Fundamentals of Tax Preparation
  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: Fall 2018
Prerequisites: (ACCG70028 AND ACCG70029)
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Accounting Practitioner
Program Coordinator(s): N/A
Course Leader or Contact: Ruxandra Dunn
Version: 20180904_02
Status: Approved (APPR)

Section I Notes: This course is offered on-campus and will also include online/virtual components. The total instruction time will be 42 hours. The online portions of the course are web-based and offered through Sheridan College's SLATE learning management system. Students taking this course will need a laptop computer, reliable access to the internet, and should have a basic level of comfort using computers as well as the self- discipline to study independently. Students can expect to spend an additional three hours per week for online activities such as postings, discussions, reading, homework and assignments.

Section II: Course Details

Detailed Description
In this introductory course, students explore the field of professional tax preparation services for individuals and self-employed business owners. Students discover how to apply the principles, rules, and guidelines that govern each type of T1 tax filing. Students are exposed to fundamental income tax topics, including individual taxpayer rights, taxpayer obligations and requirements. Students learn to analyze records of taxable income, and systematically evaluate, select, compute, and record the necessary information to produce T1 tax returns. Students learn to recognize government requirements for how, when, where, what and how to file the correct tax forms.

Program Context

Accounting Practitioner Program Coordinator(s): N/A
This is a compulsory course for the Accounting Practitioner Certificate.

Course Critical Performance and Learning Outcomes

  Critical Performance:
By the end of this course, students will have demonstrated the ability to determine and prepare what an individual and self-employed business are required to file for income tax purposes.
Learning Outcomes:

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

  1. Research provincial and federal rules and legislation with respect to income taxes.
  2. Identify the rights and obligations of taxpayers and the CRA as they relate to the Income Tax Act.
  3. Identify and calculate specific income and deductions from employment, business and property revenue sources.
  4. Distinguish between personal, business, property, investment and other income.
  5. Differentiate between the type of tax filing required for individuals, Self-Employed Businesses and Corporations.
  6. Identify the appropriate situations and supplies requiring application of the HST.
  7. Calculate and apply the principles and skills related to Input Tax Credit and differentiate between taxable vs exempt and allocation items.
  8. Describe and explain the difference between employees vs contractors vs consultants.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Assignments (9 x 2%)18.0%
 Tax Entries (6 x 2%))12.0%
 Group Assignment (1 x 5%)5.0%
 Mid- term25.0%
 Final Exam40.0%

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
  • Critical Thinking & Problem Solving
  • Information Management
  • Interpersonal
  • Numeracy
  • Personal

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

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
RequiredTextbookIntroduction to Federal Income Taxation in Canada 2018-2019 bundled with Study Guide, R.E. Beam/S.N. Laiken, CCH Canadian Ltd., 39, This course does not require the Income Tax Act.

Applicable student group(s): All Students in the Faculty of Continuing and Professional Studies
Course Details:

Module 1: Background and Theory of Taxation (LO # 1,4)

  • What is taxation
  • Who, What and Where to File
  • How to locate information

Module 2: Taxpayer Rights and Obligations (LO #2,3, 4, 8)

  • Describe Taxpayer rights and obligations under CRA (Canada Revenue Agency) including:
  • CRA Rights and Obligations
  • Self assessment
  • Reporting
  • Books and Records
  • Appeals Process
  • CRA Responsibility
  • Fairness
  • Appeals/Ombudsman
  • Evaluation: Assignment (2%)

Module 3: Employment Income (LO # 3,4,5)

  • Identify and describe employment income?
  • Identify all sources of income required for a T1 filing
  • Identify the relevant, available and eligible deductions from employment income
  • Describe the reporting and filing requirements for an employer
  • Evaluation: Two Assignments (2% each)

Module 4: Basics of Individual Tax Filing  (LO # 4,5,8)

  • Reporting and filing requirements to employee
  • Review and identify the differences between common tax slips individuals receive
  • Identify the eligible deductions and credits available to individuals
  • Review and identify the thresholds and rationale behind provincial and federal Tax rates
  • Prepare options for instalment obligations
  • Prepare a basic T1 return
  • Evaluation: Two Assignments (2% each) and 1 Tax Entry (2%)

Module 5: Intro to Business, Property and Capital Gains Tax  (LO # 4,5, 6)

  • Identify income from business activities
  • Identify income from property
  • Identify income from capital gains
  • Describe the common capital gain reporting requirement for individuals
  • Prepare a T1 reporting capital gains
  • Evaluation: Assignment (2%) and Tax Entry (2%)

Module 6: Business Income  (LO # 6,7)

  • Define  business Income 
  • Identify and describe applicable business expenses allowable under CRA
  • Differentiate between Taxable Income  vs. Book Income
  • Prepare a self-employed business return
  • Evaluation: Assignment (2%) and Tax Entry (2%)

Module 7 : Property Income  (LO # 4,5, 6)

  • Identify and describe the type of property income affecting Individuals
  • Describe the allowable CRA deductions from property income
  • Prepare a T1 reporting property income
  • Evaluation: Assignment (2%) and Tax Entry (2%)

Module 8 : Harmonized Sales Tax - HST  (LO # 6,7)

  • Define HST requirements under CRA
  • Identify the various type of supplies related to HST charges
  • Describe HST vs GST and PST
  • Input Tax Credits into the appropriate section of an ERP system
  • Prepare an HST Return
  • Evaluation: Assignment (2%) and Tax Entry (2%)

Module 9 :Contractors and Commissions (LO # 3,8)

  • Distinguish between contractors vs. Employees
  • Define commissioned vs. salaried Employees
  • Prepare a T1 for commissioned employee/contractor
  • Evaluation: Tax Entry (2%)

Sheridan Policies

All Sheridan policies can be viewed on the Sheridan policy website.

Academic Integrity: The principle of academic integrity requires that all work submitted for evaluation and course credit be the original, unassisted work of the student. Cheating or plagiarism including borrowing, copying, purchasing or collaborating on work, except for group projects arranged and approved by the professor, or otherwise submitting work that is not the student's own, violates this principle and will not be tolerated. Students who have any questions regarding whether or not specific circumstances involve a breach of academic integrity are advised to review the Academic Integrity Policy and procedure and/or discuss them with the professor.

Copyright: A majority of the course lectures and materials provided in class and posted in SLATE are protected by copyright. Use of these materials must comply with the Acceptable Use Policy, Use of Copyright Protected Work Policy and Student Code of Conduct. Students may use, copy and share these materials for learning and/or research purposes provided that the use complies with fair dealing or an exception in the Copyright Act. Permission from the rights holder would be necessary otherwise. Please note that it is prohibited to reproduce and/or post a work that is not your own on third-party commercial websites including but not limited to Course Hero or OneNote. It is also prohibited to reproduce and/or post a work that is not your own or your own work with the intent to assist others in cheating on third-party commercial websites including but not limited to Course Hero or OneNote.

Intellectual Property: Sheridan's Intellectual Property Policy generally applies such that students own their own work. Please be advised that students working with external research and/or industry collaborators may be asked to sign agreements that waive or modify their IP rights. Please refer to Sheridan's IP Policy and Procedure.

Respectful Behaviour: Sheridan is committed to provide a learning environment that supports academic achievement by respecting the dignity, self-esteem and fair treatment of every person engaged in the learning process. Behaviour which is inconsistent with this principle will not be tolerated. Details of Sheridan's policy on Harassment and Discrimination, Academic Integrity and other academic policies are available on the Sheridan policy website.

Accessible Learning: Accessible Learning coordinates academic accommodations for students with disabilities. For more information or to register, please see the Accessible Learning website (Statement added September 2016)

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. Any changes to course curriculum and/or assessment shall adhere to approved Sheridan protocol. 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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