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Finance and Taxes

Course developers

Prior knowledge

Ekon1012, Microeconomics

Ekon2109, Macroeconomics

Ekon2120, Basics of Accounting

Course abstract

The aim of the course is to provide students with knowledge of the financial, government budget, tax and banking systems, the structures of the systems, the relevant legal frameworks and the legal supervision in Latvia. Students learn the essence and calculation of taxes and duties. In practical lessons, students acquire skills to calculate taxes and draw up tax returns.

Learning outcomes and their assessment

1. Students will be able to: demonstrate the knowledge of the financial, government budget, tax and banking systems and the associated supervisory mechanisms – Test, classroom discussions, independent work (report).
2. Demonstrate knowledge of the legislation for taxes, duties and the procedure for calculating the taxes – Test with calculations.
3. Identify, argue, explain and discuss current financial processes – Independent work (report), classroom discussions.
4. Comprehend the provisions of the legislation for taxes and duties, calculate taxes and fill in tax returns – Practical assignments.
5. Assess and analyse tax effects on enterprise performance and the government budget – classroom discussions, group work.
6. Communicate and present the results of a study done – classroom discussions, group work.
7. Responsibly plan the completion of the assignments given – Practical assignments.
8. Independently calculate taxes and fill in tax returns – Practical assignments.

9. Independently formulate and critically analyse problems in the field of taxes and finance – Examination.

Course Content(Calendar)

1. The financial system of the Republic of Latvia, its structure and administration (lecture – 4 hours, practical – 5 hours)
2. The budget system of the Republic of Latvia, its function and process (lecture – 5hours, practical – 5 hours)
3. The Banking System of the Republic of Latvia (lecture – 4 hours, practical – 4 hours)
4. The tax system of the Republic of Latvia, its development and tax administration. (lecture – 2 hours, practical – 2 hours)
Test 1: Aspects of fiscal policy (1hour)
5. Personal income tax (lecture – 2 hours, practical – 2 hours)
6. Mandatory State social insurance contributions (lecture – 2 hours, practical – 3 hours)
7. Enterprise income tax (lecture – 2 hours, practical – 1 hour)
8. Micro-enterprise tax (lecture – 1 hour, practical – 1 hour)
9. Value added tax (lecture – 2 hours, practical – 2 hours)
10. Immovable property tax (lecture – 1 hour, practical – 1 hour)
9. Natural resources tax (lecture – 1 hour, practical – 1 hour)
10.Excise duty (lecture – 1 hour, practical – 1 hour)
11.Lottery and gambling tax (lecture – 1 hour)
12. Company car tax and vehicle operation tax (lecture – 2 hours, practical – 1 hour)
13.Electricity tax (lecture – 1 hour)

Test 2: Calculation of essential taxes (1 hour)

Requirements for awarding credit points

Examination (written) – 40%
The exam consists of a test, with questions about all the topics and tasks.
Two tests, with calculations – 30%

Report, group work, discussions – 30%

Description of the organization and tasks of students’ independent work

Acquire and consolidate theory material, to study normative basis and to perform practical assignments. Prepare for tests and exam.

Criteria for Evaluating Learning Outcomes

The evaluation of the study course depends on the assessment of the tests and exam - 10% is equal to one point on a 10-point marking scale.

Compulsory reading

1. Andrejeva V., Ketners K. Valsts ieņēmumu teorijas pamati: mācību grāmata. Rīga: RTU, 2007. 352 lpp.
2. Kavale L., Joppe A. Nodokļu politikas un administrēšanas pamati: mācību līdzeklis. Rīga: LU Akadēmiskais apgāds, 2008. 80 lpp.
3. Kavale L. Budžets un finanses: mācību līdzeklis. Rīga: LU Akadēmiskais apgāds, 2008. 44 lpp.
4. Krogzeme H. Finanses un nodokļi. Rīga: RTU Inženierekonomikas un vadības fakultāte, 2010. 568 lpp.
5. Kutuzova O. Finanses un kredīts. Rīga: Rīgas Biznesa augstskola Turība, 2012. 224 lpp.

Further reading

1. Gončarovs G. Finanšu teorija. Rīga: Latvijas Universitāte, 2000. 107 lpp.
2. Ketners K., Pētersone M. Eiropas Savienības nodokļu politika: mācību līdzeklis. Rīga: RTU Izdevniecība, 2014. 207 lpp.
3. Sīpola E. Mūsdienu nodokļu teorija. Rīga: RTU, 2001. 159 lpp.

Periodicals and other sources

1. Kapitāls: žurnāls. Rīga: Jaunais kapitāls. ISSN: 1407-2505
2. Bilance: žurnāls par grāmatvedību, likumdošanu un finansēm. Rīga: SIA Lietišķās informācijas dienests, 2000. ISSN 1407-5709
3. Dienas Bizness: nedēļas laikraksts: Latvijas Biznesa avīze. Rīga: Diena: Dagens Industri, 1992. ISSN 1407-2041
4. Latvijas bankas mājas lapa. Pieejams: http://www.bank.lv
5. Finanšu ministrijas mājaslapa. Pieejams: http://www.fm.gov.lv
6. Finanšu un kapitāla tirgus komisijas mājaslapa. Pieejams: http:// www.fktk.lv
7. LR tiesību aktu mājas lapa. Pieejams: http:// www.likumi.lv
8. VID mājas lapa. Pieejams: http://www.vid.gov.lv

Notes

Compulsory course for the academic Bachelor’s study programme “Economics” of the Faculty of Economics and Social Development.