MGMT 203 - Taxation

Practical approach to the study of federal income tax for students through the use of actual tax problems.


Credits: 3


Hours: 45 (Lecture Hours: 3)


Total Weeks:15


MGMT 103 Foundations in Financial Accounting Level 1 and MGMT 109 Foundations in Financial Accounting Level 2, or MGMT 120 Financial Accounting,

OR permission of Instructor


Non-Course Prerequisites:






Course Content:
- Introduction to Federal Taxation in Canada
- Procedures and Administration
- International Issues in Taxation
- Goods and Services Tax
- Income or Loss from an Office or Employment
- Income of Loss from a Business
- Capital Cost Allowances and Cumulative Eligible Capital
- Capital Gains and Capital Losses
- Taxable Income and Tax Payable for Individuals
- Income from Property
- Other Income, Other Deductions and Income Attribution
- Taxable Income and Tax Payable for Individuals

- Taxable income and Tax Payable for Corporations


Learning Outcomes:
Upon successful completion the student will be able to:
- Explain the structure of the Income Tax Act
- Identify the dates on which income tax returns must be filed by individuals and corporations
- Calculate income tax installments for individuals and corporations
- Determine the residency of an individual and a corporation
- Determine net income for tax purposes for an individual and a corporation
- Outline the basic applications of the GST tax
- Calculate income from employment for an individual
- Determine net business income for tax purposes
- Apply the restrictions on deductions for business, property or employment income
- Complete capital cost allowance calculations for depreciable assets
- Calculate the amortization of cumulative eligible capital
- Determine the tax consequences resulting from the disposition of depreciable assets and cumulative eligible capital items
- Apply the general rules for determining the gains and losses on the disposition of capital assets
- Apply the rules related to capital gains reserves
- Explain and apply the treatment of losses
- Calculate the taxable amount of interest for individuals and corporations
- Determine net rental income for tax purposes
- Calculate the taxable amount of dividends received
- Identify the major other sources of income under Subdivision d of the Income Tax Act and how they are handled
- Calculate net income for tax purposes of an individual
- Determine taxable income of an individual
- Calculate the federal tax payable for an individual
- Determine the personal tax credits available for an individual
- Outline the calculation of net income for tax purposes for a corporation
- Determine and apply deductions available to corporations
- Define a permanent establishment
- Allocate corporate income to determine provincial tax payable
- Calculate the small business deduction
- Determine the manufacturing and processing profit deduction

- Prepare a basic calculation of Part 1 tax payable for a corporation


Grading System:Letters


Passing Grade: D (50%)


Percentage of Individual Work: 100


Additional Comments:
- Students are permitted to take annotated hard copy of Income Tax Act into exam in accordance with allowable exam room materials handout provided and posted on D2L.
- NOTE: CD-ROM included with text has complete Act and Regulations
- Assignment Policy: All assignments are to be submitted on due date by 9 p.m. via email. Graded assignments will be returned via email. Late assignments submitted without prior instructor permission will not be graded. A 5% penalty per day late will be assessed on late assignments. Assignment will NOT be accepted if it is over 5 days past due date.
- Exams: Exams are to be written as scheduled. Please advise instructor immediately if there are exam schedule conflicts. As a general rule, deferred exams are only granted for documented medical causes or a loss in the immediate family. Deferred exams will be written within six days after exam date. It is your responsibility to contact the instructor prior to the scheduled exam to negotiate other arrangements. Rewrites are not permitted
- Classroom Etiquette: To foster a positive learning environment for yourself and your fellow students please avoid the following:
    Absences: Classes missed will have a significant negative effect on your overall performance in this course. Please remember that you are responsible to collect any classroom handouts that you missed due to your absence.

    Distractions: late arrival to class, talking during lecture or while other students are talking, operation of a cell phone during class time


Textbooks are subject to change.  Please contact the bookstore at your local campus for current book lists.