Taxation (TAXX) 401

Taxation II (Revision 14)


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Delivery Mode: Individualized study online

Credits: 3

Area of Study: Applied Studies
(Business and Administrative Studies)

Prerequisite: TAXX 301 or equivalent introductory taxation course.

Faculty: Faculty of Business

TAXX 401 is not available for challenge.

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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.


  • 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


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 each examination. If your grade on either the Midterm Examination or the Final Examination is below the minimum passing grade, you will not receive credit for this course, even if your overall course grade exceeds “F”.

Note: Students planning to transfer this course to a Chartered Professional Accountant designation are advised that they will be required to achieve a grade higher than the minimum passing grade. See CPA Requirements for details.

The following table summarizes the weights that will be applied to each assignment and examination in determining your final grade:

Assignment 1 Assignment 2 Midterm Exam Final Exam Total
5% 5% 45% 45% 100%

The examination(s) for this course will be written in the traditional pen and paper format.  To learn more about assignments and examinations, please refer to Athabasca University's online Calendar.

Course Materials


Byrd, C., & Chen, I. (2017). Canadian Tax Principles—2016/2017 Edition. Volume I, Volume II, & Study Guide. Toronto: Pearson Education. ISBN: 978-0134568393

Other Materials

All other materials will be available to students online.

The course materials for this course are shipped as a shrink-wrapped package. If the shrink wrap is broken, the materials are not returnable.

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.

Opened in Revision 14, December 22, 2016.

View previous syllabus

Updated December 23 2016 by Student & Academic Services