Taxation In depth

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Exam Description

This professional examination tests students’ competencies and examines the theory and application of the Income Tax Act as it relates to both individuals and corporations.

Professional Exam Competencies

• Explain the theoretical concepts behind specific provisions of the law.
• Apply the law in practical problems and case settings.
• Interpret the law, taking into account the specific wording of provisions, judicial decisions, and the Canada Revenue Agency’s position.
• Understand the concepts of tax evasion, tax avoidance, and tax planning.
• Calculate employment income and business income.
• Distinguish between the concepts of employee, salesperson on commission, and self-employed contractor.
• Understand the capital cost allowance system and the treatment of disposals, additions, capital gains, recapture, and terminal loss.
• Identify various sources of property income and calculate the inclusions and deductions for the same.
• Calculate tax payable for individuals, including the application of tax rates and calculation of tax credits.
• Calculate taxable income and tax payable for corporations.
• Understand the concept of integration between a corporation and its shareholders.
• Introduce basic tax planning concepts through problem application in specific areas, including the use of a corporation to manage earnings, the purpose of corporate rollovers, the application of non-resident tax, and tax planning on the death of a taxpayer.
• Calculate the Adjusted Cost Base (ACB) and income distributions of partnerships.
• Explain the purpose and use of trusts.

Recommended readings

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