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TX1 Refresher
Welcome to the TX1 refresher. This presentation is intended to help you review taxation concepts as you prepare for the PA1 and PA2 exams. In addition to this refresher, a more detailed review of the Personal & Corporate Taxation course is provided in the TX1 lesson summaries. To brush up on the changes to the accounting treatment of tax issues, review IAS
12 under International Financial Reporting Standards (IFRS) as well as section 3465 of the
Accounting Standards for Private Enterprises (ASPE).
Purpose
Knowledge
Horizontal and vertical thinking
Ethics
Legal responsibilities
Income Tax Act
Steps in computing income tax
Source concept
Distinctions
Employment income versus business income
Business income versus capital gain
Business income versus property income
Business income versus hobby
Employment or office income
Accounting income versus income for tax purposes
Depreciation versus CCA and CECA
Taxable versus non-taxable
Calculating business income deductions
Income from property
Dividends

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Tax integration — Corporation
Tax integration — Shareholder
Capital cost allowance
Cumulative eligible capital amount
Relationships
Related
Associated
Connected
Capital gains and losses
Taxable income
Tax payable by individuals
Tax on split income
Tax payable by a corporation
Part I tax payable by a corporation
Canadian controlled private corporation
Manufacturing and processing profits deduction
Part IV tax
Refundable tax
Tax planning
Tax evasion
Tax avoidance
Areas of tax planning
Residency
Part XIII tax
International issues

Purpose

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