COURSE OUTLINE

OBE FORMAT

Instructor : Vanessa Anavyl M. Buhisan

Course Title : Principles of Taxation
Course Code : Tax 1
Number of Units : Three (3) units
Pre-requisite Subject :

Course Description :
This course exposes to students the nature, scope and limitations of taxation affecting an individual tax payer and business enterprises, in individual or
corporate setting. It provides students with the necessary knowledge on why the government or sovereign state imposes tax and how income tax is being
computed and filed.

Course learning Outcomes (Course Objectives)

At the end of the course, the students are expected to:
Cognitive
1. Describe the nature, scope, characteristics, principles and limitations of a sound system of taxation.
2. Identify the classifications of tax payers, corporations, partnership and estates and trusts.
Affective
1. Point out the sources of taxable income, exemptions and allowable deductions.
2. Explain the capital gains tax on real property (by individual), ordinary and capital assets and shares of stocks traded and not traded
through local stocks exchanges.
Psychomotor
1. Prepares and use the appropriate income tax forms, calculate the amount of tax due file for the individual and corporation income tax return.
COURSE CONTENT:
Week Lesson/Topic Learning Objectives Strategy/Methodology/A Student Output Evaluation of Learning/
ctivities Evaluation Tool
1-2 Lesson 1 Determine the definition, Students are required to The students appreciate the Graded Recitation
1. Definition, nature and nature & scope of taxation read the whole chapter in intellectual experience of
scope of taxation and its characteristics and advance for them to be learning tax concepts.
2. Essential characteristics limitations. ready for discussion in the Quizzes
and classification of taxes class
3-4 Lesson 2. Identify the classifications Students are required to Make their own Identification quiz
1. Classification of of individual tax payers, read the whole chapter in summary/notes of the
individual income tax sources of income, advance for them to be relevant facts.
payers categories of income, tax ready for discussion in the
2. categories of income and rates, passive income, class Assignment: End of chapter self
tax rates exemptions test
3. Passive Income
4. Allowable deductions
5. Personal exemptions Prelim Exam
6. Taxable Income and tax
due
5-7 Lesson 3 Identify classifications of Students are required to Students learn that no Oral exam
1. Classification of income income taxpayers other read the whole chapter in government can ever exist
tax payers other than than individuals, its advance for them to be without collecting taxes.
individuals sources of income and tax ready for discussion in the
2. Sources of income rates, allowable class Answer and discuss by group,
3. Categories of income deductions, taxable problems at the end of each
and tax rates income and tax due of a Discuss Illustrative chapter
4. Allowable deductions corporation. problem
for corporations
5. Taxable income and tax Compute Minimum
due for corporation Corporate Income Tax
6. Minimum Corporate (MCIT), Improperly
Income tax Accumulated Earnings
 7. Improperly Accumulated Tax (IAET) and Gross
Income Tax Income tax for
8. Gross Income tax for corporations
Corporations
c-9 Lesson 4 Define the different terms Students are required to The students learn that Graded Recitation
1. Definition of terms involving estates and read the whole chapter in government is fair and just in
2. taxable estates trusts, gross income, advance for them to be levying income tax, may it
3. taxable trusts allowable deductions and ready for discussion in the be an individual,
4. Gross income consolidation income of class organization, property, etc.
5. Allowable deductions two or more trusts.
6. Consolidation of income Students are given Giving assignments and presenting
for two or more trusts Describe the nature of Assignments and required their answers in class the next day
7. Classification of general taxation of partnership to present the answers on
partnership in taxation and partners, classification the board the following
8. Co-Ownership of general professional day and are made to Midterm Exam
partnership and general explain their answers in
co-partnership. class
9-10 Lesson 5 Determine the Students are required to Form a technique on how to Written Quiz
1. Definition of Gross composition of gross read the whole chapter in solve a problem having
Income income of individual tax advance for them to be income from different
2. Compensation income payer. ready for discussion in the sources. Oral Recitation
3. Business Income class
4. Gains derived from Enumerate the different
dealings with property. forms of compensation, Discuss illustrative
5. Income from whatever business income, and problem
sources. income from various
6.Exclusions from gross sources.
income Divide the class in four
7. Interest, rents, royalties Identify other income groups, assign each group
and dividends excluded from with a problem which they
8. Annuities, prize, computation of gross will answer and present in
winnings and pensions income class
11-13 Lesson 6 Familiarized the definition Students are required to The students can determine Assignments
 1. Definition of terms
related to fringe benefits.
2. Tax base in computing
fringe benefits tax
3. Computation of
monetary values as tax
base.
4. Fringe benefits not
subject to tax.
5. Gains and losses on sale
or exchange of property
6. Capital gains and losses
on sale or exchange
property
7. Capital gains tax on
disposal of real property
8. Tax clearance certificate
capital gains and losses on
stock transactions
14-15 Lesson 7
1. Deductions from gross
income
2. Business expenses
3. Interest, taxes, losses
and bad debts
4. Depreciation, depletion
and charitable and other
contributions
5. Research and
development and pension
trusts
6. Withholding taxes at
source
of terms and the read the whole chapter in the tax base of fringe
procedures on accounting advance for them to be benefits.
for fringe benefits. ready for discussion in the
class The students can determine Long Quiz
the amount of gains and
Discuss two or more losses on dealings in
illustrative problems with property.
different scenarios and Semi-final exam
given facts.
Identify items allowable Students are required to The students will be able to Board Work
as deductions from gross read the whole chapter in compute total allowable
income of individual tax advance for them to be deductions for individual tax
payers and business. ready for discussion in the payers. Students will also be
class. able to compute for the Quiz
Determine the procedure withholding tax.
on withholding taxes from
different sources, the
corresponding tax rates,
computations and the
manner and dates of Research (BIR withholding tax
remittance. Calculator)
 7. Income payments
subject to final withholding
tax
8. Income payments
subject to creditable
withholding tax
9. Withholding tax
compensation
16-17 Lesson 8 Differentiate tax Students are required to The students can identify and Assignments
1. Tax deductions vs tax deductions and tax credit. read the whole chapter in compute the different kinds
credit advance for them to be of penalties and tax
2. Taxpayers entitled to tax Identify if taxpayers are ready for discussion in the deductions.
credit entitled or not to tax class. Quizzes
3. Taxpayers not entitled to credit.
tax credit
4. Limitations on credit of Familiarize different types
foreign taxes of penalties.
5. Civil penalties and
interests
6. Criminal and
compromise penalties
7. Returns and payment of
tax
8. Modes of payment and
large taxpayers
9. BIR forms
18 Lesson 9 Assignments
1. Accounting methods Familiarized the different Students are required to The students will know the
recognized by the tax code accounting methods read the whole chapter in keeping and preservation
2. Remedies for collection recognized by the NIRC. advance for them to be books of accounts, the
of delinquent taxes. ready for discussion in the remedies of tax payers and Oral Quiz
3. Remedies of taxpayers. class registration requirements.
4. Keeping of books of
 accounts.
5. Preservation of books of
accounts. Final exam
6. Registration
requirements
7. Issuance of receipts,
sales and commercial
invoices.
8. Printing of receipts,
sales or commercial
invoices.

References:

Income Taxation Principles and Laws with Accounting Applications by Edwin G. Valencia, Gregorio F. Roxas
Income Taxation by Win Lee Ballada

Instructional Materials:
1. Books
2. Power Point

Class Attendance:

Regular attendance to Academic and non-Academic activities is expected to all students. The school recognizes legitimate reasons for occasional absence
such as illness, accident, inevitable circumstances, and death of an immediate family member. The student should take responsibility to inform immediately his/her
instructor, of any absence other than illness (refer to attendance policy). A student is required to attend 80% of the total number of hours of the subject, thus, reasons
of being late in enrollment is not accepted to any missed class activity, if consecutive absences occur, the student is assigned “5.9” for the subject.
Grading System:

Weighted Percentage Average & Grade Equivalence

100-1.0 90-2.0 80-3.0

99-1.1 89-2.1 79-3.1
98-1.2 88-2.2 78-3.2
97-1.3 87-2.3 77-3.3
96-1.4 86-2.4 76-3.4
95-1.5 85-2.5 75-3.5
94-1.6 84-2.6 Failed-5.0
93-1.7 83-2.7
92-1.8 82-2.8
91-1.9 81-2.9
Rubrics:

Outstanding Very Good Average Poor

1.0-1.5 1.6-1.9 2.0-3.0 3.1-3.5
Adequacy Adequate in all course Adequate in most course Inadequate in many course Inadequate in all course
requirements requirements requirements requirements
Analysis and application of Demonstrates in-depth Demonstrates general analysis Demonstrates limited analysis Demonstrates incomplete
procedural concepts analysis of all information of most information given; of information given; uses few analysis of information given;
given; uses all procedural uses most procedural concepts procedural concepts fails to use procedural
concepts concepts
Forming of opinion regarding Demonstrates objective Demonstrates subjective Demonstrates modest Demonstrates little reasoning
the current tax system reasoning in forming of reasoning in forming of reasoning in forming of in forming of opinion
opinion regarding the current opinion regarding the current opinion regarding the current regarding the current tax
tax system tax system tax system system
Comprehension The test results show absolute The test results show The test results show limited The test results show little
knowledge of the course commendable knowledge of knowledge of the course knowledge of the course
the course

Prepared by: Approved by:

VANESSA ANAVYL M. BUHISAN, CPA EVELYN K. DISMAS, LLB, MBA