Taxation

Canadian Taxation

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Exam Description

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

  1. To explain the theoretical concepts behind the specific provisions of the law.
  1. To apply the law in practical problems and case settings.
  2. To interpret the law, taking into account the specific wording of the provisions, judicial decisions and Canada Revenue Agency’s position.
  3. The concepts of tax evasion, tax avoidance and tax planning.
  4. The calculation of employment income and business income.
  5. Concepts of employee, salesperson on commission and self-employed contractor.
  6. Capital cost allowance system and treatment of disposals, additions, capital gain, recapture and terminal loss.
  7. Various sources of property income and how to calculate the inclusions and deductions for the same.
  8. Calculation of tax payable for individuals, including the application of tax rates and calculation of tax credits.
  9. Calculation of taxable income and tax payable for corporations.
  10. Concept of integration between a corporation and its shareholders.
  11. 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.
  12. To calculate the ACB and income distributions of partnerships.
  13. To explain the purpose and use of trusts.

 

Recommended readings

  1. Introduction to Federal Income Taxation in Canada, Beam, Wolters Kluwer 40th edition.