H/617/3295 Differentiate between indirect and direct taxation.

Accounting and finance

1. Understand the principles of taxation.

1.1 Differentiate between indirect and direct taxation.

1.2 Explain the principles of taxation.

1.3 Evaluate the implications of taxation for stakeholders.

2. Understand personal taxation.

2.1 Explain income tax and national insurance requirements for individuals.

2.2 Explain inheritance tax planning and payments.

2.3 Explain how an individual determines their capital gains tax liability.

2.4 Analyse an individual`s obligation in relation to their personal tax liability.

2.5 Evaluate the implications of a failure to meet an individual`s taxation obligations.

3. Understand business taxation.

3.1 Explain how assessable profits and gains for both incorporated and unincorporated businesses are identified.

3.2 Explain the details of the corporation tax system.

3.3 Compare different value added tax schemes.

3.4 Evaluate the implications of a failure to meet business taxation obligations.

Learning Outcome 1

Indirect and direct taxation: differentiation between indirect and direct taxation; examples of indirect and direct taxation.

Principles of taxation: function and purpose of the taxation system; progressive and regressive taxation models; systems of tax on income, purchases, businesses, capital items, inheritance; tax avoidance and tax evasion.

Implications for stakeholders: stakeholders (owners, employees, customers, suppliers, competitors, citizens, local, central government and local, national communities); implications of taxation for each group.