Module Catalogues, Xi'an Jiaotong-Liverpool University   
 
Module Code: ACC402
Module Title: Business Planning - Taxation
Module Level: Level 4
Module Credits: 5.00
Academic Year: 2020/21
Semester: SEM2
Originating Department: Department of Accounting
Pre-requisites: N/A
   
Aims
To enable students to apply technical knowledge and professional skills to identify and resolve tax issues that arise in the context of preparing tax computations and to advise on tax-efficient strategies for businesses and individuals.


Students will be required to use technical knowledge and professional judgement to identify, explain and evaluate alternative tax treatments and to determine the appropriate solutions to taxation issues, giving due consideration to the needs of clients and the interaction between taxes. The commercial context and impact of recommendations will need to be considered in making such judgements, as will ethical and legal issues.

Learning outcomes 
A analyse, evaluate and calculate the tax consequences of actions for individuals and companies and evaluate the interaction of taxes in given scenarios.

B advise and assist clients in adhering to tax regulations.

C advise on alternative tax treatments to defer or minimise tax liabilities.

D understand the interaction of taxes in given scenarios and to identify and discriminate between tax evasion and tax avoidance.

E recognise and explain critically the ethical and legal issues arising in taxation scenarios.

apply the fundamental principles and guidance in the IFAC code of ethics to recommend and justify appropriate, legal actions.

F reflect on organisational circumstances critically and to assess the advantages and disadvantages of various approaches.
Method of teaching and learning 
A range of teaching and learning methods will be utilized on this module. Core substantive knowledge will be delivered via three weekly 2-hour lectures over a six-week period, and the knowledge covered in lectures will be reinforced by practical student-led group work, culminating in participative tutorials of two hours’ duration each week. Longer, more detailed case-based work will be delivered by means of two 2-hour seminars, which will again be participative in nature.
Syllabus 
In order to obtain ICAEW exemptions (subject to accreditation), the syllabus covered will be based upon UK tax law, as follows:


1 Ethics and law 5% – 10%

2 Taxation of corporate entities 30% – 40%

3 Taxation of unincorporated businesses including partnerships 20% – 30%

4 Personal taxation 20% – 30%



Ethics and law


Students will be able to recognise and explain ethical and legal issues arising in taxation scenarios. Where ethical dilemmas arise, students will be required to apply the fundamental principles and guidance in the IFAC code to recommend and justify appropriate, legal actions.


In the assessment, students may be required to, in the context of taxation:

a. recognise and explain the relevance, importance and consequences of ethical and legal issues

b. recommend and justify appropriate actions where ethical dilemmas arise in a given scenario

c. design and evaluate appropriate ethical safeguards

d. recognise and advise when a tax-avoidance scheme is notifiable to HMRC and distinguish between avoidance and evasion and their consequences.


The following will be addressed under syllabus areas 2, 3 and 4;

Advanced taxation


Students will be able to analyse, evaluate and calculate the tax consequences of actions for individuals and companies and evaluate the interaction of taxes in given scenarios. This will involve advising and assisting clients in adhering to tax regulations.


In the assessment students may be required to consider:


Communication skills

a. communicate in a format appropriate to the recipient who may be an external client, a fellow professional, or an internal colleague

b. prepare suitable advice to explain tax liabilities with supporting calculations

c. recommend appropriate tax-planning advice

d. identify further information required to complete tax computations and finalise tax advice

e. give advice which is appropriate, technically correct, and within the law and the IFAC Code of Ethics.


Taxation of business and corporate entities

f. understand, explain and calculate the tax liabilities for individuals and corporate entities, including income tax, national insurance, corporation tax, stamp taxes and VAT

g. evaluate the tax implications of the choice of business structures, including provision of services through a company

h. explain the taxation issues relating to business start-ups

i. identify and evaluate the impact of close companies on the taxation of companies and individuals

j. explain and evaluate the tax implications of group structures

k. apply, explain and evaluate issues relating to transfer pricing

l. explain and evaluate the tax implications of business transformations and change

m. explain and calculate the tax implications involved in the cessation of trade.


International aspects of corporate taxation

n. calculate the impact of international expansion on UK tax liabilities

o. explain the tax implications of inward investment in the UK

p. recognise the implications of double tax treaties and the OECD Model Tax Convention

q. apply and advise on double taxation relief.


Financing and investing

r. evaluate the tax implications of financing existing and new businesses

s. understand the taxation implications of returns to investors

t. advise and calculate the impact of tax efficient schemes including ISAs, enterprise investment schemes, and venture capital trusts.


Employment income and remuneration packages

u. advise on the tax implications of remuneration packages including share schemes, termination payments, and allowable deductions.


Personal taxation and overseas taxation

v. calculate tax liabilities for individuals including income and capital gains tax, national insurance contributions and inheritance tax

w. advise on the taxation of foreign assets, income and gains

x. evaluate and advise on the impact of residence, non-residence and domicile on an individual’s tax liabilities

y. analyse and explain the implications of individuals leaving and coming to the UK as well as the special tax position for non-UK domiciled individuals

z. explain the implications of domicile for inheritance tax.


Trusts

aa. understand and advise on the use of trusts in tax planning

bb. understand the tax implications of creating and utilising trusts and the tax implications of assets entering or leaving trusts.


Tax planning


Students will be able to advise on alternative tax treatments to defer or minimise tax liabilities. Students will also be able to understand the interaction of taxes in given scenarios and to identify and discriminate between tax evasion and tax avoidance.


In the assessment students may be required to:

a. identify legitimate tax planning measures to minimise tax liabilities

b. evaluate and advise on tax strategies to meet business objectives

c. evaluate and advise on alternative tax strategies relating to corporate transformations and changes in personal circumstances such as marriage, divorce and death

d. recognise, explain and communicate opportunities to use alternative tax treatments arising from past transactions

e. understand and communicate ethical and professional issues in giving tax planning advice.

Delivery Hours  
Lectures Seminars Tutorials Lab/Prcaticals Fieldwork / Placement Other(Private study) Total
Hours/Semester 26  15  13      96  150 

Assessment

Sequence Method % of Final Mark
1 Exam 100.00

Module Catalogue generated from SITS CUT-OFF: 12/2/2020 5:22:32 AM