University of Zimbabwe

Faculty of Business Management Sciences & Economics

Department of Finance & Accounting
Module Name: Tax Law and Practice II
Module Code: AC415
Lecturer Contact Details
Module Lecturer Dr T. Kapesa
E-mail tkapesa@commerce.uz.ac.zw
Cellphone +263772614943
Office Office number 143, Faculty Office Block
Fulltime students and 3 lecture hours and 1 tutorial hour each week as scheduled on the
part-time contact time timetable.

Purpose of the module

AC415 is a module done in fulfilment of the requirements for the award of the Honours Degree
in Accountancy at the University. The module equips learners with knowledge of tax treatment
of some special types of business activities such as mining, partnerships, farming, and
provisions relating to capital gains, withholding taxes and benefit and pension funds. The
assessments will be on application of theory learnt. The module equips learners with tools for a
career as tax consultants; tax experts in accounting firms; as effective planners in own personal
tax affairs and to be informed contributors of tax policies in their organizations, as well as
further studies in tax practice.

Page | 1
Aim of the module
Learners in the module are expected to develop skills necessary for effective management of the
tax affairs of the taxpayer who can be an individual, a partnership or an incorporated business
entity. The range of business activities ranges from commercial activities, farming, mining and
the disposal of specified assets for capital gain purposes. Learners will also learn the
determination of Value Added Tax obligations for registered operators.

Body of Knowledge
The learning objectives of the module are:
o Application of income tax concepts covered in AC405 on determination of tax payable
for taxpayers with income earned from partnership business, farming, mining, estates
and trusts.
o Learn specific provisions from the Income Tax Act-Chapter 23:06 and Finance Act
Chapter 23:04 applying to income from farming, mining, trusts and deceased estates,
partnerships, pension and pension funds.
o Learn provisions on other types of taxes (other than income tax) namely
withholding tax, and capital gains.
o Student should know how to calculate double taxation relief on foreign income taxable
both in Zimbabwe and another country.

Intended Learning Outcomes and Outputs

For learners to be able:
o To calculate tax payable by a taxpayer on income earned from: partnership business,
farming, mining, estates and trusts.
o To make deductions from payments and calculate tax payable on receipts from pension
and benefit funds.
o To identify and to calculate the different types of withholding taxes.
o To calculate capital gains tax payable by a taxpayer.
o To calculate double taxation relief.
o To calculate VAT payable/refundable for registered operators.

Page | 2
Teaching and learning activities
o Lecture notes in the form of PowerPoint slides introduces concepts with interactive
discussion during lectures.
o Tutorials apply theory learnt in lectures;
o E- learning; assignments and tests will be used to reinforce concepts.
o Guest lecturers may be invited for some sessions to enhance appreciation of various
opportunities in industry for students in taxation.

Module Content
1. Taxation of Farmers
 Livestock
 Crop and other valuation
 Disposal of stock other than by way of sale
 Growing crops
 Drought relief and epidemic disease relief (enforced sales relief)
 Capital allowances
 Timber
 Orchards and vineyards
2. Taxation of Miners
 General introduction including definition of key concepts such as mineral and mining
operations
 Capital redemption allowance: Alternative methods (Life of Mine, New Mine method, or
mixed method)
 Special treatment items for miners (ring fencing, recoupment, Prospecting expenses, royalties,
etc,.)
 Computation of miners’ tax obligation
3. Partnerships
 General
 Source of partner’s profits
 Change in membership

Page | 3
 Allowable and disallowable deductions
 Computation of Partnerships’ income tax
4. Capital gains tax (CGT)
 General aspects
 Calculation of CGT
 Source
 Capital Amount
 Exemptions
 Deductions
 Losses
 Damage and destruction
 Fair Market price
 Reconstruction and mergers
 Transfer of individual’s immovable property
 Sale under suspensive conditions
 Instalment sales
 Reduction in cost
 Transfer between spouses
 Roll over relief: Principal Private Residence
 Business property
 Trust
 Tax avoidance
 Administration
 Capital gains withholding tax
5. VALUE ADDED TAX
 Scope of VAT
 Taxable supplies
 Deemed supplies
 Exempt supplies

Page | 4
5.1 VAT Registration
 Compulsory registration
 Voluntary registration
 Pre-registration input tax
 VAT deregistration
 Categories of VAT periods
5.2 VAT Computation
 Accounting for VAT (Invoice basis and Cash or payment basis)
 Change of accounting basis
 Input tax credit
 Relief for impairment losses on trade debts
 Output tax
 Calculation of VAT
 Tax invoices
 Debit and credit notes
 Pricing
 Records to be maintained
 VAT on imports and exports

Student Assessment and mark allocation

Legislation applicable is for the 2021 year of assessment.
Module assessment is made up of continuous assessment (coursework) consisting at least two
tests and/or assignments worthy 30% of the overall mark as well as an examination written at the
end of the semester worthy 70% of the overall mark.
Course work will be based on either two tests and/or assignments which will be administered on
dates to be advised in advance.
To qualify for sitting the final examination, candidates should obtain a coursework mark of at
least 40% of the 30% course work marks. Any candidate who fails to meet the required course
work mark and proceeds to sit for the final examination fail the module. This means you will

Page | 5
have to repeat the course. The examination shall be a closed book examination, i.e., no books,
Acts or notes are allowed for the tests and the final examination.

Tests and Assignments

General:
Tests and Assignments sheets will be handed back to the students. Students are advised to keep
these in safe custody and should be presented as evidence in cases of queries in connection with
marks awarded. An examination question may be on a single topic or it can cover more than one
topic covered in the course outline.

Permission to be excused from a test:

Only written requests will be entertained. In case of sickness a medical certificate should also be
submitted. A written request should be submitted within five working days after the date of the
test. This is a requirement for any test missed.

Re-evaluation of test scripts:

Queries must be indicated on the first page and on the relevant page and submitted for re-
evaluation within the first week after revision of the test.

Plagiarism:
Plagiarism will not be tolerated in this module and will result in a fail of the assignment or test.
This includes plagiarizing work done by other students. Class expectation is for the student to
turn in your own work. If caught you will get a zero and/or maybe sent for disciplining which
can result in suspension.

Marks Grading
The range of marks attained by the student will be graded as follows:

Marks Range Mark Grades (overall) Description

75% - 100% 1 Distinction

65% - 74% 2.1 Upper second-class Pass

60% - 64% 2.2 Lower second-class Pass

Page | 6
 50% - 59% 3 Third-class Pass

0% - 49% F Fail

Recommended reading material (Core texts)

o Finance Act Chapter 23:04
o Income Tax Act Chapter 23:06
o Capital Gains Act Chapter 23:01
o Value Added Tax Act Chapter 23:12

Additional reading material

o M Tapera & A F Majachani Unpacking Tax Law & Practice in Zimbabwe. Latest edition
published by Tax Matrix.

Page | 7