This professional examination tests the competencies of students and examines the theory and application of the Income Tax Act as it relates to both individuals and corporations.
Professional Exam Competencies
- To explain the theoretical concepts behind the specific provisions of the law.
- To apply the law in practical problems and case settings.
- To interpret the law, taking into account the specific wording of the provisions, judicial decisions and Canada Revenue Agency’s position.
- The concepts of tax evasion, tax avoidance and tax planning.
- The calculation of employment income and business income.
- Concepts of employee, salesperson on commission and self-employed contractor.
- Capital cost allowance system and treatment of disposals, additions, capital gain, recapture and terminal loss.
- Various sources of property income and how to calculate the inclusions and deductions for the same.
- Calculation of tax payable for individuals, including the application of tax rates and calculation of tax credits.
- Calculation of taxable income and tax payable for corporations.
- Concept of integration between a corporation and its shareholders.
- To 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.
- To calculate the ACB and income distributions of partnerships.
- To explain the purpose and use of trusts.
- Introduction to Federal Income Taxation in Canada, Beam, Wolters Kluwer 40th edition.