01
The indicative module outline is as follows:
Semester 2
Mandatory
Specialisation
Taxation
6
ECTS Credits
39
Total Teaching Hours
English
Language
None
Prerequisites
No
Open to Erasmus
Module Description
This module provides a systematic and applied introduction to the principles and practice of taxation, according to the International Financial Reporting Standards (IAS 12 Income Taxes) equipping students with the conceptual foundations and technical competence necessary to understand, compute, and critically evaluate the tax obligations of individuals and corporate entities. A central theme of the module is the relationship between accounting profit and taxable income, with students developing competence in computing current and deferred tax liabilities in accordance with IAS 12. Ethical dimensions of taxation are integrated throughout, encouraging students to critically reflect on the social responsibilities of taxpayers and the role of tax in promoting fairness and sustainability. By combining technical precision with critical analysis, the module prepares students for professional tax practice, further academic study, and engagement with contemporary debates in tax policy and administration.
Learning Outcomes
Upon successful completion, students will be able to:
- Explain the theoretical foundations of taxation, including the objectives of tax systems, the principles of good taxation, the role of taxation in fiscal policy, and the structure and administration of major tax categories including personal income tax, corporate income tax, capital gains tax, and value added tax.
- Compute the tax liability of individuals and corporate entities, applying the relevant rules for the determination of taxable income, allowable deductions, tax credits, and reliefs, and reconciling accounting profit with taxable profit in accordance with applicable tax legislation.
- Apply IAS 12 to account for current and deferred taxation in the financial statements, identify and measure temporary differences arising from the recognition of assets and liabilities, and prepare the related disclosures required under IFRS.
- Evaluate tax planning strategies and distinguish between acceptable tax mitigation, aggressive tax avoidance, and tax evasion, critically assessing the role of anti-avoidance legislation, judicial doctrines, and general anti-abuse rules in constraining tax planning behaviour.
- Analyse the key principles of international taxation, including the concepts of residence and source, double taxation relief, transfer pricing rules, and the OECD BEPS framework, and assess their implications for the tax planning and reporting obligations of multinational enterprises.
- Critically evaluate contemporary issues in tax policy and practice, including the taxation of the digital economy, the role of tax transparency and country-by-country reporting, the ethics of corporate tax behaviour, and the contribution of taxation to sustainability and social equity objectives.
Module Outline
12 thematic units across the semester.
02
Foundations of Taxation: The objectives and functions of taxation, classification of taxes, structure of tax systems across jurisdictions.
03
Personal Income Tax: Scope and structure of personal income tax, determination of taxable income, employment income, self-employment income, investment income and dividends, tax-free allowances and personal allowance tapering, personal deductions and reliefs, tax rates and bands for non-savings, savings, and dividend income, computation of individual tax liability, interaction between income tax and other taxes, with application to case studies.
04
Employment Taxation and Benefits in Kind: Distinction between employment and self-employment and its tax implications, taxable benefits, employee share schemes, tax treatment of expenses and reimbursements, with application to case studies.
05
National Insurance Contributions and Capital Gains Tax: Structure and scope of National Insurance Contributions, primary and secondary contributions for employees and employers, scope and principles of capital gains taxation, chargeable assets and chargeable disposals, computation of chargeable gains and allowable losses, exemptions and reliefs, with application to case studies.
06
Inheritance Tax and Wealth Transfer Taxation: Scope and principles of inheritance tax, chargeable transfers and potentially exempt transfers, inheritance tax planning strategies, and the treatment of trusts in the context of inheritance tax, nature and types of trust for tax purposes, with application to case studies.
07
Corporate Income Tax, Business Structures and Incorporation Decisions: Scope of corporate taxation, distinction between accounting profit and taxable profit, allowable and disallowable expenditure, capital allowances including annual investment allowance and writing down allowances, treatment of trading losses and their carry-back and carry-forward, tax implications of operating as a sole trader, partnership, limited liability partnership, and company, tax implications of incorporation including the transfer of a business to a company and the associated reliefs, with application to case studies.
08
Pension Contributions and Tax Relief: The types of registered pension scheme, tax relief on employee and employer pension contributions, the annual allowance and the tapered annual allowance, carry-forward of unused annual allowance, the lifetime allowance and its recent abolition, the tax treatment of pension income in retirement, and the use of pension contributions as a tax planning tool for both individuals and owner-managed businesses.
09
Deferred Taxation and IAS 12: Scope of deferred taxation, temporary differences and permanent differences, the liability method under IAS 12, recognition and measurement of deferred tax assets and liabilities, the treatment of unused tax losses and tax credits, the offset of deferred tax assets and liabilities, and the preparation of deferred tax disclosures in financial statements, with application to case studies.
10
Value Added Tax: Scope and mechanics of value added tax, taxable supplies and exempt supplies, the standard rate, reduced rate, VAT return, partial exemption, special VAT cases, with application to case studies.
11
Property Taxes and Special Contribution: Scope and mechanics of tax on imovable property, residential and non-residential rates, reliefs and exemptions, gains and losses from the disposal of shares, special contributions (Social cohesion fund contribution), with application to case studies.
12
Tax Planning, Avoidance, and Evasion and Tax Compliance: Distinction between tax planning, tax avoidance, and tax evasion, specific anti-avoidance provisions, ethical, and professional conduct dimensions of aggressive tax planning, administration of the tax system, self-assessment for individuals and companies, filing deadlines and payment dates, penalties for errors and failure to notify, tax disputes, with application to case studies.
Assessment
Description of the assessment process
Assessment Language, Assessment Methods, Formative or Summative, Multiple Choice Test, Short Answer Questions, Essay Development Questions, Problem Solving, Written Assignment, Report/Report, Oral Examination, Public Presentation, Laboratory Paper, Clinical Patient Examination, Artistic Interpretation, Other/Other
Explicitly defined assessment criteria and if and where they are accessible by students are mentioned.
The module assessment language is in English and students are expected to exhibit the required level of proficiency.
The assessment of the course consists of:
Midterm Exam (40%, problem solving)
Final exam (60%, problem solving)
The evaluation criteria across modes of assessment include the following:
Demonstration of key knowledge related to the content of course
Demonstration of an ability to apply the knowledge in a given problem or case study
Critical ability evident in applying appropriate methods/knowledge in a given case and/or developing theory-based and literature based arguments.
Structure and presentation
Use of English language
More detailed assessment criteria will be provided to you in the module handbook document or posted on the course webpage, if deemed necessary.
Suggested Bibliography
- Carnes, G. A., & Youngberg, S. (2025). Fundamentals of Taxation for Individuals and Business Entities, with eBook Access Code: A Practical Approach. John Wiley & Sons.
- Lang, M., Pistone, P., Schuch, J., Staringer, C., Rust, A., Kofler, G., & Spies, K. (Eds.). (2024). Introduction to European tax law on direct taxation. Spiramus Press Ltd.
- Sarmento, J. M. (2023). Taxation in Finance and Accounting. Publisher: Springer International Publishing, 82-142.
- Other library sources, including journal articles accessible through the Library, as assigned by the instructor.