NANYANG TECHNOLOGICAL UNIVERSITY NANYANG BUSINESS SCHOOL AA305 PRINCIPLES OF TAXATION SEMESTER /04

Transcription

1 NANYANG TECHNOLOGICAL UNIVERSITY NANYANG BUSINESS SCHOOL AA305 PRINCIPLES OF TAXATION SEMESTER 1 003/04 COURSE DESCRIPTION AND SCOPE This course focuses on the two principal taxes in Singapore income tax and the Goods and Services Tax (GST). Both these taxes account for at least 75% of the government s annual operating revenue, which are to finance government expenditure such as education, public housing, economic infrastructure, health care and national security. The objectives of the course are three-fold: 1. that students understand and have a working knowledge of the key concepts, principles and applications of the tax law the Compliance objective;. that students recognise the importance of taxation in decision making process by businesses and individuals and that such tax costs could be controlled through legitimate tax planning exercises - the Planning objective; and 3. that students understand and appreciate the influence of fiscal, economic, political, social and equity considerations on the development of tax laws - the Policy objective. METHOD OF INSTRUCTION The method of instruction will be by lectures/seminars. There will be two weekly sessions of two-hour duration each. The course will commence in Week 1 for groups S3, S4, S7 and S8 and there will be only one session that week. For groups S1, S, S5 and S6, classes will commence in week as all classes scheduled for Monday July and Wednesday July 3 have to be cancelled for the various students activities. Students should take note of the date for the first for their groups, as shown below: Group Number Time-slot / (Seminar Room Number) Date of 1 st Seminar session S1 Mon 1.30pm (S3-SR6) Wed.30pm (S3-SR1) 8 July 003 S Mon 1.30pm (S3-SR7) Wed.30pm (S3-SR) 8 July 003 S3 Tue 1.30pm (S3-SR) Thur 8.30am (S3-SR4) July 003 S4 Tue 1.30pm (S3-SR3) Thur 8.30am (S3-SR6) July 003 S5 Mon.30pm (S3-SR6) Wed 4.30pm (S3-SR1) 8 July 003 S6 Mon.30pm (S3-SR7) Wed 4.30pm (S3-SR) 8 July 003 S7 Tue 4.30pm (S3-SR) Thur 10.30am (S3-SR4) July 003 S8 Tue 4.30pm (S3-SR3) Thur 10.30am (S3-SR6) July 003 ATan / June 003 AA305/ Page 1

2 PROPOSED COURSE SCHEDULE The following schedule lists the various topics that will be covered during the course and the number of s for each topic. This schedule serves as a guide as four instructors will conduct the course independently. Each course instructor will post his course outline giving details of the weekly topics and the required readings on his Blackboard course site. Students should check their respective course site on Blackboard. INTRODUCTION AND CONCEPTUAL FRAMEWORK Role and importance of tax in decision-making Overview of Singapore tax system and policy Legislative framework INCOME TAX SYSTEM Structure of Income Tax Act Key income tax concepts Charging section Determining chargeable income and tax liability INCOME 3 Distinction between income and capital General source rules Meaning of received in Singapore from outside Singapore Exemptions INCOME FROM TRADE, BUSINESS OR PROFESSION Forms of business Determining existence of trade - Badges of trade Source of trade Significance of carrying on a trade Taxation of foreign enterprise Concept of Permanent establishment Independent agent TAXATION OF OTHER INCOME Dividends Interest Rent Royalties ATan / June 003 AA305/ Page

3 Deeming provisions and withholding tax Other gains under sec 10(1)(g) DEDUCTIONS Revenue versus capital expenditure General deduction formula Prohibitions Special and further deductions CAPITAL ALLOWANCES Industrial building allowances Capital allowances for plant and machinery Writing down allowances for approved intellectual property rights Related party transfers TAX ADMINISTRATION 1 Returns Estimated chargeable income Assessments Collection and repayment of tax Objections Appeals Offences and penalties Powers of CIT DISTRIBUTION OF CORPORATE PROFITS Imputation and one-tier systems UNABSORBED CAPITAL ALLOWANCES, BUSINESS LOSSES AND DONATIONS Business continuity test Shareholders continuity test Group relief TAXATION OF INDIVIDUALS Tax residence Income from self-employment Employment income Exemption Personal reliefs and rebates ATan / June 003 AA305/ Page 3

4 Singaporeans working overseas Non-resident employees working in Singapore RELIEF FROM DOUBLE TAXATION General methods for relieving double taxation Specific reliefs available in Singapore * Under domestic laws * Under the double taxation agreements Treatment of foreign dividends GOODS AND SERVICES TAX Nature and scope of GST Types of supplies Input and output taxes Operation of the credit mechanism Registration and other administrative aspects Interaction with income tax REVIEW TOTAL SEMESTER SESSIONS 4 STATUTES 1. Income Tax Act, Cap 134. The Goods and Services Tax Act, Cap 117A, 001 Ed. 3. The Goods and Services Tax (General) Regulations, Cap 117A, Rg 1 Items (1) and () are available for on-line viewing at the Attorney-General Chamber s Singapore Statutes On-line website: Students are expected to read the tax laws and are encouraged to buy the statutes. The statutes can be bought from the Singapore National Printers Ltd. RECOMMENDED TEXT AND OTHER REFERENCES Students should check with their course instructor for the recommended text and other reading materials Some instructors will be recommending the Singapore Master Tax Guide Handbook, CCH Asia Pte Ltd, 003 (Call no: HJ477.S617). ATan / June 003 AA305/ Page 4

5 COURSE ASSESSMENT The weightage for the various components is as follows: Continuous assessment Class participation 10% Group presentation 15% 3 Quizzes (each quiz will be 5%) 15% 40% Final examination (½ hour, close book) 60% 100% Your course instructor will provide you with more details as to how you will be assessed for the class participation and the group presentation, and as to when the quizzes will be conducted. All students will sit for a common final examination, which will be a close-book examination and of ½-hour duration. The final examination will test students understanding and applications of tax concepts and principles learnt during the course. BLACKBOARD Each student will have access to two course sites on Blackboard: A common course site AA305 Principles of Taxation 003/04 Semester1 Main. This site will be used to disseminate any information relevant to all students registered for this course; and A group-specific or instructor-specific course site. Your instructor will provide you with more details. TEACHING STAFF Office Room No. DID Address A/P Angela Tan (co-ordinator) B3A apnchua@ntu.edu.sg A/P Moira Khaw B1C apgtan@ntu.edu.sg Ast/P Tan How Teck B1A atanht@ntu.edu.sg Ast/P Poh Eng Hin 1C aehpoh@ntu.edu.sg ATan / June 003 AA305/ Page 5