2006 - TAX101 - Phil Tax System _ Income Tax by nuhman10


									                                                                               Colegio de San Juan de Letran
                                                                                    Intramuros, Manila

                                                                   College of Business Administration and Accountancy
                                                                                ACCOUNTANCY AREA
                                                                                  School Year 2006-2007

I. Course Number                  :    Taxation 1

II. Course Title                  :    Phil. Tax System & Income Tax/Income Taxation

III. Credit                       :    3 units

IV. Pre-Requisite                 :    Accounting 2

V. Course Description             :    The course is an in-depth study of Philippine tax system and income taxation. It provides a solid foundation on the areas of tax that are
                                       likely to be encountered during the initial stage of a CPA’s professional tax practice. It covers the overview of the national tax system, and
                                        the income taxation of employees, unincorporated, and incorporated businesses. Also, provides the students with knowledge of the capital gains
                                       tax; final tax on certain passive income; and the year-end tax, including the minimum corporate tax, the normal tax and the improperly accumulated
                                       profits tax of corporations. Tax forms are provided for specific topics discussed.

VI. Course Rationale              :    There is a need for the State to raise revenues to carry out its governmental functions objectively. Among its various sources of revenues, taxes
                                       constitute the greater bulk. For students to understand the implications of a sound tax system, a basic knowledge of the Philippine income taxation is

VII. Course Objectives            :

        A. General Objective:          At the end of the course, the students are expected to have an adequate knowledge of the basic principles of taxation and its role in business and in the

        B. Specific Objectives:

                         Cognitive     :         Establish an extensive knowledge of the nature and concepts of income taxation as well as its relevance in business and in the State.

                         Affective     :         Appropriately explain the government's inherent power to impose taxes and enforce collection thereof.
                                                 Correctly demonstrate resolution of tax problems of individuals and corporate taxpayers leading to the preparation and filing of tax returns.

                         Psychomotor   :         Execute skills in resolving income tax problems of individuals and corporation and to prepare income tax returns accordingly.

   SPECIFIC                SUBJECT MATTER                      VALUES              STRATEGIES/             INSTRUCTIONAL          EVALUATION      TIME      EXPECTED
  OBJECTIVES                                                 INTEGRATED             TEACHING                 MATERIALS                           FRAME       OUTPUT

Explain the            1. Principles of taxation in         Appreciation of      Lecture-discussion        Books                 Recitation    1st to 3rd   Explained the
fundamental            general                              subject matter.      Lecture-demonstration     BIR Circulars/Memos   Quiz          Week         fundamental
concept of taxation      1.1 Definition, nature and                              Question and answer       and Forms                                        concept of
and the related              scope of taxation                                   teaching                                                                   taxation and
provision of NIRC.       1.2 Taxation distinguished                              Exercises, quizzes an &                                                    the related
                             from eminent domain and                             examination                                                                provision of
                             police power                                                                                                                   NIRC.
                         1.3 Limitation of the power
                             of taxation
                         1.4 Basic principles of a
                             sound tax system
                         1.5 Definition, nature,
                             classification and
                             essential characteristics of
                         1.6 Taxes distinguished from
                             other charges and fees

Describe the           2. Organization and function         Appreciation of      Lecture-discussion        Books                 Recitation    4th Week     Described the
organizational            of the Bureau of Internal         the organizational                                                   Quiz                       organizational
structure of the BIR      Revenue                           structure of the                                                                                structure of
and their duties &                                          BIR.                                                                                            the BIR and
function.                                                                                                                                                   their duties &

Identify the basic     3. Income Taxation                   Faithful             Lecture-discussion        Books                 Recitation    5th to 8th   Identified the
concepts of Income       3.1 Definition, nature and         compliance/          Lecture-demonstration     BIR Circulars/Memos   Quiz          Week         basic concepts
Taxation,                    scope of income                adherence to the     Question and answer       and Forms                                        of Income
its relevance in         3.2 Income distinguished           provision of the     teaching                                                                   Taxation,
the state and in the         from revenue capital           NIRC.                Exercises, quizzes and                                                     its relevance

business.              3.3 Classification of                                 examination                                                                   in the state
                           taxpayers                   Honesty and                                                                                         and in the
                       3.4 Tax on individual           correctness of tax                                                                                  business.
                           3.4.1 Classification of     due.
                           individual taxpayers
                       3.5 Tax on Corporations         Timely filing of      Lecture-discussion       Books                   Recitation
                           3.5.1.Classification of     returns.              Lecture-demonstration    BIR Circulars/Memos     Quiz
                           corporation based on the                          Question and answer      and Forms
                           CTRP                                              teaching
                           3.5.2 Tax on different                            Exercises, quizzes and
                           corporations subject to                           examination
                           income tax
                           3.5.3 Exempt
                           3.5.4 Estates an trusts

Identify the          Registration of small scale      Sense of              Provide checklist to     Registration Forms      Review of                    Identified the
registration          businesses with relevant         responsibility in     concerned residents of   with City Government,   Registration                 registration
requirements for      government offices.              compliance with       community.               BIR and Bureau of       Forms with                   requirements
small scale                                            registration          Discussion of the flow   Domestic Trade          concerned                    for small scale
business with                                          requirements.         of registration.                                 government                   business with
government entities                                                                                                           agencies.                    government
and how the                                                                                                                                                entities and
adapted community                                                                                                                                          how the
applies..                                                                                                                                                  adapted
                      MID-TERM                                                                                                                             applies..

Discuss the           4. Gross income of individual    Appreciation of       Lecture-discussion       Books                   Recitation     9th to 12th   Discussed the
composition of            and corporation.             the subject matter.   Lecture-demonstration    BIR Circulars/Memos     Quiz           Week          composition
gross income of         4.1 Items incl. In the gross                         Question and answer      and Forms                                            of gross
individual and              income of individual and   Faithful              teaching                                                                      income of ind.
corporation.                corporation                compliance/           Exercises, quizzes and                                                        And corp.
Distinguish what        4.2 Income subject to final    adherence to the      examination                                                                   Distinguished
income are subject          tax – Passive Income       provision of the                                                                                    what income

to tax from those    4.3 Income exempt from           NIRC.                                                                                         are subject to
that are exempted        Income tax                                                                                                                 tax from those
from tax.            4.4 Sale or exchange of                                                                                                        that are
                         property                                                                                                                   exempted
                       4.4.1 Ordinary sale or                                                                                                       from tax.
                       exchange of property
                       subject to income tax
                       4.4.2 Sale of exchange of
                       property subject to capital
                       gains and losses
                       4.4.3 Sale of exchange of
                       real property subject to
                       capital gains tax
                       4.4.4 Sale of exchange of
                       shares of stocks
                     4.5 Dividend Income
                     4.6 Lease and leasehold
                     4.7 Share in the income of a
                         general professional
                         partnership, estate and
                     4.8 Income from whatever

Identify the        5. Exclusions & deductions        Appreciation of    Lecture-discussion       Books                 Recitation   13th to 15th   Identified the
exclusions &            from gross income of          the allowable      Lecture-demonstration    BIR Circulars/Memos   Quiz         Week           exclusions &
deductions from         individual and corporation    deductions from    Question and answer      and Forms             Board work                  deductions
gross income of       5.1 Allowed personal            gross income.      teaching                                                                   from gross
individuals &             exemptions for individual                      Exercises, quizzes and                                                     income of
corporations .            taxpayers                   Honesty in         examination                                                                individuals &
                      5.2 Items in the gross income   determination of                                                                              corporations .
                          exempt from income and      allowable
                          final tax                   deductions.
                      5.3 Allowed deductible
                          expenses and losses for
                          gross business income
                          and their limitations
                      5.4 Optional standard

                        5.5 Non-deductible expenses
                            and losses

Determine the          6. Determination of the            Accuracy in the      Lecture-discussion       Books                 Recitation   16th Week   Determined
taxable income.            Taxable Income, Income         computation of       Lecture-demonstration    BIR Circulars/Memos   Quiz                     the taxable
                           Tax Payable and Income         net income subject   Question and answer      and Forms             Board work               income.
                           tax credit                     to tax.              teaching
                         6.1 Taxable income                                    Exercises, quizzes and
                         6.2 Income tax payable                                examination
                           (using the tax table and the
                           applicable tax rates)
                         6.3 Tax credits
                           6.3.1 Tax w/held on wages
                           6.3.2 Tax w/held at source
                           6.3.3 Foreign tax credit &
                           its limitation

Identify the           7. Administrative provisions       Faithful adherence   Lecture-discussion       Books                 Recitation   17th Week   Identified the
different                7.1 Filing & payment of the      to the provisions    Lecture-demonstration    BIR Circulars/Memos   Quiz                     different
administrative               income tax return            of NIRC.             Question and answer      and Forms             Board work               administrative
provisions.                                                                    teaching                                                                provisions.
                                                                               Exercises, quizzes and

Identify the           8. Accounting method               Faithful             Lecture-discussion       Books                 Recitation   18th Week   Identified the
different or various     8.1 Cash                         compliance/          Lecture-demonstration    BIR Circulars/Memos   Quiz                     different or
accounting               8.2 Accrual                      adherence to the     Question and answer      and Forms             Board work               various
methods.                 8.3 Installment methods of       provision of the     teaching                                                                accounting
                             reporting income             NIRC.                Exercises, quizzes and                                                  methods.
                         8.4 Net worth method                                  examination
                                                          Develop a correct
                                                          attitude towards
                                                          the government
                                                          power to imposed
                                                          taxes and
                                                          obligation to pay


Expound the          Preparation of Annual Income        Sense of             Actual illustration in   Income Tax Forms for      Review of pro-                      the relevant
relevant concepts    Tax Returns for the residents of    responsibility and   the preparation of       Individuals               forma income tax                    concepts of
of income taxation   the community.                      honesty as a good    income tax returns.                                returns.                            income
as applied to                                            taxpayer.                                                                                                   taxation as
community                                                                                                                                                            applied to
members.                                                                                                                                                             community

                     FINAL EXAMINATION

VIII     Grading System:

                      MIDTERMS                                   FINALS
                      CLASS STANDING 25%                         CLASS STANDING        25%
                      QUIZZES        25%                         QUIZZES               25%
                      MID-TERM EXAM 10%                          MID-TERM EXAM         10%
                      COMPRE EXAM     40%                        COMPRE EXAM           40%

                      MIDTERM GRADE 100%                         PRE-FINAL GRADE 100%

                      FINAL GRADE

                      MIDTERM       50%      +          PRE-FINAL GRADE        50%     =        100%

IX.    Course Policies:

                     Policies on attendance, tardiness, academic dishonesty are found in the Student Handbook.
                     In case of missed quizzes and assignments, the student is given the chance to make-up within a week from the day he/she reported, otherwise, it will be
                     equivalent to 50%.

X.   Textbook/References:

                   Ballada, et. al., Income Taxation, 2005 Edition

                   Reyes, Virgilio D., Income Tax, Law and Accounting, 2005 Edition

                   De Leon, Hector, et. al. Internal Revenue Code, as amended, 2005 Edition

                   Valencia, Edwin, et. al., Income Taxation, Principles and Laws, 2005 Edition.

                   Litonjua, Virgilio, Philippine Laws on Individual Income Taxation, 2005 Edition


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