ACC005 - Tax Basics for Small Business and Entrepreneurs

Subject Title
Tax Basics for Small Business and Entrepreneurs

Subject Description
This workshop will provide participants with a basic overview of the Canadian tax implications related to carrying on a small business in Canada. Particular emphasis will focus on self-employment income, and the related income tax considerations and strategies.

Credit Status
Not applicable.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

• demonstrate a basic understanding of the income tax rules under the Canadian Income Tax Act
• demonstrate a basic understanding of the sales tax requirements under the Excise Tax Act pertaining to a small business in Canada
• perform a determination of small business income and the related GST/HST reporting requirements
• work through a case study concerning the reporting of self-employment business income in a personal income tax return using the required Canada Revenue Agency reporting schedule

Academic Integrity
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Please visit the Academic Integrity website http://open2.senecac.on.ca/sites/academic-integrity/for-students to understand and learn more about how to prepare and submit work so that it supports academic integrity, and to avoid academic misconduct.

Discrimination/Harassment
All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecapolytechnic.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Accessibility Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Camera Use and Recordings - Synchronous (Live) Classes
Synchronous (live) classes may be delivered in person, in a Flexible Learning space, or online through a Seneca web conferencing platform such as MS Teams or Zoom. Flexible Learning spaces are equipped with cameras, microphones, monitors and speakers that capture and stream instructor and student interactions, providing an in-person experience for students choosing to study online.

Students joining a live class online may be required to have a working camera in order to participate, or for certain activities (e.g. group work, assessments), and high-speed broadband access (e.g. Cable, DSL) is highly recommended. In the event students encounter circumstances that impact their ability to join the platform with their camera on, they should reach out to the professor to discuss. Live classes may be recorded and made available to students to support access to course content and promote student learning and success.

By attending live classes, students are consenting to the collection and use of their personal information for the purposes of administering the class and associated coursework. To learn more about Seneca's privacy practices, visit Privacy Notice.

• Canadian Tax System
• Basis of Canadian Income Tax
• Business Structure alternatives

• Employment income
• Investment income
• Capital Gains income
• Self-employment income
• Tax & Credits

• Employee or self-employed?
• Business year-end
• Form T2125 reporting
• Deductible expenses
• Capital Cost Allowance
• Meals and Entertainment
• Home Office expenses
• Convention expenses
• Automobile expenses
• Business Losses
• Tax Installments & CPP

• Advantages/Disadvantages of Incorporation
• Concept of Integration
• Determination of Business Income
• Salary/Dividend withdrawal of funds
• Tax/CPP withholding and reporting

• Application of computer tax software
• Completion of basic case study
• Form T2125 reporting of Business Income

• Basic concept & Registration
• Taxable, Zero-rated & Exempt supplies
• Input Tax Credits
• Reporting & Remittance requirements