Lifelong Learning for a Brighter World

Jing Zhou, McMaster University Continuing Education Accounting graduate Jing Zhou, McMaster University Continuing Education Accounting graduate

Accounting

Cheques and balances. It all adds up.

Work towards your CPA designation!

ACC 937 - Taxation I C01

Academic Credit Value:
3 units
Course Delivery Mode:
In-Person
Hours of Study:
42 hours
Course Prerequisite(s):
ACC 927 Intermediate Financial Accounting I and ACC 928 Introductory Management Accounting or equivalents Be advised: Students who do not meet the pre-requisites will be required to withdraw. In such cases, CCE’s withdrawal/refund policies will apply.
Course Anti-requisite(s):
N/A
Instructor Name:
Christine Cooke
Course Dates:
09/22/2019 - 12/22/2019



Required Course Materials:
(1) Introduction to Federal Income Taxation in Canada, Beam, Wolters Kluwer 40th edition (2) The Practitioner’s Income Tax Act, Sherman, Carswell, 56th edition
Optional Course Materials:
N/A
Course Description:

Students are advised to retain course outlines for future use in support of applications for employment or transfer of credits.
Refer to the Policy & Procedure section for further course and Centre for Continuing Education (CCE) information. 

This introductory course examines the theory and application of the Income Tax Act as it relates to both individuals and corporations.

Learning Outcomes:
Upon completion of this course, students will:

This is the first of two introductory courses in federal income tax law which are designed to achieve the following objectives:

(1) to explain the theoretical concepts behind the specific provisions of the law,
(2) to apply the law in practical problems and case settings,
(3) to interpret the law, taking into account the specific wording of the provisions, judicial decisions and
      Canada Revenue Agency’s position, and
(4) to introduce basic tax planning concepts through problem application.

Topics and readings are set out under Sessional Outline.  Income tax law is technical and complex and the course moves very quickly.  Ask questions if you don’t understand a point – you are probably not the only one.  It is extremely important that you bring your ITA and text to class because we will be referring to the ITA (particularly in the first few classes) and exhibits, examples and problems in the text every week.

Students are expected to do the required readings and keep up with the exercises and assignments at the end of each chapter in the Beam & Laiken text.  Class preparation is essential if the student wishes to obtain maximum benefit from class work.

Students are also expected to bring their Income Tax Act to each class. Students will be permitted to bring and use their Income Tax Act for all quizzes and exams.
Course Evaluation
The final grade is calculated based on the following components:
The course grade will be determined as follows:

Term Test #1     25%
Assignment #1   25%
Quizzes (Best 3)   10%
Final Exam   40%
Total           100%
Course Format:
This course is designed to present the fundamental concepts and theories in Federal Income Taxation in Canada and promote the application to the workplace and professional practice. Course activities will include instructor presentations, required readings and experiential learning activities (i.e. case studies, group discussions, projects, etc.).
Assignment Submission:
Late Coursework:
Late assignments will be subject to a 2% per day late penalty (includes weekends and holidays) for up to seven (7) days. After this date, no assignments will be accepted and a grade of zero (0) will be applied.  Extensions for course work must be approved by the instructor before the due date (see Academic Regulations below), and will be granted for illness or emergencies only. Students may be asked to submit supporting documentation for an extension request. NOTE:  This policy applies to assignments and other hand in type coursework only.  This policy does not apply to discussion board topics/postings which do not allow for late postings/contributions.

Policy & Procedures:

Academic Regulations (Attendance, Coursework, Tests/Exams):
In accordance to McMaster University’s General Academic Regulations, “it is imperative that students make every effort to meet the originally scheduled course requirements and it is a student’s responsibility to write examinations as scheduled.” Therefore, all students are expected to attend and complete the specific course requirements (i.e. attendance, assignments, and tests/exams) listed in the course outline on or by the date specified. Students who need to arrange for coursework accommodation, as a result of medical, personal or family reasons, must contact the course instructor within 48 hours of the originally scheduled due date. It is the student’s responsibility to contact the Program Manager to discuss accommodations and procedures related to deferred tests and/or examinations within 48 hours of the originally scheduled test/exam, as per policy. Failure to contact the course instructor, in the case of missed coursework, or the Program Manager, in the case of a missed test/examination, within the specified 48-hour window will result in a grade of zero (0) on the coursework/exam and no further consideration will be granted.

*Note: Supporting documentation will be required but will not ensure approval of accommodation(s).
Academic Integrity
You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity. Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.

It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at http://www.mcmaster.ca/academicintegrity/

The following illustrates only three forms of academic dishonesty: 

  1. Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained.
  2. Improper collaboration in-group work.
  3. Copying or using unauthorized aids in tests and examinations.
Academic Accommodations:
Students with disabilities who require academic accommodations must contact the Student Accessibility Centre (SAS) to meet with an appropriate Disability Services Coordinator. To contact SAS, phone 905-525-9140 ext. 28652, or email sas@mcmaster.ca. For further information, consult McMaster University’s Policy for Academic Accommodation for Students with Disabilities.
On-line Elements:
In this course, we will be using on-line elements, which may include email, Avenue to Learn, WebEX, and external web sites.  Students should be aware that, when they access the electronic components of this course, private information such as first and last names, user names for the McMaster e-mail accounts, and program affiliation may become apparent to all other students in the same course. The available information is dependent on the technology used. Continuation in this course will be deemed consent to this disclosure. If you have any questions or concerns about such disclosure please discuss this with the course instructor.
Turnitin.com:
Course Changes:
The instructor reserves the right to modify elements of the course and will notify students accordingly.
Course Withdrawal Policy:
Policies related to dropping a course and course withdrawals are posted to the Centre for Continuing Education’s program webpage, FAQs & Policies (https://www.mcmastercce.ca/cce-policies#Dropping).
Storm Closure Policy:
In the event of inclement weather, McMaster Continuing Education will abide by the University’s Storm Closure Policy:  https://www.mcmaster.ca/policy/Employee/storm_emergency_policy.pdf, and will only close if the University is closed.  All in-class courses, exams and room bookings by internal and external clients will be cancelled if McMaster Continuing Education is closed.  On-line courses will take place as scheduled.
Grading Scale:
 Grade Equivalent
Grade Point
Equivalent Percentages
A+ 12 90-100
A 11 85-89
A- 10 80-84
B+ 9 77-79
B 8 73-76
B- 7 70-72
C+ 6 67-69
C 5 63-66
C- 4 60-62
D+ 3 57-59
D 2 53-56
D- 1 50-52
F 0 0-49
Course Schedule:

Lecture #1

Chapter 1 &14 Introduction and Liability for Tax

  • History of the Income Tax Act
  • How the Income Tax Act is structured
  • Other interpretive sources
  • Characteristics of the tax system
  • Introduction to income tax and taxable income
  • Rights and obligation of the CRA and the taxpayer

 

Lecture #2

Chapter 2   Liability for Tax

  • Liability for tax and how to determine residency
  • Rules for computing net income for tax purposes

 

Lecture #3

Chapter 3          Employment Income

  • Definition of employment income and what items are included in calculating employment income
  • Examination of employee versus self-employed
  • Specific inclusions in employment income and taxable benefits
  • Deductions available to employees

 

Lecture #4

Chapter 4 Income from Business

    • Definition and determination of business income
    • Business income versus capital gains
    • Restrictions on deductions from business income
    • Special business income situation
    • Basics of how GST/HST and input tax credits work

 

Lecture #5

Chapter 5 Depreciable Capital Property and Eligible Capital Property

  • Capital cost allowance system
  • Tax treatment of capital asset additions and disposals
  • Eligible capital property rules
  • Special situations and tax planning

 

Lecture #6

Chapter 6 Income from Property

  • Interest, dividend and rental income
  • Income attribution
  • Property income deductions
  • Property income vs. business income

 

Lecture #7

Chapter 7 Capital Gains: An Introduction

Chapter 8 Capital Gains: Business Related

  • Taxation of capital gains and losses
  • Reserves, change in use and other special situations for capital gains and losses.
  • Death of a taxpayer
  • Entering and leaving Canada

 

Lecture #8

Chapter 9 Other sources of income and deductions

  • Pension income, retiring allowances, annuities, deferred income plans
  • RESPs
  • TFSAs
  • Child care and moving
  • Retirement savings and other special income arrangements
  • Taxation of non-arm’s length transfers and related tax planning

 

Lecture #9

Chapter 10 Computation of Taxable Income and Tax for Individuals

  • Deductions versus tax credits
  • How to calculate taxes payable
  • Tax credits available to individuals
  • Foreign tax credits.
  • Alternate minimum tax

 

Lecture #10

Chapter 10 Continued

Chapter 12 Integration for Business and Investment Income

Chapter 11 Introduction to Corporate Taxation