Trinity University of Asia

Cathedral Heights, 275 E. Rodriguez Sr. Avenue, Quezon City

Course Syllabus

INSTRUCTOR INFORMATION

Instructor: Ferdinand C. Importado, CPA, MBA, DBA (completed academics)

Office: 2F Administration Building, Quezon Institute Compound
E. Rodriguez Sr. Avenue, Quezon City

Mobile No.: 09205783945 (Smart) / 09163907879 (Globe)

Email address: fimportado@yahoo.com


COURSE INFORMATION

Course title: Income taxation

Course number:

Course placement: First semester, School year 2014 - 2015

Schedule: 6:30 7:30pm, Mondays and Thursdays

Units: 3 units

Course description: This introductory Taxation course is primarily concerned with income taxation.
This covers an overview of the Philippine national tax system and the income
taxation of individuals, partnerships and corporations.

Course objectives: The objective of this course is for the students to develop a working knowledge
on the basic principles and rules of the Philippine income tax system as it applies
to individuals, partnerships and corporations.

Student learning outcomes:

At the end of this course, the students shall be able to:

Recall the basic principles encompassing the Philippine income tax system as it applies to
individuals, partnerships and corporations.
Compute income taxes on individuals, partnerships and corporations.
Distinguish estate from trust.
Describe personal and real property as applied to capital gains tax.
Identify items considered as deductions from gross income.
Determine different types of expenses qualifying as allowable deductions.
Interpret the nature and characteristics of a tax credit.
Differentiate the accounting periods and methods applied to taxation.
Familiarize the steps in the filing of returns and payment of tax
Indicate the nature and purposes of surcharges, penalties and interests as addition to the basic
tax.

Resources:

Ampongan, Omar Erasmo G. (2012). Income taxation in the Philippines (for non-BSA).

Ballada, Win and Ballada, Susan (2012). Income taxation made easy.

Valencia, Edwin G. and Roxas, Gregorio F. (2012). Income taxation, Principles and laws with Accounting
applications. Valencia Educational Supply, Baguio City.

Grading system:

The following shall be the grading system to be used for this course for each term (prelim, midterm and
finals):

Attendance 20%
Class standing 40%
Major exam 40%
Total 100%

Attendance shall refer to the daily presence of the students in the class.
Class standing shall include assignment, quizzes, classroom seat works and minor exams.
Major exam shall constitute the periodical examinations given at the end of each term (e.g. prelim,
midterm and finals. No semi-finals shall be given)

The final grade term for each term (prelim, midterm and finals) shall be computed as follows:

Prelim grade Grade computed at the end of the prelim term
Midterm grade 40% of prelim grade + 60% of tentative midterm grade
Final grade 40% of midterm grade + 60% of tentative final grade

The following shall be used to transmute the grades into the Universitys grading system:

Percentage Grades Verbal
Grades in Decimal Interpretation
98 100 1.00 Excellent
95 97 1.25 Superior
92 94 1.50 Very Good
89 91 1.75 Above Average
85-88 2.00 Good
82-84 2.25 Average
79-81 2.50 Fair
77-78 2.75 Passing
75-76 3.00 Barely Passing
74 and below 5.00 Failure
6.00 Dropped Officially
7.00 Dropped Unofficially

During Prelims and midterms, students are given a decimal grade of 4.00 with a verbal interpretation of
Conditional if they receive a grade between 70% to 74%.

Attendance:

A student shall be marked absent if he or she is not physically present on the time prescribed under this
course. Attendance shall account for 20% of the total grade per term. Each student shall be assigned a
grade of 100% at the beginning of each term. This grade shall be deducted by three points for every
absence and one point for every late. Late shall commence 15 minutes after the arrival of the professor
and not 15 minutes after the start of the class provided that the professor arrived in the class after the
actual start. Refer to the Universitys handbook regarding the other provisions for absences and
tardiness.

Seat works, assignments, quizzes and exams:

All seat works, assignments, quizzes, exams and similar activities shall be submitted on the times and
dates as agreed upon. No activities shall be accepted after the date as agreed upon. No special seat
works, assignments, quizzes and exams shall be given except on special circumstances as approved by
the dean.

Academic dishonesty:

This class shall adhere to the Universitys policy on academic dishonesty. Any form of cheating in
relation to a formal academic exercise (admission, registration, examination, instruction, practicum, and
graduation) is considered as acts of academic dishonesty. Please refer to the Universitys handbook for
the complete lists of acts considered as academically dishonest.

Course contents:

Tax law in the Philippines
o Determine the objectives of enacting a tax law.
o Enumerate the steps in the legislative process in enacting a tax law.
o Identify the sources of tax laws.
General principles
o Describe the nature, definition, purposes and scope of taxation.
o Discuss the theory and basis of taxation.
o Determine the basic principles of a sound taxation system.
o Explain the constitutional and inherent limitations of taxation.
o Differentiate the aspects of taxation.
o Describe the nature, definition and elements of a tax.
o Enumerate the different classifications of taxes.
o Distinguish the powers of the government.
o Distinguish tax from a license fee, toll, special assessment, debt, custom duties.
o Discuss the concepts of double taxation, revenue, situs of taxation, escape from
taxation, amnesty, set-off or compensation and taxpayers suit.
Items and concepts of income
o Define income and income tax.
o Classify income taxpayers as to citizenship and residence.
o Identify the different types of income paid to individual taxpayers.
Exclusions from gross income
o Discuss the different types of payments made to individual taxpayers not classified as
income.
Personal exemptions of individual taxpayers
o Discuss the general principles governing income taxation of individuals.
o Explain the different kinds and amounts of personal exemptions.
o Identify the different criteria for a qualified dependent.
o Indicate the amount of personal exemptions and qualified depends whenever an
individual taxpayer change status within the taxable year.
Taxation of individuals
o Recall the income tax rates applicable to individual taxpayers.
o Enumerate the kinds of income of an individual taxpayer.
o Discuss passive income and the different tax rates applicable to individual taxpayers.
o Explain the difference allowable deductions on individual income taxpayers.
Taxation of corporations
o Explain the taxability of corporations based on its classification.
o Discuss passive income and the different tax rates applicable to corporations.
o Explain the difference allowable deductions on corporations.
o Determine the rules on the exemptions of corporations from taxes.
Special tax rules on corporations
o Discuss the types of special corporations.
o Identify the rules of minimum corporate income tax (MCIT)
o Describe the coverage, exemption and computation of improperly accumulated
earnings tax (IAET).
Taxation of partnerships and partners
o Describe the different types of partnership.
o Discuss the tax liability of partners in a partnership.
o Enumerate the deductions allowed for a general professional partnership.
Taxation of estates and trusts
o Differentiate between estates and trusts.
Sources of income
o Identify the different sources of income.
Capital assets (personal and real property)
o Distinguish between personal and real property.
o Differentiate ordinary gains (losses) from capital gains (losses).
o Explain the rules on capital assets transactions.
Deductions from gross income
o Identify the taxpayers who may avail of deductions.
o Illustrate itemized and optional standard deductions.
Itemized deductions: expenses in general, interest, taxes, losses, bad debts, depreciation,
depletion, research and development, pension trust and contribution
o Determine the general requisites of deductibility for expenses.
o Discuss the optional treatment and non-deductibility of interests and taxes as well as its
limitations.
o Identify the different types of losses.
o Explain the concept of net operating loss carry over (NOLCO).
o Explain the process of amortizing certain research and development expenditures.
o List the different deductible contributions by the employer, deductions for charitable
contributions and other contributions.
o Distinguish between contributions that can be deductible in full and contributions that
are deductible subject to a certain limit.
Tax credit
o Describe the taxes paid in foreign country.
o Identify the different limitations of tax credit.
o Discuss tax credit on tax withheld on compensation and tax withheld at source.
Accounting periods and methods
o Identify the different accounting periods and methods allowed under taxation.
Filing returns and payments of tax
o List the individuals who are required and not required to file an income tax return.
o Discuss the requirements for husband and wife when filing for a return.
o Determine the requirements for corporations when filing a return.
o Identify the time(s) for filing a return.
o Describe the methods for filing and paying income taxes.
Additions to tax
o Discuss the nature and purposes of surcharges, penalties and interests.


ACKNOWLEDGEMENT OF THE STUDENT

I have read and fully understood the contents of the syllabus for Income taxation. I promise to abide by
the rules as prescribed under this document for as long as it is not contrary to any existing rules of the
University, to any other existing laws and to public moral. This document shall serve as a binding
contract between me and my professor from the first day of the classes until the end of the semester.


Signed,


___________________________ __________________________
Name of student Ferdinand C. Importado
CPA, MBA, DBA (completed academics)
Professor
___________________________
Student number