Introduction & Course Administration
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Welcome - Introduction to the course - How it is laid out, prerequisites and content (7:02)
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Administration - Course notes, certificates and refund policy (6:23)
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Course Navigation & Questions - Policies on course questions and what I can and cannot answer (7:06)
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What this course does and does not cover and what you need to know (4:32)
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Evergreen approach to teaching this course and your corporate tax knowledge (2:34)
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Software used in this course and notes about using software (3:29)
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TAX SOFTWARE - PART 1 - Student Version of Profile - Download & Registration Instructions (4:41)
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TAX SOFTWARE - PART 2 - Important notes on the new 2020 registration process (7:48)
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Download Course Notes and PowerPoint Presentation - Download
Module 1 - Introduction To Corporate Tax & Practical Guidance
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The difference between corporate tax and personal tax study (7:17)
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Personal tax and corporate tax are intertwined for small business clients (3:35)
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Taking a holistic approach to your business and corporate clients (4:44)
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Corporate tax isn't just about the Income Tax Act (4:45)
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Building your knowledge base and keeping informed (7:07)
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Some of the best resources available to build your tax knowledge (7:24)
Module 2 - Basic Principles of Corporations and Income Tax
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Corporation as a separate legal entity for tax matters (6:10)
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Can the corporate veil be pierced? (6:44)
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What is a CCPC - Canadian Controlled Private corporation? (4:12)
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What is the Small Business Deduction and who can claim it? (4:48)
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Example of the Small Business Deduction rate and how it works on the T2 return (4:52)
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Active business income and investment income (6:54)
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The important concept of integration and avoiding double taxation (7:57)
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Example showing how you would work out integration numbers to match charts provided (8:21)
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The principal of a corporation as a tax deferral vehicle (4:30)
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A look at the flat corporate tax rate and special rates across Provinces (4:14)
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The types of corporations you will deal with in practice (3:54)
Module 3 - Active Business Income & the Small Business Deduction (SBD)
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The mechanics of the small business deduction and how it's calculated (3:34)
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Associated corporations and what it means for the SBD (6:40)
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What are the implications of associated corporations and the related planning? (4:54)
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Schedule 23 - The mechanics of reporting sharing among associated corporations (5:03)
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The capital gains exemption on the sale of QSBC (5:24)
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The basics of purifying a corporation to qualify as a QSBC (4:55)
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Purifying the corporation for the exemption and keeping it pure (4:47)
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Special rules for what are classified as a personal service business (5:39)
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Special rules and rates for specified investment businesses (6:40)
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Introducing a corporations LRIP balance and GRIP balance (4:10)
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Example of the mechanics on calculating and tracking the GRIP balance (5:13)
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The Manufacturing & Processing tax credit (M&P tax credit) (4:45)
Module 4 - Corporate Distributions & Compensating Shareholders
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The importance of corporate distributions and planning (7:13)
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Salaries and wages as shareholder compensation (4:47)
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The mechanics of paying shareholders salaries (5:52)
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Dividends as a method of compensation for corporate shareholders (5:52)
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The mechanics and logistics of paying a dividend (3:10)
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The difference between salaries and dividends from the accounting standpoint (5:23)
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Dividends to Canadian residents and non-residents shareholders (4:11)
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The concept of Paid Up Capital (PUC) and repaying to shareholders (5:11)
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Paying capital dividends and the CDA account (3:58)
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Eligibile and ineligible dividends - what it all means (4:33)
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Example of eligible vs. ineligible dividends and how it ties in to integration (5:43)
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Tax on Split Income - TOSI Rules - Pitfalls in using dividends as a tax planning tool (6:20)
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An overview of the TOSI exclusion and it's applications to small business owner-managed companies (7:39)
Module 5 - Shareholder Benefits, Taxation & Pitfalls
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The general framework and concepts for shareholder benefits (4:41)
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Were the benefits paid in owner's capacity as shareholder or employee? (5:55)
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Adequate and inadequate consideration (5:42)
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Shareholder loans - what they are and how they work (4:49)
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Shareholder loans in practice and what you can expect (7:21)
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The rules to avoid having to pay tax on the shareholder loan (5:07)
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The rules related to a series of loans and repayments (4:21)
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Sorting through the maze of rules for corporate & personal automobiles (3:48)
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The pitfalls of company owned vehicles and the tax (5:12)
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Using a personally owned automobile for business use (5:33)
Module 6 - Investment Income Earned in a Corporation
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Introduction to investment income and the approach used in this course (4:20)
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The general concept of taxing investment income vs business income (4:33)
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Some examples of income considered investment income (6:44)
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The complexity of taxing investment income and simplification (4:34)
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A look at the investment income rates in corporations (3:32)
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Example of interest income earned in a corporation and personal (3:23)
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Example of capital gains and losses in a corporation (2:06)
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Taxing dividend income in a corporation and the conceptual framework (6:32)
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The difference between connected corporations and portfolio dividends (7:03)
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The refundable tax accounts and the Refundable Dividend Tax On Hand (RDTOH) (3:48)
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The refundable tax numbers and how they are calculated and determined (6:55)
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Flowing through of investment income shown using tax software - $10,000 investment income example (4:20)
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Flowing through of dividend income shown using tax software - Example of $10,000 dividends & Part IV tax (3:19)
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Paying dividends to shareholders and the effect on corporate tax payable - Example (5:21)
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The new NERDTOH and ERDTOH pools and new planning complexities (4:55)
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Flow through example of $10,000 interest and dividends and the new ERDTOH & NERDTOH accounts (7:43)
Module 7 - The T2 Corporation Tax Return - Administration
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Getting the information from the client and entering the data (5:42)
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Filing T2 tax returns and the software options (6:31)
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How are Provincial corporate taxes filed? Are there separate returns? (4:53)
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North American Industry Classification System (NAICS) and its importance (4:28)
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Tax return filing deadlines for T2 corporate tax returns (3:40)
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Tax return balance due dates - Criteria for the extra month extension (2:48)
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Corporate tax instalments for T2 returns (4:38)
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Late filed T2 tax returns and the late filed returns (2:13)
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Form T183 for electronic filing of corporate tax returns and RC59 Authorization request (4:07)
Module 8 - The T2 Return and GIFI Forms - General Index of Financial Information (GIFI)
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Introduction to forms and schedules and introduction to the GIFI (2:44)
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The T2 form - Corporate Income Tax Return & General Information (8:00)
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Answering the questions on the T2 return for accurate preparation (4:37)
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How Federal taxes are calculated and the methodology (5:15)
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Combined Federal and Provincial tax rates and resources (1:39)
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An outline of the calculated amounts on the T2 (7:07)
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What is the General Index of Financial Information (GIFI) (3:39)
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Schedule 100 - The GIFI balance sheet (4:50)
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Schedule 125 - The GIFI income statement (2:35)
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Schedule 141 - GIFI Notes Checklist (6:39)
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Schedule 101 - The GIFI Opening Balance Sheet (3:31)
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Using accounting and bookkeeping software to speed up the process (4:13)
Module 9 - The T2 Return - The Most Common Small Business Schedules
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The companies we will be using throughout the next few modules (2:34)
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Schedule 1 - Reconciliation of Accounting and Net income loss for tax (4:30)
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Schedule 1 - Overview of the Schedule 1 and approach to completing the form (5:25)
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SCH 1 - Common adjustments - Meals & Entertainment (2:37)
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SCH 1 - Some guidance on the rules on Meals and Entertainment (4:42)
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SCH1 - Common adjustments - Club dues and fees (5:30)
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SCH1 - Common adjustments - Non-deductible interest and penalties (1:46)
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SCH 1 - Common adjustments - Add back for income tax provision (3:37)
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SCH 1 - Common adjustments - Disposal of assets (5:37)
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SCH 1 - Common adjustments - Depreciation and CCA (4:54)
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Example of a completed Schedule 1 for the sample company Ritesoft Inc. (5:05)
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Schedule 2 - Charitable donations and gifts (7:10)
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Schedule 2 - Political donation rules for corporate tax (1:33)
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Scheulde 2 - Example of donation carry-forward and income limits (4:29)
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Schedule 2 -Things to look out for with donations and common errors (5:56)
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Schedule 4 - Corporation loss continuity and application (4:31)
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Schedule 4 - A look at some what-if scenarios and introducing the S4 Supplementary worksheet (9:06)
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Schedule 4 - How to apply current year losses against prior year income (4:23)
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Schedule 4 - Applying prior year losses to the current year's profit (4:28)
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Schedule 4 - Planning and things to be aware of with loss application (6:11)
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Schedule 8 - Overview of the two CCA augmentation programs - New immediate expensing (8:25)
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Schedule 8 - How to allocate immediate expensing amount classes (3:29)
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Schedule 8 - Overview of the temporary AIIP Program - Accelerated Investment Incentive Program (November 2018 to present) (6:40)
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Schedule 8 - Capital cost allowance (CCA) - Example of the Accelerated Investment Incentive Program (AIIP) (6:54)
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Schedule 8 - Common errors and things to look out for (7:38)
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Schedule 8 - A discussion and guidance on the CCA rates and classes (8:32)
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Schedule 8 - Available for use rules (2:37)
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Schedule 8 - Keeping documentation on file in case of a CRA audit (2:29)
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Schedule 8 - The Fall Economic Update - 2019 Accelerated Capital Cost Allowance (Accelerated Investment Incentive) (6:40)
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Schedule 50 - Shareholder information (3:57)
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Information on the Provincial forms from the CRA website (4:13)
Module 10 - Schedules Related to Investment Income & Dividends Paid
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Schedule 7 - Conceptual overview of this important schedule (4:08)
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Schedule 7 - Investment and active business income (9:08)
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Schedule 3 - Dividends received and taxable dividends paid (11:13)
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Schedule 6 - Dispositions of capital property (6:08)
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Schedule 53 - GRIP Balance Check (4:07)
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Schedule 53 - GRIP Balances they relate to investment income in corporations (4:07)
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T1135 Foreign Income Verification Statement (6:23)
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A good CRA website with the most frequently asked questions on the T1135 (2:42)
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Schedule 21 - Federal Foreign Income Tax Credits - SC (3:27)
Module 11 - Other Forms & Schedules on the Corporate T2 Return
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Introduction to the other forms and Schedules we'll be looking at (3:01)
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Schedule 5 - Provincial Tax Calculation (7:38)
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Concept of permanent establishment to determine Provincial tax allocation (3:52)
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Schedule 9 - Related and associated corporations (2:28)
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Schedule 11 - Transactions with shareholders, officers or employees (4:46)
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Schedule 14 - Miscellaneous payments to residents (2:02)
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Schedule 15 - Deferred income plans (2:50)
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Schedule 88 - Internet Business Activities (4:51)
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T5018 - Reporting payments in the construction industry (4:30)
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Schedule 27 - The Manufacturing & Processing tax credit (2:42)
Module 12 - Preparation of T2 Corporate Tax Returns - Examples
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EX 1 - A look at the Baker's Dozen and intro to preparing T2 returns (5:13)
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EX 1 - Filling out the information and reviewing the T2 questions (5:56)
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EX 1 - Reviewing Bakers Dozen financials and converting them to GIFI (4:57)
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EX 1 - Filling out the appropriate Schedules for the T2 return (10:05)
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EX 1 - Determining the tax provision, recording journal entries and finishing return (5:55)
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EX 2 - Demo of a current year loss and carry back to the 3 previous years (9:39)
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EX 2 - Decision making process on dealing with losses and CCA (6:10)
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EX 2 - Keeping track of losses applied to each tax year to avoid errors (4:06)
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EX 3 - Applying prior year non-capital losses against current year income (5:09)
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EX 4 - What to look out for in first year of operations after incorporating (6:01)
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EX 5 - Investment income earned and T2 reporting by Ritesoft Inc (9:16)
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EX 6 - Investment income with GRIP balance and declaring dividends (7:17)
Comprehensive Case Example 1 - From Text Book to Real World
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Bridging the gap between a textbook case and the T2 return (1:49)
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Outline of MetroFaux Inc and the information needed to start the T2 (4:48)
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Step 1 - Entering the Balance sheet and income statement information (3:09)
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Point 2 & 3 - Adding back the penalties and preparing the donation schedule (1:42)
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Point 3 - 4 Recording dividends received and dividends paid (3:47)
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Point 5 - 6 Inputting loss carryforwards and reporting interest income on bonds (2:52)
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Point 7 - 9 Calculating CCA, recapture and the capital gain on building sale (7:05)
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Point 10 - Claiming the M&P tax credit (4:51)
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Completing and reviewing the corporate tax return in depth (7:58)
Comprehensive Case Example 2 - Ace Engineering Services Inc.
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Introduction to Ace Engineering Inc 2018 case study (5:36)
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A look at the balance sheet and income statement (7:57)
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Review of Schedule 8 and the new AII program to accelerate CCA (9:52)
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Reporting investment income and overview of Investment income Schedules (12:21)
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Dividends payable to Andrew and reporting dividends paid out - GRIP planning (6:44)
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Completing the tax return and review of T2 (9:58)
Comprehensive Case Example 3 - Kennedy I/T Consultants Ltd.
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Introduction to 2019 case - Kennedy IT Architects and documents (5:06)
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Review of the information provided and the 2018 T2 return (7:25)
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Overview of the Schedule 8 and Capital Cost Allowance entries (9:17)
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Entering all the investment income numbers on the various schedules (10:12)
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Review of the refundable dividend tax accounts including carry forward and new pools (8:43)
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Conversations we need to have with Ryan regarding tax planning and income splitting (10:39)
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Preparing the adjusting journal entries for dividends and the corporate tax payable (5:52)
Comprehensive Case Example 4 - Comfort Systems Ltd.
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Introduction to Comfort Systems Inc and the different teaching methodology for this course (4:11)
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Overview of Chris Flanagan and the August 2020 year end for Comfort Systems Ltd (8:42)
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Working through the year end process and work flow using various software (10:44)
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Working through year end file - Overview and dealing with Covid measures (10:25)
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Other entries to be made to the file based on discussions with Chris (9:30)
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Preparing the corporate tax returns and review of the file and financials (19:36)
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Other filing that needs to be done and providing adjusting journal entries (7:35)
Comprehensive Case Example 5 - Black Swan Consulting Inc.
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Introduction to Black Swan Consulting Inc and what we'll be covering in case study (3:34)
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Overview of the corporation and client profile for Black Swan Inc (6:07)
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Review of the bookkeeping system and files provided by the client for the year end (9:17)
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Review and carryforward of last year's accounting file to begin work on 2021 (6:15)
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Starting off with the bank reconciliation and recording the entries (14:57)
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Recording the journal entries for the bank reconciliation into accounting system (10:54)
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Entering all of Leo's business expenses and finalizing the income and expenses (6:41)
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Preparing and filing the HST return for Black Swan Consulting using the Quick Method (7:39)
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Entering the investment transactions and slips into the tax return (6:56)
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Owner manager compensation discussion with Leo and planning overview and T5 preparation (11:09)
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Final review of the financial statements and file maintenance (11:44)
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Finalizing the corporate T2 return and T5 slip and summary to complete the file (17:43)
Thank You & Next Steps
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