TRU ACCT 3221 Income Taxation 1 well summarized document with all
Modules| best for 2026 exam prep
School of Business
and Economics
Modules
ACCT 3221
Income Taxation 1
The course materials in ACCT 3221 have been provided to you for your private study and educational use only. TRU
grants you a limited and revocable license to access and make personal use (including permission to print one
copy) of Modules. These materials may not be further distributed.
,Table of Contents
Module 1: Introduction to Federal Taxation ............................................................. M1-1
Module 2: Procedures and Administration ............................................................... M2-1
Module 3: Income or Loss from an Office or Employment .................................... M3-1
Module 4: Capital Cost Allowances and Cumulative Eligible Capital .................... M4-1
Module 5: Income or Loss from a Business ............................................................... M5-1
Module 6: Property Income .......................................................................................... M6-1
Module 7: Capital Gains and Losses .......................................................................... M7-1
Module 8: Other Income and Deductions ................................................................. M8-1
Module 9: Taxable Income and Tax Payable for Individuals ................................ M9-1
,ACCT 3221: Income Taxation 1 M1-1
Module 1: Introduction to Federal Taxation
Overview
This module provides us with an overview of the Canadian tax system and with
reference material sources. It details who is liable for income tax and describes how
we calculate net and taxable income.
Resources
Byrd, C., & Chen, I. (2017). Chapter 1. Byrd and Chen’s Canadian tax principles volume I
(2016 – 2017 ed.). Toronto, ON: Pearson Canada Inc.
Byrd, C., & Chen, I. (2017). Byrd and Chen's Canadian tax principles study guide (2016 –
2017 ed.). Toronto, ON: Pearson Canada Inc.
Student Access Kit
Canada Revenue Agency. (2016). Learning about taxes [Online course]. Available at
http://www.cra-arc.gc.ca/tx/ndvdls/dctrs/lrn-tx/menu-eng.html
Canada Revenue Agency. (2016,October 07). Series: Newcomers to Canada and the
Canadian tax system, Segment 2: The Canadian tax system [Video file].
Available at http://www.cra-arc.gc.ca/vdgllry/ndvdls/srs-nwcmrs-eng.html
Learning Outcomes
After you have successfully completed the work in this module, you will be able to:
1. The Canadian Tax System
• List some of the different tax bases that can be used by the various levels of
government to assess taxes.
• List all of the types of entities that are subject to paying federal income taxes,
and know the requirement to register and to collect GST.
• Explain the relationship between the assessment of taxes at the federal and
provincial levels.
2. Tax Policy Concepts
• List some of the ways that taxation is used to achieve economic objectives.
• Describe the differences between progressive, regressive, and flat tax systems,
including some of the advantages and disadvantages of each system.
• Explain the nature of tax expenditures.
TRU Open Learning
, M1-2 Module 1: Introduction to Federal Taxation
• Evaluate issues in tax policy on the basis of the qualitative characteristics
(equity or fairness, neutrality, adequacy, etc.) of tax systems.
3. Income Tax Reference Materials
• Describe reference materials that are available on the electronic database,
which is on the Student Access Kit download.
• Describe reference material that is available on CRA’s website.
4. Liability for Income Tax
• Describe the charging provisions for residents [2(1) ITA] and non-residents
[2(3) ITA] of the Income Tax Act.
• Describe the taxation year of corporations [249(1)(a) ITA] and the taxation
year of individuals and trusts [249(1)(b) ITA].
5. Alternative Concepts of Income
• Describe, in general terms, the various views of income that are held by
economists, accountants, and tax authorities.
6. Net Income for Tax Purposes
• Describe the general structure (as specified in Division B) of the Income Tax
Act.
• List the four types of income that are included as components of net income
for tax purposes.
• Calculate Net Income For Tax Purposes by applying the rules found in
Section 3 of the Income Tax Act [Figure 1-3, textbook page 24]:
o ITA 3(a) Sources Of Income
o ITA 3(b) Net Taxable Capital Gains
o ITA 3(c) Subdivision e Deductions
o ITA 3(d) Losses
• Describe loss carry overs:
o Allowable Capital Losses
o Other Types Of Losses (employment, business, and property)
7. Net Income to Taxable Income
• Explain how net income for tax purposes is converted to taxable income.
TRU Open Learning
Modules| best for 2026 exam prep
School of Business
and Economics
Modules
ACCT 3221
Income Taxation 1
The course materials in ACCT 3221 have been provided to you for your private study and educational use only. TRU
grants you a limited and revocable license to access and make personal use (including permission to print one
copy) of Modules. These materials may not be further distributed.
,Table of Contents
Module 1: Introduction to Federal Taxation ............................................................. M1-1
Module 2: Procedures and Administration ............................................................... M2-1
Module 3: Income or Loss from an Office or Employment .................................... M3-1
Module 4: Capital Cost Allowances and Cumulative Eligible Capital .................... M4-1
Module 5: Income or Loss from a Business ............................................................... M5-1
Module 6: Property Income .......................................................................................... M6-1
Module 7: Capital Gains and Losses .......................................................................... M7-1
Module 8: Other Income and Deductions ................................................................. M8-1
Module 9: Taxable Income and Tax Payable for Individuals ................................ M9-1
,ACCT 3221: Income Taxation 1 M1-1
Module 1: Introduction to Federal Taxation
Overview
This module provides us with an overview of the Canadian tax system and with
reference material sources. It details who is liable for income tax and describes how
we calculate net and taxable income.
Resources
Byrd, C., & Chen, I. (2017). Chapter 1. Byrd and Chen’s Canadian tax principles volume I
(2016 – 2017 ed.). Toronto, ON: Pearson Canada Inc.
Byrd, C., & Chen, I. (2017). Byrd and Chen's Canadian tax principles study guide (2016 –
2017 ed.). Toronto, ON: Pearson Canada Inc.
Student Access Kit
Canada Revenue Agency. (2016). Learning about taxes [Online course]. Available at
http://www.cra-arc.gc.ca/tx/ndvdls/dctrs/lrn-tx/menu-eng.html
Canada Revenue Agency. (2016,October 07). Series: Newcomers to Canada and the
Canadian tax system, Segment 2: The Canadian tax system [Video file].
Available at http://www.cra-arc.gc.ca/vdgllry/ndvdls/srs-nwcmrs-eng.html
Learning Outcomes
After you have successfully completed the work in this module, you will be able to:
1. The Canadian Tax System
• List some of the different tax bases that can be used by the various levels of
government to assess taxes.
• List all of the types of entities that are subject to paying federal income taxes,
and know the requirement to register and to collect GST.
• Explain the relationship between the assessment of taxes at the federal and
provincial levels.
2. Tax Policy Concepts
• List some of the ways that taxation is used to achieve economic objectives.
• Describe the differences between progressive, regressive, and flat tax systems,
including some of the advantages and disadvantages of each system.
• Explain the nature of tax expenditures.
TRU Open Learning
, M1-2 Module 1: Introduction to Federal Taxation
• Evaluate issues in tax policy on the basis of the qualitative characteristics
(equity or fairness, neutrality, adequacy, etc.) of tax systems.
3. Income Tax Reference Materials
• Describe reference materials that are available on the electronic database,
which is on the Student Access Kit download.
• Describe reference material that is available on CRA’s website.
4. Liability for Income Tax
• Describe the charging provisions for residents [2(1) ITA] and non-residents
[2(3) ITA] of the Income Tax Act.
• Describe the taxation year of corporations [249(1)(a) ITA] and the taxation
year of individuals and trusts [249(1)(b) ITA].
5. Alternative Concepts of Income
• Describe, in general terms, the various views of income that are held by
economists, accountants, and tax authorities.
6. Net Income for Tax Purposes
• Describe the general structure (as specified in Division B) of the Income Tax
Act.
• List the four types of income that are included as components of net income
for tax purposes.
• Calculate Net Income For Tax Purposes by applying the rules found in
Section 3 of the Income Tax Act [Figure 1-3, textbook page 24]:
o ITA 3(a) Sources Of Income
o ITA 3(b) Net Taxable Capital Gains
o ITA 3(c) Subdivision e Deductions
o ITA 3(d) Losses
• Describe loss carry overs:
o Allowable Capital Losses
o Other Types Of Losses (employment, business, and property)
7. Net Income to Taxable Income
• Explain how net income for tax purposes is converted to taxable income.
TRU Open Learning
