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UST GN 2011 Taxation Law Preliminaries PDF
UST GN 2011 Taxation Law Preliminaries PDF
UST GN 2011 Taxation Law Preliminaries PDF
ADVISER
ACADEMIC OFFICIALS
November 6, 2011
(First Sunday, Afternoon)
GENERAL PRINCIPLES ………………………………………………………………………………………………………………………1
INCOME TAXATION……………………………………………………………………………………………………………………………….37
INCOME TAX SYSTEMS…………………………………………………………………………………………………………… 37
FEATURES OF PHILIPPINE INCOME TAX LAW…………………………………………………………………………. 37
CRITERIA IN IMPOSING PHILIPPINE INCOME TAX…………………………………………………………………… 37
TYPES OF PHILIPPINE INCOME TAX………………………………………………………………………………………….. 38
TAXABLE PERIOD………………………………………………………………………………………………………………….. 39
KINDS OF TAXPAYERS…………………………………………………………………………………………………………… 39
Individual Taxpayers…………………………………………………………………………………………… 39
Special Class of Individual Employees…………………………………………………………………. 41
Corporations………………………………………………………………………………………………………. 41
Partnerships……………………………………………………………………………………………………….. 43
Estates and Trusts………………………………………………………………………………………………. 43
Co-ownerships……………………………………………………………………………………………………. 44
INCOME TAXATION……………………………….……………………………………………………………………………… 45
TABLE OF CONTENTS
INCOME………………………………………………………………………………………………………………………………. 46
Definition……………………………………………………………………………………………………………. 46
Nature………………………………………………………………………………………………………………… 46
When income is taxable……………………………………………………………………………………… 47
Tests in determining whether income is earned for tax purposes……………………….. 47
Realization test………………………………………………………………………….. 47
Claim of right doctrine……………………………………………………………….. 47
Economic benefit test………………………………………………………………… 47
Severance test…………………………………………………………………………… 47
GROSS INCOME……………………………………………………………………………………………………………………….. 49
Definition………………………………………………………………………………………………………………. 49
Concept of income from whatever source derived………………………………………………… 49
Gross income vis-à-vis Net Income vis-à-vis Taxable Income…………………………………..50
Classification of Income as to Source……………………………………………………………………… 51
Compensation Income……………………………………………………………………… 51
Fringe Benefits…………………………………………………………. 52
Professional Income………………………………………………… 53
Income from business………………………………………………. 53
Income from Dealings in Property……………………………. 53
Capital Assets …………………………………………… 53
Ordinary assets…………………………………………. 54
Types of Gains from dealings in property... 54
Passive Investment Income………………………………………. 62
Royalty Income…………………………………………………………. 66
Rental income…………………………………………………………… 67
Annuities………………………………………………………………….. 68
Prizes and Awards………………………………………………….... 68
Pensions, retirement benefit, separation pay………….. 68
Income from any source whatever…………………………... 68
Exclusions from Gross Income……………………………………………………………..69
Rationale for the exclusions………………………………………. 69
Taxpayers who may avail of the exclusions……………….. 69
Under the Constitution……………………………………………… 69
Under the Tax code…………………………………………………… 70
Under Tax treaty………………………………………………………. 78
Under Special laws……………………………………………………. 78
Deductions from Gross Income………………………………………………………….. 79
General rules……………………………………………………………. 79
Itemized deductions………………………………………………….. 80
Expenses………………………………………………………………….. 80
Interests……………………………………………………………………. 85
Taxes…………………………………………………………………………. 86
Losses…………………………………………………………………….... 88
Bad debts…………………………………………………………………. 89
Depreciation…………………………………………………………….. 90
Charitable and other contributions………………………..… 92
Optional Standard deduction……………………………………………………………… .96
Personal and additional exemption (R.A. 9504)…………………………………… 96
TAXATION OF RESIDENT CITIZENS, NON-RESIDENT CITIZENS AND RESIDENT ALIENS……………. 100
General rule……………………………………………………………………………………………………………… 103
Taxation on Compensation Income………………………………………………………………………….. 103
Taxation of Domestic Corporations………………………………………………………………………….. 107
Taxation of Resident Foreign Corporations………………………………………………………………. 110
Taxation of Non-Resident Foreign corporations………………………………………………………. 114
Improperly Accumulated Earnings of Corporations…………………………………………………. 114
Exemption from tax on corporations………………………………………………………………………. 115
Taxation of Partnerships…………………………………………………………………………………………. 116
Taxation on Estates and trusts………………………………………………………………………………… 117
TABLE OF CONTENTS
Prohibited importation…………………………………………………………………………………………………293
Conditionally-free importation……………………………………………………………………………………..294
CLASSIFICATION OF DUTIES……………………………………………………………………………………………………298
Ordinary/Regular Duties…………………………………………………………………………………… 299
Ad valorem; Methods of valuation……………………………………………299
Specific…………………………………………………………………………………… 299
Specific duties………………………………………………………………………………………………….. 299
Dumping duties……………………………………………………………………………..300
Countervailing duties…………………………………………………………………….300
Marking duties……………………………………………………………………………….300
Retaliatory/Discriminatory duties…………………………………………………..300
Safeguard……………………………………………………………………………………….301
REMEDIES……………………………………………………………………………………………………………………………. 3 17
Government………………………………………………………………………………………………………………… 317
Administrative/Extrajudicial…………………………………………………………………. 317
Judicial………………………………………………………………………………………………… 317
Taxpayer……………………………………………………………………………………………………………………… 318
Protest………………………………………………………………………………………………… 318
Drawback, Abatement and refund…………………………………………………………..319
Abadonment …………………………………………………………………………………………..320
INDEX……………………………………………………………………………………………………………………………………………… 340
BIBLIOGRAPHY……………………………………………………………………………………………………………………………….. 342