Course Outline Department: School of Management Course Number: FMGT 2325 Course Title: Taxation 1 Credits: 3 Semester Year: Spring 2011 (Jan Apr) Section: 003 Days: Tue & Thu Hours: 4:30-5:20 Classroom: B031 Instructor Contact Name: Mumsy Ullattikulam Phone: 604-323-5860 Office: B253p Email: mullattikulam@langara.bc.ca Office Hours: Mon & Wed: 12:30 to 1:20 Tue & Thu: 3:30 to 4:20 Course Description This is a course on federal income tax with emphasis on individual taxpayers. The course will provide a practical guide for individuals to prepare their own tax return. Students are advised that this is an open book course
Learning Outcomes & Measurement Students will learn the basics of Canadian Income Tax System such as taxable entities federal and provincial taxation, taxation policy objectives and concepts Income or loss from an office or employment: Review on general rules, core items for income inclusion, fringe benefits, specific deductions etc Taxable Income and Tax Payable For Individuals: basic taxable income calculation is introduced with Division C deductions and net tax payable calculations after applying numerous non-refundable and refundable tax credits. Income from Business: Reconciliation of Net Income for accounting to Net Income for Tax Purposes by considering relevant inclusions of certain income and restiricted and disallowed expenses. Income from Property: The basis of inclusion of property income by individual taxpayers and corporations. Also, an understanding of deductibel expenses. Capital gans and Capital losses: General rules on determining capital gain and losses identify various categories of properties for capital gain and loss calculation. Other income and other deductions: Here, students identify income from miscellaneous sources other than employment, business and property such as pension benefits, spousal support scholarships etc. Then, goes on identifying various deductions primarily available to individual taxpayers such as child care expenses, RRSP contribution deduction and moving expenses. Non-arm's length transactions: Students will be able to analyse Non-arm's length transfer of property and income to evade and avoid taxes. Revisit Taxable Income and Tax Payable: based on what students learned from the above, they will be able to determine taxable income and tax payable for an individual with multiple activities and income sources. Prerequisites assignments, midterm 1, basic personal tax return (manual) Assignments, Midterm 2 E-T1 (Profile), assignments Final Exam Financial Management 1115, 1116, 1215, 2293, with a grade of C- or higher University Transferability Refer to www.bccat.bc.ca for transferability and whether credits are assigned or unassigned. Required Textbooks Canadian Tax Principles, 2010-2011- Edition, Clarence Byrd & Ida Chen. (Pearson Education, Canada). 2
Blackboard CE Some course materials will be posted on Blackboard, Students are expected to regularly check Blackboard (and their Langara email accounts) for messages from the instructor. Recommended Readings Canadian Income Tax Act, 88 th Edition or higher is the best reference resource in addition to various CRA publications. Students should be comfortable accessing Canada Revenue Agency s official website for research purposes. Announcements of recommended readings will be made in class and on Blackboard. Grade Allocation Quizzes, assignments, participation 15% Midterm 1 25% Midterm 2 25% Comprehensive Final 35% TOTAL 100% A+ 95-100% B+ 80-84% C+ 65-69% D 50-54% A 90-94% B 75-79% C 60-64% F <50% A- 85-89% B- 70-74% C- 55-59% Projects, Case Studies As directed by your instructor during the course. Expectations You are responsible for all course content and are therefore responsible for knowing what has been covered and said in all classes. Your instructor will not provide answers to e-mails requesting a restatement of what has been said in a previous class. Furthermore, you are expected to read and be prepared to discuss material assigned prior to the class. e welcomes all students into an environment that creates a sense of community of pride and respect; we are all here to work cooperatively and to learn together. You are encouraged to participate actively in class and contribute to the creation of a positive learning environment. Assignments and due dates will be announced in class and on Blackboard. As several assignments involve submitting formal financial statements, proper formatting and presentation 3
is required. Use of a computer is strongly encouraged. Poor presentation will result in reduced/zero marks. All assignments must be handed in at the beginning of the class on the due date. Marks will be deducted for late assignments. No late assignments are accepted after they have been marked and distributed. Assignments and quizzes must always be submitted on the due date and time specified. If you do not submit on time, without prior notification to your instructor and with her approval to submit at a later date, this will result in you receiving an F (0%). Also, you are expected not to make any travel plans on exam dates. There will not be any alternative date and time for switching for either the midterms or the final exam without your instructor s permission. Therefore, if you miss an exam, assignment or deadline, you are required to contact your instructor in advance and provide a Doctor s note for verification or you will receive 0%. There will be no exceptions to this standard, other than under exceptional documented circumstances or for medical reasons. Any class work, which is not completed because you were late for, or missed, a class, will receive 0%. Remember that it is your responsibility to attend class, keep up with the course, know what has been covered etc. If you miss a class, information will not be repeated for your sole benefit. Attendance in class is expected. This course demands regular and continuous effort directed at problem solving preparation for examinations that integrate various topics. Each chapter has comprehensive review problems with solution and these are highly recommended for your study. Additionally, all electronic communication and music devices (e.g. cell phones, pager, CDplayers, mp3-players, etc.) must be turned off or muted while in class. Cellular phones, pagers, electronic translators and programmable calculators are not allowed during examinations. Overall, you are expected to follow the ordinary rules of courtesy during class sessions. Students whose behaviour is unacceptable will be asked to leave the class. For more details, please refer to Langara s Code of Conduct in the course calendar or Student Policies and Procedures on Langara s website at www.langara.bc.ca. My role as your instructor is there to help you and to provide any additional coaching or tutoring that you may need. Please use me as a resource. Plagiarism and Cheating Policy Plagiarism and cheating are serious educational offences, which may result in failure of an assignment, failure in a course, and possible suspension from e. For further details, please refer to Langara s Code of Conduct in the College calendar or Student Policies and Procedures on Langara s website at www.langara.bc.ca 4
School of Management It is the aim of the School of Management of e to promote throughout each course the mastery of core skills such as reading and reading comprehension, writing fluency, verbal articulation, and math development. These core skills will be practiced by means of student presentations and/or class participation, and will be evaluated on submitted work. Critical thinking and problem solving exercises will be encouraged at every opportunity. As stated in the College Calendar and according to College policy, students are expected to attend all classes, lectures, laboratories, workshops, seminars, and practicum commitments, and be available to write final examinations where and when scheduled during the examination period. Students are also reminded to refer to policies and procedures related: Code of Academic Conduct, Improper/Disruptive Behaviour, Appeal of Final Grades, Concerns Related to Instruction, Attendance, etc. found in the College Calendar and in the current Student Handbook. For more information about the School of Management programs, please contact the advisors in the office corridor B253 or e-mail business@langara.bc.ca. 5
COURSE SCHEDULE (this course schedule is tentative and may be altered by the instructor during the course of the semester). Days CHAPTER SUBJECT Jan 11, 13 1. Introduction to Federal Taxation in Canada Jan 18 2. Procedures & Administration Jan 20, 25, 27 3 Income or Loss from Office/Employment Jan 31, Feb 1 4 Taxable Income & Tax Payable for Individuals Feb 3, 8 5 Capital Cost Allowance & Cumulative Eligible Capital Feb 10 Midterm # 1 (Ch. 1-4) Feb 15, 22 6 Income or Loss from a Business Feb 24, Mar 1 7 Income from Property Mar 3, 8 8 Capital Gains & Capital Losses Mar 10, 17 9 Other Income & Other Deductions Mar 15 Midterm # 2 (Ch 5-8) Mar 22 Preparation of Manual Personal Tax returns Mar 22, 24 10 Registered Retirement Savings Plans (RRSPs) Mar 29 Preparation of Tax return using Profile Mar 31, Apr 5 11 Taxable Income & Tax Payable Revisited Lab assignment DUE!! Apr 7 11 FINAL EXAM REVIEW Apr 12 20 Final Exam (Comprehensive) 6