The aim of this module is to develop an understanding of the operation of Income Tax (IT) and Value Added Tax (VAT) in Ireland and to demonstrate the effect of these taxes on individuals and business entities. Consideration is also given to the calculation and administration of local property tax.
The module is primarily concerned with the legislative provisions that currently apply. While emphasis is placed on the calculation of liabilities, students are also exposed to tax policy and criteria by which tax measures may be evaluated.
Theoretical Framework of Taxation
- Historical development of taxation in Ireland, role of taxation in the economy, classification of taxes
- Desirable characteristics of taxation - equity, efficiency and simplicity
- Impact of the EU on the Irish tax system
Income Tax
- The schedular system, the scope of income tax, PRSI and universal social charge, exempt and relieved sources of income, calculation of liability, application of reliefs, charges and tax credits available to individuals and married couples.
- Residence, ordinary residence and domicile and the territorial scope of IT
- Administrative arrangements and the self-assessment system including Revenue Online Service (ROS)
- Taxation of business profits - badges of trade, basis of assessment under Cases I and II (including commencement and cessation rules), tax adjusted profit calculations, capital allowances, partnerships and loss relief
- Taxation of investment income – interest, dividends, rental income
- Taxation of employment income - the PAYE system, benefits in kind, allowable expenses, taxation of termination payments
Local property tax
- Scope and exemptions
- Administration, payment and deferral
- Valuation and computation
VAT
- Scope of VAT, rates which apply, exempt activities
- Administration of VAT, including basis of accounting and payment and filing requirements
- Circumstances in which registration is required, voluntary registration
- VAT on international transactions – treatment of intra-community supplies and acquisitions and exports and imports
- Calculation of basic VAT liabilities and non-deductible inputs
Case law and statutory provisions relating to the above areas are addressed where relevant
Teaching and learning will involve formal lectures, practical computational exercises and class / group discussion on a number of scenarios that present scope for problem solving. The lectures will also allow for class discussion on the merit of certain Irish tax measures. Students may also engage in self-based learning by using recommended material from the Irish Tax Institute. In-class assessments may be used to facilitate assessment of student performance and feedback.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 80 |
| Other Assessment(s) | 20 |