COURSE OUTLINE ACTP 312 Taxation Practice Semester Two, 2017
This course outline contains information specific to this paper. For more general information common to your papers, please refer to the COMMERCE_UG_2017: Commerce Undergraduate Students site on Blackboard. Paper Description and Aims This paper covers elements of the direct and indirect taxation of individuals and other entities in New Zealand. The content of the course has been specifically designed to meet the requirements of the Chartered Accountants Australia and New Zealand ( CAANZ ) to the extent that an applicant has sat and passed a tax paper as part of their degree or post graduate education, providing them with the assumed knowledge required by CAANZ. Learning Outcomes Upon successful completion of this paper, you should be able to: Research and analyse key tax concepts Evaluate tax case law Explain how New Zealand residents will be taxed in New Zealand on income earned outside New Zealand Explain how non-residents will be taxed in New Zealand on income derived from New Zealand sources Explain and contrast the manner in which different entities are taxed Apply tax concepts to particular situations Calculate taxable income and the taxation liability arising on taxable income Understand what may constitute a tax avoidance arrangement Explain the basic principles and policies of Goods and Services Tax ( GST ) in New Zealand Discuss how the critical concepts of GST work in theory and in practice Apply GST law and practice to general commercial situations Teaching Staff Paper Coordinator & Lecturer Name: Stephen Richards Office: Crowe Horwath - 44 York Place, Dunedin Email: stephen.richards@crowehorwath.co.nz Primary Tutor Name: Office: Email: Melissa Francis Crowe Horwath 44 York Place, Dunedin melissa.francis@crowehorwath.co.nz You should contact the Accountancy and Finance Department with all administrative enquiries about the paper, e.g. tutorial changes, or requests for late submission of assignments.
Class Representatives Class representatives are an important means of communication between students and staff. Contact details for your student class representatives can be found on the Blackboard page for this paper. Course Delivery Lecture Day/Time: Tuesday and Wednesday 4.00 pm to 4.50 pm Room: Burn 2 (Tuesday) Quad 2 (Wednesday) Tutorials/Time: Monday 4.00 pm to 4.50 pm Room T204 Monday 5.00 pm to 5.50 pm Room T101 Monday 6.00 pm to 6.50 pm Room T101 Tuesday 5.00 pm to 5.50 pm Room T105A Tuesday 6.00 pm to 6.50 pm Room T105A Open Forum Wednesday, 27 September, 6.00 pm to 6.50 pm, Burn 2 Students are expected to prepare for and attend all lectures and tutorial sessions to gain full benefit from the course. Every week students must attend: Two 50 minute lectures each semester week All five 50 minute tutorials spaced over the semester Refer to the lecture timetable above and the course calendar for times and topics. ACTP312 Lectures Lectures will present key conceptual material. Refer to the Course Calendar for lecture topics. Our lecturers are senior taxation specialists. Associated readings are provided. We note these are guides only and additional or other reading may be required by students to ensure that a full understanding of the relevant topic is obtained. It should be self-explanatory what chapters of the text book are relevant by reference to the Index of the nominated textbook. Lecture notes will be provided on Blackboard prior to the lectures being delivered. Lecture notes must be brought to each lecture as the slides are the basis for the material delivered. ACTP 312 Open Forum This is a facilitated discussion session for students to attend and work through issues they may have or questions they wish to ask following the term exam. This will allow students to attend a 50 minute session with the lecturer and/or tutor to discuss any matters that are unclear and to work through areas of difficulty or confusion. This will be held at a designated times. Refer to the timetable for details. Students will be able to ask questions in advance of this session either in person (before or after lectures) or by email.
ACTP312 Tutorials Tutorials will start in the week beginning 24 July 2017. You will be allocated to a tutorial and this will be available on E-vision. Any change request in relation to a tutorial stream is to be made through the Accountancy and Finance Department. This can be done from Wednesday 12 July to Friday 21 July between 11 am and 12 pm, and 2 pm to 4 pm in Room 3.01. These are interactive, collaborative sessions in which students attempt to cement concepts presented at lectures with their peers in a supportive environment. Our tutors are experienced taxation consultants, specializing in taxation practice. Please take advantage of their practical knowledge and come to tutorials prepared to ask questions about the tutorial questions or any matter covered in lectures which you may not be clear about. Course Learning Resources Texts The set text required is: New Zealand Taxation 2017, Principles, Cases and Questions () The recommended texts are: Foundations of New Zealand Taxation Law 2017 () New Zealand Taxation 2017, Casebook New Zealand Taxation Legislation 2017 Oher optional texts are: 2017 Master Tax Guide Blackboard https://blackboard.otago.ac.nz/ provides you with access to course materials, class notices, and resources. Blackboard is used to email the whole class so it is important that you check your student email and Blackboard regularly. Further information about student support, learning support and information, academic integrity and other University resources for students is available on the COMMERCE_UG_2017: Commerce Undergraduate Students site on Blackboard. Student Webmail We will use your student email account to email you information relevant to your programme. To forward your University email address to an email address that you use regularly: 1. Log into your StudentMail account (http://www.otago.ac.nz/smlanding/) using your student username and password. 2. Click the Cog button (top right corner). 3. Click on Mail under Your App Settings. 4. Under Accounts on left hand side, select Forwarding. 5. Under the Forwarding heading, type in the email address you want your email to be forwarded to. You can also choose to have a copy of these emails kept on your StudentMail account, so please check the box if you would like this. 6. Click the Save button.
Assessment All material presented is examinable (except where stated otherwise) by assignments, term exam and the final examination. Important assessment information such as due dates and times, content, guidelines and so on will be discussed at lectures and, where appropriate, detailed on Blackboard. Students are responsible for ensuring that they are aware of this information, keeping track of their own progress, and catching up on any missed classes. ACTP 312 Assessment Assignments These will start the second week of lectures with the first assignment due midday on 17 July. The assignments will each have questions totalling five marks. The questions will be multi-choice and loaded into Blackboard. These are quick fire assignments to test a student s knowledge and/or understanding throughout the course. If they are not completed on time, the marks will not be recorded as part of the final grade. There will be 11 assignments during the year and the total mark (1 mark per assignment) with the top 10/11 making up 10% of the final assessment mark. Assessment Assignments are generally due weekly by 12 pm on Monday. Please consult the Course Calendar for specific due dates and times. Late assignments will not be accepted nor marked. ACTP312 Tutorial Questions These will be posted on the ACTP 312 Blackboard in two parts. Each tutorial will be made up of multi-choice questions (Part A) and a short answer question (Part B). The multi choice section will be marked on Blackboard with grades available after submissions close. The short written answer question will be marked by fellow students during the tutorial session as the tutor works through the components of the answer. You must bring a copy of your short answer question to the tutorial with you. Questions will be discussed during the tutorial session including the written answer and multi choice questions. If a student does not attend a tutorial session, the written answer section cannot be marked and the student will receive no mark for this section. The tutor will not enter into any discussions as to the reason for a student s lack of attendance. The written answer section will not be marked other than at tutorials. A student can still receive marks for the multi-choice section. Five tutorials will be held during the semester, of which the top four marks will contribute towards your tutorial internal assessment grade. Tutorial Assignments are due by 12 pm on the Friday before Tutorials. Please consult the Course Calendar for specific due dates and times. Late tutorials will not be accepted nor marked. BOTH these activities should be prepared for by reviewing information detailed on Blackboard and completing any associated readings. ACTP312 Term Exam This will take place in Lecture 18 on 13 September. This will comprise 35 multi choice questions covering the course content up to Lecture 16. Lecture 17 will be a pre-term exam revision session. A make-up exam will be scheduled for any student who is unable to attend the terms test. ACTP312 Final Exam The Final Exam for the ACTP312 course will contain 65 multi-choice questions, and short written answer questions totalling 35 marks. All material covered in the course from lecture one onward will be examinable.
Assessment % final Notes grade Assessment Assignments 10% Best 10 of 11 Assignments counted (1% each) Tutorials 20% Best 4 of 5 Tutorials counted (5% each) Term Exam (50 minutes) 20% Final Exam (3 hours) 50% Course Requirements Terms Requirements There are no terms requirements in relation to the grade for the Term Exam or the Final Exam. However, a student that does not sit the Term Exam for ANY reason will be required to sit a makeup exam. A student will pass ACTP312 if they receive an overall grade of 50% or more. Assignment Submission Procedure Assessment Assignments and Tutorial Assignments are to be completed and submitted through Blackboard by the due time and day. A copy of the short written answer part of the Tutorial Assignment MUST be brought to your tutorial. Late Assignments Late Assessment Assignments and Tutorial Assignments will not be accepted nor marked. Assessment Assignments are generally due weekly by 12 pm on Monday. Tutorial Assignments are due by 12 pm on the Friday before Tutorials. Please consult the Course Calendar for specific due dates and times. Referencing Style and Style Guide For this paper the referencing style is Legal Citation. Style guides are available on the University Library website: http://www.otago.ac.nz/library/quicklinks/citation/index.html Course Calendar This calendar may change. Changes will be announced at lectures and be detailed on Blackboard. Lecture/ Tutorial Number Date Week Topic Points for Notes Readings L1 11 July 28 Introduction Course overview Assessable income Allowable deduction Taxable income Para 3.7 Chap 1 Para 9.2, 9.4
Lecture/ Tutorial Number Date Week Topic Points for Notes Readings L2 12 July 28 Income v Capital Assessable income Receipts - Capital - Windfall - Income Assessable Income Para 3.1, 3.2 Chap 11 A1 17 July 29 Assessment Assignment 1 DUE 12 pm 17 JULY L3 18 July 29 Residence - Individuals - Companies Source of income Individual - PPOA - Transitional residency Companies - Four tests Business income Contract Income Dividends Beneficiary income Para 3.3 Para 10.2 to 10.4 L4 19 July 29 Double Tax Agreements Potential for double tax DTA - Residence - Source - Right to tax Para 20.8 Chap 31 T 1 21 July 24, 25 July 29 30 Tutorial Assignment 1 - Residence - Source - DTA DUE 12 pm 21 JULY A2 24 July 30 Assessment Assignment 2 DUE 12 pm 24 JULY L5 25 July 30 Derivation of Income Annual income General derivation rule Allocation of income Gasparin case Warranties Other specific rules Para 13.2, 13.3 L6 26 July 30 Deductions Deductions - General permission - General Limitations Para 9.1, 9.2, 9.4 Para 12.1 to 12.4, 13.4 A3 31 July 31 Assessment Assignment 3 DUE 12 pm 31 July
Lecture/ Tutorial Date Week Topic Points for Notes Readings Number L7 1 August 31 Capital v Revenue Case law tests Para 9.4 L8 2 August 31 Depreciation Depreciable property Depreciation loss Depreciation recovery income Associated person restrictions Para 10.1, 10.2, 10.3.3, 10.4.1 to 10.4.4, 10.6, 10.7 T2 4 August 7,8 August 31 32 Tutorial Assignment 2 - Assessable income - Capital v Revenue - Derivation of Income DUE 12 pm 4 AUGUST A4 7 August 32 Assessment Assignment 4 DUE 12 pm 7 AUGUST L9 8 August 32 Trading stock Prepayments Consumable aids Trading stock - Valuation methods - Losing stock - Opening stock Chap 11 Chap 17 L10 9 August 32 Financial investments Financial Arrangements - Cash basis person - Straight Line - Base price adjustment Foreign Investment Funds - FDR - CV Para 8.1, 8.3, 8.4 to 8.8, 8.9, 20.5, 20.6 Para 36.1 to 36.5, 34.3 A5 14 August 33 Assessment Assignment 5 DUE 12 pm 14 AUGUST L11 15 August 33 Land Intention Other land taxing provisions Bright-line tests L12 16 August 33 Taxation of Individuals Employees Contractors Sole traders PAYE and provisional tax Para 5.3 Chap 18 Para 3.4.2, 6.3, 6.4 9.4.5 Para 13.3, 14.6, 38.3
Lecture/ Tutorial Number Date Week Topic Points for Notes Readings T3 18 August 21, 22 August 33 34 Tutorial Assignment 3 - Deductions - Taxable income DUE 12 pm 18 AUGUST A6 21 August 34 Assessment Assignment 6 DUE 12 pm 21 AUGUST L13 22 August 34 Taxation of Trusts Trustee income Beneficiary income Trust Classification Distributions Para 3.4.2, 16.4 Chap 22 L14 23 August 34 Taxation of Look-Through Companies Requirements Look-through treatment Disposal Revocation/wind up Para 15.6 Para 21.6 to 21.9 26 August to 3 September Mid Semester Break A7 4 September 36 Assessment Assignment 7 DUE 12 pm 4 September L15 5 September 36 Taxation of Partnerships and Limited Partnerships Look-through treatment Disposal Dissolution Para 16.2, 16.3 Para 21.1 to 21.5 L16 6 September 36 LP and LTC basis calculation Limitation rule Owner s basis L17 12 September 37 Revision Course to date L18 13 September 37 TERM EXAM T 4 15 September 18, 19 September 37 38 Tutorial Assignment 4 - Partnerships - Limited Partnerships - Owners Basis - Disposals/Dissolution DUE 12 pm 15 SEPTEMBER
Lecture/ Tutorial Number Date Week Topic Points for Notes Readings A8 18 September 38 Assessment Assignment 8 DUE 12 pm 18 SEPTEMBER L19 19 September 38 Taxation of standard companies Tax calculation Dividends - Associated person impact - Imputation credits Para 15.1 to 15.4 Para 20.1 to 20.10 L20 20 September 38 Company tax losses Continuity Commonality Use of losses Para 12.3, 12.5, 12.6 Chap 24 A9 25 September 39 Assessment Assignment 9 DUE 12 pm 25 SEPTEMBER L21 26 September 39 Fringe benefits Work related vehicle Interest free loans Discounted goods Para 3.5.3, 21.9, 21.12, 21.13 Chap 19 L22 27 September 39 Associated persons Individuals Trusts Companies Partnerships Look-through companies Tripartite test Para 5.3, 15.3, 21.3, 10.6.9, 22.7, 22.9 Para 8.2, 16.11, 18.2, 18.7, 19.28 OF 27 September 39 Open Forum Discussion of Term Exam T5 29 September 2, 3 October 39 40 Tutorial Assignment 5 - GST business sale - Associated persons DUE 12 pm 29 SEPTEMBER A10 2 October 40 Assessment Assignment 10 DUE 12 pm 2 OCTOBER
Lecture/ Tutorial Number Date Week Topic Points for Notes Readings L23 3 October 40 Income Tax - Recap Assessable income Allowable deductions Timing rules Net income Available losses Taxable income Taxation liability Payment of liability L24 4 October 40 GST - structure Supply - Taxable - Exempt - Non-taxable Value Consideration Time of supply Associated Supplies Registration Para 22.1 to 22.5, 22.7 Para 8.1 to 8.7, 8.14 A11 9 October 41 Assessment Assignment 11 DUE 12 pm 9 OCTOBER L25 10 October 41 GST - Zero-rating L26 11 October 41 GST - Apportionment Going concern Land Change of use Concurrent use Mixed use assets Para 22.6, 22.9 Para 8.8 to 8.10 Para 22.12 Para 8.13 Key L# = Lecture number A# = Assignment number T# = Tutorial number OF = Open Forum = Thomson Reuters New Zealand Taxation 2017, Principles, Cases & Questions = Foundations of New Zealand Taxation Law 2017 Lectures end Friday 13 October 2017 University Exam Period 18 October to 11 November 2017
Disclaimer While every effort is made to ensure that the information contained in this document is accurate, it is subject to change. Changes will be notified in class and via Blackboard. Students are encouraged to check Blackboard regularly. It is the student s responsibility to be informed.