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BUCOTAX Revised
BUCOTAX Revised
COLLEGE:
College of Business
DEPARTMENT: Commercial Law
COURSE CODE: B U C O T A X /The Law on Business and Income Taxation
CLASS DAYS AND CLASS TIME:
COURSE DESCRIPTION: The course is principally a study of the basic principles of Taxation, Income Taxation, Estate and
Donors taxes and the different business and transfer taxes imposed under the National Internal Revenue Code (NIRC).The first
part is aimed at situating Taxation as a law in the context of the Philippine legal system and introduces the student to the
concept of Taxation and its significance as a State Power. It also seeks to thoroughly acquaint the student with the general
principles of Taxation. The second part is specifically primarily devoted to the study of the concept of Income and Income
Taxation; business taxes specifically, Value-Added Tax (VAT), as well as other business taxes namely: excise taxes, other
percentage taxes, documentary stamp taxes, and community tax certificate.
LEARNING OUTCOME (LO):
On the completion of the term, the student is expected to accomplish the following:
To assess, interpret and analyze the taxpayers obligations and responsibilities, and apply the existing tax principles and
encourage tax compliance in dealing with personal and business concerns.
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.
1. Computation of tax liabilities and filing-out of tax returns of individual taxpayers and business entities
2. Determination of Proper Business Permit for different business
3. Preparation of VAT Returns / other business taxes
4. Preparation and presentation of business tax plans for various entities.
RUBRICS FOR ASSESS:
GENERAL RUBRIC FOR CLASS ACTIVITIES
Criteria
Recitation
and other oral
activities
Case
Analyses and
Case Digests
Drafting and
Compilation
of Relevant
Legal
Documents
Long Tests
and Written
Examinations
Exemplary
Consistent
participation
and accurate
discussion of
the law and
jurisprudence.
The work
manifests
qualities,
which go
beyond the
requirements.
The work
manifests
qualities,
which go
beyond the
requirements.
Outstanding
Satisfactory
Substantial
knowledge
and discussion
of the law and
jurisprudence.
Developing
Fair knowledge of law and
jurisprudence, but cannot
properly and holistically
integrate overall doctrines.
Beginning
Familiarity in overview or
outline of the subject
matter but cannot
sufficiently discuss.
Unsatisfactory
Needs
improvement.
The work
manifests the
required
qualities.
Unsatisfactory.
Unsatisfactory.
Needs improvement
Fail
The work
manifests the
required
qualities.
Very
Satisfactory
Exemplary
90-100
Very high
degree of
understanding
of ideas /
concepts /
arguments /
evidence on the
Satisfactory
80-89
Able
understanding
of idea /
concepts /
arguments /
evidence on the
topic
Developing
70-79
Moderate understanding
of ideas / concepts /
arguments / evidence on
the topic
Beginning
Below 70
Insufficient understanding of
ideas / concepts / arguments /
evidence on the topic
Rating
Rubric:
Formal
in
Class
Oral
Defence,
available
at
<http://www.markville.ss.yrdsb.edu.on.ca/history/honours/inclassoraldefence.pdf> (last accessed June 5, 2011).
Thinking /
inquiry and
ability to
respond to
questions
Communicatio
n and ability
to articulate
Application:
organization
of ideas and
clear
connections
(synopsis and
oral
summary)
topic
Highly effective
use of critical /
analytical
thinking skills
to respond to
challenges /
questions using
concrete
examples,
concepts or
analogies
Exceptionally
effective and
professional
oral
communication
skills (e.g.
scholarly /
academic
language;
correct
grammar and
sentence
structure;
rhetorical
devices; voice
projection;
gestures; body
language;
timing)
Excellent
organization
and application
of researched
ideas or studied
materials,
presented in a
logical and
coherent
method
Uses effective
critical /
analytical
thinking skills to
respond to
challenges /
questions using
examples,
concepts or
analogies
Concrete oral
communication
skills that reflect
professionalism
(e.g. academic
language;
correct
grammar and
sentence
structure;
rhetorical
devices; voice
projection;
gestures; body
language;
timing)
Adequate
professionalism in oral
communication skills
(e.g. academic
language; correct
grammar and sentence
structure; rhetorical
devices; voice
projection; gestures;
body language; timing)
with a moderate degree
of effectiveness
Organizes and
applies
researched
ideas or studied
materials
effectively
Adequate organization
and application of
researched ideas or
studied materials
Total
RUBRIC FOR CASE ANALYSIS2
Criteria
Competence
Understanding
Analysis and
application
Exemplary
90-100
Complete in all
respects; reflects all
requirements
Demonstrates a
sophisticated
understanding of
the topics and
issues
Presents an
insightful and
thorough analysis
of all questions;
makes appropriate
and powerful
connections
between the case
featured and the
concepts studied in
the reading
Satisfactory
80-89
Complete in most
respects;
completes most
requirements
Demonstrates an
accomplished
understanding of
the topics and
issues
Presents an
effective analysis
of all questions;
makes appropriate
connections
between the case
featured and the
strategic concepts
studied in the
reading
Developing
70-79
Incomplete in many
respects; reflects few
requirements
Beginning
Below 70
Incomplete in most
respects; does not
reflect requirements
Demonstrates an
acceptable
understanding of the
topics and issues
Demonstrates an
inadequate
understanding of the
topics and issues
Presents a superficial
analysis of some of
the questions; makes
appropriate but
somewhat vague
connections between
the case featured and
the concepts studied
in the reading
Presents an incomplete
analysis of the
questions; makes little or
no connection between
the case featured and
the strategic concepts
studied in the reading
Rating
Rubric
for
Case
Analysis,
available
at
<http://myedison.tesc.edu/tescdocs/Web_Courses/rubrics/Case_rubric_PJM640-JUN09.htm> (last accessed June
5, 2011).
Writing
mechanics
Writing
demonstrates a
sophisticated
clarity, conciseness
and correctness;
includes thorough
details and relevant
data and
information;
extremely well
organized
Writing is
accomplished in
terms of clarity and
conciseness and
contains only a few
errors; includes
sufficient detail
and relevant data
and information;
well organized
Writing is unfocused,
rambling or contains
serious errors; lacks
detail and relevant data
and information; poorly
organized
Total
RUBRIC FOR CASE DIGEST3
Criteria
Ability to
identify issues
Competence
Understanding
Writing
Mechanics
Exemplary
90-100
Exceptional ability
to identify all
issues; ability to
clearly and
concisely state the
issues identified
Exceptional ability
to summarize in a
clear and concise
manner
Demonstrates a
sophisticated
understanding of
the issues
Writing
demonstrates a
sophisticated
clarity, conciseness
and correctness;
includes thorough
details and relevant
data and
information;
extremely well
organized
Satisfactory
80-89
Ability to identify
most issues; ability to
state the issues
identified in an
effective manner
Developing
70-79
Acceptable ability to
identify some issues;
acceptable ability to
state the issues
identified
Beginning
Below 70
Lacks the ability to
identify the relevant
issues; unsatisfactory
ability to state the
issues
Effective ability to
summarize in a clear
and concise manner
Demonstrates an
acceptable ability to
summarize in a clear
and concise manner
Demonstrates an
acceptable
understanding of the
issues
Writing lacks clarity
or conciseness and
contains numerous
errors; gives
insufficient detail and
relevant data and
information; lacks
organization
Demonstrates an
accomplished
understanding of the
issues
Writing is
accomplished in
terms of clarity and
conciseness and
contains only a few
errors; includes
sufficient detail and
relevant data and
information; well
organized
Rating
Demonstrates an
inadequate
understanding of the
issues
Writing is unfocused,
rambling or contains
serious errors; lacks
detail and relevant data
and information; poorly
organized
Total
RUBRIC FOR DRAFTING AND/OR COMPILATION OF LEGAL DOCUMENTS 4
Criteria
Formatting
Proofreading
Punctuation
Total
Exemplary
90-100
Document
formatted correctly
All words spelled
correctly
0 errors
Satisfactory
80-89
1 formatting error
1misspelled or
incorrect word
1 error
Developing
70-79
2 formatting
errors
2 misspelled or
incorrect words
2 errors
Beginning
Below 70
3 or more formatting errors
Rating
Case Reviews/Analyses
Case Digests
Group Reports
Long/Periodical Tests
3
Midterm Exam
GRADING SYSTEM:
Category
Class Standing (Recitations, Seatwork, Papers, Case Digests, Group Works, Reports)
Long / Periodical Tests
Midterm Examination
Final Examination
Total
LEARNING PLAN:
Learning Outcome
On the completion of the term, the
student is expected to accomplish
the following: To assess, interpret
and
analyze
the
taxpayers
obligations and responsibilities, and
apply the existing tax principles and
encourage
tax
compliance
in
dealing with personal and business
concerns.
Percentage
30%
20%
20%
30%
100%
Topic
Wee
k
No.
1-3
A.
Income, Defined
Lecture,
Class Discussion
Case Digest
1. Taxation, Defined
a. Definition
b. Nature and Characteristics
2.
Taxation Power, Compared with Other Powers of the
State
a. Police Power
b. Power of Eminent Domain
3. Characteristics of a Sound Tax System
a. Fiscal Adequacy b. Administrative Feasibility
c. Theoretical Justice
4.
Limitations to the Power of Taxation
a. Inherent
i. Public Purpose ii. Non-delegability
iii.
Exemption of Government
iv. International Comity v. Situs/Jurisdiction
b. Constitutional
i.
Implied
ii.
Express
5. Distinction from Other Kinds of Payment
a.
Debt b.
License Fee
c. Special
Assessment
d.
Toll
e. Penalty
6.
Classification of Taxes
a.
As to the Imposing Authority
i. Local
ii. National
b.
As to the Person Destined to Pay It
i. Direct
ii. Indirect
c. As to Its Object
i. Personal
ii. Property
iii. Excise
d.
As to Purpose
i. Fiscal
ii Regulatory: Taxation is a Power to
Destroy
e. As to Application
i
Special
ii General
f.
As to the Tax Base
i Specific
ii Ad Valorem
g. As to Rate
i Progressive (Operation of a Progressive Tax
System)
ii Proportional
iii.
Regressive
7. Forms of Escape from Taxation (Tax Evasion vs. Tax
Avoidance)
B. Income Taxation
Learning
Activities
4-8
Lecture,
Class Discussion
Case Analysis
B.
1.
a)
b)
F.
G.
ily
Tax Payers
Compensation Income
Employer-Employee
Relationship
Tests to Determine an EmployerEmployee Relationship
i)
Right to Control test
ii)
Selection
&
Management of Employees
iii) Economic Test
iv) Power of Dismissal
2.
Gross/Business Income
3.
Income Subject to Final
Tax/Passive Income
a) Transactions/Items subject to
Final tax
Exclusions, Concept of
1. Proceeds
of
Life
Insurance
(Insurance, defined)
2. Return of Premiums
3. Compensation for Injuries/Sickness
4. Gifts, Bequests, & Devices
5. Retirement
Benefits,
Pensions,
Gratuities
6. Interest on Government Securities
7. 13th month pay and other benefits
to the extent of P30,000
8. Misc. Items
9. Fringe Benefits
10. Income exempt under a treaty
11. Income Subject to Final Tax (Passive
Income)
Deductions
1.
Exemptions, defined
a. Personal
i Single ii Married iii Head of the
Fam
b.Additional
2. Itemized Deductions (Direct Costs) for
Individual
Old
Introduction
Lecture
Class Discussion
Long Test
1. Concept
2. What taxes were changed by VAT (VAT & the
System)
B. The Operation of the Value-Added Tax System
1.
Imposition of the Tax
2.
The Input and Output Tax
3.
Exempt Transactions
VAT
4.
D. Excise Taxes
Class Discussion
Case Digest
Integration
Lecture,
Lecture,
Class Discussion
Case Digest
Lecture
Class Discussion
Long Test
Integration
14
Final Exam
A.
Who are required to pay;
Documents subject to tax
B.
Effect of Non-Payment