BUSINESS 466, TAXATION II

Winter 2022

Instructor: Farrar, J.
Email Address: [email protected]

Office: LH2021
Office Hours: Thursday 10:00 – noon (Zoom only; see link in MyLS and p. 3)

Objectives:
This course is an extension of BU357 (application of the Canadian Income Tax Act to the
taxation of individuals and corporations) with an introduction to tax planning for
individuals and corporations.

Prerequisites: BU357

Required Text:
Canadian Income Tax Act with Regulations, CCH Canadian Limited, Toronto, Ontario.

Introduction to Federal Income Taxation in Canada, 42nd Edition, 2021-2022, Beam,

Laiken, Barnett et al., CCH Canadian Limited, Toronto, Ontario.
(and accompanying study guide)

Classes – Mode of Delivery

This course will be delivered using synchronous classes delivered live through the
zoom video conferencing platform during the scheduled timeslot for the first four
weeks of the course. Thereafter, lectures will be held in-person on campus.

* The course schedule, evaluation scheme, methodology, assessments, lab and tutorial attendance,
testing and final exam policies have been planned based on current public health
guidelines. Should these guidelines change, any adjustments will be communicated to students.

You will find the zoom classes scheduled in MyLS and you may access them through
the MyLS page for this course.

The Winter Term begins on Jan 4th and classes conclude on April 4th. The Final
Examination period runs from April 7th to 25th.
Zoom Instructions
Synchronous classes will be taught virtually in the scheduled time slot (EST) using the
Zoom platform. Space is limited so students must only attend the class they are enrolled
in and access will be controlled using the course MyLS site, registration and passwords.
Scheduled classes will display as meetings on the course MyLS site. You can click on the
Zoom meetings tab, then on the link to the appropriate meeting.
NOTE: before you can join your class meetings you must FIRST activate your Laurier
Zoom account. To do this, go to https://zoom.wlu.ca and click on 'Sign In' then use
your Laurier username and password to login. This will activate your account.
Here is a helpful link: https://students.wlu.ca/services-and-spaces/tech-
services/assets/resources/getting-started-with-zoom.html

You must access your Zoom class through MyLS unless you are otherwise directed by
your instructor. In such cases the instructor will send the link and the MANDATORY
password.

You need a reliable internet connection and a microphone, speaker and camera on your
laptop, desktop or phone in order to participate in the class. Dialing into the class is
available but may trigger long distance charges.

Privacy Warnings and Recordings

Zoom classes will be recorded so that they may be viewed again by clicking Cloud
Recording. The red button on the screen is notice to you that the class is being recorded.
Students, instructors, IA’s and program administrators may view the recordings for
teaching, grading, misconduct investigations and other administrative and academic
purposes. The red light in “Record” on the Zoom toolbar is notice to you that the class is
being recorded. You are not authorized to make a copy of the recorded class; it is
provided for viewing purposes of students enrolled in the class and further distribution
of sharing is strictly prohibited. Recordings of classes will be deleted one week after the
relevant class.

The recordings may capture your name, image or voice through the video and audio
recordings. By attending in these live classes, you are consenting to the collection of this
information for the purposes of administering the class and associated course work. If
you are concerned about the use or collection of your name and other personal
information in the class, please contact the course instructor to identify possible
alternatives. To learn more about how your personal information is collected, used and
disclosed by the University, please see Laurier’s Notice of Collection, Use and
Disclosure of Personal Information. Policy 9.3: Classroom Use of Electronic Devices.

Intellectual Property

The educational materials developed for this course, including, but not limited to,
lecture notes and slides, handout materials, examinations and assignments, and any
materials posted to MyLearningSpace, are the intellectual property of the course
instructor. These materials have been developed for student use only and they are not
intended for wider dissemination and/or communication outside of a given course.
Posting or providing unauthorized audio, video, or textual material of lecture content to
third-party websites violates an instructor’s intellectual property rights, and the
Canadian Copyright Act. Recording lectures in any way is prohibited in this course
unless specific permission has been granted by the instructor. Failure to follow these
instructions may be in contravention of the university’s Student Non-Academic Code of
Conduct and/or Code of Academic Conduct and will result in appropriate penalties.
Participation in this course constitutes an agreement by all parties to abide by the
relevant University Policies, and to respect the intellectual property of others during
and after their association with Wilfrid Laurier University.

Office Hours (group office hours)

The Instructor will be available to students with questions every Thursday between
10:00 and noon EST using the following Zoom link: https://wilfrid-laurier.zoom.us/j/95434651367

These sessions will be open to all students in a group format and you may benefit from
hearing the questions of others. Content is student driven and the instructor will
respond to specific questions posted by students in the class. The instructor will not be
re-teaching missed lectures during office hours. Students who have missed classes
should review recordings and transcripts of the subject class as discussed above.

If you require a private discussion, arrangements should be made with the instructor in
advance of scheduled office hours.

Intellectual Property
The educational materials developed and produced for this course, including, but not
limited to, lecture notes and slides, videos and recordings, handout materials,
examinations and assignments, and any materials posted to MyLearningSpace, are the
intellectual property of the course instructor. These materials have been developed for
temporary student use only and they are not intended for wider dissemination and/or
communication outside of a given course. Posting or providing unauthorized audio,
video, or textual material of lecture content to third-party websites violates an instructor’s
intellectual property rights, and the Canadian Copyright Act. Recording lectures in any
way is prohibited in this course unless specific permission has been granted by the
instructor. Failure to follow these instructions may be in contravention of the university’s
Student Non-Academic Code of Conduct and/or Code of Academic Conduct and will
result in appropriate penalties. Participation in this course constitutes an agreement by
all parties to abide by the relevant University Policies, and to respect the intellectual
property of others during and after their association with Wilfrid Laurier University.
Missed Term Work
If a student misses the midterm examination because of illness, or for some other
unexpected major life event, such as a death or a serious illness in their immediate family,
the student must complete both of the following steps:
1. Give immediate email notice of student illness or unexpected major life event to
the instructor prior to the scheduled midterm examination start time. (An Email
to [email protected] will suffice).

2. Within 48 hours of the start time of the midterm, complete the self declaration
form found here. https://web.wlu.ca/illness/

Provided the student fulfills both steps 1 and 2 with sufficient detail to confirm the
existence of illness or unexpected major life event and no other contradictory information
becomes known to the instructor, then the weight of the midterm will be transferred to a
2.5 hour cumulative final exam to be written in the final examination period at the end of
the term. In all other cases, the student will receive zero on the midterm examination.

It is academic misconduct to submit a false self-declaration form. If other contradictory

information becomes known to the instructor, the student may be asked for further
evidence to corroborate the existence of the illness or unexpected major life event.

Under no circumstances should students assume that special alternate assignments or

deferred midterm examinations will be set by the instructor. Vacations are NOT
considered a sufficient excuse for missing an examination.

Missed Final Examinations are not covered by this process. Requests for a deferred final
examination must be made by filing a petition using the process and form described here:
https://students.wlu.ca/academics/exams/deferred-exams.html
https://students.wlu.ca/academics/exams/assets/documents/lazaridis-petition-
form.pdf
All deadlines, due dates, examination times and class times are set in Eastern Standard
Time (EST). If you are in another time zone you are responsible for making the conversion
from EST.

Religious Observances
Due dates and timeslot change requests for mid-terms, tests, labs or course work arising
from conflicts with Religious Observance are managed by the course instructor. Alert the
instructor within two weeks of the start of term of any scheduling conflicts by submitting
the Student Request for Accommodation for Religious Observances form located here:
https://idp.wlu.ca/idp/profile/SAML2/Redirect/SSO?execution=e1s2
ALC
NOTE: Students with disabilities or special needs are advised to contact Laurier’s
Accessible Learning Centre for information regarding its services and resources. Students
are encouraged to review the University Undergraduate Calendar for information
regarding all services available on campus. If you are unsure what resources are
appropriate for you or require any assistance with any type of academic issues, contact
the Central Academic Advising Office at http://www.wlu.ca/academicadvising.

If you are registered with the accessible learning centre to receive additional time for
online assessments like quizzes, midterms or final exams, you can check that your time
has been adjusted by following these steps:
• In your course in MyLS, navigate to the ‘Quizzes’ tool
• Click on the upcoming online assessment
• On this page, check the ‘Time Allowed’. This should reflect the total time
allowed for this assessment plus your additional time.

Please note that times accommodation will be updated through out the term and will
not always be in place for assessments happening later. If the time noted is incorrect
less than 48 hours before your upcoming assessment, please contact [email protected] for
assistance.

International Students Living in Different Time Zones

Instructors will make arrangements for students in different time zones so that they may
access course content and examinations. Instructors will choose the manner in which
access will be provided to students unable to attend synchronous remote timeslots with
alternate instruments of learning; alternatives will meet the fundamental principle of
equivalence in providing students with the opportunity to achieve learning objectives.
Students should not assume that recordings will be available or that alternatives will the
delivered in the same fashion as content of the timeslot.

Students who need a time zone adjustment to classes or examinations should identify
themselves to the instructor during the first week of Fall Term. Temporary changes of
time zone will not be accommodated.

Students with disabilities or special needs are advised to contact Laurier’s Accessible Learning
Office for information regarding its services and resources. Students are encouraged to review the
Calendar for information regarding all services available on campus.

Expectations:

1) Students are responsible for reading the assigned lecture notes posted on MyLS
and for completing the assigned problems as per the course outline.
2) It is necessary for students to bring their study guide to every class. It is
recommended that students bring their Income Tax Act to every class.

3) Students may attempt additional questions, multiple choice questions, and

exercises on their own to obtain a better understanding of the course material.
(Solutions are provided in the accompanying study guide.) Numerous
demonstration problems and solutions are provided within the chapters of the
text. The best way to learn tax is to apply it, by completing questions.

4) Students should be aware that the instructor’s solutions to chapter

ASSIGNMENT PROBLEMS are only made available by attending lectures.
Under copyright law and agreement with the publisher, the publisher’s solutions
to these problems are provided for instructor reference only and will not be made
available publicly in any format.

Grade Determination: Quizzes (3 quizzes @ 6.67% ea.) 20 %

Midterm Examination 35%
Final Examination 45%
100%
Material tested on examinations
The examinations will be based on all course material covered during lectures and
contained in the course notes covered up to the exam time, unless specifically stated
otherwise.

The midterm exam will be held on Saturday, February 12 from 8:00 pm to 10:00 pm
EST. The final exam is 2.5 hours in length and will be scheduled by the Registrar’s Office.
The date and time of the final exam will be made available on the WLU website
approximately mid-way through the semester.

Students may not use calculators during examinations as the online exams will be written
on Excel. Any legislation from the Income Tax Act that is required for an examination
will be provided as part of the examination – an Income Tax Act is not required for an
examination.

Deferred examinations:
Students are expected to make themselves available for the midterm and final exam as
scheduled. Absence from the mid-term exam will result in a zero grade unless the
instructor is notified immediately by email, and documented evidence of illness (or
family emergency) on the date of the exam is presented to the instructor in writing, at
the student's first opportunity. If such evidence is provided on a timely basis, the weight
of the midterm will be added to the weighting of the final exam. (In such case, students
may be required to write a different, comprehensive final exam.) There will be NO
DEFERRED MIDTERMS. All students who continue in the course beyond the first
lecture agree to accept this policy.

All applications for a deferred final examination must be directed to Ms. Eileen
Morouney in the undergrad office. ([email protected])

Academic Misconduct:
According to the university calendar, acts of misconduct include, but are not limited to
the following: plagiarism, cheating, submitting the same piece of work for more than one
course without the permission of the instructors involved in each course, impersonating
another student, buying or otherwise obtaining term papers or assignments written by
someone else and submitting them as your own, falsifying academic records or
supporting documents.
BU466 CLASS SCHEDULE – WINTER 2022

Week Topic Assignment Problems for Class (in addition Quiz

to problems in the course notes)
1 (Jan 4) Chapter 19: Death of a taxpayer Ch 19: Problem 10
Ch 14: Rights and Obligations under Ch 14: Problems 1, 2, 5 & 8
the Income Tax Act
Ch 2: Corp liability for tax Ch 2: Problem 5

2 (Jan 11) Chapter 11: Computation of Taxable Ch 11: Problems 1, 6

Income & Taxes Payable for
Corporations
3 (Jan 18) Acquisition of Control Ch 15: Problem 6 Quiz 1 (week 1
material except
death of a
taxpayer)
4 (Jan 25) Chapter 12: Integration of Business & Ch 12: Problem 15
Investment Income of CCPCs
5 (Feb 1) Chapter 12 – association rules (and Ch 12: Problem 10
related, connected, & affiliated
taxpayers)
6 (Feb 8) Chapter 13: Planning the Use of a Ch 13: Problem 1
Corporation and Shareholder-Manager
Remuneration
Midterm: Sat Feb 12th, 8:00 pm – 10:00 pm (weeks 1 through 5 material)
7 (Feb 15) QSBC shares Ch 15:1 & 2 (40th edition: Ch 13: 2 & 3; Exer. 9)

8 (Mar 1) Corporate attribution Ch 15: Problem 4

Shareholder loans Ch 13: Problem 6
 Corporate Distributions Ch 16: Problems 2, 3, 4
9 (Mar 8) Sale of Assets vs Sale of Shares Ch 16: Problem 6 (40th edition: Ch 15: 6) Quiz 2 (Chapter 15
material)
10 (Mar 15) Income Deferral – Rollovers on Ch 17: Problems 1, 7 (40th ed. Ch 16: 1, 6)
Transfers to a Corporation Problems in course notes
11 (Mar 22) Rollovers cont’d Ch 17: Problem 8 (40th ed. Ch 16: 7)

12 (Mar 29) Income Deferral - Other Rollovers and I will provide the problem(s) Quiz 3 (rollovers)
Uses in Estate Planning

Note: Reading Week is Feb 21-25.