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Syllabus
COLLEGE: College of Business
COURSE CODE: BUSLAW3 (Law on Income, Transfer and Business Taxes)
GRADING SYSTEM:
TOPIC
LEARNING
ACTIVITIES
Research; Discussion; oral and written examination
Recitation; Discussion of the Applicable Constitutional
Provision to Taxation
Recitation; oral and written examination
4
5
Discussion
WEEK
NO.
1
2
8-9
10
11
Discussion/ Recitation
11-13
14
REFERENCES:
SUGGESTED REFERENCES
A. Books
1. National Internal Revenue Code, as amended, latest edition
2. Llamado Jr., Crispin P and Manuel M. San Diego, Philippine Income Tax, latest edition
3. Valencia, Edwin G and Gregorio F. Roxas, Income Taxation
Principles and Laws with Accounting Applications, latest Edition
4. de Leon, Hector S. and Hector M. de Leon, Jr., The Fundamentals of Taxation, latest edition
5. de Leon, Hector S. and Hector M. de Leon, Jr., The Law on Income Taxation, latest edition
6. Dimaampao, Basic Approach to Income Taxation, latest edition
7. Mamalateo, Philippine Income Tax, latest edition
8. de Leon, Hector S. and Hector M. de Leon, Jr., Transfer and Business Taxes, latest edition
9. Tamayo, Asser S. Business and Transfer Taxes
10. Reyes, Virgilio D., Income Tax Law and Accounting, latest edition
11. Reyes, Virgilio D., Philippine Transfer and Business Taxes, latest edition
B Revenue Regulations, Memorandum Circulars
C. Supreme Court decisions
CLASS POLICIES:
Attendance. Students are expected to come to class diligently and on time. The maximum class days that a student may be absent is 5 days. 2
occasions of tardiness constitute 1 absence from class. Absence approved and sanctioned by the University shall not be counted against the
student. However, the student is nevertheless responsible and therefore not excused for missed class activities, tests and other class
requirements.
Written Output. All exams, projects, reports, papers and other written outputs must be submitted on time or not later than the date and the
time specified by the professor. Any requirement submitted after the specified date and time shall no longer be received and accepted, and shall
get a grade of 0.0.
Respect and Decorum. The students are expected to observe proper decorum and shall give respect to both his/her professor and classmates.
Final Grade. As a general rule, the passing grade for the class is 1.0.
Cheating, Plagiarism and Acts of Dishonesty. Any form of dishonesty is extremely prohibited and shall be severely dealt with by the University
through the Discipline Office and the Student Handbook.
COURSE OUTLINE
Part 1 Principles of Taxation and Remedies
A.
Meaning of Taxation
B.
Nature, Theory, Basis, Purpose, Scope and Aspect of Taxation
C.
Principles of sound tax system
D.
Similarities and differences among taxation, police power and eminent domain
E.
Limitations of the power of taxation (inherent limitations and constitutional limitations )
F.
Situs/place of taxation
G.
Double taxation (direct and indirect)
H.
Taxes
a.
Essential characteristics
b.
Classification
c.
Tax vs. other charges (toll, special assessment, license fee, debt)
I.
Forms of Escape from Taxation including Tax evasion vs. tax avoidance
J.
Powers and authority of the Commissioner of Internal Revenue under Section 4 to 7, Title 1 of the Tax Code
K.
Tax Remedies
1.
Remedies of the Government (State)
1.
Definition, scope, prescriptive period
2.
Administrative remedies (compromise, levy and distraint)
3.
Judicial actions (civil or criminal)
2.
Remedies of the Taxpayer
1.
Prescriptive periods
2.
Administrative remedies
1.
Against an assessment (protest, request for reinvestigation)
2.
Request for refund or credit of taxes (recovery of erroneously or
illegally collected taxes, forfeiture of cash refund and tax credit)
3.
Expanded jurisdiction of the Court of Tax Appeals (limited to jurisdiction)
Part 2 Income Tax
A. Income tax
B.
1.
2.
3.
4.
Taxpayer and tax base
1.
2.
3.
4.
5.
Income
Inclusions/exclusions from the gross income
Kinds of income
a. Compensation
b. Passive income
1. Final withholding tax
c. Business
4.
Compensation income
a. Nature
b. Inclusions/exclusions
c. Withholding tax
d. Computations
e. Fringe benefits tax
5.
Capital gains tax on sale of real property classified as capital asset and the applicable
documentary stamp tax ( including exemption from the capital gains tax)
6.
Capital gains tax on sale of shares of stock not through the local stock exchange and the applicable
documentary stamp tax
7. Business income, income derived from business, trade, practice of profession, gains derived from
dealings in property, interest, rents, royalties, dividends, annuities, prizes and winnings, pensions,
partners distributive share from the net income of the general professional partnership; other income)
8.
Computation of the gross income
9.
Withholding of taxes
Part 4 Deductions from gross income
A. Deductions from gross income
1. Items not deductible
2. Optional Standard deduction
3. Itemized deductions
a. deductions in general
b. expenses
c. losses
d. interest
e. taxes
f. depreciation
g. depletion
h. contribution to pension trust
i. charitable contributions
j. research and development
Part 5 Computation of income tax liabilities
A. Computation of income tax liabilities
1. Individual taxpayers
a. Resident citizen
b. Non resident citizen
c. Resident alien
d. Non resident alien engaged in trade or business
e. Non resident alien not engaged in trade or business
2.
Estates and trusts
a. Estate/trust subject to tax
b. Estate/trust not subject to tax
3. Corporate taxpayers
a. Partnerships 1. Partnerships subject to tax 2. Partnerships not subject to tax
b. Corporation 1 Domestic 2 Resident foreign 3 Non resident foreign
Part 6 Tax return preparation and compliance requirements
A.
Tax return preparation and tax payments (computation, venue and due dates)
B.
Regular filing (including substituted filing of return and electronic filing )
C.
Large taxpayers and non-large taxpayers
D.
Income tax credits (local and foreign)
E.
Payment of taxes in installment
a. Capital gains tax b. Tax due exceeds P2,000.00
F.
Accounting periods (calendar year, fiscal year, short accounting period)
G.
Accounting methods
H. Compliance requirements
1. Administrative requirements (registration, issuance of receipts, printing of receipts
2. Attachments to the income tax return, including CPA certificate, per NIRC requirement
3.
Keeping of books of accounts and records, including report of inventories
4. Prescriptive period of books of accounts and other accounting records.
Part 7 Transfer taxes
A. Transfer taxes B. Estate taxes C. Law on Succession
1. Kinds of succession
2. Kinds of wills
3 Kinds of Decedents
4 Kinds of Properties/Property relationships
a.
Conjugal properties, b. Community properties, c. Exclusive properties
Part 8 Gross Estate
A. Gross estate
1 Inclusions/ Exclusions from the gross estate
2 Transfers of property subject to tax
a.
Decedents interest
b.
Transfers in contemplation of death
c.
d.
e.
f.
g.
Revocable transfers
Property passing under the general power of appointment
Proceeds of life insurance
Prior interest
Transfers for insufficient consideration