Module 1: The Foundations of Tax and the Course Framework (2 hours)

This module serves as the foundational overview of the entire course. While we will examine each topic in detail later, the purpose of this session is to give you the big-picture understanding of how the owner-managed tax system works and why we do certain things in tax, without going into technical specifics. We will briefly explore who pays tax in Canada and how the system is structured, how businesses are organized and corporations are created, how income flows between corporations and shareholders, the concept of integration, and the choice between debt and equity funding. We will also introduce who can receive dividends versus employment income, why attribution and other anti-avoidance rules exist, why cash flow management is critical for owner-managers, and how both direct and indirect tax obligations influence business decisions.

Module 1A: Working Through a Bookkeeping Activity (2.5 hours)
Format: Recorded Session

In this module, participants will learn the fundamentals of bookkeeping, starting with Excel-based bookkeeping using bank statements. The session will then introduce how to enhance efficiency by leveraging cloud-based accounting software such as QBO and Xero.

Practice Case: Completing a Bookkeeping Activity

Module 1B: GST/HST for Owner-Managed Businesses (2.5 hours)
Format: Recorded Session

• Registration Requirements for GST/HST
• Interprovincial Sales of Goods and Services
• Input Tax Credits 
• Imports and Exports (Place of Supply Rules)
• Simplified and Quick vs. Detailed Method
• Administration of GST/HST
• Special Elections in ETA

Practice Case: Completing HST Return

Module 1C: Compilation Engagements (Formerly: Notice to Reader (NTR) Essentials) (2.5 hours)
Format: Recorded Session

This module provides a structured approach to compilation engagements, covering CSRS 4200 standards, engagement acceptance, and key procedures.

• 1C.1 Understanding Compilation Engagements
  • Fundamentals, Basis of Accounting, and CSRS 4200 Overview.
     
• 1C.2 Engagement Acceptance & Planning
  • Criteria and Procedures for Engagement Acceptance, When to Withdraw from an Engagement.
  • Key Steps for Effective Planning.
     
• 1C.3 Completing the Engagement
  • Preparing Financial Statements (Balance Sheet & Income Statement).
  • Essential Templates and Supporting Documentation.

Practice Case: Walkthrough of a real compilation engagement file demonstrating the documentation required to meet the requirements of CSRS 4200.

Module 2: Owner-Manager Compensation Planning & Preparation of T-Slips (4 hours)

This module provides a detailed, step-by-step understanding of compensation planning for owner-managers, focusing on dividends, capital distributions, employment income, and tax implications. Participants will explore practical strategies, tax efficiencies, and compliance considerations to optimize compensation structures.

• 2.1 Overview of Dividend vs. Salary with Practical Templates
   
• 2.2 Payout of Eligible vs. Non-Eligible Dividends
  • Dividends and different classes of shares.
  • General Rate Income Pool (GRIP) & Lower Rate Income Pool (LRIP).
  • Part III.1 tax on excessive eligible dividend designations and strategies to avoid penalties.
     
• 2.3 Computation of Employment Income
  • Taxable benefits including Standby charge and operating cost benefits.
  • Non-taxable benefits under the Income Tax Act.
  • Non-taxable benefits under the CRA administrative policies.
     
• 2.4 Computation of Withholding Tax
  • Rules for calculating CPP, EI, and income tax on employment income.
  • Remittance deadlines and procedures for submitting CPP, EI, and income tax.
     
• 2.5 Compensation Planning and Income Splitting
   
• Practice Case: Preparation of T4 & T5 Slips
  • Preparation of T4 and T5 slips 
  • Illustration using CCH iFirm (concepts applicable to any software).

Module 3A: Comprehensive Analysis of Corporate Income Tax – Part 1 (4.5 hours)
Format: Recorded Session

• Module 1: Taxation System in Canada
   
• Module 2: Acronyms and terms in Canadian tax
   
• Module 3: Corporate Income Tax Foundations (Understanding Tax Deferral and Tax Savings Through Income Smoothing)
   
• Module 4: Corporate Residency Determination (Why It Matters and the Role of Income Tax Treaties)
   
• Module 5: Types of Corporations (In-depth discussion of CCPC determination and Loss of a CCPC Status)
   
• Module 6: Corporate Tax Rates (Taxation of CCPCs and Non-CCPCs, Including ABI, SBD, AII, and Related Rules)
   
• Module 7: Specified Investment Business
   
• Module 8: Personal Services Business
   
• Module 9: Common Adjustments to Compute Net Income for Tax Purposes – Corporate Tax Schedules 1, 2, 4, 6, 8, 13, 15, etc.
   
• Module 10: Capital Gains and Losses (Taxation Fundamentals and the Capital Gains Reserve, Including How ACB and Proceeds of Disposition Differ from Financial Accounting and How They Are Computed for Tax)
   
• Module 11: Detailed Discussion of capital cost allowance (CCA) rules
   
• Module 12: Multi Jurisdiction Issues – Schedule 5 (Provincial Right to Tax a Corporation)

Module 3B: Comprehensive Analysis of Corporate Income Tax – Part 2 (4 hours)
Format: Recorded Session

• 3B.1 Dividends Received and Paid – Schedule 3
  • Taxable vs. Non-Taxable Dividends Received by the Corporation.
  • Part IV Tax Calculations (Including an In-Depth Discussion of the Definition of Connected Corporations).
  • Treatment of Foreign Dividends (High-Level Discussion on Exempt Surplus and Other Pool Balances).
     
• 3B.2 Dividend Refund
  • Detailed discussion of ERDTOH and NERDTOH computations.
  • Practice a small case study to illustrate how the calculations work.
     
• 3B.3 Other Dividend Related Matters 
  • In-depth CDA computational activity where participants will learn how to practically track and compute the CDA over multiple years.
  • Discussion of foreign dividends and surplus pool balances.
     
• 3B.4 Shareholder’s Equity – Schedule 50
  • Capitalization of corporation via Debt vs. shares - Pros and Cons.
  • Paid-up Capital vs. ACB of the shares.
     
• 3B.5 Corporate Relationships and Their Impact on Tax Compliance and Planning – Schedules 9, 23, 28
   
• 3B.6 Shareholder Transactions – Schedule 11

Module 4: Completion of Canadian Corporate and Individual Income Tax (4 hours) 

This module will be divided into two parts:

Part 1: we will be working on our case study and apply our knowledge from Modules 3A, and 3B complete the corporate income tax return.

• Illustration using CCH iFirm (concepts applicable to any tax software).

Part 2: We will continue working on our case study and complete Canadian individual income tax return.

• Illustration using CCH iFirm (concepts applicable to any tax software).

Module 5A: Introduction to Tax Planning for Owner-Managers Part 1 (3.5 hours)

• 5A.1 Investments Through Corporate Dollars
  • Investing in Canadian and US Real-Estate.
  • Life insurance as a corporate investment.
  • Taxation of life insurance policies.
  • Transfer of life insurance policies involving corporations and individuals; Tax-free rollovers.
  • Issues with life insurance set-ups (valuations, corporate attributions, lifetime capital gains exemption).
     
• 5A.2 Understanding Tax Effective Structures
  • Pros and Cons of having Holding Corporations in the structure including the discussion on section 55 for the intercorporate dividends.
  • Pros and Cons of having Family Trusts including an overview of an Estate Freeze.
  • Use of Partnerships in different investment scenarios.
     
• 5A.3 Other Investment Issues
  • In-depth discussion regarding principal residence exemption including elections 45(2), 45(3).
  • Deemed Dividends and their classifications.
  • Investment in tax deferral plans.
  • Replacement property rules.

Module 5B: Introduction to Tax Planning for Owner-Managers Part 2 (3.5 hours)

• 5B.1 Understanding Commonly Used Re-Organization Provisions of the Income Tax Act
  • 51, 85, 85.1, 86, 87, 88.
     
• 5B.2 Overview of Section 85(1)
  • Practical Case Study: Incorporating a Sole Proprietorship/partnership.
  • Journal entries for recording transactions in the books of sole proprietors and corporations.
     
• 5B.2 Administrative Matters in Tax Practice
  • Personal services business (PSB) rules.
  • CRA Notices, Audits, and Objections.
  • Penalty Forms to Watch Out For.
  • Voluntary Disclosures.

Module 5C: Introduction to Tax Planning for Owner-Managers Part 3 (4 hours)
Format: Recorded Session

• 5C.1 New General Anti-Avoidance Rules
   
• 5C.2 New Mandatory Disclosure Rules
   
• 5C.3 Death of a Taxpayer and Post-Mortem Planning:
  • Understanding deemed disposition upon death.
  • Addressing double taxation and strategies like the 164(6) loss-carry back plans.
  • Exploring post-mortem pipeline plans.
  • Implementing the CDA 50% solution to mitigate tax implications.
  • Planning for surviving spouses.
  • Using life insurance as a post-mortem tool Using Corporate Dollars to Fund Life Insurance.

Module 6A: Taxation of Trusts (5.5 hours)

This module provides a comprehensive overview of Canadian trust reporting with practical case studies and software applications. Participants will learn the key trust concepts that experienced owner-managed tax professionals need to understand. The course covers essential topics including graduated rate estates, the 21-year deemed disposition rule, attribution rules, and new trust reporting requirements, along with the core compliance and taxation principles.

Module 6B: Taxation of Partnerships (5.5 hours)

This module provides an in-depth exploration of partnership taxation in Canada, starting with the fundamentals of how partnerships are structured and how to prepare and file a partnership return. Participants will learn how income is computed and allocated among partners, how partners’ adjusted cost base and at-risk amounts are determined, and how common partnership transactions are reported. The course then moves into more advanced topics, including partnership rollovers, adding or retiring partners, dissolving partnerships, and using partnerships in complex tax planning and reorganizations. Through practical examples and case studies, participants will develop a strong understanding of both the compliance requirements and the strategic uses of partnerships in sophisticated tax planning.

Office Hours (2 hours)

During this session, participants will have the opportunity to ask and discuss any final questions before the certification program concludes. This open forum allows participants to clarify concepts, revisit complex topics covered throughout the course, and ensure they are fully prepared as they wrap up the certification.