Taxation I

Welcome to ACT B414 Taxation I. In the weeks ahead, you will explore the world of taxation. The existence of taxation affects almost all of us in our daily lives. Benjamin Franklin (1706–90) wrote in his letter to Jean-Baptiste Leroy in 1789 that 'In this world nothing can be said to be certain, except death and taxes.' People around the world have to face taxes, so if you cannot avoid them, you need to learn to understand them and deal with them effectively.

ACT B414 Taxation I is an introductory course to the subject of taxation, but should prove interesting and stimulating. This five-credit, one-semester, higher-level course will provide you with an introduction to the law relating to taxation and its application to income and profits received. The course will teach not only taxable principles, but also the application of those principles to the day-to-day situations typically encountered by every taxpayer, including you and me.

We hope that you will enjoy studying this course.

This course has four intended learning outcomes. It will provide you with the training you need to comprehend the tax law of Hong Kong and to deal with practical issues related to computing different types of taxes now enforceable in Hong Kong. It will also prepare you for further study in ACT B415 Taxation II.

Course aims

ACT B414 Taxation I aims to:

• provide you with knowledge of basic tax principles, and the skills to effectively interpret tax statutes and analyse practical tax problems;
• provide you with the means to advise people on tax matters; and
• familiarise you with the current tax statutes and case law, and equip you with the skills you need to apply them for your own use independent of legal advisers.

Course learning outcomes

Upon completion of ACT B414, you should be able to:

• explain and apply general tax principles, tax statutes and case laws;
• assess and quantify salaries tax, property tax, profits tax liability and depreciation allowances;
• explain and review the application of personal assessment and the requirements for making an election; and
• assess and quantify stamp duty liability.

Materials

In addition to this Course Guide, the course has the following important components. Please ensure that you have all of these materials available.

Study Guide

This course consists of five print-based Study Guide units. These are designed to clarify and reinforce key concepts from the textbook and provide additional examples.

Unit 1 is an introduction to the Hong Kong taxation system and tax administration. In this unit we describe the characteristics of the Hong Kong taxation system. We then explain the operational procedures and rules of the tax administration in Hong Kong.

In Unit 2 we will have a more detailed look at the charging of property tax in Hong Kong. You will learn who will be subject to property tax in Hong Kong, the computation of property tax payable, and the deductions available for the taxpayer under property tax.

Unit 3 introduces you to salaries tax. You will learn about how to distinguish Hong Kong employment from non-Hong Kong employment, and the significance in respect of the way salaries taxes are charged. You will also learn about the deductions available and the generous personal allowances available in Hong Kong and, finally, how salaries tax computation is performed.

Unit 4 introduces you to the topics of profits tax and depreciation allowances. This unit teaches you how to determine if a business has income subject to profits tax in Hong Kong. You will learn about assessable profits, deductible expenditure as well as non-deductible expenditure in the profits tax computation. Finally you will learn how depreciation allowances are computed for certain types of capital expenditures for a business operating in Hong Kong.

Unit 5 addresses the areas of personal assessment and stamp duty. You will learn that personal assessment is a relief and may not be available to every taxpayer. You will also learn about how stamp duty is chargeable to certain instruments in Hong Kong, and how the government of Hong Kong tries to manipulate the charging of stamp duty to affect property prices in Hong Kong.

Set textbook

This textbook is provided to all students for this course:

Ho, P. K. W., & Mak, K. P. L. (2021). Hong Kong taxation and tax planning (20th ed.). Pilot Publishing Company Limited.

Online Learning Environment

This course is supported by the Online Learning Environment (OLE). There you will find course materials and the latest course information. You can also make use of the platform to communicate with your tutor, Course Coordinator and fellow students. For details about the OLE and how to access it, please refer to the Online Learning Environment User Guide.

Supplementary lectures (pre-recorded videos)

In each unit, different topics of taxation are presented through supplementary lectures (pre-recorded videos) to illustrate the selected topics in greater detail. These will be made available on the Online Learning Environment (OLE).

Assignment File

Details of your assessment can be found in the separate Assignment File included in the course materials. Overview information is provided in the section entitled 'Assessment' in this Course Guide.

Presentation Schedule

The Presentation Schedule is available on the OLE. This schedule provides you with the dates when your assignments are due, as well as the dates of your live online learning sessions.

Assessment

There are two assignments (20% each) which together are worth 40% of the total course score. The final examination constitutes the remaining 60%.

Assignments

There are two assignments for this course. Together they are worth 40% of the total assessment. Each assignment comprises two or three questions, depending upon the length of the questions.

How to submit assignments

You must use word processing software (such as Microsoft Word) to prepare the assignments, and submit them via the Online Learning Environment (OLE). Your assignment must be uploaded to the OLE by the due date.

After the assignment is submitted via the OLE, it is your responsibility to ensure the submission is successful. Application for extension due to any problem with uploading will not be accepted. The University cannot accept any responsibility for assignments that are not received by your tutor due to any problem with submission via the OLE. As a precaution, you are advised to keep a copy of the assignment you have submitted.

According to the University's policy, no extension of the due date will be allowed for the second assignment. This policy will be strictly enforced. Any late submission of the second assignment will result in the score of the assignment being adjusted to zero.

Final examination

The final examination is a three-hour, closed-book examination. The format and types of questions will be similar to the Specimen Examination Paper provided.

Assessment summary

Assessment for this course is as follows:

The course is organised as follows:

In ACT B414 Taxation I, you are provided with a range of materials to assist your learning. Your most important resources are your course textbook and the five-unit Study Guide. The Online Learning Environment (OLE) also comes with supplementary lectures (pre- recorded videos) for each unit. Taken together, they provide you with the taxation knowledge you need to master, as well as many comprehensive examples designed to help you in understanding the taxation concepts.

You will get the most from this course by following the study materials, completing the textbook readings and working through the activities and assignments unit by unit. As soon as you can figure out a system that works for you, and apply it consistently, you will be able to progress steadily and enjoy your study of taxation!

Learning support

At the commencement of this course, a tutor will be assigned to help you in your study. Please note that much of your communication with HKMU during the course will be with your tutor, who will mark your assignments and offer timely feedback. Your tutor is eager to help you complete this course successfully, and will closely monitor your learning progress by keeping regular contact with you. If you encounter difficulties in your studies, you should always turn to your tutor for assistance. It is believed that learners who maintain regular contact with their tutors often achieve better performance in their studies.

You will be informed of the name and telephone number of your tutor once you are assigned to a tutorial group. Your tutor will set aside certain preferred hours of contact every week in order to attend to your telephone queries. He or she will inform you of these preferred hours in the first live online tutorial session. Please show consideration for your tutor by making telephone contact only during the preferred hours.

Do not hesitate to telephone your tutor when you need assistance in your studies, for example, if you:

• do not understand any part of the study units; or
• have difficulties in working on the self-tests or activities; or
• have queries about assignment questions, the tutor's feedback, or the grading of an assignment.

You are strongly advised to keep a copy of each assignment you submit in case you need to refer to them during telephone conversations with your tutor.

To assist you in this course, your tutor will conduct live online tutorials throughout the term. In each of these sessions, key concepts and crucial techniques will be reviewed and reinforced; topical issues will be discussed and individual students' questions answered. How effective these learning sessions are depends largely on your willingness to participate. Adequate preparation for discussion will also enable you to benefit more from these sessions. Five two-hour live online tutorials will be provided.

In addition, there will be a two-hour live online surgery at the end of the course in which you will have the opportunity to ask your tutor questions that you might not be able to solve yourself.

You will be notified of the dates and times of these sessions once you are assigned to a tutorial group. Although these sessions are non- compulsory, you are strongly recommended to attend all of them. They will help you in your studies and enhance your chance of achieving better performance in the course.

Tutors are required to start live online tutorials and surgeries on time. If a tutor fails to turn up 30 minutes after the scheduled starting time, learners may assume the session is cancelled and should report the case to the Course Coordinator for the arrangement of a make-up session.

ACT B414 Taxation I is designed to provide you with the theories, concepts and tools needed to address real-world taxation problems and prepare efficient tax planning.

The course includes five Study Guide units and a set textbook. It is supported by regular live online learning sessions and the OLE. Assessment is in the form of two assignments and a final examination. It requires about 150 hours of study.

Good time management and a regular study habit are the keys to success in distance learning. You are encouraged to draw up your own study schedule before you start the course, and follow it consistently throughout the term.

Remember that although you are responsible for your own study, the staff members of Hong Kong Metropolitan University are here to help you. If you experience difficulties with any aspect of your course, contact your tutor or your Course Coordinator.

Good luck, and enjoy the course!

If you wish to defer your studies of this course until a later date, you should apply for deferment of studies. For the regulations governing deferment of studies, please refer to your Student Handbook. If you have applied for deferment of studies, you should continue with your studies of this course and submit the required assignments until formal approval is given by the University.

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