Module Information
Module Identifier
AB21520
Module Title
Taxation
Academic Year
2024/2025
Co-ordinator
Semester
Semester 2 (Taught over 2 semesters)
Reading List
Other Staff
Course Delivery
Assessment
| Assessment Type | Assessment length / details | Proportion |
|---|---|---|
| Semester Exam | 3 Hours Exam | 70% |
| Semester Exam | 1.5 Hours In-class Test | 30% |
| Supplementary Exam | 3 Hours Exam (Students must take elements of assessment equivalent to those that led to failure of the module.) | 70% |
| Supplementary Exam | 1.5 Hours Test (Students must take elements of assessment equivalent to those that led to failure of the module.) | 30% |
Learning Outcomes
On successful completion of this module students should be able to:
Explain the justification for taxation in a civilized society; and outline the features and rules of the UK tax system, in particular those relating to Income Tax, Capital Gains Tax, Corporation Tax, Inheritance Tax and Value Added Tax; and identify direct/indirect taxes, capital/current taxes and progressive/proportional and regressive taxes.
Assess the current bases of taxation in terms of their efficiency, equity and cost of compliance.
Identify and critically discuss the key issues in taxation at the inter-state level.
Examine the implications of taxation for the functioning of capital markets.
Explain, discuss, evaluate and calculate the presentation in and impact upon accounts of deferred tax with a comparison of latest and previous treatment where pertinent.
Recognise the ethical issues arising in the course of performing tax work and recognise the role that tax, and tax incentives play in driving sustainability issues.
Brief description
The module is designed to provide students with an understanding of the principles underlying the design of an effective taxation system, an introduction to the UK Tax system, deferred taxation and an appreciation of the current policy issues in taxation, including ethical issues and sustainability.
The module focuses on seven main aspects: the economic characteristics and assessment of effective tax system design; a broad description of the UK tax system; international considerations including tax co-ordination, competition and the taxation of e-commerce; conceptual issues in tax planning, the impact of taxation on capital markets, deferred taxation, ethical issues and sustainability.
The module focuses on seven main aspects: the economic characteristics and assessment of effective tax system design; a broad description of the UK tax system; international considerations including tax co-ordination, competition and the taxation of e-commerce; conceptual issues in tax planning, the impact of taxation on capital markets, deferred taxation, ethical issues and sustainability.
Aims
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Content
Introduction to taxation
• Objectives, operation, scope and evaluation of taxation systems
• Sources of UK tax law
• Classification of taxes
The UK tax system
• Income tax liabilities of individuals
• National Insurance contributions and benefits in kind Corporation Tax liabilities of companies and groups of companies, tax treatment of trading losses
• Capital Gains Tax: chargeable gains arising on companies and individuals
• Inheritance Tax liabilities of individuals, quick succession relief
• Value Added Tax
Principles of taxation
• Incidence, efficiency, equity, flexibility, certainty, convenience, compliance and administrative costs
• Obligations of taxpayers, implications of non-compliance and ethical issues
International Taxation: taxation of cross border transactions and interaction between jurisdictions.
• Factors affecting liability - Domicile, ordinary residence
• Residence principle, Source principle,
• Companies’ residency
• Double tax relief
• Common avoidance practices - tax havens, transfer pricing, Controlled Foreign Corporations
Current issues in tax policy
• E-commerce, tax competition - EU actions
• OECD and tax harmonization
Principles of tax planning
• Tax evasion, tax avoidance
• Capital market effects of taxation (implicit/explicit taxes)
Deferred taxation
• Need for deferred taxation
• Accounting profit and taxable profit
• Regulatory requirements
Ethical and Sustainability Issues
•Identify the five fundamental principles given in the IESBA Code of Ethics for Professional Accountants and ICAEW Code of Ethics, and the guidance in relation to a tax practice with regard to the threats and safeguards framework and ethical conflict resolution.
•Identify the following: conflicts of interest, money laundering , tax avoidance and tax evasion.
•Explore the role that tax and tax incentives play in sustainability and the role of green tax incentives in supporting carbon-neutral policies.
• Objectives, operation, scope and evaluation of taxation systems
• Sources of UK tax law
• Classification of taxes
The UK tax system
• Income tax liabilities of individuals
• National Insurance contributions and benefits in kind Corporation Tax liabilities of companies and groups of companies, tax treatment of trading losses
• Capital Gains Tax: chargeable gains arising on companies and individuals
• Inheritance Tax liabilities of individuals, quick succession relief
• Value Added Tax
Principles of taxation
• Incidence, efficiency, equity, flexibility, certainty, convenience, compliance and administrative costs
• Obligations of taxpayers, implications of non-compliance and ethical issues
International Taxation: taxation of cross border transactions and interaction between jurisdictions.
• Factors affecting liability - Domicile, ordinary residence
• Residence principle, Source principle,
• Companies’ residency
• Double tax relief
• Common avoidance practices - tax havens, transfer pricing, Controlled Foreign Corporations
Current issues in tax policy
• E-commerce, tax competition - EU actions
• OECD and tax harmonization
Principles of tax planning
• Tax evasion, tax avoidance
• Capital market effects of taxation (implicit/explicit taxes)
Deferred taxation
• Need for deferred taxation
• Accounting profit and taxable profit
• Regulatory requirements
Ethical and Sustainability Issues
•Identify the five fundamental principles given in the IESBA Code of Ethics for Professional Accountants and ICAEW Code of Ethics, and the guidance in relation to a tax practice with regard to the threats and safeguards framework and ethical conflict resolution.
•Identify the following: conflicts of interest, money laundering , tax avoidance and tax evasion.
•Explore the role that tax and tax incentives play in sustainability and the role of green tax incentives in supporting carbon-neutral policies.
Module Skills
| Skills Type | Skills details |
|---|---|
| Application of Number | Apply numerical data to problem solving with care and accuracy Evaluation of numerical problems in lecture and tutorial examples and appropriate examination questions. |
| Communication | Develop confidence in and clarity of oral communication via example class/tutorial participation. Develop clarity and focus of written communication via development of answers to self study questions. Develop and use appropriate subject-specific vocabulary in oral and written communication. |
| Improving own Learning and Performance | Identify and distil the key issues covered by lectures, tutorials and self study. Identify and use a range of learning resources. Investigate benefits of small group working on self study. Structure study to accommodate intensive learning. |
| Information Technology | Use a variety of electronic web- and library-based resources to review available information and retrieve pertinent information. |
| Personal Development and Career planning | Preparation for seminar tasks will encourage initiative, independence and self-awareness. |
| Problem solving | Whilst being introduced to the UK tax system, students will explain and compute the income tax liabilities of individuals, the corporation tax liabilities of companies, the chargeable gains arising on companies and individuals, the Inheritance tax liabilities of individuals and Value Added Tax. Students will compare and apply the various methods for deferred taxation. Scenario-based problems will be introduced in lectures, set as self study questions, applied in seminars and the examination. |
| Research skills | Identify which information sources are available to facilitate module study (understanding, wider reading) for use in seminars and examination. Properly reference/attribute information sources. |
| Subject Specific Skills | Develop competence in understanding and appropriately applying UK tax law. Develop competence in understanding the current policy issues in taxation. Studying taxation engenders a focus on a dynamic subject area, which affects every member of society, thus is useful in both a personal and professional setting. The topic also focuses on ethics, which is relevant to most professional settings. |
| Team work | Develop experience of team work and develop team working skills via small group working on self study. Group work during seminars. |
Notes
This module is at CQFW Level 5