INTRODUCTION

This module introduces students to the basic elements of tax law. It explores a number of the most important questions in tax policy and examines a range of topics in Zambian tax law.

The module provides an overview of various kinds of taxation including income, consumption, inheritance and corporate taxation, and explains the basic features of Zambian tax system and tax administration.

Topics in tax policy include theories of tax fairness, debates over tax base and progressive taxation, tax competition and international tax planning and environment taxes. Among the issues under discussion in the module include income from trading, income from employment, income from land, capital allowances, capital gains tax, corporation tax, VAT inheritance tax and tax avoidance etc.

OBJECTIVES

The objectives of this module are:

• To explain the sources of Zambian tax law and the structure of tax administration,
• To highlight the history and significance of income taxation.
• To explain what capital gains tax is and how it is calculated;
• To explain the distinction between taxation of employment income and emoluments, income from trading, and income from land;
• To explain the structure and purpose of corporate tax;
• To explain the development and nature of the law of tax avoidance;
• To explain the structure of the VAT policy and factors that influence VAT policy;
• To explain the principles of tax law
• To highlight and explain alternative tax policies
• To explain the main issues in tax administration in Zambia; and
• To critically analyse Zambia’s tax law, policy and suggest possible solutions to tax administration in Zambia.

LEARNING OUTCOMES

At the end of this module learners shall be able to:

• Know and explain what the sources of tax law are in Zambia
• Know and explain the history and significance of income tax
• Know and explain what capital gains tax is and how it is calculated;
• Distinguish taxation of employment income and emoluments, income from trading, and income from land;
• Know and explain the structure and purpose of corporate tax;
• Know and explain the development and nature of the law of tax avoidance;
• Explain the structure of VAT policy and factors that influence it
• Know and explain the principles of tax law
• Know and explain the alternative tax policies
• Explain how tax administration operates in Zambia
• Do a critique of Zambia’s tax law, policy and suggest possible solutions to tax administration in Zambia.

UNIT 1 – GENERAL INTRODUCTION

UNIT 2 – SOURCES OF TAX LAW IN ZAMBIA

UNIT 3 – QUALITIES OF A GOOD TAX SYSTEM.

UNIT 4 – TYPES OF TAXES.

UNIT 5 – CORPORATE TAX SYSTEM

UNIT 6 – TAXATION OF EMOLUMENTS.

UNIT 7 – BUSINESS INCOME TAXATION

UNIT 8 – THE INTERPRETATIONS OF TAX STATUTES

UNIT 9 – INTERNATIONAL DOUBLE TAXATION

 

RECOMMENDED READINGS

Gerard, F. and Naritomi, J. (2018). Value Added Tax in Developing Countries: Lessons from Recent Research, IGC Growth Brief Series 015, London: International Growth Centre. Accessible:https://www.theigc.org/publication/value-added-tax-developing-countrieslessons-recent-research/

Harrison and Krelove (2020). VAT Refunds: A Review of Country Experience. IMF Working Paper Series WP/05/218

Lily L Batchelder, Fred T. Goldberg. Jr and Peter Orszag. 2006 Efficiency and Tax in Incentives: The Case for Refundable Tax Credits 59 Standard Law Reviews 23.

Rosanne Altschuler and harry Gruber. 2006: Corporate Taxes in the World Economy: Reforming the Taxation of Grass-burder Income.