9.305 - Knowledge, revised 97.03.27

UNIVERSITY OF MANITOBA
9.305 - TAXATION ACCOUNTING

Generally I expect you to know only the rules that apply to 1997 transactions; that is, I will not expect you to know the details of rules that were effective in prior years or that were adopted to ease the transitions from rules effective in prior years. However I do expect you to know that such rules exist and what their general intent and effect is.

Examples are:

Sole proprietorship: assume a December 31 yearend is required.
Capital cost for passenger vehicle: you will be examined only on the after-1990 amount.
Cost of leased passenger vehicle: you will be examined only on the after-1990 amount. Also you will only be examined on a lease that was entered into in 1997 for a period not exceeding a year.
Provincial capital and payroll taxes: assume these are deductible in 1997.
Eligible capital property: you will be examined only on such property acquired or disposed after 1989.
Stock dividends: you should know that there was a period of time prior to 1990 when stock dividends of public corporations had zero value for tax purposes.

For the following topics, you are only responsible for knowing the general intent and effect of the provisions. Any reference to them in an exam will not require you to calculate a number (but the topic may appear and require calculations in some of the assigned problems):

Chapter 1:
Note on organization of GST legislation

Chapter 3:
Transport employees expenses
Receipts by part-time employees for traveling expenses
Salary deferral arrangements
Deductions for pre-1990 service while not a contributor
Deductions for pre-1990 service while a contributor

Chapter 4:
Sole proprietorship
Deemed interest on loans to non-resident person
Thin capitalization limitation
Ceasing to carry on business
Unregistered employee compensation plans
Scientific research and experimental development

Chapter 5:
CCA classes 3, 24, 27, 29, 34, 39, and special formula classes
Separate class rule for electronic office equipment
Lease-option arrangements
Leasing property (tax rules for the lessor)
Franchises and similar property
Exempt gains balance

Chapter 6:
Accrual rules for individuals
Prescribed debt obligations
Depreciation-based or similar tax shelters

Chapter 7:
Assets owned on December 31, 1971
Specific provisions for the taxation of capital gains, except the adjustments to the cost base in subsections 53(1)(b), (f), (h), (j), (n) and 53(2)(d), (k), (l)

Chapter 8:
Pre-1972 assets revisited
Foreign exchange gains and losses
Exempt gains balance
Warranties
Leaving and entering Canada
Revenue Canada policy change on substituted property

Chapter 10:
Capital gains deduction
Computation of tax for individuals

Chapter 11:
Tax on large corporations
Foreign tax deduction: assume that the deduction equals the amount of foreign taxes paid
Investment tax credit
Canadian film or video production tax credit

Chapter 12:
Elimination of small business deduction for large CCPCs
Corporate partnerships
Investment tax credit

Chapter 13:
Other (e.g., CPP and RRSP) considerations for salary vs. dividends
Other planning aspects of using corporations

9.305 HomePage

Accounting & Finance courses.

Department of Accounting & Finance HomePage.