Theory and Practice of Taxation

Module code: BA6804
Year: 2018/9
Level: 6
Credits: 30
Pre-requisites: BA4801 Financial Accounting
Co-requisites: None

Summary

Students studying this module will develop an understanding of the operational, practical and theoretical issues in personal and business taxation. They will develop skills of analysis and interpretation of information and communication of recommendations in a professional manner appropriate to the intended audience, eg. clients and HMRC.

Aims

To enable students to understand tax theory from a practical perspective
To enable students to understand the academic theory that underpins current UK tax legislation
To consider those areas of tax of most current practical importance
To consider the interrelation of different taxes and their effects on business decisions.

Learning outcomes

On completion of this course students will be able to:

Assess tax liabilities of individuals and business enterprises
Demonstrate an objective understanding of the impact of taxation on strategic and operation decisions
Assess the financial implications of the current tax regime with respect to raising finance, distribution policy and in issues of investment and growth
Demonstrate an objective understanding of the impact of the interaction of the various taxes in the United Kingdom
Demonstrate a critical understanding of the tax issues of most current practical importance.

Curriculum content

The reasons for taxation and the main sources of UK tax revenue
The tax professional; ethical code of practice
Revenue law statutes and cases, extra-statutory concessions and revenue practice
Individual taxation, including basic income tax computations, national insurance, administration and collection - which covers self-assessment
Income from investments, bank interest, dividends and property. Pensions, enterprise investment schemes, venture capital trusts and other investment schemes
Income from employment, including employment versus self-employment, benefits and PAYE schemes
Trading income, including the badges of trade, computation of profit, basis periods, commencement and cessation, capital allowances and losses
Capital taxes. Inheritance tax; basic computation and administration. Capital gains tax, including computation of chargeable gains, indexation, taper relief, losses, deferral relief, shares and investments and principal private residence exemption
Corporation tax, including computation of taxable profits, tax rates, losses, corporation tax groups
Value added tax, including administration, compulsory registration, input and output VAT, partial exemption and penalties
Overseas aspects of taxation, including residency and tax havens
Tax planning
The economic implication of fiscal policy.

Teaching and learning strategy

This module is delivered via three hours a week class contact comprising interactive lecture/workshop activity. Sessions are designed so that a topic is introduced by conventional lecture delivery followed by demonstration and tutorial-style questions which are built into the lecture packs and which are also available on Canvas. The lecture programme closely follows the core course text.

The module handbook contains lecture outlines, reading lists and tables of tax rates, allowances and indexation factors. Detailed course notes are provided and these are updated annually to reflect changes in the taxes and finance acts. Questions embedded in the lecture notes will be attempted during the class to illustrate points made or during self-study periods to reinforce the lecture material. Self-study questions will be followed through in the subsequent lecture/workshop. The use of online research is encouraged, as is the use of open source tax computational software.

Breakdown of Teaching and Learning Hours

Definitive UNISTATS Category	Indicative Description	Hours
Scheduled learning and teaching	Lecture/workshop class sessions	66
Guided independent study		234
Total (number of credits x 10)		300

Assessment strategy

Assessment is by a series of four short in-class tests (coursework) and by a three-hour examination. The four short tests are based on the contents of the lecture notes and self-study topics and comprise a mixture of short written answers (to test knowledge) and tax computations (to test the understanding and application of knowledge). The tests are designed to reinforce the lecture material and provide feedback to support student learning. The average of the best three marks will make up the coursework element of the overall assessment.

The three-hour end-of-module examination is closed book, however tables of tax rates and allowances will be provided and topics for discursive essay questions will be made available in advance, thereby enabling the candidates to undertake focused research. Computational questions will be designed to allow students to demonstrate an ability to identify and measure different income streams in order that tax liabilities (business and individual) can be assessed. Discursive questions will be designed to enable students to demonstrate a critical understanding of the main principles of taxation together with the development of revenue law and practice and of the ways in which the different taxes interact and the rationale and policy implications of those different taxes.

Mapping of Learning Outcomes to Assessment Strategy (Indicative)

Learning Outcome	Assessment Strategy
1) Assess tax liabilities of individuals and business enterprises	Assessed summatively by coursework tests and examination; assessed formatively by in-class and guided learning tasks
2) Demonstrate an objective understanding of the impact of taxation on strategic and operation decisions	Assessed summatively by coursework tests and examination; assessed formatively by in-class tasks and discussions
3) Assess the financial implications of the current tax regime with respect to raising finance, distribution policy and in issues of investment and growth	Summatively by examination; assessed formatively by guided learning tasks and in-class discussion
4) Demonstrate an objective understanding of the impact of the interaction of the various taxes in the United Kingdom	Assessed summatively by coursework tests and examination; assessed formatively by guided learning and in-class tasks
5) Demonstrate a critical understanding of the tax issues of most current practical importance	Assessed summatively by examination; assessed formatively by guided learning tasks and in-class discussion

Elements of Assessment

Description of Assessment	Definitive UNISTATS Categories	Percentage
Short tests	Coursework	30%
Computational and discursive	Examination	70%
Total (to equal 100%)		100%

Achieving a pass

It IS NOT a requirement that any major category of assessment must be passed separately in order to achieve an overall pass in the module.

Bibliography core texts

Note: tax changes every year therefore it is essential that the latest editions are consulted as in most cases the references refer to annual publications.

TAXATION BPP (2015) Study text ACCA Taxation paper P6