FAR EASTERN UNIVERSITY

Vision
Guided by the core values of Fortitude, Excellence and Uprightness, Far Eastern University aims to be a university of choice in Asia

Mission
Committed to the highest intellectual, moral and cultural standards, it strives to produce principled and competent graduates. It nurtures a service-oriented
and environment conscious community which seeks to contribute to the advancement of the global society.

Quality Policy
Far Eastern University is committed to providing quality educational services. Each person is expected to do the job right the first time with the intention of
consistently satisfying the requirement of our students, other members of FEU community, and external parties. Under any given circumstances we shall
adhere to all the requirements and standards for continuous improvement and effectiveness of the
quality management systems.

INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Vision
Far Eastern University – Institute of Accounts, Business and Finance (IABF) envisions itself
to be the preferred business school in Asia.

Mission
The Institute of Accounts, Business and Finance is committed to produce principled and competent business graduates, espousing Fortitude, Excellence and
Uprightness. IABF will promote community engaged, service-oriented individuals who will shape and build strong organization in the future.

DEPARTMENT OF ACCOUNTANCY

Vision
Guided by the core values (Fortitude, Excellence and Uprightness) of a true-blooded Tamaraw, the Accountancy Program of FEU– IABF envisions itself as a
Center of Excellence in Accountancy Education.

Mission
It commits to develop future responsible accounting professionals through holistic accountancy curriculum, extensive and innovative delivery of instruction,
competent and highly qualified faculty, state-of-the-art facilities, industry and community-based researches, practical-based student apprenticeship program
and extensive community

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Course Title: Business Taxation
Course Code : TAX1102
Credits : Three (3) units
Prerequisite : TAX1101

Course Description:
This course involves an intensive study of the Bureau of Internal Revenue rulings of business and transfer taxes systems. The relationship between
the three taxation systems: business taxes, transfer taxes and the income tax are emphasized. The policy underpinnings of wealth transfer taxation,
and the reasons for the recent erosion in its political support, will be explored. The taxation under the government, tariffs and codes are also
discussed. Topics include Percentage Tax, Estate Tax and Donor's Tax, and new regulations under the Tax Reform for Acceleration & Inclusion
(TRAIN) Law relative to business taxes. Remedies shall also be covered in this course. At the end of the course, learners are expected to be
knowledgeable in using various BIR forms for Business and Transfer Taxation.

Program Expected Learning Outcomes (PELO):

A graduate of BS in Accountancy and BS Internal Auditing should be able to:

1. Analyze business transactions in accordance with the appropriate accounting and auditing standards, taxation and business laws.
2. Prepare financial statements and other-related reports in accordance with applicable accounting and auditing standards, taxation and
business laws.
3. Utilize appropriate accounting/auditing information systems in managing business transactions.
4. Identify the features of various business processes of global, e-commerce and emerging markets.
5. Develop a strategic business plan using the management concepts and principles holistically.
6. Interpret the business environment through the use of various financial and management analysis.
7. Evaluate accounting-related topics and contemporary issues through written inquiry and investigation.
8. Apply relevant auditing standards to financial statements audit for reliable communication of results to stakeholders.
9. Act with integrity, objectivity, professional competence and due care, confidentiality and professional behavior in accordance with Code
of Ethics.
10. Prepare income tax returns and other business documents in compliance with regulatory requirements.
11. Pass the licensure examination and global certifications.
12. Demonstrate leadership and interpersonal skills through collaborative work.

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 13. Communicate effectively in a variety of domain including writing, speaking, listening and reading in the context of accounting and
business.
14. Adapt to changing environment by responding positively to challenges.
15. Manifest the FEU core values - Fortitude, Excellence and Uprightness.

Course Learning Outcomes (CLO):

At the end of this course, the learner is expected to:

1. Explain the basic principles of the Philippine business and transfer tax system
2. Discuss the nature and characteristics of business and transfer taxes

ESTATE
3. Distinguish the different types of decedents
4. Recognize the factors affecting estate taxation
5. Recall all the items of gross estate
6. Identify all allowable deductions from gross estate
7. List all certain acquisitions and transmissions exempted from estate taxation
8. Apply the proper valuation of properties subject to estate tax
9. Compute the estate tax due

DONATION
10. Identify the parties in donation
11. Determine the relationship of the parties
12. Apply the proper valuation of donated properties
13. Identify certain gifts which are exempt from donor’s tax
14. Compute the donor’s tax due

BUSINESS TAXES
15. Differentiate value added tax (VAT) from other percentage taxes (OPT)
16. Compare and contrast VATable, zero-rated and exempt sales transactions from one another
17. Enumerate transactions which are subject to OPT
18. Distinguish output tax from input tax

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 19. Identify all sources of input tax
20. Compute the VAT due
21. Compute the Other Percentage Tax due

COMMON FOR ESTATE, DONATION AND BUSINESS TAXES

22. Comply with the administrative requirements of the concerned revenue agency including venue
23. Prepare the prescribed BIR forms or returns
24. File the corresponding tax returns on time
25. Observe the prescribed periods and deadlines in the filing of the returns and payment of taxes
26. Apply the remedies available to taxpayers in cases of assessment and collection
27. Exemplify fortitude, excellence and uprightness through reporting and payment of the correct taxes

TAXATION UNDER THE LOCAL GOVERNMENT CODE*

28. Describe the scope and different types of real property and local business taxes
29. Identify the tax bases and apply the tax rates
30. Determine the venue and time of filing of tax returns and time of payment

CUSTOMS MODERNIZATION AND TARIFF ACT*

31. Describe the functions of the Bureau of Customs
32. Describe the functions of the Tariff Commission
33. Explain the nature of tariff and customs duties
34. Determine the basis of assessment of duty
35. Identify the documents required for importation of goods
36. Identify the documents required for export of goods

*For Internal Auditing and Accountancy Students Only

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Course Expected Learning Outcomes (CELO):

Upon completion of the course, the students are expected to:

Course Learning Outcomes (CLO) Program Learning

Outcomes (PLO)

CLO1 Explain the basic principles of the Philippine business and transfer tax 1, 9 10, 11, 15
system
CLO2 Discuss the nature and characteristics of business and transfer taxes 1, 9 10, 11, 15

CLO3 Distinguish the different types of decedents 1, 9 10, 11, 15

CLO4 Recognize the factors affecting estate taxation 1, 2, 9 10, 11, 15

CLO5 Recall all the items of gross estate 1, 2, 9 10, 11, 15

CLO6 Identify all allowable deductions from gross estate 1, 2, 9 10, 11, 15

CLO7 List all certain acquisitions and transmissions exempted from estate taxation 1, 2, 9 10, 11, 15

CLO8 Apply the proper valuation of properties subject to estate tax 1, 2, 9 10, 11, 15

CLO9 Compute the estate tax due 1, 2, 9 10, 11, 15

CLO10 Identify the parties in donation 1, 9 10, 11, 15

CLO11 Determine the relationship of the parties 1, 9 10, 11, 15

CLO12 Apply the proper valuation of donated properties 1, 2, 9 10, 11, 15

CLO13 Identify certain gifts which are exempt from donor’s tax 1, 2, 9 10, 11, 15

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 Course Learning Outcomes (CLO) Program Learning
Outcomes (PLO)

CLO14 Compute the donor’s tax due 1, 2, 9 10, 11, 15

CLO15 Differentiate value added tax (VAT) from other percentage taxes (OPT) 1, 2, 9 10, 11, 15

CLO16 Compare and contrast VATable, zero-rated and exempt sales transactions 1, 2, 9 10, 11, 15
from one another
CLO17 Enumerate transactions which are subject to OPT 1, 2, 9 10, 11, 15

CLO18 Distinguish output tax from input tax 1, 2, 9 10, 11, 15

CLO19 Identify all sources of input tax 1, 9 10, 11, 15

CLO20 Compute the VAT Due 1, 2, 9 10, 11, 15

CLO21 Compute the Other Percentage Tax Due 1, 2, 9 10, 11, 15

CLO22 Comply with the administrative requirements of the concerned revenue 1, 2, 9 10, 11, 15
agency including venue
CLO23 Prepare the prescribed BIR forms or returns 1, 2, 9 10, 11, 15

CLO24 File the corresponding tax returns on time 1, 2, 9 10, 11, 15

CLO25 Observe the prescribed periods and deadlines in the filing of the returns 1, 2, 9 10, 11, 15
and payment of taxes
CLO26 Apply the remedies available to taxpayers in cases of assessment and 1, 2, 9 10, 11, 15
collection
CLO27 Exemplify fortitude, excellence and uprightness through reporting and 1, 2, 9 10, 11, 15
payment of the correct taxes
CLO28 Describe the scope and different types of real property and local business 1, 2, 9 10, 11, 15
taxes

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 Course Learning Outcomes (CLO) Program Learning
Outcomes (PLO)

CLO29 Identify the tax bases and apply the tax rates 1, 2, 9 10, 11, 15

CLO30 Determine the venue and time of filing of tax returns and time of payment 1, 2, 9 10, 11, 15

CLO31 Describe the provisions set forth under the Senior Citizens’ Law 1, 2, 9 10, 11, 15

CLO32 Discuss the provisions set forth under the Magna Carta for Disabled Persons 1, 2, 9 10, 11, 15

CLO33 Explain the provisions set forth under the Special Economic Zone Act 1, 2, 9 10, 11, 15

CLO34 Demonstrate awareness of the provisions set forth under the Omnibus
Investments Code (Book 1 of Executive Order No. 226) 1, 2, 9 10, 11, 15

CLO35 Describe the provisions set forth under the Barangay Micro Business
Enterprises (BMBEs) 1, 2, 9 10, 11, 15

CLO36 Explain how to apply the Double Taxation Agreements (DTA) 1, 2, 9 10, 11, 15

CLO37 Apply the rules of taxation prescribed under the Special Laws 1, 2, 9 10, 11, 15

CLO38 Describe the functions of the Bureau of Customs 1, 9, 10, 11, 15

CLO39 Describe the functions of the Tariff Commission 1, 9, 10, 11, 15

CLO40 Explain the nature of tariff and customs duties 1, 9, 10, 11, 15

CLO41 Determine the basis of assessment of duty 1, 9, 10, 11, 15

CLO42 Identify the documents required for importation of goods 1, 9, 10, 11, 15

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 Course Learning Outcomes (CLO) Program Learning
Outcomes (PLO)

CLO43 Identify the documents required for export of goods 1, 2, 9, 10, 11, 15

Time Strategy/ Student

Learning Assessment/
Frame- Lesson/ Methodology/ Output
Outcomes Evaluation
Week Topics Activities
• Course Orientation and Policies, • Perception Student’s
Standards, Guidelines (PSG) Discussion CLO1 • Discussion of University and about the feedback
• Administrative matters CLO2 classroom policies course and
• Overview of the Philippine Tax System CLO28 • Discussion of syllabus other
• Application of the TRAIN law CLO30 content expectations
CLO31 • Discussion on course about the
CLO32 requirements and grading requirements
CLO33 system for completing
1
CLO34 • Expectations setting the course
CLO35 • Election of class officers and
CLO36 arrangement of seat plan Reflection
CLO40 • Video showing: essays on
• “Angat Pa, Pinas” and “RFP” “Angat Pa,
(Register, File and Pay) Pinas” and
“RFP”

• Introduction to transfer and business CLO1 • Faculty-facilitated discussion Tree showing • Graded
taxes – Estate tax; donor’s tax; business CLO2 and learners’ interaction degrees of recitation
taxes CLO3 • Demonstrating relationship • Pre and Post
2
• Succession and Donation –defined CLO4 Tests
• Concepts of and terminologies in CLO26 Holographic
succession CLO27 Will

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 Time Strategy/ Student
Learning Assessment/
Frame- Lesson/ Methodology/ Output
Outcomes Evaluation
Week Topics Activities
• Wills
Holographic Notarial Will
Notarial
• Concept of legitime, testacy and
intestacy and order of succession in the
Philippines

The Gross Estate • Faculty-facilitated discussion Duly filled-out • Graded

CLO3 and learners’ interaction portion of the recitation
Inclusions in Gross Estate- real and CLO4 • Demonstration of use of the BIR Form • Graded board
personal properties, tangible and CLO5 BIR Form 1801 or seat work
intangible properties; Situs of the Property CLO7 • Problem Solving
Rules on Citizen, Resident and CLO8
Nonresident Decedents; Reciprocity Rule CLO22
for Nonresident Aliens CLO23
Special rules for properties not physically
in the estate
3-4 -transfer in contemplation of death

-revocable transfers

-transfers under general power of

appointment

-On Proceeds of Life Insurance

Taxable Transfers
Claims against insolvent persons

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 Time Strategy/ Student
Learning Assessment/
Frame- Lesson/ Methodology/ Output
Outcomes Evaluation
Week Topics Activities
Exemptions and exclusions from Estate
Tax
Valuation of properties in the gross estate

A. Ordinary Deductions CLO3 • Faculty-facilitated discussion Duly filled-out • Graded

CLO4 and learners’ interaction portion of the recitation
Losses, Indebtedness CLO6 • Demonstration of use of the BIR Form • Pre and Post
CLO9 BIR Form 1801 Tests
Claims against the estate CLO22 • Problem solving
Claims against Insolvent persons CLO23
Unpaid Mortgages, or Indebtedness CLO24
on property, Taxes and Losses CLO25
Transfers for Public Purpose CLO26
Vanishing Deduction CLO27
4-5
B. Special deductions:
Family home
Standard deduction
Amounts received under RA 4917
Rates of Estate Tax

• Compute estate tax due

• Administrative provisions

Share of the surviving spouse in the net CLO3 • Faculty-facilitated discussion Duly filled-out • Graded
conjugal or community estate, if the CLO4 and learners’ interaction portion of the recitation
6-8
decedent was married CLO5 • Demonstration of use of the BIR Form • Graded board
The property relationship of spouses CLO6 BIR Form 1801 or seat work

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 Time Strategy/ Student
Learning Assessment/
Frame- Lesson/ Methodology/ Output
Outcomes Evaluation
Week Topics Activities
Conjugal partnership of gains CLO7 • Problem solving • Quiz
Absolute community of property CLO8 Ante-nuptial
Gross exclusive properties CLO9 agreement
Gross conjugal properties CLO22
Gross estate of married decedents CLO23
Deductions from exclusive properties CLO24
Deductions from conjugal properties CLO25
Deductions from community properties CLO26
Computation of share of surviving spouse CLO27
Computation of net taxable estate –
single, married decedents
Computation of estate tax due
Estate tax formula and table
Rule of reciprocity
Estate tax credit
Reportorial requirements – notice of
death, Estate tax return, CPA certificate
Time and Filing of Estate tax return
Time and Payment of Estate tax
Venue
9 MIDTERM EXAMINATIONS
Donor’s Taxes CLO10 • Faculty-facilitated discussion Duly filled-out • Graded
CLO11 and learners’ interaction portion of the recitation
Nature and Concepts of Donation CLO12 • Demonstration of use of the BIR Form • Pre and Post
Types of Donation CLO13 BIR Form 1800 Tests
10 -11
Concept of gross gifts-citizens/residents, CLO14 • Problem solving
nonresident donors CLO22
Valuation of gross gifts CLO23
Exemptions from gross gifts CLO24

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 Time Strategy/ Student
Learning Assessment/
Frame- Lesson/ Methodology/ Output
Outcomes Evaluation
Week Topics Activities
Rate of donor’s tax CLO25
Computations: CLO26
Donor is not married CLO27
Husband and wife donors
Rule on reciprocity
Donor’s tax credit
Filing of return and payment and time
Venue
Business Taxes • Faculty-facilitated discussion Duly filled-out • Graded
CLO2 and learners’ interaction portion of the recitation
Introduction to Business Taxes CLO15 • Demonstration of use of the BIR Forms • Graded board
Major business taxes in the NIRC CLO16 BIR Form 2550M or seat work
- VAT CLO17 • Problem solving 2550Q • Pre and Post
CLO18 • Presentation of sample VAT Tests
- Percentage taxes CLO20 official receipts and sales
CLO21 invoices
- Excise taxes

Value Added Tax

12 - 13
- Nature and Scope

- Persons subject to VAT

- Tax base – gross selling price, gross

receipts, landed cost

- Tax rates

- Tax formula

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 Time Strategy/ Student
Learning Assessment/
Frame- Lesson/ Methodology/ Output
Outcomes Evaluation
Week Topics Activities

VAT transactions • Faculty-facilitated discussion Duly filled-out • Graded

VAT on sale of goods or property CLO2 and learners’ interaction portion of the recitation
- VAT on importation of goods CLO16 • Demonstration of use of the BIR Forms • Graded board
CLO17 BIR Form 2550M or seat work
- VAT on sale of service and use or lease CLO18 2550Q
of property CLO19
CLO20
- Transactions deemed sales CLO22
CLO23
VAT exempt sales CLO24
Zero-rated sales CLO25
14-15
- Export sales CLO26
CLO27
- Sales to accredited entities

Input and output taxes

Transitional input tax
Presumptive input tax
Compliance requirements
Return and Payment
Withholding and remittance
Venue
CLO2 • Faculty-facilitated discussion Duly filled-out • Graded
Percentage taxes
CLO17 and learners’ interaction portion of the recitation
Percentage taxes enumerated
CLO21 • Demonstration of use of the BIR Form • Pre and Post
16
CLO22 BIR Form 2551M Tests
Tax bases an tax rates on:
- VAT Exempt Sales
CLO23 • Problem Solving
CLO24

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 Time Strategy/ Student
Learning Assessment/
Frame- Lesson/ Methodology/ Output
Outcomes Evaluation
Week Topics Activities
- Domestic Carriers and Keepers of CLO25 • Presentation of sample
Garage CLO26 NON-VAT official receipts
- International Carriers CLO27 and sales invoices
- Franchises
- Overseas Communication
- Banks and Non-Banks Financial
Intermediaries
- Finance Companies
- Life Insurance Premiums
- Amusements
- Winnings
- Sale, Barter, Exchange of Listed and
Traded Stocks
- Stocks Exchanged Through IPO
- Time of Filing and Venue
CLO2 • Faculty-facilitated discussion Duly filled-out • Graded
TAXATION UNDER THE LOCAL GOVERNMENT CLO28 Regulatory
and learners’ interaction recitation
CODE* CLO29 • Demonstration of use of the Office’s Forms
Scope and different types of real CLO30 BIR Form
property and local business taxes CLO31 • Problem Solving
Tax bases and apply the tax rates CLO32 • Presentation of sample PEZA
Venue and time of filing of tax returns CLO33 and BOI Certificates of
17 and time of payment CLO34 Registration
CLO35 • Presentation of Sample
CUSTOMS MODERNIZATION AND TARIFF ACT* CLO36 Registration Agreements
Functions of the Bureau of Customs CLO37
Functions of the Tariff Commission • Presentation of sample Bills
CLO38 of Lading
Nature of tariff and customs duties CLO39
Basis of assessment of duty CLO40

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 Time Strategy/ Student
Learning Assessment/
Frame- Lesson/ Methodology/ Output
Outcomes Evaluation
Week Topics Activities
Documents required for importation of CLO41
goods CLO42
Documents required for export of CLO43
goods

FINAL EXAMINATIONS
18
Submission of Reflective Essay

REQUIRED TEXTBOOK
Enrico Tabag and Earl Garcia. Transfer & Business Taxation (2019). Manila City: EDT Publishing

SUGGESTED READINGS AND REFERENCES

Edwin Valencia and Gregorio Roxas. Transfer and Business Taxation (2018). Baguio City: Valencia Educational Supply
Hector de Leon. The Law on Transfer and Business Taxation (2018). Manila: Rex Printing Company Inc.
Nick Aduana. Transfer and Business Taxation (2018). Manila: C & E Publishing
Rex B. Banggawan. Business and Transfer Taxation Laws, Principles and Applications (2019). Manila: Rex Bookstore
V. Reyes. Philippine Transfer and Business Taxation (2018). Manila: Conanan Bookstore
Win Ballada and Susan Ballada (2019). Transfer and Business Taxation. Manila : DomDane Pub

National Internal Revenue Code (Codal) Manila: Rex Printing Company Inc.
On-line sources e.g. www.bir.gov.ph

CLASSROOM POLICIES

It is the responsibility of the learner to come to each class prepared. He/she is also expected to take all examinations on the scheduled
date. He/she should read the assigned problems prior to class discussion. He/she is expected to attend each class and participate actively
in the discussions.

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 FEU Academic Dishonesty
All Research, Accounting, Auditing, Law and Taxation students are expected to be academically honest. Cheating, lying, and other forms
of immoral and unethical behavior will not be tolerated. Any student found guilty of cheating in examinations or plagiarizing in submitted
course requirements will (at a minimum) receive a Failing Grade in the course/subject. Cheating and Plagiarism refer to the use of
unauthorized books, notes, securing help in a test, copying test, assignments, reports or term papers, collaborating without authority with
another student during an examination or in preparing academic work, signing another student’s name on an attendance sheet,
representing the work of another person as one’s own; and other activities manifesting the practice of scholastic dishonesty.

Policy on Absences
The students are allowed only 20% of the total number of hours in a semester for absences. Hence, the allowed number of absences for
a student enrolled in a 3-unit subject or 6-unit subject is a maximum of six(6) absences during regular semester. Request for excused
absences or waiver of absences must be presented prior to occurrence of absence or immediately upon reporting back to class, whichever
is applicable. Special examinations will be given only in special cases, such as prolonged illness. It is the responsibility of the student to
monitor his/her own tardy incidents and absences that might accumulate leading to the grade of 5.00 or F. It is also his/her responsibility
to consult with the concerned faculty member, program head, Dean should his/her case be of special nature.

Note: Always refer to the Student Handbook for academic polices.

COURSE REQUIREMENTS

Assignments, Quizzes, Practice Set, Major Exams

GRADING SYSTEM

Computation of Periodic Grades

I. Computation of 1st Preliminary Grade: Midterm Grade (MG)

Formative Assessment (FA)

Class Participation (Homework, Practice Tests, Recitation, Pre-test) 20%

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 Quizzes 30

Summative Assessment (SA) - Major Departmental Exam 50

1st PRELIMINARY GRADE 100%

II. Computation of 2nd Preliminary Grade

Formative Assessment (FA)

Class Participation ( Homework, Practice Tests, Recitation, Pre-test

) 20%

Quizzes 30

Summative Assessment(SA) – Major Departmental Exam 50

2nd PRELIMINARY GRADE 100%

III. FINAL GRADE = 1st PG (50%) + 2nd PG (50%)

TRANSMUTATION OF FINAL GRADE (FG)
FINAL GRADE LETTER GRADE QUALITY POINT RANGE

92 – 100 A 4.0 3.80 - 4.0

85 – 91 B+ 3.5 3.30 – 3.79

78 – 84 B 3.0 2.80 – 3.29

71 – 77 C+ 2.5 2.30 – 2.79

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 64 – 70 C 2.0 1.80 – 2.29

57 – 63 D+ 1.5 1.30 – 1.79

50 – 58 D 1.0 1.0 – 1.29

F .99 and lower

IV. RETENTION GRADE -(QUALITY POINT AVERAGE (QPA) CUMULATIVE PER YEAR LEVEL

YEAR LEVEL FAR EASTERN BACHELOR OF SCIENCE BACHELOR OF SCIENCE IN

UNIVERSITY IN ACCOUNTANCY INTERNAL AUDITING

(BSA) (BSIA)

First Year 1.2 1.2 1.2

Second Year 1.5 1.6 1.5

Third Year 1.8 2.0 1.8

Fourth Year 2.0 2.4 2.0

CONSULTATION HOURS

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 DAY/s TIME ROOM

Faculty Consultation Room

DATE OF EFFECTIVITY: August 2020

Prepared By: Recommended by: Approved By:

RAMIL N. BALDRES EARL JOSEPH BORGOÑA

Assistant Program Head Program Head – Accountancy & OIC-Dean - IABF

Internal Auditing

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