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HU Credits:
4
Degree/Cycle:
1st degree (Bachelor)
Responsible Department:
Accounting
Semester:
2nd Semester
Teaching Languages:
Hebrew
Campus:
Mt. Scopus
Course/Module Coordinator:
simha lev
Coordinator Office Hours:
By appointment
Teaching Staff:
Simcha Lev
Course/Module description:
As part of the course the basic concepts of indirect taxation law will be taught, such as customs, VAT, purchase tax, petrol tax etc. The course will focus on learning the VAT law.
principles of real estate taxation from the tax system in Israel. All this while addressing the interface issues between the various tax laws. The course will inter alia address the following topics: basic principles, concepts, day and acquisition value and day and value of sales, allowable expenses, the gain as part of "taxable income"' exemptions, transaction in a real estate company,"the seam between betterment tax, income tax and VAT.
Course/Module aims:
Learning outcomes - On successful completion of this module, students should be able to:
Knowledge of real estate tax system of the State of Israel both on theoretical and practical level
Provision of knowledge of indirect taxation, understanding the structure of the VAT law and its practical application.
Attendance requirements(%):
Teaching arrangement and method of instruction:
Course/Module Content:
:VAT law
Background:
a) Taxation principles - definitions.
b) Trader - not for profit - financial institution
c) Tax liability source -Section 2 of the VAT law -1975 (the law).
d)Taxable transaction - definitions- Section 1 of the law:
1) "transaction"
2) "sale"
3) "service"
4) "asset"
5) "trader"
6) "one off transaction"
a) Place of transaction: Section 14,15 1A of the law.
b) Who is liable for the tax: Sections 16-20 of the law, Regulations 6a-6g of the VAT regulations.
Transaction price and on import: Sections 7-13 of the law.
Date of liability to tax: Sections 22-29 of the law, Regulations 6f and 7. "cash basis"- "accrual basis" - "mixed basis".
Date of tax invoice issue: Sections 45 - 48 of the law.
Exempt transactions:
Section 31(1)
Residential rental Section 31 (2)
Transfer of real estate for key money-
Section 31(3)
Transactions of an exempt trader- Section 31(4)
Sale of an asset where offset of input tax was prohibited on its purchase - Section 31(5)
Deposit of funds from a financial institution or grant of a loan to a financial institution - Section 31B
Building strengthening according to TAMA 38.
Transactions liable at zero rate:
Definitions - "foreign resident" "tourist"- Section 30 (a)1
Export of goods - section 30(a)2
Sale of intangible asset to a foreign resident Section 30(a)5
Provision of service to a foreign resident - Section 30(a)7
Provision of services outside Israel by an Israeli trader - Section 30(a)8
Services to a tourist - Section 30(a)13
Sale of fruit and vegetables - Section 30(a)14q15
Transfer of assets as part of a structural change - regulations 12/12a
Offset of input tax
Section 1 of the law - definition of input tax.
Section 38a - rules for offset of income tax.
Section 40 - input tax prior to registration.
Section 40a - input tax of a business under formation.
Section 41 - input tax used for a non-liable transaction
Regulations 12c, 14, 15, 16, 18 - offset of inpt tax under certain circumstances.
Procedures - determinations and assessment - objection and appeal. sections 76-83 of the law.
Special issues:
Personal use - sections 1, 137a, 137b of the law, Regulation 1.
Used assets
Combination transactions
Bad debts
Eilat free trade area law
Introduction and definitions. Components of the assessment: date and purchase value, date and sale value, deductions.
Tax calculation, spreading of tax and the connection with the Ordinance, residential dwelling exemption and tax if dwelling does not qualify.
Real estate companies.
Purchase tax
Required Reading:
As in the Hebrew version
Details appear in the syllabus on the site
The course is based on selected chapters of the book: "Real Estate Taxation: Interpretation, Halakhah and Practice" by Dr. Avi Gurman and Shai Aharonovitz, Bursi Publishers (2017).
A number of questions will be given based on reading chapters from the book.
Additional Reading Material:
Grading Scheme :
Written / Oral / Practical Exam 100 %
Additional information:
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