ACCG34780
Taxation 1A
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: ACCG17937
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Business Admin. Accounting
Program Coordinator(s): Jennifer Peterson
Course Leader or Contact: Humayun Chaudhary
Version: 20210118_00
Status: Approved (APPR)

Section I Notes: N/A

 
 
Section II: Course Details

Detailed Description
This course provides an extensive introduction to the taxation of various sources of income in Canada. Topics covered include residency, obligations of the taxpayer, employment income, income from business, depreciable capital property and capital property, and income from property.

Program Context

 
Business Admin. Accounting Program Coordinator(s): Jennifer Peterson
This course is a core component of the third year of the Business Administration Accounting Program.


Course Critical Performance and Learning Outcomes

  Critical Performance:
By the end of this course, students will have demonstrated the ability to calculate income from employment, business and property for residents of Canada using the provisions of the Income Tax Act.
 
Learning Outcomes:

To achieve the critical performance, students will have demonstrated the ability to:

  1. Locate information in the Income Tax Act and discuss the history of income taxation in Canada.
  2. Determine the extent of a taxpayer's (individuals and corporations) federal income tax liability by assessing their residency status.
  3. Identify specific inclusions and deductions from employment income.
  4. Compute amounts to be included and deducted to determine employment income.
  5. Distinguish between income from business, income from property, and a capital gain.
  6. Calculate income or loss from a business for tax purposes.
  7. Classify depreciable capital property and capital property for tax purposes.
  8. Complete a capital cost allowance schedule and a schedule calculating the balance of the cumulative eligible capital account.
  9. Evaluate and compute the tax consequences of alternative investments.
  10. Assess whether transactions are subject to income attribution.
  11. Prepare a calculation of income from property for tax purposes.
  12. Analyze GHT/HST obligations and calculate net tax for an individual.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS
 Assignments (2 x 10%)20.0%
 Quizzes (5 x 4%)20.0%
 Midterm Exam25.0%
 Final Exam Comprehensive35.0%
Total100.0%

Evaluation Notes and Academic Missed Work Procedure:

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.
  • Communication Skills - Respond to written, spoken, or visual messages in a manner that ensures effective communication.
  • Numeracy - Execute mathematical operations accurately.
  • Critical Thinking & Problem Solving Skills - Use a variety of thinking skills to anticipate and solve problems.
  • Critical Thinking & Problem Solving - Apply a systematic approach to solve problems.
  • Interpersonal Skills - Show respect for the diverse opinions, values, belief systems, and contributions of others.
  • Interpersonal Skills - Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.

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
Professor: Multiple Professors
Resource(s):
 TypeDescription
RequiredOtherCanadian Income Tax Act with Regulations, available through Sheridan Library access
RequiredTextbookIntroduction to Federal Income Taxation in Canada, Beam, Laiken, Barnett, Wolters Kluwer, 41st Edition, 2020-2021 with Study Guide

Applicable student group(s): Business Administration - Accounting
Course Details:

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

    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

Chapter(s): 1, 2

Learning Outcomes: 1, 2

 

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: 3, 4

Assessment: Quiz 1 –4%

 

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: 5, 6

Assessment: Quiz 2 –4%

Assessment: Assignment 1 –10%

 

MID-TERM EXAM 25% (Modules 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

  1. Common CCA classes

  2. Separate CCA classes

  3. Inducement payments

  4. Available for use

  5. Short taxation year Chapter(s): 5

Learning Outcomes: 5, 7, 8,

Assessment: Quiz 3 - 4%

 

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: 5, 9, 10, 11

Assessment: Quiz 4 - 4%

 

Module 6: 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

  8. GST administration

  9. GST implications for tax planning (shareholders and closely held corporations)

Chapter(s): 20

Learning Outcomes: 12

Assessment: Quiz 5 –4%

Assessment: Assignment 2 –10%

 

FINAL COMPREHENSIVE EXAM 35% (Modules 1-6)

 



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