Module Catalogues, Xi'an Jiaotong-Liverpool University   
 
Module Code: ACF424
Module Title: Tax Compliance
Module Level: Level 4
Module Credits: 5.00
Academic Year: 2019/20
Semester: SEM1
Originating Department: International Business School Suzhou
Pre-requisites: N/A
   
Aims
To enable students to prepare tax computations for individuals and companies in relatively straightforward scenarios under UK tax law, and to understand the underlying tax rules and their regulatory framework.
Learning outcomes 
A recognise critically the ethical issues arising in the course of performing tax work and identify the obligations the UK system of tax imposes on taxpayers and the implications for taxpayers of non-compliance

B calculate the capital gains tax payable by individuals and trustees

C calculate the amounts of income tax owed by or owed to individuals and trustees

D calculate the amounts of inheritance tax due on lifetime transfers and transfers on death by individuals, personal representatives and trustees

E calculate the amounts of national insurance payable by individuals, businesses and companies

F calculate the corporation tax liabilities of companies

G calculate the amount of VAT owed by or owed to businesses

H calculate the amount of stamp taxes due in straightforward transactions.

I develop a critical understanding of the context of tax laws/rules and apply professional judgement to critically reflect upon them to arrive at defensible and lawful tax treatments in relation to all areas of the tax syllabus covered by the module at an applied, professional practice level.

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 
1 Ethics and law 5% – 10%


2 Capital gains tax 10% - 20%


3 Income tax 30% - 35%


4 Inheritance tax 10% – 20%


5 National insurance contributions 5% – 10%


6 Corporation tax 15% – 20%


7 VAT and stamp taxes 10% – 15%


Ethics and law


Students will be able to recognise ethical issues arising in the course of performing tax work and identify the obligations the UK system of tax imposes on taxpayers and the implications for taxpayers of non-compliance.


In the assessment, students may be required to:


a. identify the five fundamental principles and guidance given in the IESBA Code of Ethics for Professional Accountants and the ICAEW Code of Ethics as well as other relevant guidance, including Professional Conduct in Relation to Taxation (PCRT), in relation to a tax practice with regard to:


• the threats and safeguards framework


• disclosure of information


• conflict of interest


• confidentiality


b. identify the law and the guidance in the ICAEW Code of Ethics as well as other relevant guidance, including Professional Conduct in Relation to Taxation (PCRT), with regard to:


• new client procedures


• regulatory requirements for tax practices


• HM Revenue & Customs errors


• money laundering


• tax planning, tax avoidance and tax evasion


c. identify legal and ethical issues arising from tax work undertaken and explain the significance of these issues


d. identify and explain to all stakeholders the implications of digital tax accounts on UK taxpayers.


Capital gains tax


Students will be able to calculate the capital gains tax payable by individuals and trustees.


In the assessment, students may be required to:


a. calculate the chargeable gains and losses on assets, including leases, shares and securities and pre 31 March 1982 assets, taking account of indexation as appropriate


b. describe the circumstances in which the following reliefs apply and calculate the effect of full or partial relief available in a given situation:


• letting relief


• principal private residence relief


• gift relief


• rollover relief


• entrepreneur’s relief


c. explain the impact of an individual’s residence, ordinary residence, domicile and deemed domicile on the capital gains tax liability.


d. calculate total taxable gains and tax payable thereon, utilising available reliefs and losses to reduce the liability, including the computation of double tax relief where appropriate.


Income tax


Students will be able to calculate the amounts of income tax owed by or owed to individuals and trustees.


In the assessment, students may be required to:


Trading profits


a. explain the relevance of the distinction between revenue and capital for both receipts and expenses and apply the distinction in a given scenario


b. recognise the effect on trading profits of the treatment of:


• provisions


• capitalised revenue expenditure


• intangible assets


c. calculate trading profits or losses after adjustments and allowable deductions (including capital allowances on plant and machinery) using either the accruals basis or cash basis of accounting.


Unincorporated businesses


d. calculate the assessable trading profits or losses of a partnership including after a change in the profit sharing ratio or change in partners, allocate the profits or losses to each partner including the allocation of notional profits and losses.


e. calculate the assessable trading profits or losses for a new unincorporated business and identify the overlap profits on the commencement of trade


f. calculate the assessable trading profits or losses for a continuing business;


g. calculate the final assessable trading profits or losses for an unincorporated business ceasing to trade


h. calculate the assessable trading profits or losses of a continuing business following a change in accounting date


i. explain and illustrate the possible uses of trading losses in a new or continuing business or a business ceasing to trade.


Taxation of income


j. calculate assessable employment income for an employee or director, taking into account expenses, allowable deductions and assessable benefits


k. calculate taxable savings, income from property, dividend income, taxed income and investment income


l. describe the principal aspects of the taxation of property income, including rent-a-room relief , and the application of the cash basis


m. explain the alternative ways in which an individual can provide for retirement and calculate the tax relief available


n. explain the impact of an individual’s residence, ordinary residence, domicile and deemed domicile.


o. calculate total taxable income and the income tax payable or repayable for employees, company directors, partners and self-employed individuals including the computation of double tax relief where appropriate.


p. identify the key features of the self-assessment system for individuals, determine due dates for returns, payments, and payments on account, and calculate the interest and penalties due for late submissions of returns, incorrect returns and late or incorrect payments of tax.


Inheritance tax


Students will be able to calculate the amounts of inheritance tax due on lifetime transfers and transfers on death by individuals, personal representatives and trustees.


In the assessment, students may be required to:


a. explain the principles of inheritance tax and identify the different classes of taxpayer liable to pay inheritance tax


b. explain the impact of an individual’s domicile and deemed domicile on their inheritance tax liability;


c. explain when the lifetime transfer of an asset gives rise to an inheritance tax liability, calculate the inheritance tax payable on chargeable lifetime transfers in straightforward scenarios and state the due date for payment


d. calculate the death tax due on lifetime transfers and state the due date for payment


e. calculate the value of an individual’s estate at death and the inheritance tax due and state the due date for payment


f. describe the circumstances in which the following inheritance tax reliefs apply and calculate the amount of relief available in a given situation:


• fall in value relief


• quick succession relief


• taper relief


• agricultural property relief


• business property relief


g. calculate the interest and penalties due in respect of late payment of inheritance tax.


National insurance contributions


Students will be able to calculate the amounts of national insurance payable by individuals, businesses and companies.


In the assessment, students will be required to:


a. identify the different classes of national insurance contributions;


b. calculate the national insurance due on employment income and the assessable trading profits of the self-employed;


c. recognise when the annual maxima rules for the payment of national insurance contributions apply; and


d. calculate the total national insurance contributions payable by employees, employers and self-employed individuals.


Corporation tax


Students will be able to calculate the corporation tax liabilities of companies.


In the assessment, students will be required to:


a. explain the relevance of the distinction between revenue and capital for both receipts and expenses and apply the distinction in a given scenario


b. recognise the effect on trading profits of the treatment of:


• provisions


• capitalised revenue expenditure


• intangible assets


c. calculate trading profits or losses after adjustments and allowable deductions (including capital allowances on plant and machinery)


d. calculate the chargeable gains and losses on assets, including chattels and shares and securities;


e. describe the circumstances in which rollover relief applies and calculate the effect of full or partial relief available in a given situation;


f. recognise the effect of the following issues on corporation tax payable:


• having a period of account less than or more than 12 months in length; and


• having one or more 51% group companies


• being a member of a group


g. explain and illustrate how losses may be used effectively by a company or group;


h. calculate the taxable total profit and the tax payable or repayable for companies including the computation of double tax relief where appropriate.


i. identify the key features of the self-assessment system for companies, determine due dates for returns, payments and payments on account, and calculate the interest and penalties due for late submissions of returns, incorrect returns and late or incorrect payments of tax.

VAT and stamp taxes


Students will be able to calculate the amount of VAT owed by or owed to businesses.


In the assessment, students may be required to:


a. explain the VAT consequences of property transactions


b. explain the VAT consequences of group registration for VAT;


c. explain the VAT consequences of the option to tax


d. explain and calculate the VAT consequences of the capital goods scheme


e. calculate the VAT due to or from HM Revenue & Customs for both wholly taxable and partially exempt traders


f. explain the VAT consequences of imports and exports of goods and services to and from VAT registered and non-VAT registered persons within and outside the UK


g. understand the classification of supplies and the distinction between goods and services


h. identify and explain the differing VAT treatment of single and multiple supplies


i. identify common situations in which a liability to UK land and stamp taxes, Stamp Duty Reserve Tax, and Stamp Duty arises


j. Identify situations where there is an exemption from stamp taxes.


k. calculate the amount of stamp taxes due in straightforward transactions.

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 Coursework 15.00
2 Coursework 15.00
3 Exam 70.00

Module Catalogue generated from SITS CUT-OFF: 6/6/2020 10:36:44 PM