Module Title:Taxation 1 in Accounting Degree
Language of Instruction:English
Credits: 10
NFQ Level:7
Module Delivered In No Programmes
Teaching & Learning Strategies: Lectures - communication of knowledge and ideas from the lecturer to the student. Problem Solving Exercises - student will work as part of a team and will work together to resolve various tax scenarios. Class Discussion/Debate - Students will be encouraged to actively participate in the class sessions which will develop their analytical and communication skills. Self-Direct Independent Learning - the emphasis on independent learning will develop a strong and autonomous work and learning practices.
Module Aim: The course aims to give students a comprehensive and detailed knowledge of Income Tax, PAYE, Local Property Tax, Administration of Tax and a basic knowledge of Capital Gains Tax and VAT. This module will develop the students analytical skills in assessing the relevant liabilities arising from each category of tax and applying each tax in practical scenarios. It develops students' analytical skills by applying their knowledge and understanding to solving practical problems.
Learning Outcomes
On successful completion of this module the learner should be able to:
LO1 Calculate the Income tax liabilities for individuals who have varied incomes and personal circumstances, including LPT, PAYE,PRSI, USC, interest and surcharges.
LO2 Calculate the income tax liability for Individuals who earn Schedule E income.
LO3 Calculate the income tax liability of a self-employed individual.
LO4 Calculate the Capital Gains tax liability for an individual.
LO5 Explain the basic principles of VAT, and calculate VAT liabilities.
Pre-requisite learning
Module Recommendations

This is prior learning (or a practical skill) that is recommended before enrolment in this module.

No recommendations listed
Incompatible Modules
These are modules which have learning outcomes that are too similar to the learning outcomes of this module.
No incompatible modules listed
Co-requisite Modules
No Co-requisite modules listed
This is prior learning (or a practical skill) that is mandatory before enrolment in this module is allowed.
No requirements listed

Module Content & Assessment

Indicative Content
1-INCOME TAX - -Administration(3%)
• Self-Assessment System, Payment Dates and % of tax due, Filing of Tax Return - • Interest and surcharge penalties, • Tax Structure-Revenue Commissioners, Tax Inspectors, Collector General • Appeals Procedures • Capital and Revenue Taxes • Direct and Indirect taxation
The Income Tax Computation (12%)
• Analysis of income, charges, personal reliefs, refundable and non-refundable tax credits. The tax bands-standard, lone parent, married couples, DIRT. The concept of tax deducted at source, and tax relief granted at source. • Reliefs - Carers Allowance. Permanent Health Insurance. Employment & Investment Incentive Scheme- EIIS investment relief. Film Investment Relief. • Tax Credits Non-Refundable –Basic personal tax credits – Single, Married, Widowed, One-parent family. Additional credits for widows and lone parents in respect of qualifying children. Home carer’s tax credit. Incapacitated child’s tax credit. Age. Blind person. Employee. Medical Expenses. College fees. • Pension Contributions and retirement annuities. • Calculation of Income Tax due by or refundable to the taxpayer. • High Earners Restriction • PRSI, USC
Taxation of Investment Income for Individuals (8%)
• Case 111, Foreign Income and Income from which Irish tax is not deducted at source. Basis of Assessment. UK dividends. UK Interest. Government Security Interest. Credit Union Interest. Irish companies in receipt of bank deposit interest. • Case IV – Income from which Irish tax is not deducted at source, and a catch –all. Covenants receivable, bank deposit interest, special medium term and long-term savings accounts. DIRT tax credit. Increase in the standard rate tax band. Miscellaneous income. • Case V – Basis of Assessment, computation of rental profits, allowable, disallowable expenditure, premiums on short leases, rental losses, rent a room relief. Excess capital allowances. Treatment of rents paid to non-residents. • Schedule F – Basis of assessment, DWT, Irish companies in receipt of Irish dividend income from other Irish resident companies. Shares in lieu of dividends.
Schedule E Income (10%)
• Definition of office and employment; Deductible expenses • Employment versus Self-Employment • Round sum subsistence allowances. Revenue-approved mileage and subsistence rates. Reimbursement of motor expenses. • Benefits in kind for company cars, company vans, living accommodation, medical plans and preferential loans. Exempt BIK’s – Travel and lunches. • Termination Payments, Basic exemption, Increased exemption, Standard capital superannuation, Employee Share Schemes • Taxation of social welfare payments under Schedule E
PAYE System, PRSI & USC(3%)
• Operation of PAYE, Registration as employer • PRSI, USC • Calculate liability under the PAYE system. Payslip calculation
Taxation of Self-Employed Trades and Professions-Case 1, 11 (15%)
• The badges of Trade • Calculation of adjusted profits for tax purposes – add backs, deductions, allowable and disallowable expenditure. • Basis of assessment. Commencement, Cessation, & Change of accounting date. • Relief for pension contributions • Treatment of losses • Compute farming income on the income averaging basis, • Professional Fees withholding tax. Relevant contracts tax. • Self –Assessment. Return filing dates. Preliminary tax.
Capital Allowances (4%)
• Capital Allowances – Calculate Wear & Tear allowances, treatment of grants, compute balancing allowances & charges. Replacement option. Motor Cars – the relevant ceiling. Personal motor expenses. Industrial buildings.
Local Property Tax (3%)
• Scope of local property tax • Exemptions • Calculations
Corporation Tax (10%)
Principles and Scope. Self -Assessment system. Dates for filing and payment. Preliminary Tax. Dividends Witholding Tax. Obligation to deduct Income Tax from Payments. Calculate the corporation tax liability for a company with the following types of income , trading profits, professiona;l income, interest, dividends and rental income. The Layout of a Corporation Tax Computation. Adjusted Gains. Development Gains.Treatment of Trading Charges and Non Trading Charges. Meaning and significance of Accounting Periods. Calculation of Adjusted Profits . Capital Allowances. Corporation Tax Exemption for Start Up companies.
Capital Gains Tax (12%)
• Principles and scope. Meaning of disposal, chargeable assets, exempt assets. • CGT Computation – Time of disposal, application of market value, treatment of grants. Indexation. Losses. Monetary gains and losses. Part-disposals. • Wasting & Non-Wasting Chattels. Rules re development land. • Connected persons, married persons –transactions between spouses, assets passing on death. • Negligible value claims relief • Administration; returns & self-assessment. Rates & dates. • Principal Private Residence • Transfer of a site to a child.
3-Value Added Tax (10%)
• Describe the scope of VAT. • Explain how VAT is accounted for and administered. -The charge to VAT. The multi-stage nature of VAT. • Define a supply of goods, and services and the place of supply. • Registration –mandatory & voluntary • Explain how a person can de-register for VAT. • Records to be maintained. • List the information that must be included on a VAT invoice. • Explain the package and the two-thirds rules. • Multiple, Composite, Ancillary Supplies • Deductible and non-deductible VAT. Partial deduction. • Describe the relief that is available for bad debts. • Distinguish between the treatment of zero-rated and exempt supplies • Describe cash accounting and the invoice basis. • Annual accounting schemes • Compute the VAT payable, repayable for a vat period. • State the circumstances in which interest and penalties apply. • Group Registration. • Intra-Community supplies of goods and services
Computer Lab (10%)
Revenue Website. Revenue Online Service. PAYE Anytime.Tax Computation. Wage slip calculation.Capital Allowances Schedules. Using excel for reliefs, bands . formulas. IF, IF/OR, IF/AND, NESTEDIF
Assessment Breakdown%
Continuous Assessment30.00%
End of Module Formal Examination70.00%
Continuous Assessment
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Examination Preparation of an Income Tax Computation for clients with various incomes, credits and personal reliefs and various circumstances. AND/OR a selection of Multiple choice to encourage students to learn the individual tax rules. 1,2 10.00 Week 10
Presentation Students will research various tax rules in groups and develop spreadsheets and present to the class. 1,2,3,4 8.00 Week 20
Examination Class exam to encourage students to revise for finals and to give them exam practice. OR Open Book Exam - Tax practitioners consult legislation in preparing clients tax computations, advice and reports, this assessment is to prepare students for the work environment. 3,4,5 12.00 Week 27
No Project
No Practical
End of Module Formal Examination
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Formal Exam End-of-Semester Final Examination 1,2,3,4,5 70.00 End-of-Semester

ITCarlow reserves the right to alter the nature and timings of assessment


Module Workload

Workload: Full Time
Workload Type Frequency Average Weekly Learner Workload
Lecture Every Week 3.00
Independent Learning Time Every Week 4.00
Laboratory Every Week 0.50
Total Hours 7.50
Workload: Part Time
Workload Type Frequency Average Weekly Learner Workload
Lecture Every Week 1.50
Independent Learning Time Every Week 5.50
Total Hours 7.00