Overview
TAXX 301: Taxation I is a three-credit, senior-level course at Athabasca University.
This course emphasizes the determination of net income for tax purposes, giving detailed attention to the components that make up this figure, including employment income, business and property income, and capital gains. The course also covers taxable income of individuals and tax payable for individuals.
This course is largely concerned with federal income tax legislation, though it gives some attention to provincial income tax procedures.
The prerequisite for this course is Accounting 253: Introductory Financial Accounting or an equivalent introductory financial accounting course from another college or university.
Outline
The course consists of the following.
- Lesson 1: Basic Income Taxation Concepts
- Lesson 2: Procedures and Administration
- Lesson 3: Employment Income
- Lesson 4: Taxable Income and Tax Payable for Individuals
- Lesson 5: Capital Cost Allowances
- Lesson 6: Income or Loss from a Business
- Lesson 7: Income from Property
- Lesson 8: Capital Gains and Capital Losses
- Lesson 9: Other Income, Other Deductions, and Other Issues
- Lesson 10: Retirement Savings
- Lesson 11: Taxable Income and Tax Payable for Individuals Revisited
Learning outcomes
After you have completed this course, you should be able to
- understand and apply the basic tenets of Canadian income tax and GST/HST through an appreciation of the tax principles, concepts, and vocabulary that make up the Canadian tax system framework.
- describe the key tax entities and their relationships within the Canadian tax system.
- explain the key processes followed in the Canadian taxation system.
- perform calculations to determine net income, including employment income, business and property income, and capital gains.
- perform calculations to determine interest payments and penalties, credits, tax payable, depreciation of property, and others.
- apply relevant rules such as the rules for capital gains and capital losses, registered savings and profit-sharing plans, property transfers, income attribution, lump sum payments, and income splitting.
- apply provisions related to retirement savings, including RRSPs, RRIFs, pension adjustments, and various forms of registered pensions, retirement allowances and compensations, and profit-sharing plans.
Evaluation
Your final grade in TAXX 301 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 two tax returns. For this assignment, you are also required to download the data-analytics software Power BI. This software will run on a Windows operating system only. See details under the Course Materials section below.
To receive credit for this course, 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 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 | 20% |
| Midterm Examination | 30% |
| Final Examination | 40% |
| 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.
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.
Materials
Physical course materials
The following course materials are included in a course package that will be shipped to your home prior to your course’s start date:
Donell, G. (2025). Byrd & Chen’s Canadian tax principles (2025-2026 ed., Vol. 1, Vol. 2, & Study Guide). Pearson Education.
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. Students are also required to download Power BI data-analytics software. ProFile and Power BI are free downloads.
IMPORTANT NOTE: ProFile and Power BI will run on a Windows operating system only. Mac computer users may be able to acquire third-party software that will enable you to run ProFile.