Welcome - Taxation I
LAWS 2029 Taxation I
CREDIT HOURS: 4
This course is an introduction to the law of income taxation in Canada. It is intended to make students aware of the prevalence of taxation issues in ordinary life and in simple commercial transactions. It is also, for those who so choose, the prerequisite for more advanced courses in corporate taxation and the estate planning area. The initial part of the course addresses some basic issues in tax law-who should pay tax, the unit of taxation - family, individual or other- and what is income. The special areas of taxation of First Nations, and international taxation are briefly surveyed. Subsequent courses focus on the various types of income and the rules affecting them. The computation of employment income is addressed and the taxation of some of the common benefits bestowed on employees-cars, interest free loans, free trips - is examined. The latter part of the course covers the taxation of property and business income. As part of that exercise, students are introduced to some of the timing problems that arise in the computation of income. The course also studies the type and scope of other deductions available for business income, and examines the policy reasons behind the deductions. Finally, the taxation of capital gains, including gains (and losses) on taxpayer assets such as the family home, personal property such as art, and business investments, is canvassed. The basis for discussion in course is decided cases, commentary from the text, and the applicable rules in the Income Tax Act. The acquisition of the ability to read complex legislation will be emphasized.
ASSESSMENT METHOD: Depending on the instructor: problem-oriented written examination, with the possibility of optional in-term written work counting for a certain percentage of the work; OR problem-oriented in-term assignments.