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De La Salle University

COLLEGE : RVRCOB DEPARTMENT Accountancy


COURSE CODE : ACCTAX1 CREDIT : Three (3) units
FACULTY : TYPE OF : Major Subject
COURSE
CLASS DAYS AND Saturdays ROOM :
CLASS TIME : 0900-1215

COURSE DESCRIPTION:

This course (ACCTAX1 or Income Taxation) involves an intensive study of the Philippine income tax system. It
deals with conceptual and practical application of income taxation of individual, partnership and corporation as
they relate to accounting practice. The emphasis is on the application of the theories and principles in solving
tax problems and the use of the same to enhance human development and social transformation.

LEARNING OUTCOMES (LO):

UNIVERSITY LEARNING OUTCOMES (LO)


EXPECTED LASALLIAN On completion of the course, the student is expected to be able to
GRADUATE ATTRIBUTES do the following:
(ELGA)
Critical and creative thinker LO1: Apply the theories and principles of the National Internal
Effective communicator Revenue Code, Special Laws and related laws, rules and
Reflective lifelong learner regulations in solving income tax problems.

LO2: Analyze business cases which require application of


theories and principles learned in the course.

LO3: Prepare income tax returns (individual and corporation).

LO4: Recognize the importance of taxation from the government’s


and taxpayer’s perspectives and their ethical considerations
in a dynamic Philippine environment.

FINAL COURSE OUTPUT:

As evidence of attaining the above learning outcomes, the student is required to do and submit the following
during the indicated dates of the term.

LEARNING OUTCOMES (LO) REQUIRED OUTPUTS DUE DATE


LO1: Apply the theories and Complete proposed solutions to exercises Weeks 1, 2, 3, 5, 6,
principles of the National Internal and problems. 7, 9, 10, 11 and 13
Revenue Code, Special Laws,
and related laws, rules and
regulations in solving income tax
problems.
LO1: Apply the theories and At least three (3) oral reports discussing the Weeks 1, 2, 3, 5, 6,
principles of the National Internal solutions to the problems and cases during 7, 9, 10, 11 and 13
Revenue Code, Special Laws, the term.
and related laws, rules and
regulations in solving income tax
problems.

LO2: Analyze business cases


which require application of
theories and principles learned
in the course.
LO3: Prepare income tax returns At least two (2) duly accomplished income tax Weeks 10, 12
(individuals and corporations). returns (one for individual and one for
corporation).
LO2: Analyze business cases One (1) proposal, outline and business report Weeks 4, 7, 14
which require application of on tax issue or problem.
theories and principles learned
in the course.

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LEARNING OUTCOMES (LO) REQUIRED OUTPUTS DUE DATE

LO4: Recognize the importance


of taxation from the
government’s and taxpayer’s
perspectives and their ethical
considerations in a dynamic
Philippine environment.

RUBRIC FOR ASSESSMENT:

Below are the rubrics that students will use to self-check their required output prior to submission. The same
rubrics will also be used to grade the student’s work.

Answered exercises and problems


CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
(100) (90) (80) (70)
Completeness The student The student The student The student fails to
(100%) answers all answers majority answers some of answer any
exercises of the exercises the exercises assigned
completely completely completely exercises

Preparation of income tax returns


CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
(100) (90) (80) (70)
Correctness & The student The student The student The student fails to
completeness of prepares correct prepares prepares partly prepare correct
filling-up income tax substantially correct income tax income tax
[50%] returns. correct income tax returns. returns.
returns.
Correctness of The student The student The student The student
tax calculation calculated the calculated the calculated the calculated the
[50%] income tax liability income tax liability income tax liability income tax liability
correctly. mostly correct. partly correct. substantially
incorrect.
TOTAL:

Business report
CRITERIA EXEMPLARY SATISFACTORY DEVELOPING BEGINNING RATING
(100) (90) (80) (70)
Content The group applies The group applies The group applies The group fails to
(Application of all relevant income some income tax few income tax apply income tax
theories learned tax topics topics topics topics
to the business appropriately. appropriately. appropriately. appropriately.
case)
[80%]
Format and The group follows The group follows The group follows The group does
English the format and the format and the format but not follow the
language uses excellent uses English uses the English format and uses
[10%] English language. language in the language the English
paper which is at somewhat language
an acceptable inappropriately. inappropriately.
level.
Teamwork The group shows The group shows The group shows The group shows
[10%] strong teamwork teamwork as somewhat lack of lack of teamwork
as evidenced by evidenced by teamwork as as evidenced by
consistency both consistency in evidenced by inconsistencies
in the flow and terms of content of some both in the flow
contents of the the paper. inconsistencies and contents of
paper. both in the flow the paper.
and contents of
the paper.
TOTAL:

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OTHER REQUIREMENTS AND ASSESSMENTS:

Aside from the final output, the student will be assessed at other times during the term by the following:

Departmental long examinations


There will be three (3) departmental long examinations for three (3) hours. This will consist theories and
problems. Problems may be short or long problems which should be supported by solutions to be written on the
answer sheets.

Departmental final examination


This will be for three (3) hours which will cover all the topics of the course. This will consist theories and
problems. Solutions to the problems are required to be written on the answer sheets.

Business report
The purpose of this business report is to apply the tax concepts and techniques in an analysis of a real-world tax
issue or problem.

This will be a group written report. Each group will comprise of two (2) to three (3) members. The group will
identify the tax issue or problem which will be submitted to the faculty on Week 3 for approval.

The group will submit a project proposal on Week 4. The faculty will give feedback on Week 5. The proposal will
contain an overview on what the group intends to cover in the term paper and how they will accomplish it. This
is to ensure that the tax issue or problem identified is viable. The proposal should cover the following:

· Nature of the tax issue or problem


· Sources of information
· Most important concepts and techniques to be applied
· Expectations prior to analysis
· Why will this make a good case study

It may contain 250 to 500 words, however, it is the quality that matters.

The group will submit an outline on Week 7. The faculty will give feedcack on Week 8. The outline should
include a thesis statement or controlling idea which clearly identifies a debatable position. It should also contain
a main topic for each body paragraph and few supporting details. This may contain 500 to 750 words, however,
it is the quality that matters. The outline may be numbered or bullets. It should also contain references. The
citations should be using Harvard format.

The business report will be submitted on Week 14 in softcopy (pdf format, 12 font size, double-space) to the
faculty. The business report should contain the following:

· Executive summary
· Table of contents
· Nature of the tax issue or problem
· Evaluation of the tax issue or problem with extensive discussion of legal bases
· Possible alternatives to address the tax issue or problem
· Evaluation of possible alternatives with extensive discussion of legal bases
· Recommendation
· Reference list

The business report may contain 3,000 to 5,000 words (body only), however, it is the quality that matters. It may
contain pictures, charts or diagrams, and appendices showing the calculations and supporting documentations.

Use business English in preparing the business report and write using the first person (i.e., use “we”). Assume
that the group is a tax consultant.

Case study on tax return preparation


This will be an individual project. One case will be given to the class on Weeks 9 and and another one on Week
11 for submission on Weeks 10 and 12, respectively. The cases will cover preparation of individual and
corporate income tax returns. The purpose of this is to apply the concepts and techniques in the preparation of
individual and corporate income tax returns.

Class standing
This will include the following:
· Graded recitation/class participation
· Attendance
· Punctuality
· Good manners and right conduct
· Assignment notebook (columnar)

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GRADING SYSTEM:

GRADE POINT DESCRIPTION PERCENTAGE


4.0 Excellent 97 – 100
3.5 Superior 94 – 96
3.0 Very Good 91 – 93
2.5 Good 87 – 90
2.0 Satisfactory 83 – 86
1.5 Fair 77 – 82
1.0 Pass 70 – 76
0.0 Fail Below 70

The student will be graded according to the following:

Basis Percentage
Departmental long examinations (3 exams) 45%
Departmental final examination 20%
Business report (5% proposal and outline, and
10% business report) 15%
Case study on tax return preparation 10%
Class standing 10%
Total 100%

LEARNING PLAN:

LEARNING Week
TOPICS Learning Activities
OUTCOMES No.

PART 1 – GENERAL PRINCIPLES AND CONCEPT OF


TAXATION
LO2, LO4 Unit 1 – General principles of taxation 1 Lecture and discussions
1.1 Concept, nature and characteristics of taxation Ch1 (Text), FCh1
1.2 Classifications and distinctions of taxes (Fundamentals)
1.3 Limitations on the power of taxation
1.4 Situs of taxation and double taxaton
1.5 Forms of escape from taxation
1.6 Exemption from taxation
1.7 Nature, construction, application and sources of tax laws

LO2, LO4 Unit 2 – Tax administration 1 Lecture and discussions


2.1 Administrative agencies and courts Ch1, FCh3A, FCh3O
2.2 Bureau of Internal Revenue (BIR)
2.2.1 Organization of the BIR
2.2.2 Powers and duties of the BIR
2.2.3 Powers and duties of the Commissioner of Internal
Revenue
2.2.4 Delegation authority of the Commissioner of Internal
Revenue
2.2.5 Duties of Revenue Regional Director, Revenue District
Officers and Other Internal Revenue Officers
2.3 Court of Tax Appeals (CTA)
2.3.1 Organization of the CTA
2.3.2 Powers of the CTA
2.3.3 Jurisdiction of the CTA
2.3.4 Court of special jurisdiction

PART 2 – INCOME TAXATION


Unit 3 – Gross income 2
LO1, LO2 3.1 Concept of income Lecture, discussions,
3.2 Components of gross income exercises and problem
3.3 Exclusions from gross income solving
3.4 Special treatment of fringe benefits Ch2, Ch3, Ch4

Unit 4 – Deductions from gross income 2, 3


LO1, LO2 4.1 Definition, timing and other requirements Lecture, discussions,
4.2 Business expenses exercises and problem
4.3 Interest expense solving
4.4 Taxes Ch5, Ch6
4.5 Losses

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LEARNING Week
TOPICS Learning Activities
OUTCOMES No.
4.6 Bad debts
4.7 Depreciation
4.8 Depletion
4.9 Charitable and other contributions
4.10 Research and development
4.11 Pension trusts
4.12 Optional standard deduction
4.13 Premium payments
4.14 Special deductions
4.15 Items not deductible

FIRST LONG EXAMINATION 4 Units 1, 2, 3 & 4

Unit 5 – Gains and losses from disposition of property 5


LO1, LO2 5.1 Tax basis of properties Lecture, discussions,
5.2 Exchanges of properties in corporate readjustments exercises and problem
5.3 Capital gains and losses solving
5.4 Capital gains on sale or real property Ch7
5.5 Dealings in stocks and securities
5.6 Capital gains on stock transactions

Unit 6 – Sources of income 5


LO1, LO2 6.1 Situs of sources of income Lecture, discussions,
6.2 Gross income from sources within the Philippines exercises and problem
6.3 Taxable income from sources within the Philippines solving
6.4 Gross income from sources without the Philippines Ch8
6.5 Taxable income from sources without the Philippines
6.6 Income from sources partly within and partly without the
Philippines

Unit 7 – Taxation of individuals 6


LO1, LO2, 7.1 Classes of individual taxpayers Lecture, discussions,
LO3 7.2 Personal and additional exemptions exercises, problem
7.3 Compensation income earners solving, and tax return
7.4 Business income earners preparation
7.4.1 Itemized deduction Ch5E, Ch9
7.4.2 Optional standard deduction
7.5 Minimum wage earners
7.6 Income tax of spouses
7.7 Senior citizen and persons with disabilities
7.8 Tax credits
7.9 Income subject to final tax

Unit 8 – Taxation of corporations 6, 7


LO1, LO2, 8.1 Classification of corporations Lecture, discussions,
LO3 8.2 Regular corporate income tax exercises, problem
8.3 Minimum corporate income tax solving and tax return
8.4 Optional corporate income tax preparation
8.5 Tax credits Ch5E, Ch10
8.6 Income subject to final tax
8.7 Improperly accumulated earnings tax
8.8 Exempt corporations

Unit 9 – Taxation of partnerships, estates and trusts 7


LO1, LO2, 9.1 Classification of partnerships Lecture, discussions,
LO3 9.2 Business partnership exercises, problem
9.3 General professional partnership solving and tax return
9.4 Estates and trusts preparation
Ch11, Ch12

Unit 10 – Accounting methods 7


LO1, LO2 10.1 Methods of accounting Lecture, discussions,
10.2 Inventories exercises and problem
10.3 Indirect methods of determining income solving
10.4 Accounting periods Ch13
10.5 Controlled taxpayers

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LEARNING Week
TOPICS Learning Activities
OUTCOMES No.
SECOND LONG EXAMINATION 8 Units 5, 6, 7, 8, 9 & 10

Unit 11 – Filing of returns, payment of tax and administrative 9


requirements
LO1, LO2, 11.1 Individuals Lecture, discussions,
LO3 11.2 Corporations exercises, problem
11.3 Partnerships, estates and trusts solving and tax return
11.4 Administrative requirements preparation
Ch14A, Ch14B
Unit 12 – Withholding taxes 9
LO1, LO2 12.1 Withholding tax system Lecture, discussions,
12.2 Kinds of withholding taxes exercises and problem
12.3 Withholding agents solving
12.4 Timing of withholding Ch14C
12.5 Exemption from withholding RR No. 2-98, as
12.6 Withholding tax on wages (WTW) amended
12.7 Expanded withholding tax (EWT)
12.8 Final withholding tax (FWT)
12.9 Administative requirements

Unit 13 – Assessment and collection of taxes 10


LO1, LO2, 13.1 Assessment of income tax Lecture, discussions,
LO4 13.2 Addition to the tax exercises and problem
13.3 Collection of income tax solving
13.4 Crimes and other offenses Ch15

PART 3 – PREFERENTIAL TAXATION


Unit 14 – Omnibus Investments Code 10
LO1, LO2 14.1 Investment Priorities Plan Lecture, discussions,
14.2 Registered enterprises exercises and problem
14.3 Income tax holiday (ITH) incentive solving
14.4 Other incentives to registered enteprises Book 1 EO No. 226
14.5 Incentives to less-developed area registered enteprises
14.6 Administrative requirements

Unit 15 – Special Economic Zone Act 11


LO1, LO2 15.1 Philippine Economic Zone Authority Lecture, discussions,
15.2 Registered enterprises exercises and problem
15.3 Income tax holiday (ITH) incentive solving
15.4 5% preferential tax RA No. 7916, as
15.5 Administrative requirements amended

Unit 16 – Barangay Micro Business Enterprises 11


LO1, LO2 16.1 Registration and operation of Barangay Micro Business Lecture, discussions,
Enterprises (BMBE) exercises and problem
16.2 Incentives and benefits solving
16.3 Administrative requirements RA No. 9178

THIRD LONG EXAMINATION 12 Units 11, 12, 13, 14, 15,


& 16

Unit 17 – Double Taxation Agreements 13


LO1, LO2 17.1 Concept of tax treaties/double taxation agreements Lecture, discussions,
17.2 Permanent establishment exercises and problem
17.3 Business profits solving
17.4 Royalties OECD Model Tax
17.5 Dividends Treaty
17.6 Interests
17.7 Other income
17.8 Administrative requirements

FINAL EXAMINATION 14 Units 1 to 17

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REFERENCES:

Required Textbook:

De Leon, H. S. and De Leon, H. M. (2016) The Law on Income Taxation (With Illustrations,
Problems and Solutions), 15 th Edition. Manila, Philippines: Rex Book Store.

Other References:
A. Books

Casasola, E. M. (2012) NIRC and Other Tax laws. Manila, Philippines: Rex Book Store.

De Leon, H. S. and De Leon, H. M. (2016) The Fundamentals of Taxation, 17 th Edition. Manila,


Philippines: Rex Book Store.

B. Revenue Regulations, Revenue Memorandum Circulars and other BIR Issuances

C. Online Resources

Republic Act (RA) No. 9178 (2002) “An Act to Promote the Establishment of Barangay Micro
Business Enterprises (BMBEs), Providing Incentives and Benefits Therefor, and for Other
Purposes”, [Online]. Available from: http://www.bsp.gov.ph/downloads/laws/RA9178.pdf
(Accessed: January 3, 2017).

Executive Order (EO) No. 226 (1987) “The Omnibus Investments Code of 1987”, [Online].
Available from: http://www.gov.ph/1987/07/16/executive-order-no-226-s-1987/ (Accessed:
January 3, 2017).

Republic Act (RA) No. 7916 (1995) “The Special Economic Zone Act fo 1995”, [Online].
Available from: http://www.peza.gov.ph/index.php/about-peza/special-economic-zone-act
(Accessed: January 3, 2017).

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