CONTENTS VOLUME II VOLUME I. Detailed contents of Volume I, Chapters1to10follows. The textbook is published in two Volumes:

Transcription

1 xvii CONTENTS The textbook is published in two Volumes: Volume I = Chapters 1 to 10 Volume II = Chapters 11 to 21 Chapter VOLUME I Chapter VOLUME II 1 Introduction To Federal Taxation In Canada 11 Taxable Income and Tax Payable For Individuals Revisited 2 Procedures and Administration 12 Taxable Income and Tax Payable For Corporations 3 Income Or Loss From An Office Or Employment 13 Taxation of Corporate Investment Income 4 Taxable Income and Tax Payable For Individuals 14 Other Issues In Corporate Taxation 5 Capital Cost Allowances And Cumulative Eligible Capital 15 Corporate Taxation and Management Decisions 6 Income Or Loss From A Business 16 Rollovers Under Section 85 7 Income From Property 8 Capital Gains And Capital Losses 9 Other Income, Other Deductions And Other Issues 17 Other Rollovers and Sale Of An Incorporated Business 18 Partnerships 19 Trusts And Estate Planning 10 Retirement Savings And Other Special Income Arrangements Detailed contents of Volume I, Chapters1to10follows. 20 International Issues In Taxation 21 GST/HST Glossary Located at the back of the print and online Study Guide.

2 xviii Table Of Contents (Volume 1) CHAPTER 1 Introduction To Federal Taxation In Canada The Canadian Tax System Alternative Tax Bases Taxable Entities In Canada Federal Taxation And The Provinces Tax Policy Concepts Taxation And Economic Policy Taxation And Income Levels Tax Incidence Tax Expenditures Qualitative Characteristics Of Tax Systems... 9 Income Tax Reference Materials Introduction The Income Tax Act Other Income Tax Legislation Other Sources Of Income Tax Information.. 16 Liability For Income Tax Charging Provision For Canadian Residents.. 18 Charging Provision For Non-Residents Alternative Concepts Of Income The Economist s View The Accountant s View The Income Tax Act View Net Income For Tax Purposes Structure Components Combining The Components - ITA Section Loss Carry Overs Net Income For Tax Purposes - Example Net Income To Taxable Income Principles Of Tax Planning Introduction Tax Avoidance Or Reduction Tax Deferral Income Splitting Abbreviations To Be Used Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 2 Procedures And Administration Administration Of The Department Returns And Payments - Individuals Requirement To File - ITA Due Date For Individual Returns Withholdings For Income Tax - ITA Instalment Payments For Individuals - ITA Interest Penalties Due Date For Balance Owing - Living Individuals 46 Deceased Taxpayers - Due Dates And Returns. 47 Returns And Payments - Corporations Due Date For Corporate Returns - ITA Filing Alternatives For Corporations Instalment Payments For Corporations DueDateForBalanceOwing-Corporations. 50 Interest And Penalties For Corporations Returns And Payments - Trusts Income Tax Information Returns Books And Records Assessments And CRA My Account Service. 52 CRA Website - My Account Service Notice Of Assessment Notice Of Reassessment Refunds Adjustments To Income Tax Returns Disputes And Appeals Representation By Others Informal Request For Adjustments Notice Of Objection Tax Court Of Canada Federal Court And Supreme Court Of Canada. 57 Tax Evasion, Avoidance And Planning Collection And Enforcement Taxpayer Relief Provisions (Fairness Package) 61 Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems

3 Table Of Contents (Volume 1) xix CHAPTER 3 Income Or Loss From An Office Or Employment Employment Income Defined Cash Basis And The Use Of Bonus Arrangements 70 Net Concept Employee Versus Self-Employed Employee Perspective Employer Perspective Making The Distinction Inclusions - Salaries And Wages Inclusions - Fringe Benefits Amounts To Be Included In Income - ITA 6(1). 76 CRA Administrative Practice On Fringe Benefits (IT-470R) Tax Planning Considerations Inclusions - GST/HST On Taxable Benefits. 82 Inclusions - Board And Lodging Inclusions - Automobile Benefits Employees And Automobiles Taxable Benefits - Standby Charge Operating Cost Benefit Summary Of Automobile Benefit Calculations. 88 Payments By Employee For Automobile Use.. 88 Example - Employer Owned Automobile Example - Employer Leased Vehicle Employer Provided Cars And Tax Planning.. 91 Inclusions - Allowances Allowance Vs. Reimbursement General Rules Taxable Vs. Non-Taxable Allowances Reasonable Allowances For Motor Vehicles.. 93 Employer s Perspective Of Allowances Employee s Perspective Of Allowances Inclusions - Employee Insurance Benefits.. 95 Life Insurance Disability Insurance (a.k.a. Group Sickness Or Accident Insurance Plan) Health Care Insurance Loans To Employees General Rules Home Relocation Loans Tax Planning For Interest Free Loans (continued) CHAPTER 3, continued Inclusions - Stock Option Benefits The Economics Of Stock Option Arrangements 101 Overview Of The Tax Rules CCPCs Vs. Public Companies Rules For Public Companies Rules For CCPCs Other Inclusions Payments By Employer To Employee Forgiveness Of Employee Loans Housing Loss Reimbursement Discounts On Employer s Merchandise Club Dues And Recreational Facilities Specific Deductions Salesperson s Expenses Under ITA 8(1)(f) Travel Expenses And Motor Vehicle Costs The Salesperson's Dilemma Automobile And Aircraft Expenses Work Space In Home Costs For Employees. 112 Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 4 Taxable Income And Tax Payable For Individuals Note On Changes For Taxable Income Of Individuals Available Deductions Ordering Of Deductions Deductions For Payments - ITA 110(1)(f) Home Relocation Loan - ITA 110(1)(j) Northern Residents Deductions - ITA Calculation Of Tax Payable Federal Tax Payable Before Credits Provincial Tax Payable Before Credits Types Of Income Taxes On Income Not Earned In A Province. 134 Calculating Tax Credits Provincial Amounts (continued)

4 xx Table Of Contents (Volume 1) CHAPTER 4, continued Personal Tax Credits - ITA 118(1) Family Caregiver Amount (FCA) Individuals With A Spouse Or Common-Law Partner - ITA 118(1)(a) Individuals Supporting A Wholly Dependent Person - ITA 118(1)(b). 137 Family Caregiver Amount For Child Single Persons (Basic Personal Tax Credit) Caregiver Tax Credit - ITA 118(1)(c.1) Infirm Dependant Over 17 Tax Credit Other Tax Credits For Individuals Age Tax Credit - ITA 118(2) Pension Income Tax Credit - ITA 118(3) Canada Employment Tax Credit - ITA 118(10) 144 Adoption Expenses Tax Credit - ITA Public Transit Passes Tax Credit - ITA Children s Arts Tax Credit - ITA Home Accessibility Tax Credit - ITA First Time Home Buyer s Tax Credit Volunteer Firefighters And Volunteer Search And Rescue Workers Tax Credits Charitable Donations Tax Credit - ITA Medical Expense Tax Credit - ITA Disability Tax Credit - ITA Education Related Tax Credits EI And CPP Tax Credits - ITA Overpayment Of EI And CPP Contributions. 162 Transfers To Spouse Or Common-Law Partner 162 Political Contributions Tax Credits - ITA 127(3) 163 Labour Sponsored Venture Capital Credit Refundable Credits GST/HST Credit - ITA Refundable Medical Expense Supplement Working Income Tax Benefit - ITA Refundable Children's Fitness Credit Refundable Teacher And Early Childhood Educator School Supply Tax Credit Social Benefits Repayment (OAS And EI) Comprehensive Example Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems Tax Software Assignment Problems CHAPTER 5 Capital Cost Allowances And Cumulative Eligible Capital Capital Cost Allowance System Additions To Capital Cost Determination Of Amounts Available For Use Rules Segregation Into Classes Capital Cost Allowances Rates For Commonly Used CCA Classes Half-Year Rules (a.k.a. First Year Rules) Short Fiscal Periods Tax Planning Considerations Dispositions Of Depreciable Assets Capital Gains Recapture Of Capital Cost Allowance Terminal Losses Summary Of Tax Consequences CCA Schedule CCA Determination - Special Situations Separate Class Election Cumulative Eligible Capital (CEC) Eligible Capital Expenditures Defined Additions, Amortization, And Dispositions The Future Of Cumulative Eligible Capital (2016 Budget) Key Terms Used In This Chapter References Appendix - CCA Rates For Selected Assets. 220 Problems For Self Study (Online) Assignment Problems CHAPTER 6 Income Or Loss From A Business Overview Business Income Vs. Property Income Tax Consequences Of Classification Business Income Defined Property Income Defined (continued)

5 Table Of Contents (Volume 1) xxi CHAPTER 6, continued Business Income Vs. Capital Gains Tax Consequences Of Classification Capital Gains Defined Criteria For Identifying Capital Gains Business Income And GAAP Business Income - Inclusions (Revenues). 238 Amounts Received And Receivable Reserves Limitations On Deductions From Business And Property Income General Approach - Restrictions Specific Limiting Items Under ITA Foreign Media Advertising - ITA 19 And Limitations On Deductions From Business, Property, And Employment Income Reasonableness Meals And Entertainment Luxury Automobile Costs Automobiles Owned By The Taxpayer Automobile Leasing Costs - ITA Leasing Property Illegal Payments, Fines And Penalties - ITA 67.5 And Business Income - Specific Deductions Inventory Valuation (Cost Of Sales) Other Deductions Reconciliation Schedule Business Income - Example Taxation Year General Rules Unincorporated Businesses - Non-Calendar Fiscal Year 262 Special Business Income Situations Income For Farmers Professional Income (Billed Basis) Sale Of A Business Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 7 Income From Property Property Income: General Concept Interest As A Deduction IT Folio S3-F6-C1 "Interest Deductibility" What Is Interest? Direct Or Indirect Use Discount And Premium On Issued Debt Interest Income Corporations And Partnerships - Accrual Individuals - Modified Accrual Method Discount And Premium On Debt Holdings Accrued Interest At Transfer Payments Based On Production Or Use (Royalties) Rental Income Capital Cost Allowances Rental Income Example Cash Dividends From Taxable Canadian Corporations The Concept Of Integration Implementing Integration Gross Up And Tax Credit Procedures - Eligible Dividends Non-Eligible Dividends Comparison Of Investment Returns Income Trusts How Do Trusts Work? Investments In Publicly Traded Trusts Taxation Of Income Trusts Mutual Funds Distributions Adjusted Cost Base Capital And Stock Dividends Foreign Source Income Foreign Non-Business (Property) Income Foreign Business Income Shareholder Benefits Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems

6 xxii Table Of Contents (Volume 1) CHAPTER 8 Capital Gains And Capital Losses Economic Background General Rules Capital Gains Defined Dispositions Proceeds Of Disposition Adjusted Cost Base Calculating The Capital Gain Or Loss Detailed Application Of The Rules Identical Properties Partial Dispositions Warranties On Capital Assets Capital Gains Reserves Bad Debts On Sales Of Capital Property Special Rule For Sales Of Real Property Provisions For Special Assets Principal Residence Personal Use Property Listed Personal Property Gains And Losses On Foreign Currency Options Deemed Dispositions - Change In Use Example - Change In Use Special Rules For Principal Residences Special Rules For Automobiles Deemed Dispositions - Departures From Canada Small Business Investments - Deferral Provisions Replacement Property - Deferral Provisions 358 The Problem Voluntary And Involuntary Dispositions Timing Considerations Application Of ITA 44(1) To Capital Gains Application Of ITA 13(4) To Recapture Of CCA 360 Combined Application Of ITA 13(4) And 44(1) 361 Capital Gains And Tax Planning Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems CHAPTER 9 Other Income, Other Deductions, And Other Issues Introduction Other Income - Subdivision d Inclusions Pension Benefits - ITA 56(1)(a)(i) Retiring Allowances - ITA 56(1)(a)(ii) Death Benefits - ITA 56(1)(a)(iii) Income Inclusions From Deferred Income Plans 384 Scholarships And Prizes - ITA 56(1)(n) Research Grants - ITA 56(1)(o) Social Assistance And Workers Compensation 384 Universal Child Care Benefit (UCCB) Other Deductions - Subdivision e CPP Contributions On Self-Employed Earnings 385 Moving Expenses - ITA Child Care Expenses - ITA Disability Supports Deduction - ITA Related Inclusions And Deductions Employment Insurance Benefits Pension Income Splitting Spousal And Child Support Annuity Payments Received Registered Savings Plans Tax Free Savings Accounts (TFSAs) Registered Education Savings Plans (RESPs) Registered Disability Savings Plans (RDSPs) Non-Arm s Length Transfers Of Property. 408 Inadequate Considerations - ITA Inter Vivos Transfers To A Spouse Non-Arm s Length Transfers Of Depreciable Assets - ITA 13(7)(e) InterVivosTransferOfFarmOrFishing Property To A Child Death Of A Taxpayer Income Attribution Basic Rules - ITA 74.1(1) And (2) Avoiding Income Attribution Anti-Avoidance Provisions Tax Planning And Income Attribution Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems

7 Table Of Contents (Volume 1) xxiii CHAPTER 10 Retirement Savings And Other Special Income Arrangements Planning For Retirement Tax Deferred Savings Defined Benefit Vs. Money Purchase Plans Registered Retirement Savings Plans (RRSPs) RRSP Deduction Limit Examples Of RRSP Deduction Calculations Undeducted RRSP Contributions RRSP And RRIF Administration Fees RRSP Withdrawals And Voluntary Conversions 456 Involuntary Termination Due To Age Limitation 457 Spousal RRSP Home Buyers Plan (HBP) Lifelong Learning Plan (LLP) Departure From Canada Death Of The RRSP Registrant Registered Pension Plans (RPPs) Establishing An RPP Employer Contributions To The RPP Employee Contributions To The RPP Options At Retirement Phased Retirement Inadequate Retirement Savings Registered Retirement Income Funds (RRIFs) RRIF Withdrawals Death Of The RRIF Registrant Evaluation Of RRIFs Deferred Profit Sharing Plans Profit Sharing Plans Transfers Between Plans Retiring Allowances Retirement Compensation Arrangements. 474 Salary Deferral Arrangements Individual Pension Plans (IPPs) Key Terms Used In This Chapter References Problems For Self Study (Online) Assignment Problems STUDY GUIDE Your two volume textbook is accompanied by a separate Study Guide available in print and online. The chapters of this Study Guide correspond to the chapters of Byrd & Chen's Canadian Tax Principles. Each of these Study Guide chapters contains the following: Detailed guidance on how to work through the text and problems in the chapter. Detailed solutions to the Exercises in the textbook and online Self Study Problems for the chapter. A list of learning objectives for the material in the chapter. In addition, the Study Guide contains: Two sample personal tax returns and two Self Study Tax Software Problems in Chapters 4 and 11. A sample corporate tax return in Chapter 13. An extensive Glossary.

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