The course will examine the main problems presented by systems of business taxation. The focus will be on the UK law, but the underlying issues are of general relevance and the experience of other countries will be drawn upon where necessary. Topics to be covered comprise the relationship between Corporation Tax, Income Tax and Capital Gains Tax; the different methods of taxing companies and shareholders; the definition of income and the role of accounting practice; the deductibility of expenses, capital allowances and losses from income; the loan relationship rules; the taxation of corporate groups and private equity; tax avoidance and anti-avoidance rules.
Learning Outcomes
By the end of the module student should be able to:
Appreciate the basic structure of UK taxation on business activities.
Understand in outline how businesses might structure their operations so as to minimise their tax burdens, and the differing views on what is acceptable in this regard.
Contrast the position of sole traders, partnerships, companies and groups of companies.
Discuss the interaction of law and accountancy in relation to the calculation of taxable income.
Appreciate the essentials of deductibility of expenses from income and perform a highly simplified calculation accordingly.
Discuss topical issues relating to the taxation of private equity and tax avoidance.
Understand the VAT, stamp taxes and other liabilities likely to arise on a simple real estate transaction.
Understand the principle and practical operation of anti-avoidance legislation.
