CPA Module Zero Topic Coverage
Published January 29, 2015
Taxation
Capital cost allowance topics
TX01: Replacement property rules
Voluntary disposition
Involuntary disposition
4-6 hours
1-2 hours
TX02: Class 10.1 vehicles (luxury passenger vehicles)
Limitation on UCC additions
Rules on disposition of 10.1 vehicles
1 hour
TX03: Disposition of building and land
Proceeds allocated to building are less than UCC balance
Special rule to prevent terminal loss on disposal of building and land
1-2 hours
TX04: Consideration (Fair market value rules)
Disposal at FMV
Above FMV
Below FMV
Nil proceeds (gift)
1 hour
Taxes payable by a corporation topics
7-11 hours
TX05: Components and calculation of corporate taxes payable
Active business income
Aggregate investment income
Basic tax rate
Federal abatement (and where applicable)
Small business deduction
7-11 hours
Corporations eligible, and type of income eligible
Business limit (maximum deduction)
Associated corporations
General rate reduction
Availability (full rate taxable income), additional refundable tax
Type of income to which ART applies
Refundable dividend tax on hand
Refundable Part I tax
Part IV tax
Dividend refund
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CPA Module Zero Topic Coverage
Published January 29, 2015
General – introduction topics
TX06: Introduction
Glossary of terms and specification of legislation
Income tax rates and integration
Levels of government, sources of income tax law, and interpretation of the ITA
Process of changing tax legislation, other types of taxation, structure of the ITA
2-3 hours
2-3 hours
General – computation of income topics
TX07: Taxpayers and sources of income
Legal form and structures, sources of income
Aggregating formula for Division B net income
Calculation of net income and taxable income — an overview
Employee versus self-employed, personal services business (PSB), integration
16-27 hours
2-3 hours
TX08: Income from office or employment
Salary, wages and other remuneration, taxable benefits
Gifts, awards and long-service awards, exceptions
Imputed interest benefits: home purchase loan, home relocation loan, deemed
interest benefit is interest paid, amount of the loan included in income
Arm’s-length employees of a CCPC, deduction in computing taxable income
Deductions in computing income from employment
3-4 hours
TX09: GST and business income
GST/HST: Registration, collection, remittance, input tax credits (ITCs), effect of
GST/HST on amount of deductible expenditures
Business income: basic rules and principles, inclusions, deductions
3-4 hours
TX10: Capital cost allowance and eligible capital property
Legislation, terminology, concepts, CCA classes
Eligible capital property: cumulative eligible capital amount (CECA), dispositions
Stakeholder relationships
Special rules
3-4 hours
TX11: Property income
Interest income, dividend income, investment counsel fees
Rental income
1-2 hours
TX12: Capital gains
Taxable capital gains and allowable capital losses: general rules, definitions and
computation, capital gain and loss, terminology, types of capital property, special
rules
2-3 hours
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CPA Module Zero Topic Coverage
Published January 29, 2015
TX13: Other income and deductions, including saving for retirement
Other sources of income: pensions, death benefits, retiring allowances
Other deductions: support payments, moving expenses, child care, disability
supports deduction
Deferred income plans: RRSP, TFSA, RESP, RDSP
2-3 hours
General – taxable income and tax payable topics
TX14: Taxable income and tax payable for an individual
Computation of taxable income for an individual: losses, qualified small-business
corporation shares, lifetime capital gains exemption
Tax payable for an individual: non-refundable tax credits, refundable tax credits
Alternative minimum tax (AMT)
Part I.2 tax – clawback of old-age security
5-8 hours
2-3 hours
TX15: Taxable income and tax payable for all corporations
Computation of taxable income for a corporation: deduction for charitable gifts,
dividends received from other corporations
Tax payable for a corporation, federal abatement, general rate reduction, foreign tax
credits
1-2 hours
TX16: Tax payable for a Canadian-controlled private corporation
Rules specific to CCPCs and other private corporations: active business income (ABI),
specified investment business (SIB), personal services business (PSB), capital gains,
dividends, small business deductions (SBD)
Associated corporations, taxation of personal service business income
Taxation of specified investment business income, refundable tax on CCPC
investment income, refundable dividend tax on hand (RDTOH), refundable Part I tax
Part IV tax, connected corporations, formula for RDTOH, dividend refund, summary
of refundable tax system
2-3 hours
General – Tax planning topics
TX17: Owner-manager tax planning
Integration under the ITA
Owner-manager tax planning: incorporation, salary versus dividends
Shareholder loans
3-5 hours
2-3 hours
TX18: Transfer of property
Succession and estate planning: transfer of property to spouse, transfer of property to
children, attribution rules, income splitting
Tax-planning for corporations: non-arm’s-length sale of shares
1-2 hours
Page 3 of 4
CPA Module Zero Topic Coverage
Published January 29, 2015
General – Administration topics
2-3 hours
TX19: Administration
2-3 hours
Filing requirements and deadlines: penalties for failure to file, balance-due date
Installments, arrears interest, interest on late installments, refunds and refund interest
Notice of assessment, objections to assessments and appeal process, penalties for
omissions and other offences
General anti-avoidance rule (GAAR)
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