TAX 212: Introduction to Taxation 1

Learning Outcomes

After a successful completion of this course, student should be able to:

1. state the meaning of trade, business, profession, vocation and test of trade;
2. explain meaning of employment, differences between employment and engagement on contract;
3. describe the principles of residence and permanent establishment, income measurement;
4. compute adjustment of income for tax purposes;
5. explain the commencement and cessation rules of business; and

6. describe the computation of withholding tax and capital gain

Course Contents

Taxation Principles. Tax as a creation of law. Chargeability of tax. Income chargeable. Definition of Trade, Business, Profession, Vocation. Test of Trade, Definition of employment. Differences between employment and engagements on contract. Revenue Income/Expense, Capital Income/Expense. Principles of Residence and permanent establishment. Measurement of Income. Income Recognition and accounting fiscal year. Taxation of Income/Profit. Taxable income, Investment income and others. Allowable expenses. Qualifying Capital Expenditure. Capital Allowance. Non-Taxable income. Adjustment of income for tax purposes. Loss Relief. Change of Accounting date. Commencement rule and cessation rule of business. Withholding taxes, .Capital gains tax.