ACCT 3221
Income Taxation 1

3.0 Credits

Description

Students examine the conceptual structure of the Income Tax Act and the application of its rules to practical situations. Topics include an introduction to federal taxation; procedures and administration; income or loss from office, employment, business, or property; capital cost allowances and cumulative eligible capital; capital gains and losses; other income and deductions; and calculation of taxable income and tax payable for individuals.

Delivery Method

Online, self-paced.

Recommended Requisites

ACCT 1211/1221 or ACCT 2211; CMNS 1290 are recommended.

Exclusions

ACCT 3220, ACCT 3260, ACCT 3230, BBUS 3220, BBUS 3221, BBUS 3260, ACCT 3231

Objectives

After successfully completing this course, students are able to:

  • Describe the general structure of the Canadian income taxation system as it applies to the three taxable entities.
  • Summarize the procedures and administrative requirements imposed by the Canadian Income Tax Act.
  • Explain the basic concepts of employment income.
  • Apply the provisions of the capital cost allowance system.
  • Illustrate the major differences between net business income for tax purposes and net income calculated under Generally Accepted Accounting Principles (GAAP).
  • Discuss the nature of different types of property income and how they are taxed.
  • Demonstrate the general rules for the determination of gains and losses on the disposition of capital assets.
  • Identify the other major other sources of income that are listed under Subdivision "d" of the Income Tax Act.
  • Calculate the taxable income and taxes payable for an individual residing in Canada.

Course Outline

Module 1: Introduction to Federal Taxation

  • The Canadian Tax System
  • Tax Policy Concepts
  • Income Tax Reference Materials
  • Liability for Income Tax
  • Alternative Concepts of Income
  • Net Income for Tax Purposes
  • Net Income to Taxable Income
  • Principles of Tax Planning

Module 2: Procedures and Administration

  • Administration of the Department
  • Source Deductions
  • Returns and Payments
  • Income Tax Information Returns
  • Refunds
  • Books and Records
  • Assessments
  • Adjustments to Income Tax Returns
  • Appeals
  • Tax Evasion, Avoidance and Planning
  • Collection and Enforcement
  • Fairness Package

Module 3: Income or Loss From an Office or Employment

  • Employment Income Defined
  • Employee Versus Self-Employed
  • Inclusions--Salary and Wages
  • Inclusions--Fringe Benefits
  • Specific Deductions

Module 4: Capital Cost Allowances and Cumulative Eligible Capital

  • Capital Cost Allowance System/Additions to Capital Cost
  • Capital Cost Allowances
  • Dispositions of Depreciable Assets
  • CCA Schedule
  • CCA Determination--Special Situations
  • Cumulative Eligible Capital (CEC)

Module 5: Income or Loss From a Business

  • Defining Business Income
  • Business Income vs. Capital Gains
  • Business Income and GAAP
  • Business Income - Inclusions (Revenue)
  • Limitations On Deductions From Business And Property Income
  • Business Income - Special Deductions
  • Reconciliation Schedule
  • Taxation Year
  • Special Business Income Situations

Module 6: Property Income

  • Introduction
  • Property Income: General Concept
  • Interest As A Deduction
  • Interest Income
  • Payments Based On Production Or Use
  • Rental Income
  • Cash Dividends From Taxable Canadian Corporations
  • Income Trusts
  • Mutual Funds
  • Other Types Of Dividends
  • Foreign Source Income
  • Shareholder Benefits

Module 7: Capital Gains and Losses

  • Economic Background
  • General Rules

Module 8: Other Income and Deductions

  • Introduction
  • Other Income - Subdivision d Inclusions
  • Other Deductions - Subdivision e deductions
  • Related Inclusions And Deductions
  • Income Attribution

Module 9: Taxable Income and Tax Payable for Individuals

  • Introduction
  • Taxable Income Of Individuals
  • Computation Of Taxes Payable
  • Calculating Tax Credits
  • Personal Tax Credits
  • Other Tax Credits For Individuals
  • Refundable Credits
  • Social Benefits Repayment (OAS and EI)
  • Treatment Of Losses
  • Lifetime Capital Gains Deduction
  • Alternative Minimum Tax
  • Summary of Filing Procedures

Maximum Completion

30 weeks.

Required Text and Materials

  1. Byrd, C., & Chen, I. Byrd and Chen's Canadian Tax Principles Volume I. 2016-2017 Edition. Toronto, ON: Pearson Canada Inc., 2017.
    Type: Textbook - ISBN: 978-0-13-407112-1
  1. Byrd, C., & Chen, I. Byrd and Chen's Canadian Tax Principle Volume II. 2016-2017 Edition. Toronto, ON: Pearson Canada Inc., 2017.
    Type: Textbook - ISBN: 978-0-13-453212-7
  1. Byrd, C., & Chen, I. Byrd and Chen's Canadian Tax Principle Study Guide. 2016-2017 Edition. Toronto, ON: Pearson Canada Inc., 2017.
    Type: Textbook - ISBN: 978-0-13-453217-2

Note: The above textbooks are provided to students as a bundle with an access kit to the companion website: Bundle ISBN: 9780134568393

Additional Requirements

A computer with Internet access is required.

Open Learning Faculty Member Information

An Open Learning Faculty Member is available to assist students. Primary communication is through the Learning Environment's "Mail" tool or by phone. Students will receive the necessary contact information when starting the course.

Assessment

To successfully complete this course, students must achieve a passing grade of 50% or higher on the overall course, and 50% or higher on the final mandatory exam.

Quiz: Modules 1 and 2 5%
Assignment 1: Modules 3 and 4 10%
Assignment 2: Modules 5 and 6 10%
Assignment 3: Modules 7 to 9 15%
Final Exam * 60%
Total 100%

* Mandatory