ITC-Lingua Portal

Course Title

Taxation 1

Description

This module aims to introduce learners to Namibian Income Tax. It will deal with the tax framework and the basic principles thereof. It also involves the calculation of taxable income and tax payable, taking into consideration of different sources of income and the relevant allowable expenditure for individuals.

NQF Level

Level 6

Notional Hours

160

NQF Credits

16

Prerequisites

None

Standard Type (Core, fundamental, elective)

Fundamental

Learning Outcomes/Specific Outcomes

Upon successful completion of the course, learners will be able to:

·         Demonstrate an understanding of knowledge of tax administration in Namibia.

·         Identify the different taxes of Namibia.

·         Identify the tax framework in Namibia.

·         Discuss the principles underlying the tax system.

·         Discuss the difference between source and residence base.

·         Demonstrate an understanding of gross income.

·         Identify the special inclusions as provided by the Namibian Income Tax Act.

·         Identify exemptions according to the Act.

·         Calculate taxable income of individuals

·         Determine the tax payable on fringe benefits received by employees.

Course Content

Introduction & administration of the Namibian Tax System

·         Identify the different taxes levied by the Income tax Act (Namibia)

·         Identify the different taxes in Namibia

·         Demonstrate how taxable income and tax payable are calculated

·         Describe how the Income Tax Act is administered

·         Discuss the 4 principles of Income Tax

·         Discuss the reason for paying Income taxes

Gross Income & Special Inclusions

·         Understand the difference in the gross income definitions as used in Namibia.

·         Demonstrate a knowledge of the different requirements for gross income as per the Act

·         Interpret case law and apply to the different requirements.

·         Explain the concept “resident”

·         Demonstrate an understanding of the ordinary residency and physical presence tests and when to apply these tests.

·         Demonstrate an understanding in the difference in capital vs revenue income.

·         Interpret case law relevant to capital income.

·         Discuss the preamble for special inclusions.

·         Identify special inclusions as per the Income Tax Act

Exemptions

·         Identify amounts that are exempted from Income Tax

·         Apply the criteria to determine the applicable exemption

·         Demonstrate an understanding of the work by calculating a taxpayers’ income

Individuals

·         Discuss the general deductions applicable to individuals.

·         Calculate and discuss pension fund and retirement annuity fund contributions and the tax implication thereof.

·         Demonstrate an understanding of deductible medical expenses and applicable medical credits

·         Understand the difference in a deduction and a tax rebate.

·         Calculate the normal tax liability of an individual using the prescribed framework

·         Demonstrate an understanding of the tax implications with ante dated salaries.

·         Discuss the general deductions applicable to individuals.

·         Calculate and discuss pension fund and retirement annuity fund contributions and the tax implication thereof.

·         Demonstrate an understanding of deductible medical expenses and applicable medical credits

·         Understand the difference in a deduction and a tax rebate.

·         Calculate the normal tax liability of an individual using the prescribed framework

·         Demonstrate an understanding of the tax implications with ante dated salaries.

Employment & Fringe benefits

·         Apply the Income Tax Act to identify fringe benefits.

·         Discuss the tax implications of allowances

·         Discuss the tax implications of benefits.

·         Apply the Income Tax Act in terms of: Assets required for less than the market value; Use of sundry assets; Right of use of motor vehicle; Meals, refreshments and vouchers; Residential accommodation; Holiday accommodation; Free or cheap services; Low interest debts; Subsidies; Discharge of payment or obligation; Contribution to medical aid fund; Benefits in respect of insurance policies; Contributions by employer to retirement annuity funds.

Methods of Facilitating Learning

The course can be inter alia facilitated through the following learning activities:

·         Lectures

·         Assigned readings

·         Discussions (all learners are expected to participate)

·         Individual or group class presentations

·         Assignments and tests

·         Field work/ excursions

·         Case Studies

·         Simulations

·         Power point presentation

• Videos and audio recordings
• Guest lecturers

·         Peer to peer teaching

Assessment Strategies

The course will be assessed using a combination of Continuous Assessment and an end-of-semester examination. Continuous Assessment is made up of the following:

Continuous Assessment : 40%

·         Tests

·         Assignments/Projects

·         Exercises

·         Quizzes

·         Worksheets

·         Practical  exercises

Final Examinations: 60%

Time allocation per question paper: between 2 and 3 hours

·         The final examination will test the knowledge, understanding and skills outcomes in any given year on the course content covered.

·         The intention of the examination in its formulation is to avoid predictability and encourage students to prepare for all syllabus outcomes.

·         The level of complexity of a paper/s will be maintained consistently from year to year.

·         The intention of the examinations is to assess the following objectives:

Ø  Knowledge and Understanding

Ø  Application

Ø  Analysis

Ø  Evaluation

·         The examinations may include a range and balance of question types, such as multiple-choice questions, short-answer free response questions, open-ended questions and extended responses including essays. These will be determined by the Department in which the subject resides and with the approval of the Examinations Committee.

·         The demands of the examination in terms of the number and length of student responses required, the amount of reading time provided and the complexity of the questions will be appropriate for the time allocated for the examination.

Prescribed Textbooks

Clegg, D. (2016). Concise guide to Tax in Namibia (9^th Edn.). Cape Town: LexisNexis.

Hayes, J.A. (2017). Students’ guide to Namibian Income Tax- 2017.

Namibia Income Tax Act 1981(as amended up to December 2015).