Module Details
Module Code: |
TAXS H2303 |
Module Title:
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Income Tax for the Accounting Degree
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Title:
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Income Tax
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Module Level:: |
7 |
Module Coordinator: |
Martin Meagher
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Module Author:: |
Mary Meehan
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Module Description: |
The course aims to give students a comprehensive and detailed knowledge of Income Tax from basics to advanced issues, including the Administration of Tax and the use of ROS in completing tax returns and making payments. This module will develop the students analytical skills in assessing the relevant income tax liabilities arising in various practical scenarios. It develops students' analytical skills by applying their knowledge and understanding to solving practical problems.
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Learning Outcomes |
On successful completion of this module the learner will be able to: |
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Learning Outcome Description |
LO1 |
Calculate the Income tax liabilities for individuals who have varied incomes and personal circumstances, including PAYE,PRSI, USC, interest and surcharges. |
LO2 |
Calculate the income tax liability for Individuals who earn Schedule E income and Calculate Net pay and deductions from pay. |
LO3 |
Calculate the income tax liability for married couples, and separated couples using all the assessment methods available, and for the various life stages. |
LO4 |
Define the tax residence status of an individual, apply the tax implications of that status and calculate the individual's tax liability, after claiming appropriate reliefs. |
Dependencies |
Module Recommendations
This is prior learning (or a practical skill) that is recommended before enrolment in this module.
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No recommendations listed |
Co-requisite Modules
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No Co-requisite modules listed |
Additional Requisite Information
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No Co Requisites listed
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Indicative Content |
Income Tax Administration & ROS
Outline the self-assessment system for the collection of tax and filing of Returns; Explain an individual's obligations under the Pay and File system; Implications of a late filing or non filing; Describe the appeals procedures as it applies to self -assessed individuals; Explain the main features of ROS (Revenue Online System) in the payment of tax and filing tax returns; Complete a Form 11 on ROS.
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The Income Tax Computation
Analysis of income, charges, personal reliefs, refundable and non-refundable tax credits. The tax bands-standard, lone parent, married couples, DIRT tax band and the interaction of the married tax band with the carer-credit. The concept of tax deducted at source, and tax relief granted at source.
Reliefs; Employed person taking care of an incapacitated individual, Permanent Health Insurance, Employment & Investment Incentive Scheme. Restriction of Certain Reliefs for High Income Earners.
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 Tax Credit, Earner Tax Credit, D.I.R.T., Medical Expenses, College fees. Tax Credits-refundable -PAYE, D.W.T, D.I.R.T. Calculation of PRSI and USC liabilities.
Pension Contributions and retirement annuities. Calculation of Income Tax due by or refundable to the taxpayer.
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Taxation of Investment & Rental Income for Individuals
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. Irish companies in receipt of bank deposit interest.
Case IV – Income from which Irish tax is deducted at source, and a catch –all. Covenants receivable, bank deposit interest, 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.
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Taxation of Employment Income
Definition of office and employment;
Employment versus Self-Employment;
Deductible expenses; 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, lunches and vouchers.
Termination Payments, Basic exemption, Increased exemption, Standard capital superannuation. Employee Share Schemes.
Taxation of social welfare payments under Schedule E.
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PAYE System
Explain the scope of the PAYE system. Calculate the tax liability under the PAYE's system given an individual's details regarding remuneration, B.I.K.'s, tax credits, and S.R.C.O.P. Adjustment of an individual's standard rate cut off point and tax credits of other incomes and reliefs. PRSI & USC. Calculate a wages slip using Excel. Determine and calculate PRSI for classes A1 and S1. Operation of PAYE. Registration as employer.
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Taxation of Married Couples and Civil Partners
Calculate the tax liability for a Married couple using each of the available assessment methods; Single Assessment; Separate Assessment; Joint assessment; Calculation of the tax liability for Married couples for the following situations - Year of Marriage; Taxation options for separated couples under Sections 1025, and 1026; Year of Death; Taxation of surviving spouse, civil partner in the Year of Death.
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Tax Residence of Individuals
Tax Residence of individuals: Determine the tax status of an individual regarding Residence, ordinary residence and domicile. Apply the tax implications of the residence status of individuals . Calculation of tax liabilities and claiming relevant reliefs such as Split Year Relief and SARP (Special Assignee Relief Programme). The Irish-UK Treaty re tax treatment of trading income, rents, wages, pensions, interest and dividends.
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Module Content & Assessment
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Assessment Breakdown | % |
Continuous Assessment | 20.00% |
End of Module Formal Examination | 80.00% |
AssessmentsFull Time
End of Module Formal Examination |
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SETU Carlow Campus reserves the right to alter the nature and timings of assessment
Module Workload
Workload: Full Time |
Workload Type |
Workload Category |
Contact Type |
Workload Description |
Frequency |
Average Weekly Learner Workload |
Hours |
Lecture |
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Contact |
No Description |
Every Week |
4.00 |
4 |
Independent Learning Time |
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Non Contact |
No Description |
Every Week |
8.00 |
8 |
Total Weekly Contact Hours |
4.00 |
Workload: Part Time |
Workload Type |
Workload Category |
Contact Type |
Workload Description |
Frequency |
Average Weekly Learner Workload |
Hours |
Lecture |
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Contact |
No Description |
Every Week |
2.00 |
2 |
Independent Learning Time |
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Non Contact |
No Description |
Every Week |
7.00 |
7 |
Total Weekly Contact Hours |
2.00 |
Module Resources
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Recommended Book Resources |
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Patrick Mulcahy. (2020), Irish Taxation: Law& Practise, 18th. 35, Irish Tax Institute, Dublin, p.900, [ISBN: 9781842605561].
| Supplementary Book Resources |
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David Fennell, David Shanahan. (2020), Taxation Summary Finance Act, 44th. 34, Irish Tax Institute, Dublin, p.564, [ISBN: 9781842605547].
| Supplementary Article/Paper Resources |
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'The Irish Tax Review'.
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'Accountancy Ireland'.
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'Accounting & Business'.
| Other Resources |
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www.revenue.ie, The Irish Revenue Website.
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www.taxireland.ie, The Irish Taxation Institute.
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www.irlgov.ie, Website of the Irish Government.
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