REVENUE LAW AND TAXATION II (CORE)

Module Descriptor Hours

Module Name REVENUE LAW AND TAXATION II
Module Code LLB 4103
Module Level Year II Semester II
Contact Hours 75
Credit Units 5
Module Descrip- Business planning and decision-making processes are greatly influenced
tion by tax considerations. The main tasks of the subject of ‘Company
Taxation’ include:
Effects of taxation (analysis and description of the effects of taxation on
company operations)
Tax structuring (deriving the best tax decisions and tax structuring from
the results of analysing the effects of taxation)
Normative tax theory (critical appreciation of tax lax standards in view
of their effects) The module aims to provide students with a wider and
more in-depth knowledge of the statutory provisions for preparing tax
balance sheets (analysis of the effects of taxation) and balance sheet
policy (analysis of tax structuring).
The module aims to present the regulations on determining taxable
income for purposes of income tax, corporation tax and trade tax
(analysis of the effects of taxation of statutory provisions relating to the
preparation of tax balance sheets).
The module aims to teach students about the effects of taxation with re-
gard to the influence of taxation on the preparation and assessment of
assets and liabilities and about means of influencing the type and extent
of these effects (analysis of tax structuring or balance sheet policy)
Module Objec- The module will enable students to:
tives a) Undertake capital gains , tax computations and incorporate the
figures into the appropriate period for income and corporation
tax computations
b) Calculate a company's corporation tax liability by reference to
chargeable accounting periods and corporation tax financial
years including adjustments for losses and group relief
c) Undertake capital gains tax computations including various
reliefs, the special treatment of shares and the complications of
the indexation allowance
d) Understand how value added tax works and be able to undertake
simple computations of liability
e) Understand, in outline only, the principal effect upon business of
 VAT
Learning Out- Upon successful completion, students will be able to:
comes a) Apply the rules of income tax to tax computations for
individuals and sole trader businesses;
b) Determine and compute the tax liability of corporations;
c) Evaluate the Uganda’s principal indirect tax, VAT, and calculate
VAT for taxable persons
Module Content CORPORATE TAX 5
i. -overview
ii. -taxation of corporation
iii. -taxable income
Readings:
i. The Income Tax act Cap 340
ii. Mayson on Revenue law 1993 14th Ed.
iii. De Beers Consolidated Mines ltd v. Howe (1906)AC 455
iv. Unit Construction co. Ltd v. Bullock[1960]AC 351
v. William Epstein son &swainston Ltd v. IRC [1919]2 KB 731
vi. C.Co. ltd V. Commissioner of Income Tax 1E.A.T.C15
CORPORATE TAX contd. 5
i. Corporate Tax Rates
ii. Computation of Corporate Tax
Readings:
iii. G. v. Commissioner of Income Tax 1E.A.T.C.43 CA
iv. Commissioner of Income Tax V.U 2E.A.T.C[ pt1]1
v. A.N v Commissioner of Income Tax 2E.A.T.C.473
vi. Houry v. Commissioner of Income Tax [1958] EA 350
H v. Commissioner of Income Tax [1958] EA 303
CORPORATE TAXcontd 5
Allowable deductions
Readings:
i. The income tax Act cap 340
ii. Tullow oil &anorvsURA Tax appln no. 4/2011
iii. William Epstein son &swainston Ltd v. IRC [1919]2 KB 731
iv. C.Co. Ltd v Commissioner of Income Tax 1E.A.T.C15
INCOME TAX RETURNS 5
Eligibility to file returns
Purpose of filing returns
Time to file a return
Extention of time to file a return
Failure to file returns
Readings:
 i. The Income Tax Act cap 340 Ss. 92-96
ii. Ketal v. Commissioner of Income Tax 1 E.A.T.C 94 1951
iii. Mandavia v. Commissioner of Income Tax [1958]EA 696
ASSESSMENTS 5
Types of Assessment
Notice of assessment
Exemption from assessment
Readings:
The Income Tax Act Cap 340 Ss.95-98
Mandavia v Commissioner of Income Tax [1958]EA407
D.A.Pritani v.Commissioner of Income Tax [1961]EA671
ASSESSMENTS contd 5
Objection to assessment
Appeals
Commissioner of Income Tax vs B O 4 E A T C(pt 1)10
Mandavia v Commissioner of income tax [1958]EA407
D.A.Pritani v. Commissioner of Income Tax [1961]EA671
COLLECTION OF TAX 5
Collection
Time for payment
Mode of payment
ss. 103- 110 ITA
Readings:
Shahjivrajkira & Sons v.Gohl [1960]EA 922
C. C V. Commissioner of Income Tax 4 E.A.T.C (pt 11) 1
MuljiJetha ltd v. Commissioner of income tax [1966]EA 259
RECOVERY OF TAX 7
Collection by agent
i. Shahjivrajkira & Sons v.Gohl [1960]EA 922
ii. C. C v. Commissioner of income tax 4 E.A.T.C (pt 11) 1
iii. MuljiJetha ltd v. Commissioner of income tax [1966]EA 259
iv. Commissioner of income Tax v. C.W Amstrong [1963]EA 505
v. B.X. vs. commissioner of Income Tax 4E.A.T.C
vi. Collection by suit. S.105 ITA
vii. Collection by distraint . s.105 ITA
COLLECTION contd. 8
Collection by agent of a non-resident person. S.109 ITA
Collection from receivers. S. 110 ITA
Shahjivrajkira& sons v.Gohl [1960]EA 922
C. C v. Commissioner of Income Tax 4 E.A.T.C (pt 11) 1
MuljiJetha ltd v. Commissioner of Income Tax [1966]EA 259
Commissioner of income Tax v. C.W Amstrong [1963]EA 505
B.X. vs. Commissioner of Income Tax 4E.A.T.C
REPAYMENT OF TAX 8
Refund of excess tax. S.144 ITA
Procedure for claims for refund of excess tax
READINGS:
Shahjivrajkira & Sons v.Gohl [1960]EA 922
C. C v. Commissioner of Income Tax 4 E.A.T.C (pt 11) 1
MuljiJetha ltd v. Commissioner of income tax [1966]EA 259
Commissioner of Income Tax v. C.W Amstrong [1963]EA 505
B.X. vs. Commissioner of Income Tax 4E.A.T.C
Uganda Revenue Authority 7
Procedure for tax registration
Practical challenges for tax collection
Phallenges for effective implementation of tax laws
OFFENCES AND PENALITIES ss. 137-150 ITA 7
Failure to file returns
Failure to comply with recovery provisions
Improper use of identification number
Making false statements
Offences regarding officers and persons employed to work for the Act
Offences by Companies
Place of trial
Readings:
i. Alfed Granville v. R [1957]EA507
ii. A.K. VS Regina [2 E A T C PT 11]
iii. X vs Commissioner of Tax [2 E A T C. Pt 1 ,11](1954)
iv. Executor of Estates of Sheik FazalIlahi vs. Commissioner of Income
Tax [1965]EA 252
PENAL TAX ss.151-157 ITA 7
Failure to furnish returns
In relation to records
False misleading statements
Recovery of Penal Tax
Delegation
Readings:
i. Alfed Granville v. R [1957] EA507
ii. A.K. v. Regina [2 E A T C PT 11]
iii. X vs. Commissioner of Tax [2 E A T C. Pt 1 ,11](1954)
iv. Executor of Estates of Sheik FazalIlahi vs. Commissioner of in-
come tax [1965]EA 252
 TAX APPEALS 8
Introduction
Tax appeals Tribunal
Composition, tenure and qualification of members
Constitution of the tribunal
Review of tax decisions
Readings:
i. The constitution of Uganda 1995 Article 143
ii. Tax Appeals Tribunal Act
iii. East Africa customs and management Act 2004
iv. Finance Act 2000/2001
v. Customs Tariff Act cap 337
vi. Income Tax v. T ltd [197] EA 560
vii. Commissioner of income Tax v. A.F Ltd 2 E.A.T.C104
viii. M v. Commissioner of income Tax [1969] EA 671
ix. etal v. Commissioner of income Tax 1E.A.T.C.124
x. Commissioner of income Tax V.C.W. Armstrong [1962] EA 505
Teaching Lectures, Tutorials, Cases Studies, Group Discussions, Seminars,
Method Presentations
Assessment Course work 30%
Examination 70%
References  J.Bakibinga, Revenue law and Taxation in Uganda 2nd edition
 Easson, CASES AND MATERIALS ON REVENUE LAW 1990
 Osborn’s Concise law Dictionary (8thed sweet and Maxwell, 1993)
 Pinson on Revenue law (1982)
 Walk, D. Taxation and taxable capacity in under- Developed countries.
Oxford 1965
 Meade, J.E. The structure and Reform of Direct Taxation. 1978
 Beettie, C.N. Elements of the law of income &capital gains [1880]