Course Syllabus in Fundamentals of Taxation

Course Title : Income Taxation

Course Number : ACT184

Hours/Weeks : 54 hours/18 weeks

Pre-requisites : ACT111

Course Description : This course deals with the study of the nature, scope and limitations of taxation on individuals and business
firms. It covers principles of taxation, ethical tax compliance and administration, organization of the Bureau
of Internal Revenue, Bureau of Customs, local government tax collecting unit, Board of Investment,
Philippine Economic Zone Authority, tax remedies, income taxation for individuals, estate and trust,
corporations and partnerships,
It also includes the provisions of the laws on who are taxable, the income subject to tax and the allowable
expenses as well as the exemptions allowed per type of taxpayer. It deals with the preparation and filing of
the income tax returns, due dates of income taxes, the tax rates and penalties and surcharges related to
income tax, accounting periods, accounting methods, withholding taxes and compliance requirements.
Familiarization with the required forms is part5 of the course.
Values Integration :

COURSE INTENDED LEARNING TOPICS TEACHING AND ASSESSMENT

OUTCOMES (CILO) and TIME LEARNING TASK
ALLOTMENT ACTIVITIES
1. Identify taxation, the nature and 1.0 Principles of taxation MODULE QUIZZES
scope of taxation, tax, 1.1 Nature, scope, classification and essential characteristics
classification and essential 1.2 Principles of sound tax system LECTURE - ASSIGNMENTS
characteristics of tax, the 1.3 Limitations of the power of taxation (inherent limitations of DISCUSSION
principles of sound tax system, the power to tax; constitutional limitations of the power to tax.) MODULE
inherent and constitutional 1.4 Taxation vs. police power ACTIVITIES
limitations of taxation. 1.5 Taxation vs. eminent domain
1.6 Similarities among taxation, police power and eminent
2. Differentiate taxation from domain
police power and eminent domain. 1.7 Tax evasion vs. tax avoidance.
1.8 Situs/ place of taxation
3. Identify the situs of taxation and 1.9 Double Taxation (direct and indirect)
double taxation. 1.10 Taxes
a. Essential Characteristics
4. Differentiate tax, from other b. Classification
charges c. Tax vs. other charges (toll, special assessment, license fee,
debt)

1.Classify the individual 2.0 Individual Income Taxation MODULE QUIZZES

taxpayers. a. Classification (citizens, aliens, pure compensation income
earner, pure business or professional income earner, mixed LECTURE - ASSIGNMENTS
2.Identify the basic and additional income earner) DISCUSSION
exemptions, and premiums b. Personal exemptions MODULE
payments for health and/or c. Premiums payments for health and/or hospitalization ACTIVITIES
hospitalization insurance. insurance
d. Tax on aliens employed by regional operating headquarters
3.Identify the different income tax of multinationals, offshore banking units, petroleum service
rates applicable to income of contractor or subcontractor
individual taxpayers. e. Passive income subject to final tax.
f. Capital gain subject to capital gain tax.
4.Compute taxable income and g. Filing and payment of individual quarterly returns
income tax due of affixed earner
taxpayer.

1.Identify corporation. 3.0 Corporations MODULE QUIZZES

3.1 Classification (domestic and foreign)
2. Classify corporation. LECTURE - ASSIGNMENTS
3.2 Income Taxes DISCUSSION
3. Identify the different tax rate a. Regular corporate income tax MODULE
applicable for corporations. b. Minimum corporate income tax ACTIVITIES
c. Optional corporate income tax
d. Improperly accumulated earnings tax
4. Compute the tax due using the
different tax rates (when
applicable)
5. Identify the special
corporations and the tax rates to
be used in computing the income
tax due.
6. Compute income tax due of
some special corporations.
3.3 Special Corporations, rules applicable and tax rates.
a. Domestic (proprietary educational institution, non-profit
hospitals, government owned or controlled corporation, etc.)
b. Resident foreign (international carriers, offshore banking
units, regional operating headquarters of multinationals,
branch profits remittances)
c. Non-resident foreign (lessors of equipment, aircraft and
machinery, owners of vessels chartered by Philippine national,
lessor, distributor or owner of cinematographic films)
3.4 Exempt Corporations

7. Identify the different

corporations exempt from tax

1. Differentiate general 4.0 Partnership (general professional partnerships and MODULE QUIZZES
professional and business business partnerships)
partnerships. LECTURE - ASSIGNMENTS
DISCUSSION
2. Compute income tax due of a MODULE
partner of a general professional ACTIVITIES
partnership and a partner of a
business partnership

1. Identify joint ventures exempt 5.0 Joint Ventures (exempt and taxable) MODULE QUIZZES
from tax.
LECTURE - ASSIGNMENTS
2. Compute tax due of partner of DISCUSSION
an exempt joint venture. MODULE
ACTIVITIES
3. Compute tax due of a partner
of taxable joint ventures.

1. Identify taxable estate. 6.0 Estate and trust (exempt and taxable) MODULE QUIZZES

2. Identify taxable trust. 6.1 Deductions from gross income of estate and trust. LECTURE - ASSIGNMENTS
6.2 Personal exemptions allowed to estate and trust. DISCUSSION
3. Identify deductions from gross 6.3 Consolidation of income of two trusts. MODULE
income of estate and trust. ACTIVITIES
4. Compute taxable income and
tax due of estate and trust.

5. Compute consolidate taxable a

income and tax due of two trusts
and determine tax still due of
each trust.

PRELIMS
1.Identify inclusions and 7.0 Gross Income MODULE QUIZZES
exclusion in the gross income. 7.1 Inclusions in the gross income:
Compensation for services. LECTURE - ASSIGNMENTS
2.Identify rules on taxability of the Income derived from business, trade and practice of DISCUSSION
different income included in gross profession. MODULE
income. Gains derived from dealings in property. ACTIVITIES
Interest.
3.Idenify and compute taxable Rents
merger and consolidation and Royalties
transfers to controlled Dividends
corporation. Annuities
Prizes and winnings
4.Compute capital gains tax on Pensions
sale of real property for individual Partner’s distributive share from the net income of the
and corporation. general professional partnership

5. Compute capital gains tax on
sale of shares of stock of a
domestic corporation not thru a
local stock exchange.
6.Identify taxable and exempt
fringe benefits.
7.Identify rules on taxable fringe
benefits.
8.Compute the fringe benefit
expense and fringe benefit tax.
7.2 Other income including special problems such as mergers
and consolidation, transfers to controlled corporation, wash
sale.
7.3 Exclusion from gross income
7.4 Passive income subject to final tax
7.5 Capital gains tax on sale of real property classified as
capital asset and the applicable documentary stamp tax
(including exemption from the capital gains tax)
7.6 Capital gains tax on sale of shares of stock not through
the local stock exchange and the applicable documentary
stamp tax
7.7 Final income tax on fringe benefits
(including exemptions)
1. Identify the different itemized 8.0 Deductions from Gross Income MODULE QUIZZES
deductions and the rules in the 8.1 Itemized deductions
determining the deductible a. Interest LECTURE - ASSIGNMENTS
amount. b. Taxes DISCUSSION
c. Losses MODULE
2. Identify the optional standard d. Bad Debt ACTIVITIES
deduction. e. Depreciation f. Depletion
g. Pension trust
3. Identify non-deductible h. Charitable and other contributions i.e. Research and
expenses/disbursements. development
j. Expenses, in general.

8.2 Optional Standard deduction

8.3 Items not deductible

MIDTERM EXAM

1. Compute tax credit for individual 9.0 Income tax credit MODULE QUIZZES
and corporate taxpayers 9.1 Individual taxpayer income tax credit
9.2 Corporate income tax credit. LECTURE – ASSIGNMENTS
DISCUSSION
MODULE
ACTIVITIES

1. Identify accounting period use by 10.0 Accounting MODULE QUIZZES

taxpayer Periods
LECTURE - ASSIGNMENTS
a. Calendar year DISCUSSION
b. Fiscal year MODULE
c. Short accounting period ACTIVITIES
1. Identify the different accounting 11.0 Accounting methods MODULE QUIZZES
methods that may be used by Cash
taxpayers accrual, LECTURE - ASSIGNMENTS
installment method, DISCUSSION
deferred payment method, MODULE
lump sum or outright method ACTIVITIES
annual or spread out method,
percentage of completion method,
net worth method of determining taxable income

1. know when and where to file the 12.0 Tax return preparation and tax payments MODULE QUIZZES
income tax return. a. Venue
b. and due dates LECTURE - ASSIGNMENTS
2. Identify the different ways of filing 13.0 Regular filing (including substituted filing of return and DISCUSSION
returns electronic filing) MODULE
13.1 Large taxpayers and non-large taxpayers ACTIVITIES
13.2 Payment of taxes in
installment
i. Capital gains tax
ii. Tax due exceeds P2,000.00

1.Identify the different taxes and 14.0 Withholding taxes MODULE QUIZZES
the corresponding rates, subject to (at source, expanded or creditable withholding tax, final
withholding withholding taxes and withholding tax on government payments) LECTURE – ASSIGNMENTS
DISCUSSION
MODULE
ACTIVITIES

1.Identify the attachments when 15.0 Compliance Requirements MODULE QUIZZES

filing the income tax return. a. Administrative requirements (registration, issuance of
receipts, printing of receipts) LECTURE - ASSIGNMENTS
DISCUSSION
b. Attachments to the income tax return, including CPA MODULE
certificate, per NIRC requirement ACTIVITIES
 c. Keeping of books of accounts and records, including
report of inventories

d. Prescriptive period of books of accounts and other accounting

records

COMPREHENSIVE EXAMINATION

GRADING SYSTEM AND GRADE EQUIVALENT

A. Grading system applicable to business, accounting and professional courses except, law courses, courses with laboratory, courses with practice
set, accounting research, accounting internship and courses that require case presentation/case analysis.
PERCENTAGE DISTRIBUTION:
Major Examination 50%
Quizzes 45%
Others* 5%
TOTAL 100%
*Others may include attendance, seat work, assignment, participation and the like
MAJOR EXAMINATIONS:
Prelim 30%
Midterm 30%
Finals 40%
Total 100%

B. Grade equivalents at 70% passing for board subjects.

Percentage Grade Description
100-98 1.00 Excellent
97-95 1.25
94-92 1.50 Very Good
91-89 1.75
88-86 2.00 Good
85-82 2.25
81-78 2.50 Satisfactory
77-74 2.75
73-70 3.00 Passing
Below 70 5.00 Failure
INSTRUCTOR: Jibran A. Tomindug, CPA
Email: jibran.tomindug@msugensan.edu.ph
Student Consultation: By appointment
Mobile Number: 0946 680 0280