taxation – ireland (tx-irl) · 2019. 12. 9. · examinable documents for the exam (where...

Taxation –Ireland(TX-IRL)Syllabus and study guide

June and December 2019

Taxation - Ireland (TX-IRL)

© ACCA 2019 All rights reserved.

Summary of content

Introduction1. Intellectual levels2. Learning hours and educational

recognition3. Guide to ACCA examination

structure4. Guide to ACCA examination

assessment

Taxation – Ireland(TX-IRL) syllabus

5. Relational diagram linkingTaxation – Ireland with otherexams

6. Overall aim of the syllabus7. Main capabilities8. Rationale9. Approach to examining the

syllabus10. The syllabus

Taxation – Ireland(TX-IRL) study guide

11. Detailed study guide



1. Intellectual levels

The syllabus is designed toprogressively broaden and deepen theknowledge, skills and professionalvalues demonstrated by the student ontheir way through the qualification.

The specific capabilities within thedetailed syllabuses and study guides areassessed at one of three intellectual orcognitive levels:

Level 1: Knowledge andcomprehension

Level 2: Application and analysisLevel 3: Synthesis and evaluation

Very broadly, these intellectual levelsrelate to the three cognitive levels atwhich the Applied Knowledge,the Applied Skills and the StrategicProfessional examsare assessed.

Each subject area in the detailed studyguide included in this document is givena 1, 2, or 3 superscript, denotingintellectual level, marked at the end ofeach relevant line. This gives anindication of the intellectual depth atwhich an area could be assessed withinthe examination. However, while level 1broadly equates with AppliedKnowledge, level 2 equates to AppliedSkills and level 3 to StrategicProfessional, some lower level skills cancontinue to be assessed as the studentprogresses through each level. Thisreflects that at each stage of study therewill be a requirement to broaden, as wellas deepen capabilities. It is alsopossible that occasionally some higherlevel capabilities may be assessed atlower levels.

2. Learning hours andeducationalrecognition

The ACCA qualification does notprescribe or recommend any particularnumber of learning hours forexaminations because study andlearning patterns and styles vary greatlybetween people and organisations. Thisalso recognises the wide diversity ofpersonal, professional and educationalcircumstances in which ACCA studentsfind themselves.

As a member of the InternationalFederation of Accountants, ACCA seeksto enhance the education recognition ofits qualification on both national andinternational education frameworks, andwith educational authorities and partnersglobally. In doing so, ACCA aims toensure that its qualifications arerecognised and valued by governments,regulatory authorities and employersacross all sectors. To this end, ACCAqualifications are currently recognisedon the education frameworks in severalcountries. Please refer to your nationaleducation framework regulator forfurther information.

Each syllabus is organised into mainsubject area headings which are furtherbroken down to provide greater detail oneach area.



3. Guide to ACCAexamination structure

The structure of examinations varieswithin and between levels.

Applied KnowledgeThe Applied Knowledge examinationscontain 100% compulsory questions toencourage candidates to study acrossthe breadth of each syllabus. These areassessed by a two-hour computer basedexamination.

Applied SkillsThe Corporate and Business Law examis a two-hour computer based objectivetest examination for English and Global.For the format and structure of theCorporate and Business Law orTaxation variant exams, refer to the‘Approach to examining the syllabus’ insection 9 of the relevant syllabus andstudy guide.

The other Applied Skills examinations(PM, TX-UK, FR, AA and FM) contain amix of objective and longer typeresponse questions with a duration ofthree hours for 100 marks. These examsare available in computer-based format.Prior to the start of each exam there willbe time allocated for students to beinformed of the exam instructions. Forthe format and structure of the TX-IRLvariant exam, refer to the ‘Approach toexamining the syllabus’ section below.

The longer (constructed response)question types used in the Applied Skillsexams (excluding Corporate andBusiness Law) require students toeffectively mimic what they do in theworkplace. Students will need to use arange of digital skills and demonstratetheir ability to use spreadsheets andword processing tools in producing theiranswers, just as they would use thesetools in the workplace. These

assessment methods allow ACCA tofocus on testing students’ technical andapplication skills, rather than, forexample, their ability to perform simplecalculations.

Strategic ProfessionalStrategic Business Leader is ACCA’scase study examination at the StrategicProfessional level and is examined as aclosed book exam of four hours,including reading, planning andreflection time which can be usedflexibly within the examination. There isno pre-seen information and all examrelated material, including caseinformation and exhibits are availablewithin the examination. StrategicBusiness leader is an examinationbased on one main business scenariowhich involves candidates completingseveral tasks within which additionalmaterial may be introduced. Allquestions are compulsory and eachexamination will contain a total of 80technical marks and 20 ProfessionalSkills marks.

The other Strategic Professional examsare all of three hours and 15 minutesduration. All contain two Sections andall questions are compulsory. Theseexams all contain four professionalmarks.

For June, September and December2019 sessions, all Strategic Professionalexams will be assessed by paper basedexamination. From March 2020, theseexams will become available bycomputer based examination. Moredetail regarding what is available in yourmarket will be on the ACCA globalwebsite.

With Applied Knowledge and AppliedSkills exams now assessed by computerbased exam, ACCA is committed tocontinuing on its journey to assess all



exams within the ACCA Qualificationusing this delivery mode.

The question types used at StrategicProfessional again require students toeffectively mimic what they would do inthe workplace and, with the move toCBE, these exams again offer ACCA theopportunity to focus on the application ofknowledge to scenarios, using a rangeof tools – spreadsheets, wordprocessing and presentations - not onlyenabling students to demonstrate theirtechnical and professional skills but alsotheir use of the technology available totoday’s accountants.

ACCA encourages students to take timeto read questions carefully and to plananswers but once the exam time hasstarted, there are no additionalrestrictions as to when candidates maystart writing in their answer books.

Time should be taken to ensure that allthe information and exam requirementsare properly read and understood.

The pass mark for all ACCAQualification examinations is 50%.



4. Guide to ACCAexaminationassessment

ACCA reserves the right to examineanything contained within the studyguide. This includes knowledge,techniques, principles, theories, andconcepts as specified. For the financialaccounting, audit and assurance, lawand tax exams except where indicatedotherwise, ACCA will publishexaminable documents once a year toindicate exactly what regulations andlegislation could potentially be assessedwithin identified examination sessions.

For most examinations (not tax),regulations issued or legislation passedon or before 31 August annually, will beexaminable from 1 September of thefollowing year to 31 August of the yearafter that. Please refer to theexaminable documents for the exam(where relevant) for further information.

The IRL variant tax examinations inJune and December will be based onlegislation passed before the previous30 September. i.e. June and December2019 papers will be based on legislationpassed by 30 September 2018.

Regulations issued or legislation passedin accordance with the above dates maybe examinable even if the effective dateis in the future.

The term issued or passed relates towhen regulation or legislation has beenformally approved.

The term effective relates to whenregulation or legislation must be appliedto an entity’s transactions and businesspractices.

The study guide offers more detailedguidance on the depth and level atwhich the examinable documents will beexamined. The study guide shouldtherefore be read in conjunction with theexaminable documents list.



5. Relational diagram linking Taxation – Ireland (TX-IRL) with other exams

This diagram shows between this exam and other exams preceding or following it.Some exams are directly underpinned by other exams such as Advanced Taxation –Ireland (ATX-IRL) by Taxation – Ireland (TX-IRL).

This diagram indicates where students are expected to have underpinningknowledge and where it would be useful to review previous learning beforeundertaking study.

6. Overall aim of the syllabus

This syllabus and study guide is designed to help with planning study and to providedetailed information on what could be assessed in any examination session.

The aim of the syllabus is to develop knowledge and skills relating to the Irish taxsystem as applicable to individuals, single companies and groups of companies.



7. Main capabilities

On successful completion of this exam, candidates should be able to:

A Explain the operation and scope of the Irish tax system and the obligations oftax payers and/or their agents and the implications of non-compliance.

B Explain and compute the income tax liabilities of individuals

C Explain and compute the corporation tax liabilities of individual companies andgroups of companies

D Explain and compute the chargeable gains arising on companies and individuals

E Explain and compute the taxation of residential property

F Explain and compute the effect of social insurance and universal social chargeon employees, employers and the self employed

G Explain and compute the effects of value added tax on incorporated andunincorporated businesses

Relational diagram of the main capabilities

This diagram illustrates the flows and links between the main capabilities (sections)of the syllabus and should be used as an aid to planning teaching and learning in astructured way.



8. Rationale

The syllabus for Taxation – Ireland (TX-IRL) introduces candidates to thesubject of taxation and provides the coreknowledge of the underlying principlesand major technical areas of taxation, asthey affect the activities of individualsand businesses.

Candidates are introduced to therationale behind - and the functions of -the tax system. The syllabus thenconsiders the separate taxes that anaccountant would need to have adetailed knowledge of, such as incometax from self employment, employmentand investments; the corporation taxliability of individual companies andgroups of companies; the socialinsurance and universal social chargesof both employed and self employedpersons; the value added tax liability ofbusinesses; and the chargeable gainsarising on disposals of investments byboth individuals and companies.

Having covered the core areas of thebasic taxes, the candidate should beable to compute tax liabilities, explainthe basis of their calculations, apply taxplanning techniques for individuals andcompanies and identify the complianceissues for each major tax through avariety of business and personalscenarios and situations.



9. Approach to examiningthe syllabus

The syllabus is assessed by a three-hour 15 minutes paper basedexamination (in June 2019) and by athree-hour computer-based examination(in December 2019).

The paper will be predominantlycomputational and all questions arecompulsory.

Section A of the exam comprises 15multiple choice questions of 2 markseach.

Section B of the exam comprises four 10mark questions and two 15 markquestions.

The two 15 mark questions will focus onincome tax (syllabus area B) andcorporation tax (syllabus area C).

The section A questions and the otherquestions in section B can cover anyarea of the syllabus.



10. The syllabus

A The Irish tax system and itsadministration

1. The overall function and purpose oftaxation in a modern economy

2. Principal sources of revenue lawand practice

3. The systems for self-assessmentand the making of returns

4. The time limits for the submission ofinformation, claims and payment oftax, including preliminary tax

5. The procedures relating to Revenueaudit/enquiries, appeals anddisputes

6. Penalties for non-compliance

B Income tax liabilities

1. The scope of income tax

2. Income from employment

3. Income from self-employment

4. Property and investment income

5. The comprehensive computation oftaxable income and income taxliability

6. The use of exemptions and reliefs indeferring and minimising income taxliabilities

C Corporation tax liabilities

1. The scope of corporation tax

2. Profits chargeable to corporation tax

3. The comprehensive computation ofcorporation tax liability

4. The effect of a group corporatestructure for corporation taxpurposes

5. The use of exemptions and reliefs indeferring and minimising corporationtax liabilities

D Chargeable gains

1. The scope of the taxation of capitalgains

2. The basic principles of computinggains and losses (including gainsand losses on development land)

3. Gains and losses on the disposal ofmovable and immovable property

4. Gains and losses on the disposal ofshares and securities

5. The computation of the capital gainstax payable

6. The use of exemptions and reliefs indeferring and minimising taxliabilities arising on the disposal ofcapital assets

E Local property tax (LPT)

1. The scope of the taxation ofresidential property

2. Determining who is liable to payLPT

3. The computation of LPT payable

4. Alternative payment optionsavailable



F Social insurance and healthcontributions

1. The scope of social insurance

2. Social insurance contributions forself-employed persons andemployees

3. Universal social charge

G Value added tax

1. The scope of value added tax (VAT)

2. The VAT registration requirements

3. The computation of VAT liabilities

4. The effect of special schemes



11. Detailed study guide

A The Irish Tax system andits administration

1. The overall function and purposeof taxation in a modern economy

a) Describe the purpose (economic,social etc) of taxation in a moderneconomy.[1]

b) Identify the different types of capitaland revenue taxes.[1]

c) Explain the difference betweendirect and indirect taxation.[2]

2. Principal sources of revenue lawand practice

a) Describe the overall structure of theIrish tax system.[1]

b) State the different sources ofrevenue law.[1]

c) Appreciate the interaction of theIrish tax system with that of othertax jurisdictions.[2]

d) Explain the difference between taxavoidance and tax evasion.[1]

e) Explain the need for an ethical andprofessional approach.[2]

Excluded topics

Anti-avoidance legislation.

3. The systems for self-assessmentand the making of returns

a) Explain and apply the features ofthe self-assessment system as itapplies to individuals.[2]

b) Explain and apply the features ofthe self-assessment system as itapplies to companies.[2]

4. The time limits for thesubmission of information,claims and payment of tax,including preliminary tax

a) Recognise the time limits that applyto the filing of returns and themaking of claims.[2]

b) Recognise the due dates for thepayment of tax under the self-assessment system.[2]

c) Understand the main features ofRevenue online service (ROS).(2)

d) List the information and records thattaxpayers need to retain for taxpurposes.[1]

5. The procedures relating toRevenue audits/enquiries,appeals and disputes

a) Explain how the Revenue can audita self assessment return.[2]

b) Explain the procedures for dealingwith appeals and disputes.[1]

6. Penalties for non-compliance

a) Calculate interest onoverdue/overpaid tax.[2]

b) State the penalties that can becharged.[2]

B Income tax liabilities

1. The scope of income tax

a) Explain how the residence, ordinaryresidence and domicile of anindividual is determined.[2]



b) Explain the implications of theresidence, ordinary residence anddomicile status of an individual onthe scope of Irish income tax.[2]

c) Understand the taxation of an Irishresident in relation to the followingsources of income arising in the UK– trading income, interest, dividends,rent, royalties, salary andpensions.[2]

d) Understand the income liable to Irishtaxation of a non-Irish residentindividual.[2]

Excluded topics

Tax credits arising from theunderlying tax on foreigndividends

Taxation of split year residence.

Special Assignee Relief Program(SARP)

Domicile levy

Foreign Earning Deduction(FED)

Income from trusts andsettlements.

Double taxation relief

2. Income from employment

a) Recognise the factors thatdetermine whether an engagementis treated as employment or self-employment.[2]

b) Recognise the basis of assessmentfor employment income.[2]

c) Compute the income assessable.[2]

d) Recognise the allowabledeductions, including travellingexpenses, relocation expenses andinducement payments.[2]

e) Discuss the use of the Revenueapproved mileage and subsistenceallowances scheme.[2]

f) Explain the PAYE system.[2]

g) Compute the amount of benefitsassessable.[2]

h) Understand the treatment of profitsarising from the granting andexercise of rights under share optionschemes, both long and shortoptions.[2]

i) Termination and other lump sumpayments(i) Understand the treatment of

termination payments and otherlump sum payments received byemployees.[2]

(ii) Calculate relevant taxable andtax free amounts.[2]

Excluded topics

Detailed knowledge of share andshare option incentive schemesfor employee, except asspecified above.

Termination payments relating toforeign service.

3. Income from self-employment

a) Recognise the basis of assessmentfor self-employment income.[2]

b) Describe and apply the badges oftrade.[2]

c) Recognise the expenditure that isallowable in calculating the tax-adjusted trading profit for personscarrying on atrade/profession/vocation.[2]



d) Recognise the relief that can beobtained for pre-tradingexpenditure.[2]

e) Recognise the relief availablethrough the use of artistsexemption.[2]

f) Compute the assessable profits oncommencement and on cessation(including a death situation).[2]

g) Compute farming income on theincome averaging basis.[2]

h) Compute the relief available for anincrease in farm trading stock. [2]

i) Capital allowances

i) Define plant and machinery forcapital allowances purposes [1]

ii) Compute wear and tearallowances (including on motorcars) [2]

iii) Compute balancing allowancesand balancing charges [2]

iv) Define an industrial building forindustrial buildings allowancepurposes [1]

v) Compute industrial buildingsallowance for new and second-hand buildings [2]

vi) Compute the balancingadjustment on the disposal of anindustrial building.[2]

vii)Compute farm buildingsallowance.[2]

j) Relief for trading losses (includingfarming losses)

i) Understand how trading lossescan be carried forward.[2]

ii) Understand how trading lossescan be claimed against totalincome.[2]

iii) Explain the relief for tradinglosses in the early years of atrade.[1]

iv) Explain terminal loss relief [1]

k) Partnerships

i) Explain the partnership taxregime.[2]

ii) Compute the assessable profitsfor each partner following achange in the profit sharingratio.[2]

iii) Compute the assessable profitsfor each partner following achange in the membership of thepartnership.[2]

l) Describe and apply professionalservices withholding tax (PSWT),withholding tax on paymentsreceived for professional servicesby Government and State bodies.[2]

m) Describe and apply the RCT rules.[2]

Excluded topics

Interest on capital and salariespaid to partners

Change of accounting date

4. Property and investment income

a) Compute rental income.[2]

b) Compute the capital allowancesavailable for set off against rentalincome.[2]

c) Describe and apply rent-a-roomrelief.[2]

d) Compute the amount assessablewhen a premium is received for thegrant of a short lease.[2]

e) Understand how relief for a rentaldeficiency and excess capitalallowances is given.[2]

f) Distinguish between tax exempt andtaxable savings income.[2]



g) Compute the withholding tax andfinal tax payable on savings incomeand property income.[2]

h) Compute the tax payable ondividend income.[2]

5. The comprehensive computationof taxable income and incometax liability

a) Prepare a basic income taxcomputation involving differenttypes of income.[2]

b) Calculate the amount of reliefsdeductible at the marginal rate.[2]

c) Explain the treatment of charges onincome, and calculate any amountdeductible from gross income.[2]

d) Compute the amount of income taxpayable.[2]

e) Calculate the amount of personaltax credits available.[2]

f) Distinguish between the jointassessment, separate assessmentand single treatment of marriedcouples, including couples in civilpartnerships, as recognised underthe CPCROC Act 2010.[2]

g) Year of marriage relief and year ofregistration as civil partners’ relief.[2]

h) Understand the treatment ofdivorced and separated couples,including civil partners.[2]

Excluded topics

The income of minor children.

Taxation of a married couple inthe year of death, separation ordivorce.

High income earners restriction.

6. The use of exemptions andreliefs in deferring andminimising income tax liabilities

a) Explain and compute the reliefgiven for contributions to personalpension schemes for self-employedindividuals and employedindividuals who are not in anoccupational pension scheme.[2]

b) Describe the relief given toemployees for contributions tooccupational pension schemes.[2]

c) Explain how a married couple mightseek to minimise their tax liabilities.[2]

Excluded topics

The conditions that must be metin order for a pension scheme toobtain approval from theRevenue Commissioners.

C Corporation tax liabilities

1. The scope of corporation tax

a) Define the term ‘accountingperiod’.[1]

b) Recognise when an accountingperiod starts and when anaccounting period finishes.[1]c)Allocation of profits betweenaccounting periods.

d) Explain how the residence of acompany is determined.[2]

e) Determine the profits assessable ona company resident in the State.

f) Determine the profits assessable ona company not resident in the State.

Excluded topics

Investment companies.



Close companies.

Companies in receivership orliquidation.

Reorganisations (other thanpaper-for-paper relief).

The purchase by a company ofits own shares.

Foreign companies (other thanUK companies).

The meaning of a permanentestablishment under the Irish UKdouble tax treaty.

2. Profits chargeable to corporationtax

a) Recognise the expenditure that isallowable in calculating the tax-adjusted trading profit.[2]

b) Explain how relief can be obtainedfor pre-trading expenditure.[1]

c) Compute capital allowances (as forincome tax).[2]

d) Compute rental income.[2]

e) Compute the capital allowancesavailable for set off against rentalincome.[2]

f) Understand how trading losses canbe carried forward.[2]

g) Understand how trading losses canbe claimed against income of thecurrent or previous accountingperiods (including terminal lossrelief).[2]

h) Understand the restriction of lossrelief when a corporation tax returnis filed late.[2]

i) Recognise the factors that willinfluence the choice of loss reliefclaim.[2]

j) Explain how relief for a rentaldeficiency and excess capitalallowances is given.[1]

k) Explain the treatment of charges onincome, including trade and nontrade charges.[2]

l) Compute profits chargeable tocorporation tax.[2]

Excluded topics

Specific rules with regard toreliefs available on expenditureon research and development,know how and the acquisition ofpatents

3. The comprehensive computationof corporation tax liability

a) Compute the corporation taxliability.[2]

b) Explain the corporation taxexemption for new start-upcompanies.[2]

c) Understand how the relief for newstart-up companies applies,including marginal relief.[2]

d) Explain the implications of receivingfranked investment income.[2]

e) Explain and calculate dividendwithholding tax (DWT).[2]

f) Describe and apply the withholdingtax provisions with regards topayments to sub-contractors (RCT),annual payments (includinginterest) and royalties.[2]

g) Explain how exemptions and reliefscan defer or minimise corporationtax liabilities.[2]



Excluded topics


4. The effect of a group corporatestructure for corporation taxpurposes

a) Define a group for trading losspurposes, and recognise the reliefsthat are available to members ofsuch a group.[2]

b) Define a group for capital gains taxpurposes, and recognise the reliefsthat are available to members ofsuch a group.[2]

c) Define a group for interest androyalty payment purposes.[2]

Excluded topics

The tax charge that applieswhere a company leaves a groupwithin ten years of receiving anasset by way of a no gain/no losstransfer

Consortia

The anti-avoidance provisionswhere arrangements exist for acompany to leave a group

Double taxation relief..

5. The use of exemptions andreliefs in deferring andminimising corporation taxliabilities (The use of suchexemptions and reliefs is implicitwithin all of the above sections 1to 4 of part C of the syllabus,concerning corporation tax)

D Chargeable gains

1. The scope of the taxation ofcapital gains for individuals andcompanies

a) Describe the scope of capital gainstax.[2]

b) Explain the implications of theresidence, ordinary residence anddomicile status of an individual onthe scope of capital gains tax.[2]

c) Define specified assets and explainthe implications of their disposal forcapital gains tax purposes.

d) List those assets which areexempt.[1]

Excluded topics

Partnership capital gains

2. The basic principles ofcomputing gains and losses(including gains and losses ondevelopment land)

a) Compute capital gains for bothindividuals and companies.[2]

b) Explain the treatment of capitallosses for both individuals andcompanies.[1]

c) Explain the treatment of transfersbetween a husband and wife andother connected persons.[2]

d) Compute the amount of allowableexpenditure for a part disposal.[2]

Excluded topics

Asset which are damaged, lostor destroyed, and theimplications of receivinginsurance proceeds

3. Gains and losses on the disposalof movable and immovableproperty

a) Identify when chattels and wastingassets are exempt.[2]



b) Compute the chargeablegains/allowable losses whenchattels are disposed of.[2]

c) Apply the relief available whennegligible value claims are made.[2]

d) Compute the exemption when aprincipal private residence isdisposed of.[2]

e) Calculate the chargeable gain whena principal private residence hasbeen used for business purposes.[2]

f) Identify the amount of principalprivate residence relief availablewhen a principal private residencehas been let out.[2]

g) Calculate the capital gain when thesale price of a principal privateresidence reflects developmentpotential.[2]

Excluded topics

The disposal of leases and thecreation of sub-leases.

4. Gains and losses on the disposalof shares and securities

a) Calculate the value of quotedshares where they are disposed ofby way of a gift.[2]

b) Explain and apply the shareidentification rules.[2]

c) Explain the treatment of bonusissues, rights issues, takeovers andreorganisations.[2]

d) Explain how anti avoidance rulesapply to ensure that losses claimedon share disposal are realised.[2]

5. The computation of the capitalgains tax payable

a) Compute the amount of capitalgains tax payable by individuals.[2]

b) Compute the amount of capitalgains tax payable by individualsavailing of entrepreneur relief onqualifying business assets.(2)

c) Explain and apply capital gainswithholding tax.[2]

d) Compute the liability to tax on thecapital gains of companies.[2]

Excluded topics


6. The use of exemptions andreliefs in deferring andminimising tax liabilities arisingon the disposal of capital assets

a) Explain and apply the relief ondisposal of a site to a child.[2]

Excluded topics

Retirement relief

Favourable holding companyrelief

Incorporation relief

E Local property tax

1. The scope of local property tax(LPT)

a) Describe the scope of LPT.[2]

2. Determining who is liable to payLPT

a) Identify who is the liable person.[2]

b) Identify property ownership datesthat are applicable.[2]

c) Explain when properties may beexempt from LPT.[2]



3. The computation of LPT payable

a) Explain how property is valued.[2]

b) Calculate the amount of LPTpayable.[2]

Excluded topics

Local Adjustment Factorsreducing the basic rate of LPT.

4. Alternative payment optionsavailable

a) Explain when LPT can bedeferred.[2]

b) Explain alternative payment plans.[2]

F Social insurance anduniversal social charge

1. The scope of social insurance

a) Describe the scope of socialinsurance.[1]

2. Social insurance contributionsfor self-employed persons andemployees

a) Compute the contributions payableby self-employed persons (ClassS).[2]

b) Compute the contributions payableby and on behalf of employees(Class A1).[2]

c) Compute the contributions payableon unearned income of a modifiedPRSI rate contributor and employedcontributors who do not have CaseI/II income. (Class K). [2]

3. Universal social charge

a) Describe the scope of universalsocial charge.[2]

b) Compute the universal socialcharge payable.[2]

G Value added tax

1. The scope of value added tax(VAT)

a) Describe the scope of VAT.[2]

b) List the principal zero-rated,exempt and reduced rate supplies.[1]

2. The VAT registrationrequirements

a) Recognise the circumstances inwhich a person must register forVAT.[2]

b) Explain the advantages of voluntaryVAT registration.[2]

c) Explain the circumstance in whichpre-registration input VAT can berecovered.[2]

d) Explain how and when a person canderegister for VAT.[1]

Excluded topics

Group registration.

3. The computation of VAT liabilities

a) Explain how VAT is accounted forand administered.[2]

b) Recognise the tax point when goodsor services are supplied.[2]

c) Understand and explain thecomposite and multiple supplyrules.[2]

d) Explain and apply the two-thirdsservices rule. [2]

e) List the information that must begiven on a VAT invoice.[2]



f) Explain and apply the principlesregarding the valuation ofsupplies.[2]

g) Recognise the circumstances inwhich input VAT is non-deductible.[2]

h) Compute the relief that is availablefor losses on trade debts.[2]

i) Understand the treatment ofimports, exports and trading withinthe European Union (EU). [2]

j) Compute the VAT payable orrepayable in a given VAT period.[2]

k) State the circumstances in whichinterest and penalties apply.[2]

Excluded topics

Partial exemption rules inconnection with a transfer ofundertaking

The exceptions to the generalrules dealing with the supply ofservices connected withimmovable goods, passengertransport, telecommunications/broadcasting (MOSS rules),cultural and artistic events andthe use and enjoymentprovisions are not examinable.

VAT on property is alsoexcluded other than:-the treatment of VAT on the

purchase of a new property-the treatment of VAT

incurred on repairs andmaintenance of a property

-the option to tax rents from aspecific letting

The capital goods scheme

4. The effect of special schemes

a) Explain the circumstances in whicha taxable person can account forVAT on a cash basis, and identifythe advantage(s) of this.[2]

b) Describe the annual accountingscheme, and recognise when it willbe advantageous to use thescheme.[2]

Excluded topics

Flat rate scheme for farmers Second-hand goods scheme Special schemes for retaile



Reading list

Irish Taxation: Law and Practice, Irish tax series 2018, 16th edition. Irish TaxationInstitute

The Student Tax Handbook, McKeown Murray Publications



Summary of changes to Taxation – Ireland (TX-IRL)

ACCA periodically reviews its qualification syllabuses so that they fully meet theneeds of stakeholders such as employers, students, regulatory and advisory bodiesand learning providers.

The following changes have been made to the Taxation – Ireland (TX-IRL) syllabusin 2019.

Table 1 – Amendments to syllabus

Section and subject area Syllabus content

B1 Income tax liabilities - thescope of income tax

Outcome b) inserted for clarificationpurposes to make it clear that theimplications of an individual’s taxstatus on the scope of Irish incometax is included in the syllabus

B1 Income tax liabilities – thescope of income tax

Existing excluded topic on doubletaxation relief removed andsimplified excluded topic inserted ondouble taxation relief to clarify thatdouble taxation relief is notexaminable regardless of source ofincome

C1 Corporation tax liabilities –the scope of corporation tax

Outcome c) inserted for clarificationpurposes to make it clear that theallocation of profits betweenaccounting periods is included in thesyllabus


Outcome e) inserted for clarificationpurposes to make it clear thatdetermining the profits assessableon a company resident in the Stateis included in the syllabus


Outcome f) inserted for clarificationpurposes to make it clear thatdetermining the profits assessableon a company not resident in theState is included in the syllabus

C3 Corporation tax liabilities –the comprehensivecomputation of corporationtax liability

Excluded topic inserted on doubletaxation relief to clarify that doubletaxation relief is not examinable




C4 Corporation tax liabilities –the effect of a groupstructure for corporation taxpurposes

Outcomes a) and b) amended toremove 75% from the definition of agroup

C4 Corporation tax liabilities –the effect of a groupstructure for corporation taxpurposes

Outcome c) amended to remove51% from the definition of a group

D1 Chargeable gains – thescope of the taxation ofcapital gains for individualsand companies

Outcome b) amended to clarify thatthe implications of an individual’s taxstatus on the scope of capital gainstax is included in the syllabus

D1 Chargeable gains – thescope of the taxation ofcapital gains for individualsand companies

Outcome c) inserted to clarify thatspecified assets and the implicationsof their dsposal for capital gains taxpurposes is included in the syllabus

D5 Chargeable gains - thecomputation of the capitalgains tax payable

Excluded topic inserted on doubletaxation relief to clarify that doubletaxation relief is not examinable

G1 Value added tax – the scopeof value added tax (VAT).

Outcome b) amended to includereduced rate supplies for clarificationpurposes

Table 2 – Deletions from syllabus / additions to excluded topics



The meaning of a permanentestablishment is no longerexaminable at this level and isadded to excluded topics

C4 Corporation tax liabilities –the effect of a group structurefor corporation tax purposes

The calculation of double taxationrelief for withholding tax andunderlying tax is no longerexaminable at this level and is addedto excluded topics

taxation – ireland (tx-irl) · 2019. 12. 9. · examinable documents for the exam (where...

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