Taxation (TAXX) 401

Overview

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

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.

In response to COVID-19 containment directives, temporary online exam(s) are available for this course.

To learn more about assignments and examinations, please refer to Athabasca University's online Calendar.