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.


After successfully completing this course, students will be able to:

  • 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 outline

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 materials would have been purchased in ACCT 3221. If you did not take ACCT 3221 and don't already own the required materials, please be aware that students will need to purchase them. To do so, please contact Enrolment Services at or 1.800.663.9711 (toll-free in Canada), 250.852.7000 (Kamloops, BC), or 1.250.852.7000 (International).

  1. Byrd, C., & Chen, I. (2020) Byrd and Chen's Canadian Tax Principles Volume I. (2019-2020 ed.). Pearson Canada Inc.
    Type: ISBN: 9780135762486

    Note: Volume I was used in ACCT 3221 and will also be used ACCT 3231.

  1. Byrd, C., & Chen, I. (2020) Byrd and Chen's Canadian Tax Principle Volume II. (2019-2020 ed.). Pearson Canada Inc.
    Type: ISBN: 9780135812785
  1. Byrd, C., & Chen, I. (2020) Byrd and Chen's Canadian Tax Principle Study Guide. (2019-2020 ed.). Pearson Canada Inc.
    Type: ISBN: 9780135762370

The above textbooks are provided to students as a bundle with an access kit to the companion website: Bundle ISBN: 9780135762547

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.

Additional requirements

A computer with Internet access is required.

A financial calculator is required.

Excel software is strongly recommended.


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 10%
Quiz 1: Modules 4 to 5 8%
Quiz 2: Modules 6 to 7 8%
Assignment 2: Modules 8 to 10 14%
Final Exam (mandatory) 60%
Total 100%

Open Learning Faculty Member

An Open Learning Faculty Member is available to assist students throughout the course. Primary communication is through the Learning Management System's "Mail" tool or by phone. Students will receive the necessary contact information when they start their course.

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