School of Business

House 80, Road 8/A, Dhanmondi, Dhaka-1209

Trimester: 113 (Fall 2011)

COURSE OUTLINE [Section B]

Course Title Instructor : : Taxation (ACN 4135) Prof. Dr. Swapan Kumar Bala, FCMA Room # 518 Cell Phone: 01714377811 E-mail: bala_swapan@yahoo.com 12:10 PM - 01:40 PM on Sunday and Tuesday at Room # 314 01:45 AM - 03:15 AM on Monday and Wednesday at Room # 518

Class Hour Office Hour Course Objective:

: :

This Course intends to provide the students a clear idea about the taxation principles and the taxes that affect business entities in Bangladesh. Class Schedule:
Session # 1-2 Topic on Taxation Taxation: An Introduction Public Finance and Tax as a Source of Public Revenue, Other Sources of Public Revenue vs. Taxation, Public Finance vs. Private Finance, Importance of Public Finance, Definition of Tax, Characteristics of Tax, Objectives of taxation, Principles of taxation, Characteristics of a Good Tax Incidence of Taxes Impact, Incidence and Effect of a TaxShifting of Tax IncidenceDemand and Supply Theory of Tax Shifting Additional Factors Influencing Tax Shifting General Effects of Taxation Classification and Choice of Taxes Classification Taxes (on the basis of: Number of taxes, Impact and incidence of taxes, Structure of tax-rates, Subject-matter of taxes, Elasticity of taxes, Classification of tax-bases, Increase or decrease in public revenue, and Collector of taxes); Choice of Taxes between Proportional and Progressive taxes, Choice of Taxes between Direct and Indirect taxes; Tax Structure in Bangladesh Business Taxation: An Introduction Business Enterprises as a Taxpayer (Sole-proprietorship, Partnership, and Company), PassThrough vs. Non-Pass-Through Entities, Legal Taxpayer vs. Real Taxpayer Direct Taxation A. Income Taxation Assessment Cycle under Income Tax Obligations under Income Tax Laws Tax-base, Tax period, Tax rates and Taxpayers Status and Residence First Mid Term Test Direct Taxation . Contd A. Income Taxation . Contd Non-assessable income Investment tax credit Tax rebate on tax-free income Tax relief Carry-forward and Set-off of Losses Tax holiday Accelerated depreciation Income Tax Assessment for Business Entities (Sole-proprietorship, Partnership, and Company): Computation of Total Income (Salary income, Interest on securities, Income from house property, Agricultural income Income Tax Rates and Determination of Income Tax Liability Submission of Assignment-1 Second Mid Term Test

# 3-4 # 5-6

#7

#8 #9 # 10-15

# 16

Session # 17-19

# 20-21

# 22-23

# 24-25

# 26

Topic on Taxation Direct Taxation . Contd A. Income Taxation . Contd Income from business or profession, Share of income from partnership firm, Income of spouse or minor child, Capital gains, Income from other sources, Foreign income), Assessment of Business Entities. B. Property Taxation Property-related Tax under Income Tax Laws Gift Tax: Charge of Gift Tax Taxable Gifts Exemptions from Gift-tax Determination of the value of Gifts Return of gifts Gift Tax payable Penalty Prosecution Assessment procedures Rates Authorities Submission of Assignment-2 Indirect Taxation A. Border Taxation Objectives of Customs Act Customs Procedure Statutory Definitions of Important Terms Duties under the Customs Act 1969 [General Customs Duty (import/export duty), Regulatory Duty, Countervailing Duty, Anti-dumping Duty, and Safeguard Duty] Rates of DutiesDuties and Taxes Collected by Customs Authority at Import Stage [Customs Duty (CD), Supplementary Duty (SD), Value Added Tax (VAT), Advance Income Tax (AIT) and Advance Trade VAT (ATV)] Computation of Duties and Taxes at Import Stage Duty Drawback B. Excise Taxation Excise duty, Objectives, Current coverage of excise taxation C. Value Added Tax (VAT) Concepts, Advantages and Disadvantages, Arguments for and against VAT, Computation of VAT, Coverage, Tax rates and Tax points of VAT in Bangladesh; Taxes under the VAT Act in Bangladesh; Obligation of taxpayers under the VAT laws Registration, Enlistment for Turnover Tax or Enlistment for Cottage IndustryPayment of VATSubmission of ReturnMaintenance of Books of Accounts and RecordsVAT AuditOffence and PenaltiesConfiscationAppeals and RevisionsRecovery of claim VAT Refund. Presentation & Review of Classes

References:
H. L. Bhatia, Public Finance (New Delhi: Vikas Publishing House Pvt. Ltd.). Richard A. Musgrave and Peggy B. Musgrave, Public Finance in Theory and Practice (New York: McGraw-Hill Book Company). The Income Tax Ordinance 1984 and the Income Tax Rules 1984 (updated). The Customs Act 1969. The Value Added Tax Act and Rules 1991. The Excise and Salt Act 1944. The Gift-tax Act 1990. The Finance Acts. Summary of Taxation Rules in Bangladesh (MCCI, Dhaka). Nikhil Chandra Shil, M. Zakaria Masud and M. Faridul Alam, Bangladesh Income Tax: Theory and Practice (Dhaka: Shams Publications; Latest edition).

Individual Assignments: [5 to 10 pages] Assignment-1: Fiscal Environment of Stock Market in Bangladesh Assignment-2: Corporate Taxation in Bangladesh Assessment Plan:
Assessment Events Attendance Class Tests* Mid-Term Tests (20% + 20%) Final Exam Total Weight 5% 25% 40% 30% 100%

Class tests include quizzes, assignments, class participation, term paper, presentation, etc.