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Thompson Rivers University
Thompson Rivers University

ACCT 3231: Income Taxation 2

Building on ACCT 3221: Income Taxation 1, students examine the taxation of corporations, corporate distributions, and transactions between corporations and their shareholders. Topics include an in-depth coverage of taxable capital gains; deferred income plans; and the taxation of corporate entities, partnerships, trusts and corporate reorganizations.

Learning outcomes

  • Apply the income tax provisions for the determination of gains and losses on the disposition of capital assets.
  • Evaluate the various deferred income plans available to Canadians and how these plans can be used for retirement, education or general wealth building purposes.
  • Calculate the net income, taxable income and taxes payable for a corporate entity.
  • Demonstrate how corporate entities are taxed on their investment income.
  • Interpret the technical corporate taxation issues involving the acquisition of control, association rules, investment tax credits, paid-up-capital and distribution of corporate surpluses.
  • Explain how a corporation can be used to reduce taxes, defer taxes, and facilitate income splitting.
  • Quantify the income of a partnership for tax purposes and allocate this income to partners.
  • Explain the taxation of the different types of trusts and how they can be successfully used for estate planning purposes.
  • Identify the major provisions of Section 85 rollovers under the Canadian Income Tax Act and other rollover provisions affecting corporations, partnerships and trusts.

Course topics

Module 1: Introduction and Review

Module 2: Capital Gains and Losses

Module 3: Retirement Savings and Other Special Income Arrangements

Module 4: Taxable Income and Tax Payable for Corporations

Module 5: Taxation of Corporate Investment Income

Module 6: Other Issues in Corporate Taxation

Module 7: Corporate Taxation and Management Decisions

Module 8: Partnerships

Module 9: Trusts and Estate Planning

Module 10: Section 85 Rollovers

Required text and materials

The following textbook bundle (ISBN 978-0-13-786785-1) would have been purchased in ACCT 3221. Students who did not take ACCT 3221 and/or don't already own the required textbooks, will need to purchase it. To do so, please contact Enrolment Services at or 1.800.663.9711 (toll-free in Canada), 250.852.7000 (Kamloops, BC), and 1.250.852.7000 (International). Access to the publisher’s MyLab companion website is also provided.

  1. Donnell, G. (2023). Byrd and Chen's Canadian tax principles (2022–2023 ed., Vol. I). Pearson.
  1. Donnell, G. (2023). Byrd and Chen's Canadian tax principles (2022–2023 ed., Vol. II). Pearson.
  1. Donnell, G. (2023). Byrd and Chen's Canadian tax principles study guide (2022–2023 ed.). Pearson.

Additional requirements

  • A financial calculator
  • Excel software is strongly recommended.

Note: Microsoft Office 365, which includes Word, Excel, PowerPoint, Outlook, and other software, is available free of charge to TRU students.


Please be aware that should your course have a final exam, you are responsible for the fee to the online proctoring service, ProctorU, or to the in-person approved Testing Centre. Please contact with any questions about this.

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

Assignment 1: Modules 1 to 3 12%
Quiz 1: Modules 4 to 5 11%
Quiz 2: Modules 6 to 7 11%
Assignment 2: Modules 8 to 10 16%
Final Exam (mandatory) 50%
Total 100%

Open Learning Faculty Member Information

An Open Learning Faculty Member is available to assist students. Students will receive the necessary contact information at the start of the course.

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