Taxation 401: Taxation II is designed to be taken as a second course dealing with the basic concepts and procedures associated with the Canadian federal income tax system, as well as the federal goods and services and harmonized sales taxes. It consists of ten lessons.
While it is not possible to neatly divide the Income Tax Act into provisions relating to individuals and provisions relating to corporations, the primary emphasis of TAXX 401 is on the taxation of corporations.
Lessons 1 through 3 cover the basic aspects of corporate taxation. Lessons 4, 5, and 6 deal with more detailed aspects of corporate taxation, taxation and management decisions, rollovers to and from corporations, and the purchase and sale of an incorporated business.
Lessons 7 through 10 are concerned with issues other than corporate taxation. Lesson 7 deals with the taxation of partnerships, Lesson 8 with the taxation of trusts, Lesson 9 with some international issues in taxation, and Lesson 10 with the goods and services and harmonized sales taxes.
TAXX 401 is an option in Athabasca University’s Bachelor of Commerce degree program. Depending on the province you live in, this course may be a requirement in a professional accounting designation program. To ascertain whether this is the case, you should consult with your provincial professional accounting body. See the Professional Accounting webpage for details.
Outline
Lesson 1: Taxable Income and Tax Payable for Corporations
Lesson 2: Taxation of Corporate Investment Income
Lesson 3: Other Issues in Corporate Taxation
Lesson 4: Corporate Taxation and Management Decisions
Lesson 5: Rollovers under Section 85
Lesson 6: Other Rollovers and Sale of an Incorporated Business
Lesson 7: Partnerships
Lesson 8: Trusts and Estate Planning
Lesson 9: International Issues in Taxation
Lesson 10: GST/HST/Payroll Considerations
Evaluation
Your final grade in TAXX 401 will be based on two written assignments, one tax software application assignment (Assignment 5), a midterm examination, and a final examination. Assignment 5 requires you to download tax return software from the textbook companion website to complete and submit one tax return. This software will only run on a Windows operating system. See details under Course Materials section below.
To receive credit for TAXX 401, you must achieve an overall course grade of at least D (50 percent). In addition, you must
achieve a grade of at least 50 percent on Assignment 5,
achieve a grade of at least 50 percent on the midterm examination, and
achieve a grade of at least 50 percent on the final examination.
Completion of Assignments 1 and 2 and Practice Assignments 3 and 4 is not required in order to receive credit for the course.
The following table summarizes the weights that will be applied to each assignment and examination in determining your final grade.
Activity
Weight
Assignment 1
5%
Assignment 2
5%
Assignment 5
10%
Midterm Examination
35%
Final Examination
45%
Total
100%
The midterm and final examinations for this course must be requested in advance and written under the supervision of an AU-approved exam invigilator. Invigilators include either ProctorU or an approved in-person invigilation centre that can accommodate online exams. Students are responsible for payment of any invigilation fees. Information on exam request deadlines, invigilators, and other exam-related questions, can be found at the Exams and grades section of the Calendar.
To learn more about assignments and examinations, please refer to Athabasca University’s online Calendar.
Materials
Donell, G. (2022). Byrd & Chen’s Canadian tax principles (2022–2023 ed., Vol. 1, Vol. 2, & Study Guide). Pearson Education. (Print)
Other Materials
All other materials will be available to students online. Students are required to download ProFile tax return software from the textbook companion website to complete Assignment 5. ProFile will only run on a Windows operating system. Mac computer users may be able to run ProFile by using third-party software.
Athabasca University reserves the right to amend course outlines occasionally and without notice. Courses offered by other delivery methods may vary from their individualized study counterparts.