2417.15 - Faroese Tax Law

Course number
Faroese Tax Law
The students must have academic education on at least basic level (bachelor) with sufficient elements of law our equivalent courses, such as Basic Course in Law.
To provide the students knowledge of Faroese tax law in practice. The students shall acquire insight into important sources of law and research in the field, in addition to fundamental skills to assess opportunities and solutions in tax law. The students shall: • learn to understand and see, when a decision or plan can result in taxation; • be able to find and assess the sources of law that answers questions of taxation; • get practise in structuring taxation arguments in written and oral form; • get an understanding of the importance of tax law to industry; • independently be able to present and process particular subject in this context. The course is also aimed at those with a general interest in Faroese tax law.
The students shall acquire knowledge of sources and basic principles in tax law, how the duty of taxation is administrated, personal based tax liability, including international double taxation, assets based tax liability, including how taxable income is calculated, tax deduction and capital gains tax.
Learning and teaching approaches
The course is 36 hours. The teaching will be organized as lectures, presentations, exercises discussions and submission of papers.
Learning outcomes
The goal is that the students shall be able to: - Find, assess and argue with a basis in tax law sources and explain how the tax authorities are organised and which tasks they perform. - Discuss and assess the provisions on full and partial tax liability, what importance double taxation agreements have and through cases determine how and when said provisions apply. - Assess and argue based on the concept of income and explain, when income tax applies and when capital gains tax applies, and through cases decide when said provision apply. - Explain, analyse and asses the tax law doctrine of cost, including arguing the difference between running costs, private costs and costs of capital (costs pertaining to investment or setting up business). - Analyse and put into perspective the provisions on time restraint (taxation periods) and the provisions on tax deductions. Apply these provisions to solve concrete cases. - Analyse and discuss the provisions on taxation of immaterial assets and the provisions on gifts. - Discuss the line between personal tax liability and corporate tax liability – joint ventures, other companies and foundations – and assess what importance this has to the question of, who is the rightful recipient of the income (hidden dividends). - Argue based on the legal personal liability of companies, when the liability of companies begins and ends and make well founded decisions based thereon. - Analyse the provisions on the setting up of companies, including the acquisition of capital, thin capitalisation, restructuring of personally run undertakings to company form, tax free mergers and tax free transfers of assets between companies in addition to joint taxation. - Identify and analyse the calculation of income of companies, including transfer pricing. - General knowledge of tonnage taxation, pension taxation, taxation in the event of death, duties of bookkeeping and the minimal requirements of annual accounts, annual reports, asset statements, duties of reporting and collection, subsidies and payment of dividends by lottery etc. - Present and formulate knowledge and evidence in a correct and succinct manner in eloquent language.
Assessment method
Oral exam. The student will be given half an hour to prepare and is allowed to bring the official materials and to other course material into the preparation room. The examination question shall be on specific topic within the official materials. External examination according to valid exam scale. Access to oral exam is conditioned on the submission of a written paper.
Marking scale
Eyðfinnur Jacobsen