Industry based taxation proposals

You are a trainee tax accountant at a firm of accountants called Haveit, Needit and Wantit Accountants LLP.  In your role you are expected to respond to both internal management and clients directly and in professionally appropriate tones.

In part A of this assignment you will preparing a report for your managing partner.  This report is to backed up with research and evidence.  You should write this in the style of an essay using correct Harvard referencing.  You will have 5 weeks to research and write this report. This report should be 800 words.

In part B it’s Wednesday evening and you receive an email from one of your clients.  You need to formulate a response to this email for sending to the client directly by Friday evening.  You need to ensure that you explain everything clearly as the clients are not tax experienced.  The email should focus on advice being offered to the client.  In order to correctly formulate the advice you will need to perform some calculations, but the essence of the email will be the reasoned, evidenced, quantified professional advice you are offering to the client.   The email should be 600 words, the calculations you perform should be an appendix to the email (not part of the word count)

Part B should be presented in the style of an email. (with To: From: Subject: etc).  You need to ensure that you adopt a professional and concise tone and manner at all times as if these emails are being sent directly to external clients.

The tasks which make up part A and part B are detailed over the next two pages.

Part A

You have received the following email from your managing partner

To: TraineeAccountant@haveitneeditandwantitaccountants.co.uk

From: HeadPartner@haveitneeditandwantitaccountants.co.uk

Subject: Industry based taxation proposals

I have seen the recent publications from the OECD forum where governments are proposing a new taxation structure for technology companies.  Industry based taxes are going to become more important in the way governments attempt to fight tax avoidance.

I need you to write me a report on industry based taxes so I can be well informed when discussing this with clients.

I need your report to cover the following

  • Reasons for industry based taxes
  • Arguments against them
  • Examples of industries that have specific taxes
  • Methods of implementing these taxes

You need to back up these assertions with evidence

Also:

  • Ensure that you are addressing the questions in this brief, not just talking about levies
  • Consider the problems in trying to tax profits in tech giants and why this is the case
  • The implementation relates to whether they are taxing production, profits, consumption at what point in the tax paid and who is paying it and then see if that matches to the intentions of the tax.
  • Mention the proposed tech tax and the problems this brings with trying to tax the company rather than the individual.
  • Limit discussion of direct taxes to alcohol, tobacco, gambling, soft drinks/sugar, fuel and air passengers

Requirement:-

Please draft a report for your manager that covers the information above making sure to use research and refer to current practices and approaches.  Your report should be 800 words (excluding references).

Part B

Part B will be released to you on Monday 23rd November for submission Friday 28th November 2020

Learning Outcomes

On successful completion of this assessment, you will be able to:

The learning outcomes that are being assessed in this assignment are:

Knowledge and Understanding

c)         Apply taxation principles and techniques in various practical situations

d)         Critically evaluate the aspects on UK tax regime for efficiency and effectiveness – on individuals, partenrships, corporations and society

Subject – specific Skills

e)         Develop ethical tax planning and guidance to clients on a range of complex scenarios – both individual and corporate

f)         Demonstrate reflective learning in developing solutions to achieve social outcomes

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