2417.12 - Faroese Tax Law

Course number
Faroese Tax Law
Students are required to hold a bachelor degree or equivalent qualification covering sufficient legal contents
To equip students with knowledge of Faroese tax law in legislation and practice. The course enables students to afford insight into major sources of law and research in the area; acquire a foundation in assessing opportunities and solutions in tax law; learn to understand and detect when a decision or plan may give rise to tax imposition; learn to retrieve and assess sources of law that can settle tax-related queries; acquire practice in putting forward tax law arguments in writing and orally; gain an understanding of how tax law is related to commercial law; as well as develop the capacity to independently present and discuss set topics in this context.
Students will acquire knowledge about sources and principles in tax law; how tax liability is administered; personal tax liability, including international double taxation; asset-based tax liability, hereunder how taxable income is calculated; tax deductions and capital gains tax and other topics.
Learning and teaching approaches
The duration of the course is 36 hours. The learning and teaching strategies used include lectures, presentations, discussions, exercises and written assignments.
Learning outcomes
Successful students can demonstrate ability to: - Retrieve, assess and set out arguments based on the sources of tax law and explain the structure and areas of work of the tax authority. - Discuss and assess the provisions on full and limited tax liability, the significance of double taxation agreements and, using case studies, determine how and when these provisions apply. - Assess and set out arguments based on the concept of revenue and differentiate between income tax and capital gains tax, and, using case studies, discuss these provisions. - Explain, analyse and assess the theory of expenditure in tax law, this includes stating the reasons for the difference between operating expenses, private expenses and capital expenses (investment/establishment expenses). - Analyse and discuss the regulations on time limits (accrual concepts), as well as tax deduction regulations. Apply these regulations to solving concrete case studies. - Analyse and discuss in context the regulations on capital gains tax and make decisions grounded in tax law practice based on these regulations. - Analyse and discuss the provisions on taxation of intangible assets, as well as the provisions on gifts. - Discuss the limit between personal tax and taxation of companies – partnerships, other types of companies and foundations – and assess its implications for determining the actual recipient of revenues (hidden dividends). - Set out arguments related to personal and company tax liability, where does a company’s liability begin and end, and make decisions based on tax law practice in relation to this. -Analyse the regulations governing incorporating companies, including raising capital, thin capitalisation, transforming a personally operated business (vinnuvirki) into an incorporated company (vinnufelag), tax exempted mergers and tax exempted asset transfers between companies, as well as joint taxation. - Identify and analyse company account statements, including transfer pricing. -Demonstrate general knowledge about tonnage tax, pension taxation, taxation in relation with death, the duty to keep accounts and minimum requirements for annual accounts, annual statements, property statements, duty to disclose all material facts and collection, subsidy schemes and levies on lottery prices, etc. - Present and articulate knowledge and arguments in a correct, coherent and articulate manner.
Assessment method
Oral examination. Students are given half an hour to prepare and are allowed to bring the course bibliography and other course materials into the preparation room. The examination question will be on a specific topic from the course syllabus. External examination assessed according to the marking scale in force. The submission of a written assignment is a prerequisite for taking the oral examination.
Marking scale
Eyðfinnur Jacobsen