SAVE YOUR HIGHER GRADE WITH ACQUIRING H/617/3295 TAXATION PRINCIPLES AND PRACTICES ASSIGNMENT HELP & QUALITY ASSESSMENT HELP SERVICES OF MIRACLESKILLS.COM
Qualification - OTHM Level 5 Diploma in Accounting and Business
Unit Name - Taxation Principles and Practices
Unit Level - Level 5
Unit Reference Number - H/617/3295
Assignment Title - Taxation Principles and Practices
Unit Credit - 20
Learning outcome 1: Understand the principles of taxation.
Answer: The principles of taxation are fundamental guidelines for designing and implementing an effective and equitable tax system. Key among these is the principle of equity, which suggests that the tax burden should be distributed fairly among individuals and businesses. This can be viewed through two lenses: horizontal equity, where those with similar incomes or circumstances pay similar amounts of tax, and vertical equity, where those with greater ability to pay contribute a larger proportion of their income. Another crucial principle is economic efficiency, aiming to minimize distortions and disincentives that taxes might create in economic activity, thereby promoting growth and optimal resource allocation. Simplicity is also vital, as a clear and understandable tax system reduces compliance costs for taxpayers and administrative burdens for the government. Furthermore, transparency ensures that taxpayers understand how and why taxes are levied and how the revenue is used, fostering public trust. Finally, revenue adequacy is a practical principle, ensuring that the tax system generates sufficient funds to finance necessary government expenditures. These principles often involve trade-offs, and governments typically strive to find a balance that best serves their societal and economic goals.
Learning outcome 2: Understand personal taxation.
Answer: Personal taxation refers to the system by which individuals are taxed on their income, wealth, and consumption. In India, personal income tax is a prime example, operating on a progressive "slab" system where different portions of an individual's income are taxed at varying rates, with higher earners paying a larger percentage of their income in taxes. For the financial year 2025-26, India offers two tax regimes: the old regime, which allows for various deductions and exemptions (like those under Section 80C for investments or Section 80D for medical insurance) to reduce taxable income, and the new regime, which offers lower tax rates but with limited exemptions and deductions. The choice between these regimes depends on an individual's income level and their ability to utilize the available deductions. Understanding personal taxation involves knowing your income sources (salary, business profits, house property, etc.), applicable tax slabs, available deductions, and the process for filing income tax returns to ensure compliance and optimize tax liability.
Learning outcome 3: Understand business taxation.
Answer: Business taxation in India involves a comprehensive framework of direct and indirect taxes that vary based on the business structure, turnover, and nature of operations. The most prominent direct tax for businesses is Corporate Tax, levied on the net profits of companies. For domestic companies, the standard corporate tax rate is around 25-30%, though a concessional rate of 22% (plus surcharge and cess) can be availed by companies opting out of certain exemptions and deductions. Newly set-up domestic manufacturing companies can even opt for a 15% tax rate. For sole proprietorships and Hindu Undivided Families (HUFs), business income is taxed as per the individual income tax slab rates, while partnership firms and Limited Liability Partnerships (LLPs) generally face a flat tax rate of 30%. Beyond corporate tax, businesses are also subject to Goods and Services Tax (GST), a unified indirect tax on the supply of most goods and services, replacing various erstwhile taxes like VAT, excise duty, and service tax. GST operates on a multi-stage, destination-based principle, with businesses collecting GST from consumers and remitting it to the government, while also claiming input tax credit on taxes paid on their purchases. Other business taxes can include Minimum Alternate Tax (MAT), Capital Gains Tax on the sale of business assets, and Customs Duty on imported or exported goods. Understanding these various tax liabilities, along with relevant deductions, exemptions, and compliance requirements like timely filing of returns and TDS (Tax Deducted at Source), is crucial for businesses to ensure legal compliance and optimize their financial health in India.
Aim: The aim of this unit is to develop learners understanding of taxation principles, and the requirements for personal and business taxation in their country or region
ORDER NEW H/617/3295 TAXATION PRINCIPLES AND PRACTICES ASSIGNMENT AND GET UNIQUE SOLUTION WITH PROPER REFERENCING.
Unlock Your Coding Potential: Expert Help for Unit 1 Programming, HND Computing (Application Development) Assignments
LO1
Indirect and direct taxation: differentiation between indirect and direct taxation; examples of indirect and direct taxation.
Principles of taxation: function and purpose of the taxation system; progressive and regressive taxation models; systems of tax on income, purchases, businesses, capital items, inheritance; tax avoidance and tax evasion.
Implications for stakeholders: stakeholders (owners, employees, customers, suppliers, competitors, citizens, local, central government and local, national communities); implications of taxation for each group.
Excel in Unit 13: Premier Assignment Help for Managing Financial Principles and Techniques!
LO2
Requirements: liability for tax; tax rates and limits; requirement to pay tax; residency; exemptions and reliefs; deferred tax; National Insurance Contributions (NIC) in UK or equivalent in other countries; making payments; penalties and interest.
Personal tax liability: capital gains liability; inheritance tax, basis of tax; gifts; planning; rates; timing of payments; making payments; penalties.
LEGIT H/617/3295 TAXATION PRINCIPLES AND PRACTICES - OTHM LEVEL 5 DIPLOMA IN ACCOUNTING AND BUSINESS ASSIGNMENT HELP SERVICES AND ONLINE TUTOR'S ASSISTANCE FOR TOP-NOTCH SCORES!
LO3
UK Corporation Tax, or equivalent in other country: scope; profits for tax purposes; liability; rates for different sized organisations; exemptions and reliefs; accounting requirements; tax returns; reporting requirements; minimising liability; timing of payments; making payments; penalties.
UK Capital Gains Tax, or equivalent in other country: scope; chargeable gains and losses; disposal of movable and immovable property and shares and securities; liability; rates for different sized organisations; exemptions and reliefs; minimising liability; accounting requirements; tax returns; reporting requirements; timing of payments; making payments; penalties.
UK VAT scheme, or equivalent in other countries: flat rate; limited cost trader; annual accounting; retail and VAT margin schemes; cash accounting schemes; how schemes work; applicability; benefits and disadvantages of each.
• Registration requirements: limits for registration; determining requirement to register; registering for VAT; implications of VAT registration (administration, invoicing requirements, record keeping); VAT liability and exemptions; partial exemption.
• Cash and accrual systems: difference in accounting for cash and accruals bases; benefits and disadvantages of each.
• Calculations: basis of calculation; rates; zero and standard rated; partial exemption; calculating tax liability.
• Returns: timing of returns, completion of returns; online forms; correction of errors; timing of payments; making payments; penalties for late reporting and late payment.
Impact on specific business: identifying liability; timing of payments; eligibility for reliefs; planning to maximise reliefs and minimise tax; impact of penalties; risks related to tax avoidance.
|
Learning Outcomes- The learner will:
|
Assessment Criteria- The learner can:
|
|
1. Understand the principles of taxation.
|
Differentiate between indirect and direct taxation.
Explain the principles of taxation.
Evaluate the implications of taxation for stakeholders.
|
|
2. Understand personal taxation.
|
Explain income tax and national insurance requirements for individuals.
Explain inheritance tax planning and payments.
Explain how an individual determines their capital gains tax liability.
Analyse an individual's obligation in relation to their personal tax liability.
Evaluate the implications of a failure to meet an individual's taxation obligations.
|
|
3. Understand business taxation.
|
Explain how assessable profits and gains for both incorporated and unincorporated businesses are identified.
Explain the details of the corporation tax system.
Compare different value added tax schemes.
Evaluate the implications of a failure to meet business taxation obligations.
|
Experience Excellence: Dive into Our HND Assignment Samples!
MOST RELIABLE AND TRUSTWORTHY H/617/3295 TAXATION PRINCIPLES AND PRACTICES - OTHM LEVEL 5 DIPLOMA IN ACCOUNTING AND BUSINESS ASSIGNMENT HELP AND ASSESSMENT HELP SERVICES AT YOUR DOORSTEPS!