BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION (BSBA)

COURSE CODE : INST305

UNITS : 3
COURSE TITLE : Transfers and Business Taxation
TIME/SCHEDULE :
TERM :
SEMESTER : FIRST
YEAR LEVEL :
SCHOOL YEAR :

COURSE OUTLINE
A. COURSE DESCRIPTION
This course primarily concerned with the business and transfers taxation. The objective is to
develop a working knowledge of the basic principles and rules of the transfer and business tax
system as these apply to certain types of taxpayers. It covers an overview of the basic succession, the
estate and donors taxes, which aims to provide the students with knowledge of the concept of
disposition or conveyance of property through succession and donation. On the other hand, the
business taxes cover the consolidated value added tax and percentage taxes only as these relate to the
engagement in trade or business or the practice of profession. Tax forms are provided for specific
topics discussed.

B. COURSE OUTCOMES
At the end of this course, the learner is expected to:
1. recognize the basic principles and concepts of the transfer tax system;
2. describe the provisions of the law, rules and regulations governing estate and donor’s tax and the
business taxes for individual and non-individual tax payers in general;
3. discuss the characteristics of succession and donation;
4. demonstrate awareness of the nature of the estate and donor’s taxes and the business taxes;
5. comply with the reportorial requirements of the appropriate government agencies;
6. relate the different tax rates on each taxable estate or donation;
7. manage the filing of the prescribe BIR forms or returns;
8. observed the prescribe periods and deadlines in the filing of the returns and payment of taxes;
and
9. exemplify fortitude, excellence and uprightness through proper reporting gross estate/ donation
and/or allowable deductions and payment of the correct taxes.

Week Topic Planned Activities

I. Course Orientation
II. Basic succession Discussion (giving of reading
A. Definition and basis materials through online
 B. Nature of transfer taxes
C. Kinds of succession
D. Elements of succession
E. Heirs
1 F. Legitime and free portion
G. Table of legitime
H. Testacy and intestacy
I. Order of intestate succession
J. Determination of blood relationship
K. Wills
L. Kinds of wills
M. Probate of a will
N. Institution of heir
O. Causes of disinheritance
III. Transfer taxes
A. Estate taxes (RR 2-2003)
a. Concept and nature of estate tax
2 b. Classification of decedent
c. Gross estate
d. Deductions allowed to estate
i. Ordinary deductions
ii. Special deductions
a. Capital of surviving spouse
b. Concept and nature of deductions
c. Basis of valuation of properties
d. Real and personal property
e. Property relations
f. Situs of taxation
g. Exemptions of certain acquisitions and
3 transmission
h. Filing of estate tax returns
i. Payment of estate tax
j. BIR form 1801
k. Attachments to the estate tax return,
including CPA certificate
CODAL REFERENCE: Sections 84 to 97 of the National
Internal Revenue Code
B. Donor’s Tax (RR 2-2003)
a. Nature of donation
b. Classification of donor
c. Kinds of donation
d. Requisites of a valid donation
e. Formalities of donation
f. Gross gift
4 g. Deductions from gross gift
h. Basis of valuation of gifts
platforms)
Quiz
Case analysis (Marina Dizon-
Rivera vs. Estela Dizon, et al.,
L-24561, June 30, 1970)
Format/guidelines for case
analysis will be provided.
Schedule of face to face
discussion for reinforcement will
be announced.
Discussion (giving of reading
materials through online
platforms)
Quiz
Case analysis (Lorenzo vs.
Posadas, 64, Phil.353)
(Coll. Vs. Fisher, L-11621, 28
January 1961)
(Weels Fargo Bank vs. Coll., 70
Phils.505)
Format/guidelines for case
analysis will be provided.
Schedule of face to face
discussion for reinforcement will
be announced.
Discussion (giving of reading
materials through online
platforms)
Quiz
Case analysis (Commissioner of
Internal Revenue vs. P.J Kiener
Company, LTD., 65 SCRA 143)
Format/guidelines for case
analysis will be provided.
Schedule of face to face
discussion for reinforcement will
be announced.
Discussion (giving of reading
materials through online
platforms)
Quiz
Case analysis (Perez vs.
Commissioner of Internal
Revenue, CTA Case No. 1707 )
 i. Void donations Format/guidelines for case
j. Filing of donor’s tax returns, payments and analysis will be provided.
requiments (BIR form 1800)
CODAL REFERENCE: Sections 98 to 104 of the National Schedule of face to face
Internal Revenue Code discussion for reinforcement will
be announced.
IV. Business Tax
Concept of business tax (overview) Discussion (giving of reading
Types of business taxes materials through online
Definition, nature and characteristics platforms)
A. Value Added Tax (RR 16-2005, 2-2007, 4-
2007) Quiz
a. VAT subject transactions
b. Sale of goods or properties Case analysis (Shell vs. Sipocot,
c. Sale of service and lease of properties 105 Phil. 1263.)
d. VAT exempt transaction Format/guidelines for case
e. Input Value Added Tax analysis will be provided.
f. Passed-on VAT
g. Transitional VAT input Schedule of face to face
h. Presumptive VAT input discussion for reinforcement will
5 i. Withholding VAT (creditable and final) be announced.
j. Registration and compliance
k. Effect of non registration
l. Compliance requirments
i. Invoicing
ii. Returns and payments of Value
Added Tax
iii. Power of the Commissioner to
suspend business
iv. Consequence of erroneous issuance
of VAT official receipt/invoice
CODAL REFERENCE: Section 105 to 115 of the National
Internal Revenue Code
B. Percentage Taxes Discussion (giving of reading
a. Tax payer, tax base and tax rates materials through online
b. Tax on persons exempt from VAT platforms)
c. Tax on domestic carrier or international
carrier Quiz
d. Tax on franchise
6 e. Tax on banks and non bank financial Case analysis (Download a
intermediaries performing quasi-banking sample of court rulings and
function decisions on cases regarding
f. Tax on other non-bank financial Business taxes)
intermediaries Format/guidelines for case
g. Tax on life insurance analysis will be provided.
h. Amusement taxes
i. Tax on winnings Schedule of face to face
j. Stock transaction tax discussion for reinforcement will
k. Returns and payments of percentage tax be announced.
l. Excise tax
CODAL REFERENCE: Section 116 to 128 of the National
Internal Revenue Code
Submission of Final Requirement Case Studies/Critique Paper on
Tax Avoidance and Tax Evasion

C. REQUIRED READINGS (Textbook)

Edwin G. Valencia and Gregorio F. Roxas (2016), Transfer and Business Taxation. Baguio City,
Valencia Educational Supply.
 D. SUGGESTED READINGS
Hector De Leon (2013), Transfer and Business Taxation. Manila. Rex Printing Company Inc.
National Internal Revenue Code (Codal). Rex Printing Company Inc.

E. COURSE REQUIREMENTS
1. Examinations
2. Quizzes
3. Projects/Final Output

Prepared by: ERNAN S. LEAL

Faculty

Checked by: EDDIE R. CALZADORA

Program Chair