AC2301

PRINCIPLES OF TAXATION
___________________________________________________________________

Academic Year

2013/14

Course
Coordinator

TAN How Teck

Pre-requisites

AB1101 Accounting I

No. of AUs

Semester
Other
Instructor(s)

POH Eng Hin

: JOW Lee Ying
LEE Yuet Lai

Course Description and Learning Objectives

The course focuses on the two principal taxes in Singapore income tax and the goods and
services tax (GST). The objectives of the course are three-fold:
1. the Compliance objective to provide students with a framework to understand the structure
of Singapore income tax and GST, to have a working knowledge of the key tax concepts and
principles, and to be able to apply the tax laws to common transactions;
2. the Planning objective to instil an awareness in students of the impact that taxes have on
the decision-making process of businesses and individuals and how such tax costs can be
controlled through legitimate tax planning; and
3. the Policy objective - to instil an awareness in students of the policy considerations that drive
the changes to the tax laws.

Learning & Teaching Methods

There will be one four-hour seminar per week over thirteen weeks. The course is taught
independently by several instructors, with the syllabus for the final examination (including the
scope and depth of topics) pre-agreed among the instructors.

Course Assessments
Components

Marks

Individual/Group

Class participation

10

Individual

Group presentations

10

Group

Quizzes

20

Individual

Final examination (restricted closed-book)

60

Individual

Total

100

AC2301 2013/14 Sem 1

Assessment Plan
Learning Goal

Assessment
Method

Course Learning Objective

Our graduates
should demonstrate
knowledge of
income tax and GST
laws, concepts and
principles.

Students should understand and be

able to interpret and explain key
income tax and GST laws, concepts
and principles.

Our graduates
should demonstrate
problem-solving and
decision-making
skills.

Students should be able to identify,

analyze and/or evaluate any
potential tax issue in a given factual
situation, and to calculate the income
tax liability of a company and/or
recommend the appropriate taxefficient measure(s).

Course

Quiz

Rubric
Acquisition of
knowledge (The
combined course
mark will be used
to measure this
rubric).
Problem-solving
and Decisionmaking skills

Readings and References

Individual instructors will provide their own readings and references. The general references
are the following. Please check with your own instructor which book(s) to use:
Poh Eng Hin, A Conceptual Approach to Singapore Taxation,
(Pearson Education South Asia Limited) (2013)
Poh Eng Hin & Moira Khaw, Principles of Taxation: A Coursebook
(McGraw Hill)(2002)
Tan How Teck & Jimmy Oei, Singapore Master Tax Guide
Handbook 2013/14 (2013)

(library call number

is pending)
HJ2950.67.K45
HJ4772.S617

Simon Poh Siew Beng, Taxation in Singapore (2012)

HJ4772.P747

Sum Yee Loong, Singapore Tax Workbook 2012/13

HJ2950.67.S617S

Other Resources
Useful internet resources:
Singapore Statutes Online: http://statutes.agc.gov.sg/
IRAS website: http://www.iras.gov.sg/
Course Instructors
Instructor

Office
Location

Phone

Email

TAN How Teck (Coordinator)

S3-1A-11

6790 4635

atanht@ntu.edu.sg

JOW Lee Ying

S3-B1A-21

6592 3087

lyjow@ntu.edu.sg

POH Eng Hin

S3-B2C-115

6790 6035

aehpoh@ntu.edu.sg

yuetlai@ntu.edu.sg

LEE Yuet Lai

AC2301 2013/14 Sem 1

Proposed Course Schedule

The following lists the broad areas in the syllabus. The sequence of the topics is likely to differ
across instructors, and students are advised to refer to their respective instructors course
outlines.
Topic
INTRODUCTION, LEGISLATIVE FRAMEWORK, CONCEPTUAL FRAMEWORK
CHARGING SECTION
Scope of income taxation
Source
Residence
Income v Capital
Basis of assessment
Person
INCOME
Income from a trade, business, profession or vocation
Income from employment
Dividend
Interest
Rent, royalty and other profits from property
s10(1)(g)
DEDUCTIONS AND CAPITAL ALLOWANCES
Deductions
General deduction formula
Prohibited deductions
Revenue expenditure versus capital expenditure
Special deductions
Further deductions
Capital allowances
Wear and tear allowances
Industrial building allowances
Land intensification allowances
Writing down allowances for intellectual property rights
Related party transfers
TAXATION OF COMPANIES

Partial Tax Exemption Scheme

Shareholdings test

Business continuity test

Carry forward relief

Group relief

Carry back relief

Corporate tax systems

Classical two-tier model
Full-imputation model
One-tier model
Singapore corporate tax system
TAXATION OF INDIVIDUALS

Resident individuals

Non-resident individuals

AC2301 2013/14 Sem 1

Topic
RELIEF FROM DOUBLE TAXATION

Meaning of double taxation

General methods for relieving double taxation

Double taxation in the context of Singapore

Specific exemptions and reliefs available in Singapore

The credit code and foreign tax credit pooling

Treatment of foreign dividends

Tax sparing relief

INCOME TAX ADMINISTRATION
OVERVIEW OF THE GOODS AND SERVICES TAX

How GST works

Scope of GST imposition

GST registration

Value of supply and value of imported good

Claim for input tax credit

Time of supply rules and GST reporting periods

Administrative obligations imposed on registered traders

Interaction with income tax

Academic Integrity
You are reminded that plagiarism is a serious offence. Please comply with NTUs policy
concerning academic integrity.

AC2301 2013/14 Sem 1