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 978-0-13-6745105) 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).

  1. Byrd, C., & Chen, I. (2021). Byrd and Chen's Canadian tax principles (2020–2021 ed., Vol. I). Pearson.
  1. Byrd, C., & Chen, I. (2021). Byrd and Chen's Canadian tax principles (2020–2021 ed., Vol. II). Pearson.
  1. Byrd, C., & Chen, I. (2021). Byrd and Chen's Canadian tax principles study guide (2020–2021 ed.). Pearson.

Additional requirements

  • Financial Calculator
  • Excel software is strongly recommended.
  • Students access the required FITAC and ProFile software free of charge via the publisher’s website.

Please note: Intuit’s ProFile software requires Windows 7, 8, or 10. Apple products are not supported.

Assessments

Please be aware that due to COVID-19 safety guidelines all in-person exams have been suspended. As such, all final exams are currently being delivered through ProctorU, which has an approximate fee of $35 involved. There will be more information in your course shell, on how to apply, if your course has a final exam.

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

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

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