COMMUNITY COLLEGE OF CITY UNIVERSITY CITY UNIVERSITY OF HONG KONG. Information on a Course offered by Division of Business

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1 COMMUNITY COLLEGE OF CITY UNIVERSITY CITY UNIVERSITY OF HONG KONG Information on a Course offered by Division of Business Course Title: (English) Taxation (Chinese) Course Code: BUS20284 Credit Units: 3 Level: A2 Medium of Instruction: English Pre-requisites: Nil Pre-cursors: Nil Equivalent Courses: Exclusive Courses: Course Duration: CM20254 Taxation I,CM20257 Taxation II and CM20284 Taxation One Semester Course Aims: This course aims to: 1. Provide students with a firm foundation in their understanding of the Hong Kong tax system, including property tax, salaries tax, profits tax, personal assessment and tax administration. 2. Impart students with a thorough knowledge of the principles of taxation and of the current law and practice. 3. Develop students with a fundamental knowledge of tax compliance and planning. Course Intended Learning Outcomes (CILOs) Upon successful completion of this course, students should be able to: 1. Describe the principles and concepts of Hong Kong taxation system. 2. Describe and explain the treatment of different types of tax in Hong Kong. 3. Apply tax principles to compute the tax liabilities for individuals, partnerships and corporations in Hong Kong. 4. Interpret and apply tax statutes and tax rules in tax problems. 5. Communicate and present effectively in a discussion on tax compliance. 6. Evaluate legal arguments in tax cases and present one s own arguments with cases to support them with reasons by way of written reports and oral presentations 1

2 Alignment of the CILOs with the Programme Intended Learning Outcomes (PILOs) of Associate of Business Administration (Accountancy): Programme Intended Learning Outcomes CILOs (Please if the CILO(s) is/are aligned with the PILO (PILOs) I. Apply broad-based business knowledge and problem solving skills to a wide range of issues II. Apply the principles, knowledge and skills of accountancy in academic and work situations to produce quality outputs III. Apply the theories, procedures and skills at professional level of audit and assurance, financial reporting, taxation and legal framework to business organisations in balancing the competing interests of various stakeholders IV. Apply interpersonal and communication skills, in English and Chinese, and generic skills like information technology, management, evaluation, quantitative and analytical reasoning, and the skills in the ability to learn how to learn in diverse environments V. Examine the major socio-political, legal, cultural and economic issues affecting accountancy in the local, national and international contexts VI. Relate the major ideas in arts and humanities, science and technology to their own area of study Keyword Syllabus: (a brief description of the syllabus of the course) 2 General concept of Hong Kong taxation system Characteristics; Source of tax law; Hong Kong income tax system Structure and functions of IRD, BIR and BOR; Other powers of CIR; Official secrecy; Compliance obligations and rights of taxpayers Property Tax Scope of charge; Ownership; Exemption and relief; Assessable value; Net assessable value; Property tax liability; Provisional property tax Salaries Tax Scope of Charge & Source of Income Scope of charge; Sources of income from employment, office and pension; Exclusion of employment income; Seaman and aircrew; Hong Kong Government Employees; Specific exemptions Salaries Tax Assessable Income Assessable income; Fringe benefit; Housing benefit and share option; Assessability of lump sum payments; Relating back of an assessable lump sum payment

3 Salaries Tax Computation of Net Chargeable Income Net assessable income; Allowable and disallowable expenses; Depreciation allowance for capital expenditure; Loss treatment; Net chargeable income; Approved charitable donations; Personal Allowances; Provisional tax Profits Tax Scope and source of profit Scope of charge; Badges of trade; Deemed trading receipts; Sources of profits; Excluded Income Profit Tax Computation of assessable profits Calculation of assessable profits; Distinction between capital and revenue; income receipts and expenditures; allowed payments; Other specific deductions; Non-allowable deductions; Post-cessation receipts and payments; Computation pro forma of profits tax liability Profit Tax Other issues Basis period of assessment; Normal or continuing basis of assessment; Commencement of business; Cessation of business; Change of accounting date; loss relief; Ascertainment of losses; Treatment of losses; Right of objection Partnership Profits tax assessment of a partnership; Computation of partnership profit and loss; Allocation of partnership profit and loss Depreciation Allowance Plant and machinery Plant and machinery; Entitlement to depreciation allowance; Definition of plant and machinery Qualifying expenditure; The pooling system; Initial allowance and annual allowance; Balancing allowance and balancing charge; Hire-purchase; Private use and changes in ownership Depreciation Allowance Industrial & commercial building Industrial and commercial allowance; Qualifying trades, buildings or structures expenditure and persons; Initial and annual allowance; Balancing allowance and charge; Allowances available after the sale of building Personal Assessment Election for personal assessment; Computation of tax under personal assessment Administration of Taxes Powers of the IRD; Taxpayers obligation; Notices of assessment; Payment, Recovery & repayment of tax; Offences committed and resultant penalties Teaching and Learning Activities (TLAs): (designed to facilitate students achievement of the CILOs) a. Lectures 2 hours Students learn concepts and theories of Hong Kong tax system, tax legislations, tax related governmental pronouncements, tax cases and practical examples through various structured and unstructured teaching activities such as lecturer s explanation and demonstration using power points presentation, paper handouts, in class white-board illustrations, role-play demonstrations, or tax case studies. Occasionally quiz, neighborhood-discussions, impromptu prompts by lecturers, online or video broadcasts, guest speakers or other appropriate teaching resources are organized. b. Tutorials 1 hour Students learn concepts and applications of tax rules by solving tutorial problems, through responding to questions from peers and tutors on tutorial solution presented, by doing class exercises, and through taking part in small group discussions. 3

4 Teaching Schedule: Lecture (hr/week): 2 Tutorial (hr/week): 1 Other (please specify) (hr/week): Assessment Tasks/Activities: (designed to assess how well the students achieve the CILOs) Type of assessment tasks/activities % Brief Description of assessment tasks/ activities i. Examination Long questions assess students (MC questions understanding of theories represent not more than 30% of the total ability to apply concepts and rules to tax problems and case scenarios and examination marks) ability to communicate solutions effectively 2. Short and MC questions assess students understanding of concept and/or simple applications thereof ii. Mid-Term Test 15 This is a 1.5 hours test with long and short questions to assess students progression on the understanding and the application of key tax ordinances and rules in different cases scenarios iii. Tutorial Participation This is a continuous assessment carried out throughout the duration of the semester in laboratory sessions, tutorial classes, and lectures. 2. Students are individually assessed on the extent (frequency, quantity) and quality (proactive, nature of solutions or questions raised) of taking part in structured and unstructured learning activities which may include Split group discussion Whole class plenary discussion Written and verbal presentation of solutions to tutorial problems. feedbacks to peers responses to comments from peers and tutor iv. Class Exercises 5 These are impromptu in class quiz and/or MC questions to assess students progress and their understanding of key concepts, tax ordinances and rules. Assessment Schedule (on the basis of Assessment Tasks/ Activities identified above) Examination (%): 70 Duration (Hrs): 3 Hrs Coursework (%): 30 Participation (%): 10 Grading Mode: Standard Alignment of TLAs and Assessment Tasks/Activities with the CILOs: TLAs (Please if the TLA(s) is/are aligned with the CILO CILOs 1 Describe the principles and concepts of Hong Kong taxation system. 2 Describe and explain the treatment of different types of tax in Hong Kong. Assessment (Please if the Assessment(s) is/are aligned with the CILO a. b. i. ii. iii. iv. 4

5 3 Apply tax principles to compute the tax liabilities for individuals, partnerships and corporations in Hong Kong. 4 Interpret and apply tax statutes and tax rules in tax problems. 5 Communicate and present effectively in a discussion on tax compliance. 6 Evaluate legal arguments in tax cases and present one s own arguments with cases to support them with reasons by way of written reports and oral presentations 5