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 student@tru.ca 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.
- Donnell, G. (2023). Byrd and Chen's Canadian tax principles (2022–2023 ed., Vol. I). Pearson.
- Donnell, G. (2023). Byrd and Chen's Canadian tax principles (2022–2023 ed., Vol. II). Pearson.
- 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.
Assessments
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 exams@tru.ca 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.
