Module Title:Taxation II in the Accounting Degree
Credits: 10
NFQ Level:8
Module Delivered In 1 programme(s)
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 aim of this module is to build on some of the taxes introduced in Year 2 –Income Tax, and Capital Gains Tax and to introduce students to Corporation Tax including some advanced issues. Students will learn to compare and evaluate the tax effects of different courses of action and be able to communicate and report findings to clients.
Learning Outcomes
On successful completion of this module the learner should be able to:
LO1 Write clear reports advising taxpayers of their options to minimize or defer their CGT liability by claiming available reliefs. List the conditions of the reliefs for the taxpayer and how it applies to their case. Calculate the tax saved by claiming the reliefs and advice the client of any future implications.
LO2 Calculate the Corporation tax liability for an Irish resident company with various incomes.
LO3 Apply the various loss rules, and list the order in which the losses must be used. Allocate a loss including trade losses, excess Case V capital allowances and CGT losses within a company and within a group structure. Define groups for the purpose of losses, intra-payments and CGT.
LO4 Compare the taxation effects of different business options- sole trader versus limited company.
LO5 Calculate the income tax liability for married couples, and seperated coulples using all of the assessment methods available. Calculate the tax liability for partnerships, apportioning profits, losses, salaries, interest and capital allowances.
LO6 Define the tax residence status of an individual and a company, list the tax implications of that status, and calculate that individual’s/or company’s tax liability, after claiming appropriate reliefs. Explain the principles of double taxation and the various reliefs available. Interpret the UK/Irish treaty at a basic level.
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.
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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. Capital Gains Tax -Shares (5%)
• Identification of holdings. First in first out rules. • Treatment of shares issued under a rights issue, and a bonus issue. • Acquisition within four weeks of disposal. Disposal within four weeks of acquisition.
CGT-Reliefs- (20%)
• Retirement Relief –Family relief, third party relief, and family company. • Transfer of a business to company status. • Principal Private Residence –including business portion, development value. • Transfer of a site to a child. • Entrepreneurial Relief -Basic level - calculation only.
2. Corporation Tax -Close Companies (8)%)
• Definition of a Close Company • Sections 436 Expense payments to shareholders, • Section 437 Excessive Interest • Section 438 Loans to Directors • Close Company Surcharge Calculation • BIK’s, Gifts, Overvalue of assets sold to company or purchase of Assets at undervalue
Tax Residence of Companies (8%)
• Company tax residence. Central management & control. Tax implications re residence status of the company. • The tax implications for an Irish company trading abroad through a branch or subsidiary. • The tax implications of a non-resident Irish company trading in Ireland. • The concept of a permanent establishment. • Double Taxation Relief. Credit relief. Exemption. Deduction. UK Irish Treaty.
Loss Relief (8%)
• Trade losses. Value based claim. Trade charges. • Case V losses. Excess capital allowances. • Capital losses. • Restrictions on loss relief due to late filing.
Group relief (8%)
• Meaning of groups for losses and for capital gains. • Group Relief for losses. • Restriction of loss relief. Co-terminus periods. Late filing of returns • Intra group payments. • Intra group transfer of assets
3. INCOME TAX -Tax Residence of Individuals (12%)
Tax Residence of individuals • Residence, ordinary residence and domicile. • Tax implications of the residence status of individuals-(Income & CGT). • Split Year Relief. • Irish-UK Treaty re tax treatment of trading income, rents, wages, pensions, interest and dividends. • Double tax relief. Exemption. Deduction. Credit relief. • Double tax relief. Exemption. Deduction. Credit relief. • The concept of a permanent establishment.
Incorporation (5%)
• The tax implications of incorporating an existing business. • Cessation. Transfer of a business to a company. • Compare tax and business consequences of operating as a sole trader/partner or as a company.
Partnerships • Computation of tax liabilities of partners, • Apportionment of profits, or losses • Interest on capital, partners salaries • Joining and leaving an existing partnership
Taxation of Married Couples -(7%)
• Single Assessment, Separate Assessment, Joint assessment • Year of Marriage, Year of Death • Taxation options for separated couples under Sections 1025, and 1026.
4. Administration, Procedures & Ethics (7%)
• Revenue Online Service • Revenue Website • Revenue Audits. Revenue Powers. Charter of rights. • Sources of Revenue Law- tax legislation, tax cases, revenue practice, EU Directives, and international tax treaties. • Tax avoidance. Tax evasion. • The application of Code of Ethics for Accountants to Tax work. 6%
CAT (5%)
Gift. Inheritance. Thresholds. Calculation of tax. Agricultural Relief. Business Relief.
Assessment Breakdown%
Continuous Assessment30.00%
End of Module Formal Examination70.00%
Continuous Assessment
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Written Report Write a report advising clients of their options on how to minimise CGT liabilities. 1 10.00 Week 9
Open-book Examination Class test to encourage revision of material covered in Term 1 and to give exam practice for Finals and professional exams. 2,3,6 10.00 Week 19
Examination Class exam - 4,5,6 10.00 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
Total Hours 7.00
Workload: Part Time
Workload Type Frequency Average Weekly Learner Workload
Lecture Every Week 1.50
Independent Learning Time Every Week 4.50
Total Hours 6.00

Module Delivered In

Programme Code Programme Semester Delivery
CW_BBACT_B Bachelor of Arts (Honours) in Accounting 3 Mandatory