AZERBAIJAN UNIVERSITY
SCHOOL OF BUSINESS
Tx 8040 TAX PRACTICE AND PROCEDURES
Spring 2013
(Saturday, 15:00 PM-18:00 PM)
Lecturer: Matlab Valiyev, Ph.D
AZ 1102, Baku, R.Safarov 17
Telephone: 055505 66 05
E: mail:
1. Course General Description
This course covers basic tax concepts including profit, property tax, and valued added tax. The primary focus is on the Azerbaijani tax system as it relates to business and investment activities. General areas of coverage include the tax implications of accounting methods, deferral techniques, property transactions, formation of business entities. Other topics that are covered include dealing with the tax system and different tax regimes, researching tax issues, and ethics in the tax profession.
The tax rules applicable to physical persons are also emphasized. Coverage includes the formation of corporations, corporate operations, and termination of corporate activities. This course familiarizes the students with the intermediate knowledge and skills of local and international tax procedures. Upon the completion, the students will be able to apply the skills in tax calculation and analyze tax risks , and also understand the local tax legislation. In the course the students should study traditional econometric methods developed mostly for the work with cross-sections data. At the same time the students should understand essential differences between the time series and cross sections data and those specific econometric problems working with these types of data. The students should get the skills of constructing and developing simple and multiple regression models, get introduced to some non-linear models and special methods of econometric analysis and estimations, understanding the area of their application in economics. The considered methods and models should be mastered practically on real economic data bases with modern econometric software.
2. Credit hours: 3.0 credits
3. Course Pre-requisites: N/A
4. Required Computer Skills Prerequisites: Microsoft Windows, Microsoft Office (Word, Excel and Power Point 2003).
5. Required Text Book
1. “Taxes and taxation” Authors: F.A.Mammadov, A.F.Musayev, M.M.Sadıgov, Y.A.Kalbiyev. Second edition, 2006.
2. “Tax Code of Azerbaijan Republic” Publisher: Qanun. Eighth edition, 2010.
6. Recommendable Literatures
1. “Model Tax Convention on Income and on Capital” Publisher: OECD Committee on Fiscal Affairs. 2008;
2. “Theoretical and methodological basics of Taxation”, Authors: F.A.Mammadov, A.F.Musayev, M.M.Sadıgov, Y.A.Kalbiyev. Baku, 2001
3. “Tax Law” , Author: A.Mirzayeva, Baku, 2007.
7. Important dates for course:
Month / Date / Course DescriptionSeptember / 22 / Classes start
October / 30 / Quiz 1 due
November / 24 / Quiz 2 due
November / 19 / Mid-term test
December / 1 / Quiz 3 due
December / 29 / Quiz 4 due
January / 11 / Final test
8. Instruction Evaluation
· You are required to complete an Instructor Evaluation Form for this course (you may also choose not to complete the evaluation, but you must indicate so.)
· If you need to discuss grade-related issues after the final exam/test, please contact me only after AU has published your course grades (timing when the evaluation is still in the progress).
9. Grading Policy and Evaluation
Attendance / 10 pointsParticipation / 10 points
Mid-term exam / 20 points
Final exam / 60 points
Course total: / 100 points
10. Letter Grade Policy
Letter grade / Total pointsA+
A / 97-100
93-96.9
A- / 90-92.9
B+ / 87-89.9
B / 83-86.9
B- / 80-82.9
C+ / 77-79.9
C / 73-76.9
C- / 70-72.9
D / 60-69.9
F / Below 60
11. Exams (mid-term and final):
The tests will be based on the assigned readings as well as the contented presented by me and discussed with students in sessions.
12. Method of Instruction:
Various method of teaching will be employed to encourage proactive involvement of students and make learning process successful. Mostly employed methods and techniques to expect are discussions, lectures and problem-solving.
13. In-class quizzes:
There will be quizzes on every class ensuring review of most important concepts and methods taught in previous sessions. Every student is expected to demonstrate individually his or her competency in answering questions as well as problems raised by the instructor in the class. It is important to mention that most of quiz questions will reflect questions from the homework. Therefore, students are highly encouraged to do their own efforts in homework.
14. Home works:
Instructor will assign four home-works, each of which must be completed independently by students. Students are encouraged to form group discussions to analyze home-works but are expected to honestly turn in their individual home-work. Home-works are expected to be turned in as hard copies, no faxes and emails are accepted.
15. E-mail:
Students can contact me for arranging meetings and asking urgent questions by e-mail. But I encourage them to contact me in person to discuss substantive matters such as a class absence, exams, or grade assignments.
16. Office hours:
My office hours are Saturday at 15:00 P.M. – 18:00 P.M. (Other times: Yes, but by appointment only).
17. Policy on Class Attendance
· Attendance is extremely important, as we will cover a substantial part of material each session and some of the material is not in the text.
· If the student misses a class, the student should obtain notes from a class member.
· Excessive absence: Four or more classes. Depending on the circumstances, the instructor may initiate some kind of penalty with dean’s office.
18. Policy on Make-Ups
· Mid-term and final: do not miss them. There are no exceptions for those.
· Home-works are due on the dates announced and late submission means no grade for that home-work.
· Requests for make-ups may be granted only under exceptional circumstances.
· Avoid requests for reasons of personal convenience;
· Any make-up exams, if granted, must be taken prior to the next meeting of the class.
· If you miss a test without prior notice or arrangement, no grade (zero grades) is automatically assigned to the missed test.
19. Class discipline
· Please arrive on time.
· Do not eat food in class: please use lounge areas.
· Cell phones, e-mails, and any possible other electronic devices must be turned OFF while in class and during the test.
· Do not speak loudly between each others.
· In the classroom, students can use computers only for class-related activities. These include activities such as taking notes on the lecture underway, following the lecture on Web-based PowerPoint slides that the instructor has posted, and finding Web sites to which the instructor directs students at the time of the lecture.
20. Academic dishonesty
Azerbaijan University has no tolerance for acts of academic dishonesty. The responsibilities of both students and faculty with regard to academic dishonesty are defined by education policy of Azerbaijan University. By teaching this course, I have agreed to observe the entire faculty responsibilities described in that document. By enrolling in this class, you have agreed to observe all of the student responsibilities described in that document. Academic dishonesty in this course includes copying or collaborating during an exam, discussing or divulging the contents of an exam with another student who will take the test, and use of homework solutions from another students.
COURSE DETAILS
Upon completion of this course, students should obtain an understanding of the Azerbaijani tax system including income, property, employment, and value added tax. Emphasis is on investment and business activities. Students should be able to determine the tax implications of the choice of business entities, alternative forms of investment, various property transactions, capital gains and losses, corporate business operations, and tax dispute resolution. Students will also be introduced to the basics of tax research and tax planning. Ethical issues will also be covered.
Specific objectives of the course:
Upon successful completion of this course, students will be able to:
1. Understand the tax implications of various business areas, such as the tax treatment of gains and losses.
2. Understand the income tax implications of various corporate transactions, such as starting a new corporate business.
3. Analyze the tax risks of the various business situations.
4. Analyze the necessity of registering Permanent Establishment.
5. Understand the Progressive, regressive and proportional taxation
6. Understand the Tax Holidays, Tax incentives and Transfer Pricing
7. Understand the Rights and Duties of Taxpayers and Tax Bodies
8. To prepare tax declarations.
9. To use electron submission of tax returns.
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