| Statuss(Aktīvs) | Izdruka | Arhīvs(0) | Studiju plāns Vecais plāns | Kursu katalogs | Vēsture |
| Course title | Tax Planning |
| Course code | EkonM004 |
| Credit points (ECTS) | 3 |
| Total Hours in Course | 81 |
| Number of hours for lectures | 16 |
| Number of hours for seminars and practical classes | 8 |
| Number of hours for laboratory classes | 0 |
| Independent study hours | 57 |
| Date of course confirmation | 19/12/2023 |
| Responsible Unit | Institute of Economics and Finance |
| Course developers | |
| Dr. oec., prof. Inguna Leibus |
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| Prior knowledge | |
| Ekon5082, Financial Accounting I Ekon5144, Enterpreneurship Financing |
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| Replaced course | |
| Ekon5132 [GEKO5132] Tax Planning |
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| Course abstract | |
| The aim of the study course is to provide students with in-depth knowledge of the tax system and tax burden, skills and abilities in tax planning and application of legal acts. Students learn in depth the rights and obligations of taxpayers, tax planning options in business for legal and natural persons, analyse the options for choosing different tax payment regimes. | |
| Learning outcomes and their assessment | |
| Knowledge
1) on tax planning, tax burden and related terms – discussion in classes, independent work; 2) on the application of tax discounts and reliefs – independent work, test; 3) about different tax payment regimes - independent work, test. Skills 4) perform tax calculations, analyse the obtained results, understand the causes and develop proposals for finding the most favourable and profitable solution - calculations in classes, independent work, presentation; 5) choose the most suitable tax payment regime for the company, analyse and evaluate the related benefits and losses, as well as assess the related risks - independent work, discussion in class, presentation; 6) responsibly plan assigned tasks - independent work; 7) select information, present and argue the performed calculations, expressed proposals - independent work, presentation. Competence 8) apply the acquired knowledge, successfully calculate taxes and their discounts, evaluating different situations. Able to make proposals for decision-making according to changes in the company's internal and external environment - practical work, presentation. |
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| Course Content(Calendar) | |
| Full-time in-person studies:
1) Impact of taxes on business. The impact of tax payments on the company's finances and cash flow. Cost reduction necessity (lecture – 2 hours). 2) Nature and trends of tax planning. Tax planning methods and basic principles. Calculation of the tax burden. The impact of the legal form of the business on the company's tax payments. Application of taxes in free ports and special economic zones. International tax conventions (lecture – 1 hour) 3) Taxpayers' rights and the possibilities of their use. Tax and duty relief. Tax rebates. Extension of tax payment deadline. Tax capitalization. Procedure for contesting decisions of the tax administration. Reimbursement of wrongly collected payments and overpaid taxes. SRS publicly available databases (lecture – 1 hour) 4) Tax debts and settlements. Consequences of tax arrears. Cancellation of tax debts. Collection of overdue tax payments. Clarification of the tax amount. The right of the tax administration to specify the amounts of taxes. Determination of tax payments on the basis of calculation. Tax calculations (lecture – 1 hour). 5) Income tax planning. Income tax system in Latvia. Income taxes in agriculture: tax benefits, differences in the tax burden (lecture – 1 hour). 6) Personal income tax planning. Taxable and non-taxable income. Determination of taxable income obtained in economic activity. Income from capital and from capital growth. Exempted expenses of the taxpayer. Relief for the taxpayer. Tax withholding and payment procedure. Procedure for declaring annual income. Different income tax regimes (lecture – 2 hours). 7) Corporate income tax planning. Resident and non-resident taxpayers. Tax base. Transactions with related parties. Transfer pricing. Tax benefits and discounts, tax reduction options. Tax payment procedure (lecture – 1 hour, practical work – 1 hour). 8) Planning of mandatory state social insurance contributions (VSAOI). The status of a socially insurable person and the procedure for calculating and paying contributions (lecture – 1 hour, practical work – 1 hour). 9) Tax planning for micro-enterprises. Tax planning options in a micro-enterprise: advantages and disadvantages (lecture – 1 hour, practical work – 1 hour). 10) Value added tax (VAT) planning. VAT system in EU member states. Transactions subject to VAT and non-taxable. Determining the place of supply of goods and services, Benefits of a registered VAT payer. VAT calculation and payment procedure. Special rules in the application of VAT and their use in VAT planning. Transactions with EU member states and third countries. Special tax payment regimes. Payment of reverse charge. Application of cash principle (lecture – 1 hour, practical work – 1 hour). 11) Tax planning for companies' light vehicles. Advantages of paying tax. Possibilities of using tax exemptions (lecture – 1 hour). 12) Real estate tax planning. Tax objects and taxpayers. Tax calculation and payment procedure. Possibilities of using tax benefits (lecture – 1 hour). 13) Excise tax planning. Taxable objects and taxpayers. Tax calculation and payment procedure. Possibilities of using exemptions and reliefs (lecture – 1 hour). 14) Natural resource tax planning. Taxable objects and taxpayers. Tax calculation and payment procedure. Possibilities of using tax discounts, reliefs and exemptions (lecture – 1 hour). 15) Student research presentations, reviews and discussion (practical work - 4 hours). In part-time studies the number of hours is 2 times less. |
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| Requirements for awarding credit points | |
| The following are assessed for the purpose of receiving a formal test credit points (must receive at least 60% of the assessment):
1) participation in discussions of current issues and solving tasks in practical classes (10%); 2) independent work Application of tax discounts and reliefs (20%); 3) presentation on tax planning (50%); 4) test on current tax regulations (20%). |
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| Description of the organization and tasks of students’ independent work | |
| 1) independent work (1-2 pages) - research specific legislation on a (self-chosen) tax discount or relief;
2) presentation (15 min.) – analyze data on the topic of tax planning chosen by the student, connecting it to the topic of the master's thesis if possible; 3) to prepare for a test on current tax norms. |
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| Criteria for Evaluating Learning Outcomes | |
| The independent work must be completed and successfully assessed, the presentation must be prepared and presented, the test must be successfully completed. | |
| Compulsory reading | |
| 1)Jurušs M. Nodokļu plānošana Latvijā un starptautiskā vidē. Rīga: RTU, 2021., 208 lpp
2)Jurušs M. Nodokļi. Rīga: RTU Izdevniecība, 2019., 176 lpp. 3)Ketners K. Nodokļi un nodokļu plānošanas principi. 2018., 320 lpp. 4)Ketners K., Pētersone M. Eiropas Savienības nodokļu politika. Rīga: Rīgas Tehniskā universitāte, 2014., 208 lpp. |
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| Further reading | |
| 1)James S., Nobes Ch. Economics of Taxation (18th edition), 2018, 250 p.
2)Pfeiffer S., Ursprung-Steindl M. Global Trends in VAT/GST and Direct Taxation. Schriftenreihe IStR Band 93, 2015 3)Tanzi V. Ecology of Tax Systems: Factors That Shape the Demand and Supply of Taxes, 2019, 192 p. 4)Blazek J. Tax Planning and Compliance for Tax-Exempt Organizations, John Wiley & Sons, 2014, 176 pp. 5)Hadnum L. Tax Planning for Property Investors, Createspace Independent Pub, 2014, 124 pp. 6)Leibus I. Uzņēmuma darbības uzsākšana, grāmatvedība un nodokļi. Rīga: Lietišķās informācijas dienests, 2022., 175 lpp. 7)McLaughlin M. Tax Planning 2013/14, 2013, 1008 pp. 8)Spencer P. Property Tax Planning, A&C Black, 2013, 422 pp. |
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| Periodicals and other sources | |
| 1)Valsts ieņēmumu dienesta mājaslapa - www.vid.gov.lv
2)LR likumi un MK noteikumi. Pieejams: www.likumi.lv 3)LR Ministru kabineta mājaslapa. Pieejams: www.mk.gov.lv 4)LR Finanšu ministrijas mājaslapa. Pieejams: www.fm.gov.lv 5)LR Augstākās tiesas mājaslapa. Pieejams: www.at.gov.lv 6)Taxation trends in the European Union. Data for the EU Member States, Iceland and Norway. Pieejams: http://ec.europa.eu/taxation_customs/ |
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| Notes | |
| Restricted elective course for the academic master study program “Economics” | |