Corporate Income Tax Fundamentals

Knowledge Bureau Certificate Courses

Categories: Tax Planning

Your Instructors: Larry Frostiak

Updated by: Diane Elliott

PROGRAM: Business Services Specialist

Learn to prepare a T2 corporate return for your small business clients.
The focus of this course is to provide the preparer with an understanding of the business issues and tax options that underlie the taxation of corporate income, so that the return can be prepared accurately, tax is minimized and planning opportunities are identified on a timely basis.


This course serves as an introduction to the preparation of a corporate income tax return for small business operating under a corporate structure as a Canadian Controlled Private Corporation (CCPC). The Case Studies included in this course include the preparation of corporate tax returns for the current year.  This course contains all known changes that will apply to future years. From a company’s transformation from Proprietorship through to Corporation, this course will teach you the fundamentals of preparing a T2 return for the majority of small business corporations operating in Canada today. Case studies using major software programs such as TaxCycle, Intuit Profile and Thomson Reuters Dr. Tax are included.

CERTIFIED SKILLSETS: The student will have achieved the following competencies:

  1. Identifying Accrual and cash base accounting
  2. Retained earnings and the return of capital
  3. Active business income and specified investment business income
  4. How to properly report income for tax purposes and reconciliation of transactions
  5. Understanding various schedules most prevalent on the T2 tax return
  6. Understanding tax principles for reserves utilized to defer taxes
  7. Tax consequences for stakeholders on various methods of remuneration
  8. Tax Planning as an opportunity, both corporate and personal integration

PRACTICE MANAGEMENT THESIS: Chapters end with multiple-choice and true-to-life scenarios found online which test the practical application of the key concepts covered in the course. A review before the examination, called the Practice Management Thesis (PMT), prepares the student with a consolidated case study testing the practical applications of course work.



Quizzes 25%
Case Studies 50%
Final Exam 25%
Passing Grade 60%
Honours Achievement 90%


Related Programs

Master Financial Advisor
Distinguished Financial Advisor
Distinguished Financial Advisor

Table of Contents

Chapter 1:
Basis of Reporting Income
Chapter 2:
Understanding the Corporate Balance Sheet
Chapter 3:
Understanding Shareholder Equity
Chapter 4:
Sources of Corporate Income
Chapter 5:
Creating an Audit Trail for CRA Purposes
Chapter 6:
Completing the T2 Return
Chapter 7:
Tax Reserves
Chapter 8:
Shareholder Remuneration
Chapter 9:
Corporate/Shareholder Integration Theory

What Graduates Say

The course widened my knowledge on corporate taxes and provided more self confidence in preparing T2 tax returns. Frank Bird, Winnipeg, MB