prior to Fall 2020, this course can be used as a required program course in Bachelor of Business Administration (BBA) Accounting or as an elective course in BBA Accounting, BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. For students admitted from Fall 2020 onwards, this is a required course in the Bachelor of Business Administration (BBA) Accounting program and can be used as an elective in the BBA Finance program.

Bach Business Admin Finance Program Coordinator(s): Mark Weaver
This course further develops decision making skills to interpret Canadian federal income tax legislation relating to individuals. This course is designed to meet the requirements for the professional accounting program of study. For students admitted prior to Fall 2020, this course can be used as an elective course in BBA Accounting, BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. For students admitted from Fall 2020 onward, this is a required course in the Bachelor of Business Administration (BBA) Accounting program and can be used as an elective in the BBA Finance program.

Bach Human Resources Program Coordinator(s): Sathy Sritharakumar
This course further develops decision making skills to interpret Canadian federal income tax legislation relating to individuals. This course is designed to meet the requirements for the professional accounting program of study. For students admitted prior to Fall 2020, this course can be used as an elective course in BBA Accounting, BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. For students admitted from Fall 2020 onward, this is a required course in the Bachelor of Business Administration (BBA) Accounting program and can be used as an elective in the BBA Finance program

BachBus Admin Spply Chain Mgmt Program Coordinator(s): Maryam Hafezi
This course further develops decision making skills to interpret Canadian federal income tax legislation relating to individuals. This course is designed to meet the requirements for the professional accounting program of study. For students admitted prior to Fall 2020, this course can be used as an elective course in BBA Accounting, BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. For students admitted from Fall 2020 onward, this is a required course in the Bachelor of Business Administration (BBA) Accounting program and can be used as an elective in the BBA Finance program.


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 tax 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 capital property schedule according to the capital cost allowance regulations.
  5. Interpret compliance regulations in order to minimize a taxpayer's exposure to interest and penalties.
  6. Specify the tax treatment of the disposition of various types of capital property.
  7. Calculate net income for tax purposes (Division B income).
  8. Compute taxable income utilizing deductions from net income for tax purposes.
  9. Optimize the use of personal tax credits when determining federal tax payable.
  10. Assess the tax implications of various types of income in order to maximize an individual's goals.
  11. Formulate recommendations using sound research from the Income Tax Act and Bulletins, Circulars and Rulings from Canada Revenue Agency.
  12. Analyze GST/HST obligations and calculate net tax for an individual.
  13. Demonstrate professional behaviours including: a. work effectively in a team environment. b. meet due dates. c. prepare professional quality assignments. d. use reference materials responsibly

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION
 Assignments (2 x 5%)10.0%
 Quizzes (10 x 3%)30.0%
 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 have a combined average of at least 50% on the non-group components of the evaluation plan in order to receive credit for this course.



Evaluation Plan: IN-CLASS
 Assignments (2 x 5%)10.0%
 Quizzes (10 x 3%)30.0%
 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 have a combined average of at least 50% on the non-group components of the evaluation plan 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: Multiple Professors
Resource(s):
 TypeDescription
RequiredOtherRecommended Reading: Bulletins, Circulars and Rulings at http://www.cra-arc.gc.ca/
RequiredTextbookIntroduction to Federal Income Taxation in Canada, Beam, Laiken, Barnett, Wolters Kluwer, 41, 2020, 2019-2020 with Study Guide
RequiredOtherCanadian Income Tax Act with Regulations, available through Sheridan Library access
RequiredOtherCPA Handbook assigned sections, available through Sheridan Library access

Applicable student group(s): Bachelor of Business Administration
Course Details:

Note: Learning Outcome #13 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. The use of data analytics
  6. Reporting systems and data requirements for tax compliance
  7. Legal forms and structures: Sole proprietorship, corporation, partnership, trust
  8. Computation of net and taxable income
  9. Taxation of various types of income
  10. How and why tax legislation exists; various revenue sources; responsibilities of taxpayers, their advisors, and CRA
  11. Individual and corporate residency
  • Full year, part-year and deemed residents
  • Purpose of tax treaties
  • Compliance requirements
  • Deemed acquisition/disposition rules
  • Availability of elections

Chapter(s): 1, 2
Learning Outcomes: 1, 2, 11

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)

Chapter(s): 3
Learning Outcomes: 2,3,7,10,11
Assessment: Quiz 1 – 3%

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

Chapter(s): 4
Learning Outcomes: 2,3,7,10,11
Assessment: Quiz 2 – 3%
Assessment: Assignment 1 – 5%

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. Inducement payments
  6. Available for use
  7. Short taxation year

Chapter(s): 5
Learning Outcomes: 4,7,11
Assessment: Quiz 3 – 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

Chapter(s): 6
Learning Outcomes: 1,2,3,5,7,10,11
Assessment: Quiz 4 – 3%

MID-TERM EXAM 25% (Modules 1-5)

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
  13. Replacement property
  14. Change in use

Chapter(s): 6 (select pages), 7, 8
Learning Outcomes: 2,3,6,10,11
Assessment: Quiz 5 – 3%
Assessment: Quiz 6 – 3%

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, childcare 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

Chapter(s): 9
Learning Outcomes: 3, 7, 10, 11
Assessment: Quiz 7 – 3%
Assessment: Assignment 2 – 5%

Module 8: Taxable income and taxes payable for individuals

  1. Computation of taxable income
  2. Taxable income adjustments
  3. Loss carry overs
  4. Capital Gains Deduction - availability, limits, basic computations
  5. Stock option deductions
  6. Elements of taxes payable
  7. Graduated tax rates
  8. Refundable tax credits
  9. Non-refundable tax credits including
  10. Charitable donations
  11. Alternative minimum tax –purpose and when it applies
  12. Dividend tax credit (eligible and non)
  13. Foreign tax credits
  14. Political tax credits
  15. OAS claw back

Chapter(s): 10
Learning Outcomes: 7, 8, 9
Assessment: Quiz 8 – 3%
Assessment: Assignment 2 – 5%

Module 9: Income Tax Compliance

  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

Chapter(s): 14
Learning Outcomes: 5, 11
Assessment: Quiz 9 – 3%

Module 10: 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

Chapter(s): 21
Learning Outcomes: 11, 12
Assessment: Quiz 10 – 3%

FINAL CUMULATIVE EXAM 35% (Modules 1-10)



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