Course Name: XINTAX

Course Title: Income Taxation

Instructors: Agustin, De Vota, Mercado, Sicat and Tinio

Required Text: Income Taxation, latest edition, Bangawan, Rex B

Course Description:
Introduce the students to the nature, scope and limitations of
taxation. It focuses on the preparation of income tax returns
affecting individual and corporate taxpayers. At the end of the
course, the students are expected to demonstrate competence in
the ethical preparation of income tax returns.

Topic Outline: Estimated No of Hours

1. Principles of Taxation 1.50

 Nature, Scope and Limitations of Taxation
 State Powers: Taxation vs. Eminent domain and police power
 Basic Principles of a Sound Tax System

2. Taxes and its Classifications 1.50

 Definition and nature
 Classification of Taxes
 Taxes and other Fees

3. Tax on Individuals 4.50

 Definition and its classification
 Sources of income
 Categories of income
 Passive income
 Allowable deductions
 Taxable income and tax due
 Quarterly income tax on self-employed and professionals
 Exempt individuals from income tax
4. Tax on Corporations 4.50
 Definition and classification of corporations
 Passive income
 Tax rates on different classes of corporations.
 Allowable deductions
 Taxable income and tax due
 Declaration, filing and payment of quarterly and annual corporate income tax.
 Corporate exempt from income tax

5. Tax On Estate And Trust 3.00

 Definition of estate and trusts.
 Gross income of estate and trusts.
 Allowable deductions on estate and trusts.
 Consolidation of income of two or more trusts.
 Computation of taxable income and tax due.

6. Tax On Partnership And Partners 3.00

 Definition of general partnership and its classification
 Taxation on general professional partnership
 Taxation on general co-partnership
 Taxation on co-ownership

7. Gross Income 3.00

 Gross income from whatever sources.
 Compensation income
 Business income
 Gains from dealings in property
 Interests
 Rents
 Royalties
 Dividends
 Annuities
 Prizes and Winnings
  Partner’s distributive share from the net income of a general partnership
 Sources of income
 Exclusions from gross income

8. Special Treatments Of Fringe Benefit 3.00

 Definition of fringe benefit
 Computation of fringe benefits

9. Gains And Losses From Dealings In Property 6.00

 Measure the gain or loss on the sale or exchange of property.
 Definition of capital gains tax.
 Transactions involving sale or exchange of property.
 Classification of real and personal property.
 Acquisition and disposition of capital assets.
 Capital gains tax reported by installment.
 Computation of capital gains tax.
 Filing of capital gains tax.

10. Processing Allowable Deductions To Individual And Corporate Taxpayers 9.00

 Itemized deductions
 Business expenses
 Interest
 Taxes
 Losses
 Bad debts
 Depreciation
 Depletion
 Charitable and other Contributions
 Research and Development
 Pension trusts
 Premium payments on health and/or hospitalization insurance
 Optional Standard deductions (10% OSD)
 Items not deductible.
11. Foreign Tax Credits, Their Computation And Penalties 6.00
 Tax Credit
 Nature of tax credit
 Availability of tax credit
 Computation of foreign tax credit.
 Taxpayers not entitled to foreign tax credit
 Penalties
 Surcharges and interests.
 Penalty for late filing and deficiency.

Total Sessions Express As Contact Hours 54

 Recap

Identification of CPC Topics Covered in this Course Estimated

Contact Hours
Accounting 50
Marketing 1
Finance 2
Management 1
Organizational Behavior 1
Human Resource Management 1
Operations Management 1
Legal Environment of Business 6
Economics 1
Ethics 2
Information System 1
Quantitative Methods/ Statistics 1
International/ Global Dimensions of Business 2
Integrative Experience 4
Total Estimated Contact Hours 74