Module application
Is the business entity an employer subject to payroll tax in respect of wages paid to employees or fringe benefits tax for non-wage benefits and does the entity make superannuation contributions to employees in respect of employment?
Does the business entity understand its tax obligations in respect of gross income it generates, or is it an entity registered to charge tax on the supply of goods and services?
Is the business entity a wholesaler or producer of wine, or does it purchase depreciating assets, or real property which may be subject to stamp duty?
Module scope
The TAX module informs the entity, organisation or individual operating in the UK of their legal tax obligations. The module also demonstrates effective practical advice and assistance to the entity, organisation or individual operating in the UK to implement procedures and processes that will ensure compliance and regulatory accountability throughout all levels of the entity.
The TAX module advises entities, organisations and individuals of the processes and procedures they need to implement to ensure compliance with all legal and regulatory obligations. Core legal and regulatory obligations are based on considerations of the broad questions determining;
- Decision making;
- Accountability;
- Stewardship;
- Direction; and
- Control.
To fulfil its purpose the module focuses on providing practical assistance to the UK entity establishing and maintaining a robust foundational framework that determines;
- How the organisation will function;
- Who is the responsible decision maker;
- What matters are relevant to the decision-making process; and
- Whether the desired outcome has been achieved.
As entities, their employees and authorised individuals are all expected to be familiar with the broad landscape of legal obligations to which they are subject as well as more specific obligations relevant to the particular sector they are operating in. The TAX module should be subscribed by all entities and organisations operating in the UK, their employees and authorised individuals. The aim of the module is to equip the subscriber with knowledge of their obligations and the skills they require to establish relevant systems and processes to ensure compliance throughout their organisation.
A business organisation or entity operating in the UK are obligated to fulfil taxation requirements for some or all of these taxes;
- Income tax;
- Payroll tax;
- Corporation tax;
- Value Added tax;
- Capital Gains tax;
- Climate Change levy;
- Landfill tax;
- Aggregates levy;
- Petroleum revenue tax;
- Excise duty;
- Cusoms duties;
- International taxes;
- Digital service tax;
- Soft drinks industry levy;
- Apprenticeship levy;
- Bank levy;
- Plastic packaging levy;
- Diverted profit tax; and
- Stamp duty.
The broad scope of the TAX module is to provide entities or organisations operating in the UK with answers to these questions in relation to their payment of tax;
- What are our legal obligations?
- From where are our legal obligations derived?
- How can we ensure that we are complying with our legal obligations?
- What are the consequences if we are not complying with our legal obligations?
The TAX module covers all legislated legal obligations of entities or organisations operating in the UK and demonstrates practical assistance and guidance to ensure that these obligations are complied with through the implementation and maintenance of best practice processes throughout the organisation. The module also covers the role of the regulator as well as exemptions to the obligations, if applicable, and how they may or may not apply in particular circumstances.
The module fulfils this objective by comprehensively covering three main areas:
- The legislations;
- Obligations; and
- Consequences.
The legislative and regulatory landscape from which the primary legal obligations are derived are:
- Advance Petroleum Revenue Tax Act 1986
- Alcoholic Liquor Duties Act 1979
- Betting and Gaming Duties Act 1981
- Capital Allowances Act 2001
- Commissioners for Revenue and Customs Act 2005
- Corporation Tax Act 2010
- Criminal Finances Act 2017
- Customs and Excise Management Act 1979
- The various Finance Acts
- Fraud Act 2006
- Hydrocarbon Oil Duties Act 1979
- Income Tax (Earnings and Pensions) Act 2003
- Income Tax (Trading and Other Income) Act 2005
- Income Tax Act 2007
- Inheritance Tax Act 1984
- Land and Buildings Transaction Tax (Scotland) Act 2013
- Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017
- Limited Liability Partnerships Act 2000
- Local Government Finance Act 1988
- National Insurance Contributions Act 2006
- National Insurance Contributions and Statutory Payments Act 2004
- Petroleum Revenue Tax Act 1980
- Taxation (Cross Border Trade) Act 2018
- Taxation (International and Other Provisions) Act 2010
- Taxation of Chargeable Gains Act 1992
- Taxes Management Act 1970 (UK)
- The Social Security Administration Act 1992
- The Social Security Contributions and Benefits Act 1992
- Tobacco Products Duty Act 1979
- Value Added Tax Act 1994
- Vehicle Excise and Registration Act 1994
There are specific areas where legal and regulatory obligations apply to the entity or organisation operating in the UK.
Significant consequences can apply to entities or organisations operating in the UK found to have breached or not complied with their tax legal obligations. These consequences vary considerably depending on the nature and extent of the breach or failure. The TAX module covers specific consequences in detail. They can include the imposition of a tax penalty, an administrative penalty or charge, or a general interest charge on amounts of outstanding tax.
The TAX module primarily focuses on the civil obligation for an entity or organisation operating in the UK to pay tax. The module does not focus on tax fraud or tax evasion which are criminal offences that can result in terms of imprisonment for offenders.
The TAX module does not cover the rights or entitlements of individuals who have suffered damages or losses due to breaches of obligations by UK tax paying entities or organisations. The module does not cover the process that an entity or an individual would follow to report or seek compensation for the breach or their loss.