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Tax Accounting

Course developer

Prior knowledge

Ekon3113, Finance and Taxes

Ekon4102, Financial Accounting

Course abstract

The study course provides knowledge of the obligations, rights and responsibilities of a company as a taxpayer. During the course, students learn the company's accounting work regarding calculating, declaring and paying taxes, cooperation arrangements between the company and the tax administration: the right of taxpayers to receive tax allowances and relief, to extend the tax period, to challenge the decisions of the tax administration, as well as the right of the tax administration to impose tax surcharges.

Learning outcomes and their assessment

1) Knows and understands tax calculation, payment and declaration procedure and related terms - independent work, tests
2) Knows and understands accounting work for taxpayer duties - independent work, tests
3) Knowledge of different tax regimes - test work with calculations
4) Ability to carry out tax calculations and preparation of corresponding tax returns - test work with calculations, independent work, presentation
5) Ability to apply the tax legal base independently - independent work, presentation
6) Ability to plan the tasks responsibly - independent work, presentation
7) Ability to select information, present and justify calculations made, proposals made - individual work, presentation
8) Ability to apply acquired theoretical and practical knowledge, to link theory with practice - practical work, independent work, tests, presentation
9) Ability to make different tax calculations, apply different types of tax breaks and discounts - practical work, independent work, tests, presentation
10) Knows business tax relief - practical work, independent work, tests, presentation

11) Ability to forecast tax payments for a newly established company - practical work, independent work, tests, presentation.

Course Content(Calendar)

1) Obligations of the company as a taxable person. Registration procedure with the State Revenue Service (SRS). General procedure for calculation, payment and declaration of taxes. Procedures for the use of strict accounting documents. Declaration of cash transactions (2 lectures, 1 practical work)
2) The rights and responsibilities of the company as a taxpayer. Electronic declaration. Extension of tax payment deadline. Correction of tax returns. Clarification of tax calculations. Recovery of amounts overpaid. Types of SRS inspections. Tax debts and surcharges. Procedure for appealing and appealing of SRS decisions (1 lecture, 1 practical work)
3) Payroll tax accounting. Calculation and accounting of payroll tax. Calculation and accounting of payroll tax benefits. Calculation and accounting of state social insurance contributions. Preparation of payroll registers and tax returns (1 lecture, 2 practical works)
4) Accounting of State Social Insurance Obligatory Contributions (SSIOC. Object of SSIOC and the Insured Persons. Types and rates of state social insurance (1 lecture, 2 practical works)
5) Personal income tax (PIT) accounting. Deduction of PIT from natural persons and tax statements. Preparation of annual income statement (2 lectures, 1 practical work)
6) Micro-enterprise tax accounting. Micro-enterprise tax calculation and payment procedure. Micro-enterprise tax rates. Restrictions on micro-enterprises. Micro-enterprise tax return. Micro-enterprise tax distribution arrangements. State social insurance in micro-enterprises (1 lecture, 1 practical work, test)
7) Corporate light duty accounting. Tax calculation and payment procedure. Exemptions (1 lecture)
8) Value added tax accounting. VAT registration. Accounting for VAT and non-taxable transactions. Application of different VAT rates. VAT input tax accounting. Calculation and accounting of VAT. VAT declaration. VAT compensation to farmers. Reverse payment of VAT. Use of the VAT Cash Register Principle. VAT overpayment accounting. Exclusion from the VAT register. VAT Application to Transactions with EU Member States VAT Payers (2 lectures, 3 practical works)
9) Real estate tax calculation and payment procedure. Object and amount of the tax. Tax payment procedure. Exemptions. Obligations of the company (1 lecture)
10) Procedure for Calculation and Payment of Natural Resources Tax. Object and amount of the tax. Tax payment procedure. Exemptions and options for their use (1 lecture)
11) Procedure for calculation and payment of Excise duty. Object and amount of the tax. Tax payment procedure. Exemptions. Tax reduction for agricultural companies (1 lecture).
12) Corporate income tax accounting. Calculation of the tax base. Tax breaks and rebates. Corporate income tax return. Overpayment of tax (1 lecture, 2 practical assignments, test)

13) Self-employment tax records. PIT and SSIOC from economic activities. VAT accounting (1 lecture, 1 practical work)

Requirements for awarding credit points

At the end of the course student must pass an examination on the topics covered (40%).
Test 1: Duties, rights and responsibilities of the company as a taxpayer. Calculation and accounting of payroll taxes, self-employed social security and micro-enterprise tax (25%).
Test 2 Calculation and accounting of value added tax, corporate income tax and other taxes (25%).

Description of the organization and tasks of students’ independent work

During the study course all the independent assignments must be prepared - preparation of tax returns and presentation (10%)

Criteria for Evaluating Learning Outcomes

Must be completed for all jobs. Each work is graded. The evaluation of the study course depends on the assessment of the independent work, tests and exam, 10% corresponds to one point on the 10-point assessment scale.

Compulsory reading

1) Jurušs M. Nodokļi. Rīga: RTU Izdevniecība, 2019. 176 lpp.
2) Leibus I. Uzņēmuma darbības uzsākšana, grāmatvedība un nodokļi. Rīga: Lietišķās informācijas dienests, 2019. 173 lpp.
3) Leibus I. Pašnodarbināto grāmatvedība un nodokļi. Rīga: Lietišķās informācijas dienests, 2020. 148 lpp.
4) Finanšu grāmatvedība. Mācību grāmata. I.Leibus, I.Pētersone, A.Jesemčika, A.Svarinska, R.Grigorjeva. Rīga, 2020. 319 lpp.
5) Podvinska Ņ. Pievienotās vērtības nodoklis. Rīga: Lietišķās informācijas dienests, 2006. 272 lpp.
6) Zvejnieks A. Īpašums un nodokļi. Mācību grāmata. Rīga, 2006. 575 lpp.

Further reading

1) Ketners K., Lukašina O. Nodokļi ES un Latvijā. Rīga: Merkūrijs Lat, 2008. 237 lpp.
2) Ketners K., Pētersone M. Eiropas Savienības nodokļu politika. Rīga: Rīgas Tehniskā universitāte, 2014. 208 lpp.
3) Ketners K. Nodokļi un nodokļu plānošanas principi. Rīga: Tehnoinform Latvia, 2018. 321 lpp.
4) Kodoliņa-Miglāne I. Nodokļi Latvijā 2007. Rīga: Turība, 2007. 109 lpp.
5) Krogzeme H. Finanses un nodokļi. Rīga: Rīgas Tehniskā universitāte, 2010. 568 lpp.
6) Leibus I., Grigorjeva R., Jesemčika A., Svarinska A. Grāmatvedības pamati uzņēmumos. Rīga: Lietišķās informācijas dienests, 2019. 195 lpp.
7) Leibus I. Individuālā uzņēmēja grāmatvedība un nodokļi. Rīga: Lietišķās informācijas dienests, 2008. 260 lpp.

Periodicals and other sources

1) Bilance. Rīga: Lietišķās informācijas dienests. ISSN 1407-5709.
2) Bilances Juridiskie Padomi. Rīga: Lietišķās informācijas dienests
3) Grāmatvedība un Ekonomika. Rīga: SIA Grand. ISSN 1691-1172.
4) iFinanses.lv Rīga: Izdevniecība iŽurnāli, 2013. Elektronisks žurnāls. Pieejams: http://www.iFinanses.lv
5) LR likumi un MK noteikumi: Latvijas Vēstnesis. Pieejams: http://www.likumi.lv
6) plz.lv Rīga : Lietišķās informācijas dienests, Elektronisks žurnāls. Pieejams: http://www.plz.lv
7) Valsts ieņēmumu dienesta mājaslapa. Pieejams: http://www.vid.gov.lv
8) Taxation trends in the European Union. Data for the EU Member States, Iceland and Norway. Pieejams: http://ec.europa.eu/taxation_customs/resources/ documents/taxation/gen_info/economic_analysis/tax_structures/2018/report.pdf

Notes

Restricted elective course for the academic bachelor program “Economics” in “Accounting and Finance”.