Course Number: ACTG 4P42

Term/Year/Duration: FALL 2021

Course Title: Taxation III

Instructor Name: M. Lau

Email: mlau@brocku.ca

Times and Locations: Online Asyncrhonous

Office hours: By appointment via email (or online @ MS Teams, Zoom, Skype)

Course Calendar Description:

This is the 3rd course in federal income taxation in Canada. The student is expected to be
already competent in the computation of net income for tax purposes and taxable income as
covered in Tax 1 and Tax 2. The study of Canadian income tax law continues with a focus on
the general principles and the specific provisions used in the computation of taxes payable for
individuals, corporations as well as an analysis of the rights and obligations of taxpayers under
the Act.

Required Readings or Texts:

We will be working from 1. The Income Tax Act, CCH 109th ed. Autumn 2020 2. Beam,
Laiken, Barnett, et al. Introduction to Federal Income Taxation in Canada, 41st ed.

*note: A new edition of the Beam, Laiken, Barnett et al. materials also exists; you are welcome
to use an older edition if you wish. It is entirely your decision.

Evaluation Components

Evaluation Component Grade Weight

Participation 10%
Assignment 1 20%
Assignment 2 20%
Assignment 3 20%
Final Paper 30%
Total 100%
General Course Rules

Late Submission Policy:

The penalties for late submission of assigned coursework are 10% per day and go into effect if
submissions are not received by the date and time posted per our syllabus. No exceptions will be
made unless accompanied by medical documentation. See Medical Exemption Policy and the
medical health certificate at https://brocku.ca/registrar/toolkit/forms/

Important dates: (check the section on sessional or important dates in the relevant online
University calendar at http://brocku.ca/webcal/)

Academic Policies

Academic Integrity:
Statement for graduate courses
Academic misconduct is a serious offence. The principle of academic integrity, particularly of
doing one’s own work, documenting properly (including use of quotation marks, appropriate
paraphrasing and referencing/citation), collaborating appropriately, and avoiding
misrepresentation, is a core principle in university study. Students should consult Section XVII,
“Academic Misconduct”, in the “Academic Regulations and University Policies” entry in the
Graduate Calendar, available at http://www.brocku.ca/webcal to view a fuller description of
prohibited actions, and the procedures and penalties. Information on what constitutes academic
integrity is available at https://brocku.ca/academic-integrity/

Intellectual Property Notice:

All videos, presentations, handouts, assignments, and other course materials created by the
instructor in this course are the intellectual property of the instructor. A student who publicly
posts or sells an instructor’s work, without the instructor’s express consent, may be
charged with misconduct under Brock’s Academic Integrity Policy and/or Code of
Conduct, and may also face adverse legal consequences for infringement of intellectual
property rights.

Special Accommodation:

The University is committed to fostering an inclusive and supportive environment for all
students and will adhere to the Human Rights principles that ensure respect for dignity,
individualized accommodation, inclusion and full participation. The University provides a wide
range of resources to assist students, as follows:

a) If you require academic accommodation because of a disability or an ongoing health or

mental health condition, please contact Student Accessibility Services at askSAS@brocku.ca or
905 688 5550 ext. 3240.
 b) If you require academic accommodation because of an incapacitating medical
condition, you must, as soon as practicable, inform your instructor(s) of your inability to
complete your academic work. You must also submit a Brock University Student Medical
Certificate (found at https://brocku.ca/registrar/toolkit/forms). The University may, at its
discretion, request more detailed documentation in certain cases. If you are unable to write a
scheduled examination due to an incapacitating medical condition, you must follow the process
set out in the Faculty Handbook III:9.4.1.

c) If you are experiencing mental health concerns, contact the Student Wellness and
Accessibility Centre. Good2Talk is a service specifically for post-secondary students, available
24/7, 365 days a year, and provides anonymous assistance: http://www.good2talk.ca/ or call 1-
866-925-5454. For information on wellness, coping and resiliency, visit:
http://brockmentalhealth.ca/mental-well-being/.

d) If you require academic accommodation on religious grounds, you should make a

formal, written request to your instructor(s) for alternative dates and/or means of satisfying
requirements. Such requests should be made during the first two weeks of any given academic
term, or as soon as possible after a need for accommodation is known to exist.

e) If you have been affected by sexual violence, the Human Rights & Equity Office offers
support, information, reasonable accommodations, and resources through the Sexual Violence
Support & Education Coordinator. For information on sexual violence, visit Brock's Sexual
Assault and Harassment Policy or contact the Sexual Violence Support & Response Coordinator
at humanrights@brocku.ca or 905 688 5550 ext. 4387.

f) If you feel you have experienced discrimination or harassment on any of the above
grounds, including racial, gender or other forms of discrimination, contact the Human Rights and
Equity Office at humanrights@brocku.ca.
Sequence and Dates of focus/activities/readings
** Changes to the syllabus may be made at the discretion of the professor at any time**
Date Topics Video Lecture Readings Problems
Week 1 Course Introduction 1.0 Course
M Sept 6 Introduction: Post an
introduction in
the discussion
forum on Sakai.

Week 2 Chapter 12 1.1: Tax Fairness and ¶12,000 – 12-2 “Still

T Sept 14 Tax Fairness & Integration ¶12,150 working on the
Integration publication…”
1.2: Income from an
Part 1 Tax: Active Business of a
F Sept 17 Income from an Active CCPC – the small
Business of a CCPC. business deduction

Week 3 Chapter 12 continued

T Sept 21
Corporate Groups: 1.3: Associated ¶12,170 12-10 “Leah Ltd.”
Related, Associated, companies & -¶12,183; & 12-11 “Rachel
Connected, Affiliated ¶12,210 and Monica”

¶12,300- 12-13 Neville Ltd.

Investment Income for 1.4: Investment Income
F Sept 24 a CCPC: Aggregate for a CCPC & Part I Tax
¶12,322; and
Investment Income Payable ¶12,350 12-12 “Ryan
(AII), Additional Mailing DRL”
Refundable Tax (ART),
SBD, Part I Tax Payable

Week 4 Chapter 12 continued

T Sept 28
Part IV tax: Investment 1.5: Part IV Tax ¶12,323 – 12-21“Vermisht
Income of a CCPC, Continued, RDTOH, ¶12,330; and Ltd.”
Taxes on Dividend Taxes on Dividends ¶12, 400
Income, RDTOH 12-15 “Multi
Enterprise” Part I
and Part IV Taxes
 Analyzing the decision
F Oct 1 to incorporate, 1.6: Advantages and ¶12,230; and comprehensive
Disadvantages of ¶12,360; problem
Incorporation ¶12,400
Assignment 1
Due: Monday
Oct 4th @ 4PM
Week 5 Chapter 13

M Oct 4 Employment 1.7 Shareholder- ¶13,000- 13-6 “Skies

Remuneration Manager Renumeration ¶13,038 Limited”
Shareholder loans and
benefits 13-5 “Big City
Developments”

13-1 “You have

just
incorporated
1.7(b) Salary vs. ¶13,100-
Salary versus Dividends and started
Dividends ¶13,160 your
business…”
October 11-15 READING WEEK (no classes)
Week 7 Chapter 13 continued…
M Oct 18
Tax on Split Income 1.8 (a) TOSI, & QSBC ¶13, 200- Independent
(TOSI) ¶13,270 Research:
Assignment 2

Qualified Small Business

¶ 15,000-
Corporation Share
¶15,031
(QSBC)

General Anti-Avoidance 1.8 (b) GAAR ¶13,400-

Due Monday Oct
Rules (GAAR) ¶13,415 25th @ 4 PM
Week 8 Chapter 15 1.9 Purchase of a ¶15,100 – 15-5
M Oct Purchase and Sale of a Business- Share ¶15,161; “Purchaser Inc.
25 Business - Share Purchase ¶15,170; and Target Inc.”
Transactions ¶15,180;
¶15,194

Week 9 Chapter 16 1.10 (a) Corporate ¶16,000- 16-3 “The

M Nov 1 Corporate distributions, Surplus, PUC, & ¶16,025 following
Asset Sales, and Redemption situations deal
Winding Up with a CCPC and
it shareholders”
(15-3 in the 40th
edition)

Use of Corporate 1.10 (b) Corporate ¶16,100-

16-1 “Sabres
Surplus Balances Distributions and CDA ¶16,130; Limited” (15-1 in
the 40th edition)

Week 10 Chapter 16 continued 16-6 JTL

M Nov 8 Sale of an incorporated 1.11 (a) Corporate ¶16,140-
business Distributions & Wind- 16,155 (15-6 in the 4oth
up Rules (exclude edition)
¶16,141;
16-10 Ms.
¶16,144;
Debbie
¶16,146)
(15-10 in the
4oth edition)

Assignment 3
Due Monday
November 15th at
4PM
Week 11 Chapter 16 continued 1.14 Sale of ¶16,200-
M Nov Incorporated ¶16,230
15 Business: Asset Sale
and Winding-up a
 Canadian Corporation

Asset Versus Share

Sale ¶16,300-
F Nov 12 ¶16,350
Week 12 Chapter 16 Continued Sale of Incorporate Catch-up
T Nov 15 Catch up business -CCPC

Week 13 Chapter 21 GST/HST Goods and Service Tax ¶21,000-

M Nov ¶21,600
22 (exclude:

¶21,400
¶21,445
¶21,450
¶21,460
¶21,461
¶21,462
¶21,470
¶21,471

Week 14 Chapter 21 GST/HST Goods and Service Tax ¶21,000- Final Paper
M Nov ¶21,600 Assignment:
29 Catch up (exclude:
Due Date TBD
¶21,400
¶21,445
¶21,450
¶21,460
¶21,461
¶21,462
¶21,470
¶21,471