IAF420 - Income Tax II

Outline info
Last revision date 2018-06-13 13:01:36.078
Last review date 2018-06-13 13:01:36.079

Subject Title
Income Tax II

Subject Description
This course, built on the foundations set in Income Tax  I, is designed to give the student an understanding of more complex issues of Canadian income tax law. Topics include computation of corporate taxes, integration theory, corporate reorganizations, surplus distributions, partnerships and trusts. At the successful conclusion of this course, it is anticipated that students will be proficient at recognizing tax issues, developing planning alternatives, locating proper authority to resolve issues, and communicating courses of action to implement the solutions.

All tax provisions are subject to change. Accordingly, the intent is that students develop an understanding of how the tax law works and incorporate the ability to find and apply the appropriate tax provisions in a variety of situations. Students are expected to demonstrate (in exams, assignments and class participation) competence in the technical aspects of the tax laws covered.

Credit Status
One credit towards the Honours Bachelor of Commerce - International Accounting and  Finance degree program .

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

1. Explain the theoretical concepts behind the specific provisions of the Income Tax Act (ITA), in Canada, as they apply to individuals and corporations and apply Canadian income tax laws and related planning concepts in practical problems and case setting.

2. Apply the law, interpreting case law and its relevance to sample situations.

3. Interpret the law, taking into account the specific wording of the latest statutes, and applicable cases; apply the judicial decisions and weigh the position of the Canada Revenue Agency (CRA), with the intentions of the legislation.

4. Prepare personal and corporate tax returns while identifying more complex issues and options.

5. Communicate tax issues and tax implications; analyze the alternatives, and make recommendations.

6. Demonstrate the tax implications of tax planning and financial planning.

7. Explain, from a tax planning concept, the difference between tax avoidance, tax evasion and tax planning.

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 http://library.senecacollege.ca 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 student.conduct@senecacollege.ca.

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.

BAB140, IAF320

Topic Outline

Computation of Taxable Income and Tax payable for corporation
 Integration for Business and investment income of the private corporation
Planning the use of a corporation and shareholder-manager remuneration
Rights and obligations under the Income Tax Act. Corporate distributions, windings-up and sales
Corporate distributions, windings-up and sales
Income deferral:  Rollover on transfers to a corporation and pitfalls
Partnerships and Trusts Partnerships

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

Reference Material
“Tax Works”, CCH electronic tax service
“Tax Find” Canadian Tax Foundation electronic tax research service
Canada Revenue Agency Information. CRA.
Bulletins CRA Income Tax Rulings. CRA. 
CRA Information Circular. 
Understanding Income Tax. Newest edition. R. Huot. Carswell.

Professional Accounting Bodies CA Firms Government
Canadian Institue of Chartered Accountants www.cica.ca PricewaterhouseCoopers:  www.pwcglobal.com Canada Revenue Agency www.cra.gov.ca
Certified General Accountants of Canada www.cga_ontario.org Delitte & Touche Ontario Ministry of Finance www.gov.on.ca/fin
Society of Management Accountants of Ontario www.cma_ontario.org KPMG Department of Finance of Canada:www.finance.gov.ca
  BDO Dunwooody
Canadian Tax Foundation


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 (http://www.senecacollege.ca/academic-policy) or at Seneca's Registrar's Offices.

Modes of Evaluation

Mid Term 1 25%
5 Assignments - 5% each 25%
Final Exam 50%

Assignments are due at the beginning of the class on the dates specified. Begin your assignments early in anticipation of unforeseen problems that may arise in your work or personal life. 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 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.

Missed tests and Assignments

If you miss a test, you must provide the reason in writing to the instructor within one week. If your reason is accepted, the weighting of that test will be added to that of the final exam. Otherwise, you will be given a zero for the test.

If you are unable to complete any of the formal evaluations in this subject for medical reasons, you must submit an original doctor's certificate identifying the date, length of time of expected absence and the specific reason for your absence. If necessary, this information will be presented at the promotion meeting for consideration in determining and recommending the final grade.

Students are expected to demonstrate an appropriate level of effective communication skills in verbal presentations and group work. 
Regular attendance to class is expected.

Students must pass the final exam or final assignment (if the final assignment is in lieu of the final exam) in order to pass the subject.
For further information on evaluation and academic standing, see a copy of the Academic Policy, available at Seneca's Registrar's Offices.

Language Across the Curriculum Rubric

Clear   Confusing  
Good Detail   Lacks Detail  
Easy to follow   Difficult to follow  
Answers Question   Evades Question  

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

Program Coordinator
Cynthia Duncan

Approved by: Chair - Business Studies Danielle Mercier