Course Outline

School: Business

Department: Accounting

Course Title: Taxation 1

Course Code: ACCT 226

Course Hours/Credits: 56

Prerequisites: ACCT 112, ACCT 123, BA 112, BFPE

212

Co-requisites: N/A

Eligible for Prior Learning, Yes

Assessment and Recognition:

Originated by: Chaman Doma

Creation Date: Fall 2011

Revised by: Chaman Doma, S.Lamarre

Revision Date: Fall 2019

Current Semester: Winter 2024

Approved by:

Chairperson/Dean

Students are expected to review and understand all areas of the course outline.

Retain this course outline for future transfer credit applications. A fee may be charged for
additional copies.

This course outline is available in alternative formats upon request.

ACCT 226 CENTENNIAL COLLEGE Taxation 1

Acknowledgement of Traditional Lands

Centennial is proud to be a part of a rich history of education in this province and in this city. We
acknowledge that we are on the treaty lands and territory of the Mississaugas of the Credit First Nation
and pay tribute to their legacy and the legacy of all First Peoples of Canada, as we strengthen ties with
the communities we serve and build the future through learning and through our graduates. Today the
traditional meeting place of Toronto is still home to many Indigenous People from across Turtle Island and
we are grateful to have the opportunity to work in the communities that have grown in the treaty lands of
the Mississaugas. We acknowledge that we are all treaty people and accept our responsibility to honor all
our relations.

Course Description
This course is offered to students enrolled in Accounting and Financial Services programs. This course
gives you an understanding of the Income Tax Act and regulations to determine the Income Tax Liability
as it applies to individuals. The course allows you to learn how to prepare a tax return for an individual
resident of Canada and to use the knowledge gained from this course to solve problems relating to the
taxation of individuals resident and non-resident of Canada. The course will involve lectures, discussions
and assignments and the preparation of tax returns using recognized computer tax software.

Program Outcomes
Successful completion of this and other courses in the program culminates in the achievement of the
Vocational Learning Outcomes (program outcomes) set by the Ministry of Colleges and Universities in the
Program Standard. The VLOs express the learning a student must reliably demonstrate before
graduation. To ensure a meaningful learning experience and to better understand how this course and
program prepare graduates for success, students are encouraged to review the Program Standard by
visiting http://www.tcu.gov.on.ca/pepg/audiences/colleges/progstan/. For apprenticeship-based programs,
visit http://www.collegeoftrades.ca/training-standards.

Course Learning Outcomes

The student will reliably demonstrate the ability to:
1. Determine who is liable for taxation in Canada.
2. Describe the different sources of income and how they are taxed in the hands of an
Individual and compute income for tax purposes under Part 1 tax
3. Calculate net income according to Section 3 of the ITA
4. Identify the administrative and enforcement policies of Canada Revenue Agency
(CRA)
5. Identify taxation issues and sources for research
6. Complete an income tax return using tax software (Profile)

Essential Employability Skills (EES)

The student will reliably demonstrate the ability to*:
3. Execute mathematical operations accurately.
*There are 11 Essential Employability Skills outcomes as per the Ministry Program Standard. Of these 11 outcomes, the following will be
assessed in this course.

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ACCT 226 CENTENNIAL COLLEGE Taxation 1

Global Citizenship and Equity (GC&E) Outcomes

The student will reliably demonstrate the ability to*:
5. Identify and challenge unjust practices in local and global systems.
6. Support personal and social responsibility initiatives at the local, national or global level.
*There are 6 institutional Global Citizenship & Equity outcomes. Of these 6 outcomes, the following will be assessed in this course.

Text and other Instructional/Learning Materials

Text Book(s):
Byrd & Chen's :Canadian Tax Principles Current edition (latest available in College bookstore) Pearson
Canada ( Volumes I & II) with Study Guide (available at the Centennial College Bookstore);
Access to the Canadian Income Tax Act
Online Resource(s):
Canada Revenue Agency website www.cra.gc.ca - General Tax Guide and Forms
Reference to the Income Tax Act: http://laws-lois.justice.gc.ca/eng/acts/i-3.3/
Material(s) required for completing this course:
Only non-programmable (numeric memory, not text memory) calculators with no more than the following
six functions: addition, subtraction, multiplication, division, square root, and percentage may be used for
supervised in-class assignments, tests, and examinations. Students using other types of calculators will
be asked to discontinue such use in order to complete the assignment, test or examination. If you are
unsure about the appropriateness of your calculator, please check with your professor.

Evaluation Scheme
➮ Assignments: As assigned by Instructor covering Chapters 1 to 9
➮ Quizzes: 9 Quizzes
➮ G C & E case: Completion of income tax return
➮ Term Test: Covers chapters covered to the date of the Test
➮ Final Test - Computer test (Week # 13): Final Test - Tax return software
➮ Final Exam - Written (Week # 14): Final Exam - Comprehensive (all chapters)
Evaluation Name CLO(s) EES GCE Weight/100
Outcome(s) Outcome(s)
Assignments 1, 2, 3, 4, 5 3 12
Quizzes 1, 2, 3, 4, 5 3 18
G C & E case 3, 6 3 5, 6 8
Term Test 2 3 20
Final Test - Computer test (Week # 13) 1, 2, 3, 4, 5, 6 3 12
Final Exam - Written (Week # 14) 1, 2, 3, 4, 5 3 30
Total 100%
If students are unable to write a test they should immediately contact their professor or program Chair for
advice. In exceptional and well documented circumstances (e.g. unforeseen family problems, serious
illness, or death of a close family member), students may be able to write a make-up test.

All submitted work may be reviewed for authenticity and originality utilizing Turnitin®. Students who do not
wish to have their work submitted to Turnitin® must, by the end of the second week of class,
communicate this in writing to the instructor and make mutually agreeable alternate arrangements.

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ACCT 226 CENTENNIAL COLLEGE Taxation 1

When writing tests, students must be able to produce official Centennial College photo identification or
they may be refused the right to take the test or test results will be void.

Tests or assignments conducted remotely may require the use of online proctoring technology where the
student’s identification is verified and their activity is monitored and/or recorded, both audibly and visually
through remote access to the student's computer and web camera. Students must communicate in writing
to the instructor as soon as possible and prior to the test or assignment due date if they require an
alternate assessment format to explore mutually agreeable alternatives.

Student Accommodation
The Centre for Accessible Learning and Counselling Services (CALCS) (http://centennialcollege.ca/calcs)
provides programs and services which empower students in meeting their wellness goals,
accommodation and disability-related needs. Our team of professional psychotherapists, social workers,
educators, and staff offer brief, solution-focused psychotherapy, accommodation planning, health and
wellness education, group counselling, psycho-educational workshops, adaptive technology, and peer
support. Walk in for your first intake session at one of our service locations (Ashtonbee Room L1-04,
Morningside Room 190, Progress Room C1-03, The Story Arts Centre Room 285, Downsview Room 105)
or contact us at calcs@centennialcollege.ca, 416-289-5000 ext. 3850 to learn more about accessing
CALCS services.

Use of Dictionaries
• Dictionaries may be used in tests and examinations, or in portions of tests and examinations, as long
as they are non-electronic (not capable of storing information) and hard copy (reviewed by the
invigilator to ensure notes are not incorporated that would affect test or examination integrity).
• Any dictionary (hard copy or electronic) may be used in regular class work.

Program or School Policies

N/A

Course Policies
Assignments, Tests and Examinations
•Tests must be written on scheduled dates;
•A student who misses a test or fails to submit an assignment on the due date will receive a grade of “F”
on that portion of the course;
•A student who misses a test because of illness must telephone the SOB office at (416) 289-5000 ext.
2286 on the scheduled day of the test to report his/her illness. Your Professor has the right to request a
doctor’s note;
•If a student is unable to write the final examination, your professor does not have the authority to
approve a supplemental opportunity. Students who miss the final examination for bona- fide reasons will
be allowed to write the final examination at the next regular sitting of the examination.
•Deferred examinations are not granted to accommodate travel arrangements. Therefore, until the final
examination schedule is published, you should not plan to leave the college until the last possible day of

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ACCT 226 CENTENNIAL COLLEGE Taxation 1

examinations.
•Students must retain a copy of completed assignments handed into their professor in case of misplaced
work;

College Policies
Students should familiarize themselves with all College Policies that cover academic matters and student
conduct.

All students and employees have the right to study and work in an environment that is free from
discrimination and harassment and promotes respect and equity. Centennial policies ensure all incidents
of harassment, discrimination, bullying and violence will be addressed and responded to accordingly.

Academic Honesty

Academic honesty is integral to the learning process and a necessary ingredient of academic integrity.
Forms of academic dishonesty include cheating, plagiarism, and impersonation, among others. Breaches
of academic honesty may result in a failing grade on the assignment or course, suspension, or expulsion
from the college. Students are bound to the College’s AC100-11 Academic Honesty and Plagiarism
policy.

To learn more, please visit the Libraries information page about Academic Integrity
https://libraryguides.centennialcollege.ca/academicintegrity and review Centennial College's Academic
Honesty Module:
https://myappform.centennialcollege.ca/ecentennial/articulate/Centennial_College_Academic_Integrity_M
odule_%202/story.html

Use of Lecture/Course Materials

Materials used in Centennial College courses are subject to Intellectual Property and Copyright
protection, and as such cannot be used and posted for public dissemination without prior permission from
the original creator or copyright holder (e.g., student/professor/the College/or third-party source). This
includes class/lecture recordings, course materials, and third-party copyright-protected materials (such as
images, book chapters and articles). Copyright protections are automatic once an original work is created,
and applies whether or not a copyright statement appears on the material. Students and employees are
bound by College policies, including AC100-22 Intellectual Property, and SL100-02 Student Code of
Conduct, and any student or employee found to be using or posting course materials or recordings for
public dissemination without permission and/or inappropriately is in breach of these policies and may be
sanctioned.

For more information on these and other policies, please visit www.centennialcollege.ca/about-
centennial/college-overview/college-policies.

Students enrolled in a joint or collaborative program are subject to the partner institution's academic
policies.

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ACCT 226 CENTENNIAL COLLEGE Taxation 1

PLAR Process
This course is eligible for Prior Learning Assessment and Recognition (PLAR). PLAR is a process by
which course credit may be granted for past learning acquired through work or other life experiences. The
PLAR process involves completing an assessment (portfolio, test, assignment, etc.) that reliably
demonstrates achievement of the course learning outcomes. Contact the academic school to obtain
information on the PLAR process and the required assessment.

This course outline and its associated weekly topical(s) may not be reproduced, in whole or in
part, without the prior permission of Centennial College.

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ACCT 226 CENTENNIAL COLLEGE Taxation 1

Semester: Winter 2024 Professor Name: Pramod Kumar

Section Code: ACCT226-003 Contact Information: pkumar@my.centennialcollege.ca
Meeting Time & Location: Hybrid: Online - Tuesday - 4.30pm - 6.20pm Delivery Method: Hybrid
In-person Class Thursday (Progress B3-25)
6.30pm - 8.20pm

Topical Outline (subject to change):

Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Evaluation Evaluation
Strategies Name and Date
Weight
1 Introduction to Chapter 1 1.Explain the Canadian tax System and tax Lectures and Self- Assignment
Federal Taxation In policy concepts study exercises and problems.
Canada Chapter 20 Topics: problems. Class
Residents, Non- 2.Determine liability for tax-residents and non- discussions and
Concept of Residents, residents participation.
residency and Immigration and
deemed residency Emigration, Foreign 3. Apply the concepts of Income, net income
Source Income of and tax Planning.
Liability of residents Residents
and deemed 4. Explain the concepts of resident and
residents deemed resident

Liability of non 5. Determine the tax consequences of a

residents under Part person resident in Canada for only part of the
1 and Part XIII year (Immigration and Emigration)

International tax 6.Determine when a non-resident is subject to

conventions Part 1 tax and Part XIII tax;

7. Explain the importance of tax conventions

such as the Canada-U.S. Tax treaty

2 Procedures and Chapter 2 1. Discuss the administration of the Tax Lectures and Self- Self Study &
Administration. department study exercises and Assignment
Note: problems. Class problems.
Read only sections as 2. Describe the procedures and deadlines for discussions and
it pertains to the filing tax returns, assessments and participation. Quiz # 1
Taxation of individuals reassessments, and the payment of taxes,
in Canada including source deductions

3.Explain procedures for appealing

assessments and procedures and deadlines

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ACCT 226 CENTENNIAL COLLEGE Taxation 1

Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Evaluation Evaluation

Strategies Name and Date
Weight
for filing the Notice of Objection

4.Explain CRA filing and installment due

dates, and the calculation of interest and
penalties for non-compliance.

5. Explain the powers conferred on CRA in

administering and enforcing the ITA, including
the civil penalties applicable to third parties
(tax preparers and tax planners)

3 Income/ Loss from Chapter 3; 1.Apply the basic rules used to determine Lectures and Self-
an Office or Start Chapter 4 employment income, using the source study exercises and Self Study &
Employment concept problems. Class Assignment
discussions and problems.
2.Distinguish between employee and participation.
independent contractor

3.Determine the value of non-cash taxable

benefits received from employment

4.Explain and apply the rules for stock option

plan benefits

5.Compute taxable benefit for employer-

provided automobile,s low interest or no
interest loans and housing subsidies

6.Determine and calculate the deductions

allowed in computing employment income

4 Income/ Loss from Chapter 3 - continued 1.Apply the basic rules used to determine Lectures and Self- Self study and
an Office or Start Chapter 4 employment income, using the source study exercises and assignment
Employment - concept problems. Class problems;
continued discussions and
2.Distinguish between employee and participation. Quiz #2
Taxable income and independent contractor
Tax Payable
3.Determine the value of non-cash taxable
benefits received from employment

4.Explain and apply the rules for stock option

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ACCT 226 CENTENNIAL COLLEGE Taxation 1

Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Evaluation Evaluation

Strategies Name and Date
Weight
plan benefits

5.Compute taxable benefit for employer-

provided automobile,s low interest or no
interest loans and housing subsidies

6.Determine and calculate the deductions

allowed in computing employment income

7. Calculate taxable income from net income

for tax purposes and explain the order in
which deductions are claimed

8.Compute tax under Part 1 using appropriate

marginal tax brackets and principles of tax
planning

5 Taxable Income and Chapter 4 1. Calculate taxable income from net income Lectures and Self- Chapter 4:
Calculation of Tax for tax purposes and explain the order in study exercises and Self-study and
payable by which deductions are claimed problems. Class Assignment
individuals; discussions and problems
2.Compute tax under Part 1 using appropriate participation.
marginal tax brackets and principles of tax
planning

3.Identify and apply the available non-

refundable tax credits

4.Identify and apply the available refundable

tax credits (The GST/HST tax credit, the
WITB and the Canada Child tax benefit)

5.Explain and compute

Part 1.2 tax (social benefits repayment (OAS
and EI))

6 Income or Loss from Chapters 5 & 6 Compare the tax depreciation capital cost Lectures and Self- Quiz # 3
a Business allowance (CCA) system and accounting study exercises and
Capital Cost depreciation methods problems. Class
Allowance/Cumulativ discussions and
e Eligible Capital 2.Apply the general rules of the CCA system participation
deductions. Term including available for use rule, half year rule,

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ACCT 226 CENTENNIAL COLLEGE Taxation 1

Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Evaluation Evaluation

Strategies Name and Date
Weight
Test short taxation year rules, and rates for
commonly used CCA classes

3.Discuss and apply the recapture and

terminal loss provisions for dispositions

4.Determine undepreciated capital cost

(UCC) and apply the provisions for treatment
of acquisition and disposition of depreciable
property

7 Test #1 All Chapters to Date Midterm Test-Written in class Closed Book 20%
of Test
8 Income or Loss from Chapters 5 and 6. 1.Distinguish between incorporated Lectures and Self-
a Business (corporation) and unincorporated business study exercises and
(sole proprietorship and partnerships) problems. Class
Capital Cost discussions and
Allowance and 2.Discuss the treatment of business income participation.
Cumulative Eligible for an individual proprietor or partner and the
Capital deductions. election available for a non-calendar fiscal
year.

3.Identify the criteria for distinguishing

between business income, employment
income, capital gains and income from
property

4.Explain the difference between business

income for tax purposes and accounting
income

5.Explain the rules relating to inclusions in

business income

6.Apply the general principles applicable in

computing business income

7.Identify expenses that are specifically

deductible in computing business income

8.Explain specific limiting items under ITA 18,

including personal and living expenses, club

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ACCT 226 CENTENNIAL COLLEGE Taxation 1

Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Evaluation Evaluation

Strategies Name and Date
Weight
dues, political contributions, expenses of a
personal services business (PSB) and
interest and property taxes on land

9.Apply business income tax rules to prepare

a reconciliation schedule for the computation
of net income from business (inducement
receipts, Government assistance, damage
payments received, expenses of
representation)

10.Explain income from Farmers and

Professional Income
9 Income or Loss from 5 and 6 1.Apply the general principles applicable in Lectures and Self- Self Study and
a Business computing business income study exercises and Assignment
problems. Class problems.
Capital Cost 2.Identify expenses that are specifically discussions and
Allowance and deductible in computing business income participation. Quiz # 4
Cumulative Eligible
Capital deductions. 3.Explain specific limiting items under ITA 18,
including personal and living expenses, club
dues, political contributions, expenses of a
personal services business (PSB) and
interest and property taxes on land

4.Apply business income tax rules to prepare

a reconciliation schedule for the computation
of net income from business (inducement
receipts, Government assistance, damage
payments received, expenses of
representation)

5.Explain income from Farmers and

Professional Income
10 Income from Chapters 7 1.Explain and apply the rules for annual Lectures and Self- Self study and
Property. reporting of interest study exercises and assignment
problems. Class problems
2.Determine the taxable amount of a dividend discussions and
received from different types of corporations participation.
(resident vs non resident

3.Compute net rental income and apply

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ACCT 226 CENTENNIAL COLLEGE Taxation 1

Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Evaluation Evaluation

Strategies Name and Date
Weight
special rules for CCA claimed on rental
property

11 Capital Gains and Chapter 8 1.Explain the rules for the capital property of a Chapter 8-Lectures
Capital Losses deceased taxpayer including rollover and Self-study Quiz # 5
provision to a spouse or common-law partner. exercises and
problems. Class Self study and
2.Apply the eligibility rules and limitations discussions and Assignment
4.Discuss why capital gains and losses are participation. problems
treated differently from other types of income

5.Calculate taxable capital gains, allowable

capital losses, and the allowable capital gains
reserve

3.Explain the adjustments to the cost base in

the definition of adjusted cost base for
calculation of capital gain or loss

4.Describe capital gain/loss special rules for

identical properties, depreciable property,
personal-use property, listed personal
property and business investment loss

5.Explain the term affiliated persons and its

application

6.Determine superficial loss for dispositions to

affiliated persons.

7.Explain the provisions for principal

residence exemption and change-in-use rules

8.Identify deferral provisions on replacement

property (voluntary and involuntary disposition
.
12 Completion of Other Chapter 9. 1.Explain Other Income sources Lectures and Self- Hand in
Income and other (maintenance and support payments, pension study exercises and Global Equity
deductions and annuity payments, retiring allowances problems. Class and Equity (G
and termination payments)and the proper tax discussions and C & E case) -
treatment of each income source participation. 10% of final
grade

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ACCT 226 CENTENNIAL COLLEGE Taxation 1

Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Evaluation Evaluation

Strategies Name and Date
Weight
2.Explain the principles relating to registered
pension plans (RPP), registered retirement Use Profile
savings plans (RRSP), Tax Free Savings Tax Software
Account (TFSA), Registered Education to complete a
Savings Plan (RESP), Registered Disability problem
Savings Plan (RDSP) and other savings and assigned by
sheltered plans and determine the the instructor.
contribution limits, transfer limits and
deductions Your
submission
3.Explain the rules regarding non-arm's must include a
length transfers of property and Section 69 discussion of
provisions for Inadequate Considerations G.C. & E
outcomes # 5
4.Apply the attribution rules when property is & #6.
transferred (depreciable and non-depreciable
property and shares) to a spouse or common-
law partner or minor children and to non-
arm`s length individuals who are 18 years or
older;

5.Explain the rules for the capital property of a

deceased taxpayer including rollover
provision to a spouse or common-law partner.

6.Apply the eligibility rules and limitations for

the calculation of moving expenses, child care
expenses and disability supports deduction

13 N/A Quiz # 6

Computer test Test # 3 Computer tax 12% of Final

software test Grade
14 Final Exam ALL CHAPTERS and In class written test Closed Book 30% of Final
(comprehensive) materials discussed in Grade.
class.

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