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COURSE TITLE: Tax Principles
CREDIT WEIGHT AND WEEKLY TIME DISTRIBUTION: credits 3 (hrs lect 3 - hrs sem 0 - hrs lab 1)
COURSE DESCRIPTION: Study of the basic principles of the Canadian income tax system. Topics covered include individual and corporate tax principles, GST, taxation of various income sources, calculation of net income, taxable income and taxes payable, income tax management and planning.

Prerequisites: BUSI 354
REQUIRED TEXTS: Byrd & Chen's Canadian Tax Principles, 2016 - 2017 Edition Plus Companion Website with Pearson eText -- Access
Midterm Exam 30%
Assignments 30%
Final Exam 40%
COURSE OBJECTIVES: Upon successful completion of this course, students will be able to:
  • Evaluate the concepts of taxation, liability and income.
    • Examine the role of income tax in Canada and the policies at the core of the Canadian tax system.
    • Assess who is liable for income tax in Canada and on what type of income.
  • Analyze and classify the various sources of income and deductions.
    • Classify income in accordance with section 3 of the Income Tax Act.
    • Analyze the criteria which differentiate types of income to be reported for income tax purposes.
    • Compile and calculate the most common income and deductions.
    • Devise and recommend alternative tax scenarios for the optimal benefit of taxpayers.
  • Perform the calculation of net and taxable income.
    • Apply appropriate available deductions in the calculation of taxable income.
    • Advise taxpayers on the use of loss carryovers.
  • Differentiate between accounting and income for tax purposes for a corporation.
    • Distinguish the differences between the objective of accounting income and income for tax purposes.
    • Apply appropriate calculation rules and reconcile between accounting and taxable income.
  • Perform the calculation of federal income tax liability for individual and corporate taxpayers.
    • Select and apply common tax deductions and credits.
    • Calculate a taxpayer’s federal income tax liability.
COURSE OUTLINE: Readings and assignment questions will be taken from the following textbook chapters:
1 Introduction To Federal Taxation In Canada
2 Procedures and Administration
3 Income Or Loss From An Office Or Employment
4 Taxable Income and Tax Payable For Individuals
5 Capital Cost Allowances And Cumulative Eligible Capital
6 Income Or Loss From A Business
7 Income From Property
8 Capital Gains And Capital Losses
9 Other Income, Other Deductions And Other Issues
10 Retirement Savings And Other Special Income Arrangements
11 Taxable Income and Tax Payable For Individuals Revisited
12 Taxable Income and Tax Payable For Corporations
13 Taxation of Corporate Investment Income

Required texts, assignments, and grade distributions may vary from one offering of this course to the next. Please consult the course instructor for up to date details.

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