AIT805 - Taxation 1

Outline info
Last revision date 2016-02-01 00:31:07.788
Last review date 2016-03-21 00:15:06.643

Subject Title
Taxation 1

Subject Description
The purpose of this subject is to provide students with a good working knowledge of the current provisions of the Canadian Income Tax Act as it relates to both individuals and corporations. The subject covers the fundamental principles, concepts and application of Canadian federal income tax legislation. Emphasis is placed on the understanding of the conceptual structure of the Income Tax Act and its application to practical rules. The Cantax tax-preparation software is utilized throughout the subject.

Credit Status
This subject is a required credit in the Accounting and Information Technology Program. To qualify for the exemption from the CGA Taxation (TX1) subject students must achieve a grade of at least C+.

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

1.Define and discuss the relevant sections of the Income Tax Act as it relates to individuals and corporations.

2. Examine the approach to tax planning for both the individual and the corporation.

3. Discuss the history, objectives, administrative procedures, compliance and planning techniques of income taxes in Canada.

4. Determine income and tax liabilities of individuals and corporations.

5. Complete the T1 and T2 tax returns using Cantax and examine tax-planning issues for both the individual and corporation.

6. Apply the general rules relating to employment income (including the methods of employee compensations and shareholder benefits), business income, property income, miscellaneous sources of income and deductions, and capital gains and losses.

7. Examine and discuss questions relating to international taxation.

8. Apply the general rules and discuss tax-planning issues relating to capital cost allowance and eligible capital property.

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.

Students must meet the Program Eligibility Requirements as stated on the program web page:

Topic Outline

  • Introduction and Concept of Income 
  • Employment Income and Shareholder Benefits
  • Business Income
  • Capital Cost Allowance and Eligible Capital Property
  • Property Income, Other Income & Deductions
  • Capital Gains and Losses
  • Capital Gains and Losses Continued
  • Taxable Income and Tax Payable (Individuals)
  • Taxable Income and Tax Payable (Corporations)
  • Introduction to Tax Planning
  • International Taxation


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

The Cantax T1 tax-preparation software is utilized throughout the course.

Prescribed Texts

TX1 CD 2013. CGA Canada.

Title: Canadian Income Tax Act with Regulations, Annotated
Edition: 98 E
Publisher: CCH
ISBN: 9781554967353

Title: Federal Income Taxation: Fundamentals
Edition: 7 E
Author(s): Beam, Laike, Barnett
Publisher: CCH
ISBN: 9781554967285. (Includes the Cantax CD) 


Reference Material

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 immediately, prior to when your assignment is due, so 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 after the assignment 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 web site for the Seneca College Library MLA 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 even 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 course 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:

Cantax Assignment 5%
Mid-Term Test 35%
Research Project 10%
Final examination 50%

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

Program Coordinator
Keith Chapin

Approved by: Jeff McCarthy