BBA 2104 TAXATION MANAGEMENT

Level of Course: Undergraduate Credit Units: 3 Contact Hours: 45

COURSE DESCRIPTION AND OBJECTIVES

The course introduces students to the understanding of the determination of different incomes chargeable
to tax and the tax liability there on. Students are also introduced to the legal to legal frame work within
which taxation of incomes is administered in Uganda. Thus the objective of this course is to enable
students to:
 Determine taxable income and tax liability of various categories of persons.
 Explain the objectives of tax planning in Uganda
 Examine the evolution and rationale of income tax in Uganda.
 Analyze Taxable Income(s)
 Prepare moderately difficult income tax returns.
 Demonstrate knowledge of the impact taxes on the business’ financial decision.

LEARNING OUTCOMES
Students should be able to
 Know the sources of incomes on which tax is imposed.
 Determine incomes chargeable to tax and the tax liability there on.
 Deal with tax planning issues in taxation

TEACHING AND LEARNING PATTERN

 Straight lectures
 Practical’s and demonstration
 Class discussions/ exercises
 Group presentations,/assignments and projects

ASSESSMENT METHOD
The assessment method is structures to include coursework and final examinations. Coursework consists
of assignment, presentations and tests, represented as follows:
Course work assessment 30%
Final Examination 70%
100%
COURSE CONTENT
1) Introduction to Taxation: (03 Hours)
 The concept of tax explained
 Principles of Taxation/ Canons of taxation
 Classification of taxes
 Types of taxes,
  Tax compliance issues
 Evolution of income tax in Uganda, administration and structure
 Person liable to tax, of residents and none-resident person

2) Taxation of Incomes from Employment: (07 Hours)

 Define employment income
 Resident/non-resident taxable individual
 Exemption on employment incomes
 Employment income tax brackets
 Computation of tax liability of resident individuals and for non- resident
 Employer rights and obligations
3) Taxation of Incomes from Business: (08 Hours)
 Define Business Income
 Allowable and non-allowable expenses
 Allowances and exemptions
 Computation of total profits and tax liability
4) Mining operations and income there in:
 Background of mining operations
 Ongoing operations of the mining , and taxation of entry, operation and exit stage.
 Financing of mining operations and tax
 Royalities
 Transfer pricing
 Tax filling and payments
(03 Hours)
5) Farming and agricultural operations and income there in:
 Background to agricultural operations
 Allowable and non-allowable expenditure
 Taxation of income from agricultural operations more so in sectors of horticulture, and other
government focus sectors of agriculture.
(03 Hours)
6) International taxation: (06 Hours)
 Resident and non-residents
 Taxation of foreign source employment income
 Taxation of branches of foreign companies
 Taxation on international payments to non-residents
 International agreements with foreign countries- double taxation agreements (DTA)
 7) Taxation of Incomes from Property: (03 Hours)
8) Introduction to Tax planning: (07 Hours)
 Areas to consider in tax planning
 Factors to consider when arranging for tax planning
 Importance of tax planning
 Tax planning on capital gains

Emerging issues in taxation: (05 Hours)

 The East African Customs Management Act
 The Common External Tariffs (CETs)
 Tax Amendments
TOTAL HOURS (45 HOURS)
BASIC READING SOURCES
1. Income Tax Act 1997 and subsequent amendment
2. The East African Customs and Management Act
3. Income tax by Pius Bahemuka
4. Managing Taxes in Uganda by Christine Mugume