ACC40930 Aviation Tax

Academic Year 2021/2022

This module will provide you with an insight into tax policy making, explaining why Ireland is a favourable location and major international hub for aircraft finance and leasing. The Aviation Tax module will address the key tax issues facing aircraft leasing companies, and students will study the core tax considerations that arise in practice in the aviation leasing sector.

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Curricular information is subject to change

Learning Outcomes:

Learning Outcomes:

Having completed this module students will be able to:
1. Understand and critique national and international tax policies surrounding the aviation sector.

2. Understand the impact of tax residence/ permanent establishment /taxable presence in the context of aircraft leasing.

3. Understand income tax considerations for senior executives of aircraft leasing companies

4. Explain the trading status of aircraft leasing companies drawing upon case law and revenue rulings.

5. Explain the taxation treatment of lessors and lessees and the link to their accounting treatment.

6. Critique the impact of the OECD’s Base Erosion and Profit Shifting (BEPS) agenda on the aircraft leasing sector.

Indicative Module Content:

Topics we shall explore:

Topic One – Introduction to taxation

• The nature and purpose of taxation
• History of taxation
• Taxation policy – key questions
• Assessing tax policy

Topic Two – The Irish tax system - introduction

• Nature of system and taxes charged
• Sources of tax law – role of EU and OECD
• Territorial rules – taxation based on residence and source
• Rates of tax
• The meaning of “trading” for Irish tax purposes

Topic Three – The Irish tax system – residence and source taxation

• Residence, ordinary residence and domicile for Irish tax purposes
• Corporate residence and the Double Irish
• The taxation of mobile workers

Topic Four – The Irish tax system – taxation of aircraft leasing

• Corporation tax
• VAT and stamp duty
• Capital allowances
• Interest deductions

Topic Five – International taxation and aircraft leasing

• Withholding taxes
• International double taxation
• Double taxation treaties
• Permanent establishments

Topic Six – Current and future taxation issues for aircraft leasing in Ireland and abroad

• OECD Base Erosion and Profit Shifting project part 1
• OECD Base Erosion and Profit Shifting project part 2 – pillars 1 and 2
• EU rules – Anti Tax Avoidance Directive,
• EU rules – Common Consolidated Corporate Tax Base
• EU rules – Digital taxation


Guest Lectures
Anna Scally, Partner KPMG: Topical Issues in the tax landscape

Joe O’Mara, Partner KPMG: Comparative international tax policies for aircraft leasing and typical ownership structures
Finance structures and related tax considerations
• Finance vehicles used – standard companies, S.110 companies
• Debt instruments used
• Securitisations

Martin McCoy, SMBC Aviation Capital (video link from Hong Kong)
Transfer tax considerations when buying and selling an aircraft
• Scope of taxes – sales taxes, capital gains taxes, stamp duties, customs duties
• Nature of interest transferring – full title, beneficial interest
• Tax treaty protection
• Tax clauses in legal agreements

Student Effort Type Hours
Specified Learning Activities

60

Autonomous Student Learning

60

Lectures

30

Total

150

Requirements, Exclusions and Recommendations

Not applicable to this module.


Module Requisites and Incompatibles
Not applicable to this module.
 
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade
Continuous Assessment: Team Assignment Research-led teaching

Team Report, Team Presentation and Individual Reflection

Please see ‘Team Work Guidance for Students’ provided.

Throughout the Trimester n/a Standard conversion grade scale 40% No

50

Journal: Learning Journal
This is an individual assignment, encompassing all six topics within the module and material covered by our guest lecturers.
Please see ‘Learning Journal Guidance’ provided.
Throughout the Trimester n/a Standard conversion grade scale 40% Yes

50


Carry forward of passed components
No
 
Remediation Type Remediation Timing
In-Module Resit Prior to relevant Programme Exam Board
Feedback Strategy/Strategies

• Feedback individually to students, post-assessment
• Group/class feedback, post-assessment

How will my Feedback be Delivered?

Not yet recorded.

Students will be referred to articles they are required to read throughout the course. These will either be posted on Brightspace or available in the library

Other texts

Patrick Mulcahy, Irish Taxation Law and Practice 2021-22 (Irish Taxation Institute)

Simon James and Christopher Nobes, The Economics of Taxation (Prentice Hall)

Andy Lymer and Lynne Oats, Taxation: Policy and Practice (Fiscal Publications)

Vitaly S. Guzhva, Aircraft Leasing and Financing: Tools for Success in International Aircraft Acquisition and Management (Elsevier) – Chapter 13

Ronald Scheinberg, The Commercial Aircraft Finance Handbook (Routledge) – Parts 2 and 14

Rob Murphy, Aircraft Financing (Bloomsbury) – 4th Edition, Chapter 7
Note – 5th edition available from early October 2021


The above texts are available in the Campus Book Shop and in the Library.
• Available as an eBook.

In addition to the above, students are recommended to read current articles and
periodicals during the year, in particular:

Financial Times
Irish Tax Review
Accountancy Ireland
Business and Finance
British Tax Review
Fiscal Studies

These journals are available in the UCD library.

Most Sunday newspapers have a regular business/taxation advice section.

TAXFIND (Access Sponsored by KPMG)
TaxFind contains a comprehensive collection of tax related legislation, commentary, case law, seminars and Revenue documentation.

TaxFind login details
http://www.taxfind.ie/account/logIn
Username: 60680
Password: ucdtaxfind


Useful Websites for your research:
www.taxireland.ie
www.revenue.ie
www.irlgov.ie/finance
www.onbusiness.ie
www.esri.ie
www.cso.ie
www.publicpolicy.ie

Autumn
     
Lecture Offering 1 Week(s) - 5 Sat 10:00 - 12:00
Lecture Offering 1 Week(s) - 0, 1, 2, 3, 4, 5 Tues 08:30 - 10:20
Lecture Offering 1 Week(s) - 0, 1, 2, 3, 4, 5 Tues 11:00 - 12:50
Online Learning Offering 1 Week(s) - 5 Wed 10:00 - 11:00
Autumn
     

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