ACC642 - Corporate Taxation

Outline info
Last revision date 2018-06-13 12:59:44.684
Last review date 2018-06-13 12:59:44.685

Subject Title
Corporate Taxation

Subject Description
Taxation II is the second part of two subjects in taxation for Accounting and Finance students. The aim of the course is to provide students with a good working knowledge of the current provisions of the Canadian Income Tax Act as it applies to corporations and individuals. Emphasis is placed on the concepts underlying these provisions rather than on the computations required to implement them, although such computations are reviewed in the context of the Federal T2 Tax Return.

Credit Status
For information regarding exemptions for courses included in CPA’s Advanced Certificate in Accounting & Finance (ACAF) program please see

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Identify capital gains and losses and examine the basic application rules.

2. Identify and classify the different types of income of a corporation.

3. Determine the tax payable by corporations.

4. Compute the distribution of corporate surpluses.

5. Explain administrative procedures under the Income Tax Act and tax planning techniques.

6. Review income tax determination for individuals.

7. Complete the T2 Corporate Tax Return.

8. Use a computer tax programme to prepare T1's and T2's.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on for further information regarding cheating and plagiarism policies and procedures.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

ACC540 - Personal Taxation

Topic Outline

  •     Review of all personal federal income taxation concepts
  •     Delineating and contrasting the aspects of federal corporate income taxation
  •     Analysing all the deductions in computing taxable income for corporations
  •     Analysing the computation of tax, provincial abatement, and surtax for corporations
  •     Contrasting the foreign tax credits, the small business deduction, the manufacturing   and processing tax credit and the investment tax credits available to all corporations
  •     Contrasting the federal tax treatment for public as opposed to Canadian controlled private corporations
  •     Analysing various tax efficient ways in which shareholders and employees of Canadian controlled private corporations can maximize the tax efficiency of corporate distributions to themselves
  •     Analysing all of the tax ramifications of corporate windups

Mode of Instruction

A combination of teaching methods will be utilized which may include lectures, case studies, discussions, group and individual work.

Prescribed Texts
Introduction to Federal Income Taxation in Canada; 39th Edition, with Study Guide 2018; ISBN: 9781554969876


Canadian Income Tax Act with Regulations, Annotated, Academic; 106 edition  2018; CCH (now Wolters Skluwer); Robert Beam & Stanley Laiken, J. Barnett; CCH (now Wolters Skluwer); ISBN: 9781554969869

Bundle pack - ISBN number is 97815549695009781554969890

updated 6/13/2018

Required Supplies

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online ( or at Seneca's Registrar's Offices.

Modes of Evaluation
Assignments are due on the dates specified. Should extenuating circumstances arise, please contact your instructor prior to the assignment due date so that an appropriate course of action can be established. Late assignments may be subject to a penalty of up to 10% per week and will not generally be accepted beyond two weeks from the due date.

In cases of cheating or plagiarism, the College Academic Policy will prevail. Please ensure that all assignments and reports are properly documented.

Students are referred to the following website for Seneca College Library style guides, Academic Honesty Policy and Copyright guidelines:


Dates for evaluations are specified in the weekly schedule addendum to this outline. The evaluation process may include, but is not limited to, tests, exams, assignments or presentations. Any absences or missed submissions due to medical or other reasons must be supported by medical or other appropriate documentation within one (1) week of the due date. The faculty and program area must be notified immediately in the event of a missed evaluation. Upon acceptance of the documentation, the weighting of the missed deliverable will normally be applied to the final exam.

English Competency

The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this subject in both oral and written work. Ensure your written work includes correct sentence structure, spelling and punctuation. Always spell check, edit and proofread your work.

Grading is based on the following marking scheme:

Case Study (Assignment) 10%
Term Test  40%
Final Exam  50%

Please retain this course outline document for future educational and/or employment use.

Program Coordinator
Cynthia Duncan

Approved by: Chair - Business Studies Danielle Mercier