General Information
Instructor(s)
- Finance (m)
- Financial Reporting and Analysis (c)
- Investment Banking (r)
Target Audience
Students aspiring to be decision-makers in the business world should take this course. The course is not intended for future tax preparers, rather it is designed for future business professionals who seek to maximize their after-tax returns. Virtually all transactions involve a tax component and transactions can often be structured to achieve a more favourable tax treatment, while still achieving the overall objectives of the transaction. In order to understand and compare these transactions, one has to have a general understanding of the tax rules and a framework for incorporating taxes into decisions to maximize after-tax returns.
Format
Weekly in-person sessions
Course Mission
This course will provide an overview of the income tax system and how it impacts business and investment decisions. The course will focus on developing a student’s ability to identify, understand, and evaluate tax-planning opportunities. The material will focus on tax planning concepts and the effect of taxes on decisions, rather than detailed tax rules and legal research. We will begin by developing a conceptual framework for evaluating how tax rules affect financial decisions. The framework will then be applied to various types of financial decisions, including capital structure, entity choice, transfer pricing, international expansion, mergers, acquisitions, divestitures, investing, savings vehicles, compensation planning, and financial reporting.
Course Scope
The objectives of the course are achieved through a combination of lectures, selected current readings, and the application of the concepts to problems and examples. After taking this course students are expected to be able to identify the key income tax issues associated with business and investment activities, have a conceptual understanding of the income tax implications of the issues identified, and analyze alternatives on an after-tax basis.
Evaluation and Grade Distribution
| Component | Due Date | Weight |
|---|---|---|
| Class Participation | Ongoing | 20% |
| Test | October 17 | 20% |
| Group Assignment | November 28 | 20% |
| Final Exam | Exam Period | 40% |
Required Resources
- Canadian Income Taxation: Planning and Decision Making, 2022–2023 edition.
- Scholes & Wolfson’s Taxes and Business Strategy, sixth edition
- Current Readings in Taxation. These readings will be posted on Quercus
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