This module aims to provide students with a good working knowledge of Income Tax and related USC and PRSI. It aims to build on the introduction to this area given in the year 2 personal finance course and to provide students with the ability to compute an individual’s liability to Income Tax, USC and PRSI .
Introduction
Historical basis for the current tax system, the legislation and precedent forming its foundation, the relationship and importance of taxation in macroeconomic policy and a brief description of all the taxes. Distinction between tax evasion and tax avoidance.
Tax Administration
The system of Tax Administration, including Self Assessment, time limits and late filing penalties. The role and responsibilities of the Revenue Commissioners, Appeal Commissioners, Collector General and Inspector of Taxes including the role and duties of the professional accountant with regard to appeals, revenue audits and other compliance procedures.
Schedule D, E and F
Definition and distinction between income and capital, the basis for charging different types of income to tax including the rules of commencement and cessation under each of the schedules. Schedule D Case I,II,III,IV and V.The badges of trade and the allowability or otherwise of particular types of expenditure. The impact of losses on the tax liability. Treatment of partnerships.Schedule E income including benefits-in-kind and perquisites, Schedule F income including the impact of dividend withholding tax.
Tax Credits and Reliefs
An examination of a range of tax credits, reliefs, deductions and exemptions available to a taxpayer in the calculation of their liability to income tax.
PRSI and USC liabilities
The basis and calculation of PRSI and USC liabilities for employed and self employed individuals.
Taxation of married couples
The different basis of assessment for married and separated couples including their treatment for tax in the year of marriage, death and separation.Income tax treatment of couples in civil partnerships including their treatment in the year of registration as civil partners
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Other Assessment(s) | 30 |
| Formal Examination | 70 |