FAR EASTERN UNVERSITY

INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Department of Accountancy

COURSE SYLLABUS

Course Code : TAX 1

Course Title : Principles of Taxation

Course Credit : Three (3) units

Course Pre- :
requisite

Course : This course involves an intensive study of the business and transfer tax system, including the estate tax, the gift tax, and transfer
Description tax. The relationship between these three donatives transfer taxes, and between the transfer taxes and the income tax, are
emphasized. The policy underpinnings of wealth transfer taxation, and the reasons for the recent erosion in its political support,
will be explored. The Expanded Value-Added Tax and percentages taxes are also discussed.

General Course : At the end of the course, the student is expected to have a general understanding of the essential features of taxation. Likewise,
Objectives the student must possess adequate knowledge about the various transfer and business taxes particularly on the methods of
correctly computing their amounts.

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COURSE CONTENT

Week Learning Objectives Focal Points/ Topics Competencies Teaching Strategies Values Evaluative
Measures
1 At the of the session, the student is The main concerns are the Understanding Expectations of both the Teamwork
expected: following: Planning and students and the professor Cooperation
Organizing Formulation of the seat
1. To understand the importance 1. School and plan.
of Transfer and Business administrative policies Explaining to the students
Taxation in the Phils. as a and matters. the manner of how their
preparation for a well rounded grades will be computed.
education. 2. Overview of the course.
2. To know the requirements for
completing the course 3. Textbooks to be used in
3. To articulate higher own the course
expectations from the course
and the professor.
2 At the end of the session, the student 1. Introduction to transfer Understanding Teamwork
is expected to: and business taxes – Planning and Lecture/ Discussion Cooperation
1. be familiar with the 2 types of Estate tax; donor’s tax; Organizing
transfers –gratuitous and business taxes Exercises
onerous transfers 2. Succession and
2. be familiar with the two types Donation -defined
of gratuitous transfers – by 3. Concepts of and
succession and by donation; terminologies in
and the applicable transfer tax succession
3. define succession and the 4. Concept of legitime,
related terms testacy and intestacy
4. be familiar with the kinds and and order of succession
order of succession in the Philippines

Week Learning Objectives Focal Points/ Topics Competencies Teaching Strategies Values Evaluative

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 Measures
3 At the of the 2 sessions, the student The Gross Estate Analytical Ability Lecture/ Discussion Discipline
is expected to: 1. Inclusions in Gross Understanding Accountability
1. understand the concept of Estate- real and personal Problem Solving Exercises Fairness Quiz 1
gross estate properties, tangible and Skills Patience
2. be familiar with the items intangible properties; Presentation
included in gross estate Situs of the Property Skills
3. know the classifications of 2. Rules on Citizen,
decedents Resident and
4. understand the concepts and Nonresident Decedents;
rules governing estate tax Reciprocity Rule for
5. be familiar with the general Nonresident Aliens
process of succession in the 3. Special rules for
Philippines properties not physically
6. be familiar with items in the estate
excluded and exempt from - transfer in contemplation
gross estate of death
7. correctly identify and quantify - revocable transfers
the gross estate items which - transfers under general
should be included with power of appointment
respect to each type of - On Proceeds of Life
individual decedent Insurance
4. Taxable Transfers
5. Claims against insolvent
persons
6. Exemptions and
exclusions from Estate
Tax
7. Valuation of properties in
the gross estate

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Week Learning Objectives Focal Points/ Topics Competencies Teaching Strategies Values Evaluative
Measures
4 At the end of the session, the student A. Ordinary Deductions Analytical Ability Lecture/ Discussion Cooperation
should be able to: 1. Expenses, Losses, Understanding Discipline
1. identify items of ordinary Indebtedness and Taxes Problem Solving Exercises Accountability
deductions from gross estate - Funeral Expenses Skills Fairness
2. be familiar with the nature, - Judicial and Presentation Quiz 2
concepts, limitations, and Administrative Expenses Skills
rules on ordinary deductions - Claims against the
3. properly compute the amount estate
allowed as ordinary - Claims against Insolvent
deductions from gross estate persons
- Unpaid Mortgages, or
Indebtedness on
property, Taxes and
Losses
2. Transfers for Public
Purpose
3. Vanishing Deduction
5 At the end of the session, the student B. Special deductions: Analytical Ability Lecture/ Discussion Cooperation
should be able to: 1. Family home Understanding Discipline Quiz 3
1. identify items of special 2. Standard deduction Problem Solving Exercises Accountability
deductions from gross estate 3. Medical expenses Skills Fairness
2. be familiar with the nature, 4. Amounts received under Presentation Honesty
concepts, ceilings/limitations, RA 4917 Skills
and rules on special 5. Rates of Estate Tax
deductions
3. properly compute the amount
allowed as special deductions
from gross estate
4. compute the net taxable
estate estate tax due if the

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Week Learning Objectives Focal Points/ Topics Competencies Teaching Strategies Values Evaluative
Measures
decedent was single
7 At the end of the session, the student Lecture/ Discussion
should be able to: Share of the surviving spouse in
1. be familiar with the property the net conjugal or community Exercises Quiz 1
relationships of spouses estate, if the decedent was
2. determine the gross estate of married
married decedents under the 1. The property relationship Assignment: Secure a copy
conjugal partnership of gains of spouses of the estate tax return form
or under absolute community 2. Conjugal partnership of
of property gains
3. classify properly whether an 3. Absolute community of
item of property is exclusive or property
conjugal or community 4. Gross exclusive
property properties
4. determine the items of 5. Gross conjugal
deductions from exclusive and properties
conjugal or community 6. Gross estate of married
properties decedents
5. compute correctly the share of 7. Deductions from
surviving spouse in the net exclusive properties
estate of married decedents 8. Deductions from
conjugal properties
9. Deductions from
community properties
10. Computation of share of
surviving spouse

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Week Learning Objectives Focal Points/ Topics Competencies Teaching Strategies Values Evaluative
Measures
8 At the end of the session, 1. Computation of net taxable estate – Analytical Lecture Discipline
the student should be: single, married decedents Ability Accountability
1. able to compute 2. Computation of estate tax due Understanding Comprehensive illustrations Fairness Quiz2
properly the net 3. Estate tax formula and table Problem Patience
taxable estate for 4. Rule of reciprocity Solving Skills Fill up Estate Tax Return
single and married 5. Estate tax credit Presentation
decedents 6. Reportorial requirements – notice of Skills
2. able to compute the death, Estate tax return, CPA
estate tax due certificate
3. familiar with certain 7. Filing of Estate tax return
provisions and 8. Payment of Estate tax
reportorial
requirements on
Estate tax

9-10 Analytical Discipline

At the end of the 2 Donor’s Taxes Ability 1. Lecture Accountability
sessions, the student is 1. Nature and Concepts of Donation Understanding 2. Illustrative cases Fairness
expected to: 2. Types of Donation Problem Patience
1. understand the 3. Concept of gross gifts- Solving Skills
nature and concepts citizens/residents, nonresident Presentation
of donation donors Skills
2. be familiar with the 4. Valuation of gross gifts
types of donation 5. Exemptions from gross gifts
3. identify items of 6. Rule on donation between strangers
gross gifts and non-strangers
4. determine 7. Rates of donor’s tax
exemptions from

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 gross gift
5. classify donations
whether made
between strangers
or relatives
6. apply the rules in
computing net
taxable gift and
donor’s
Week Learning Objectives Focal Points/ Topics Competencies Teaching Strategies Values Evaluative
Measures
tax due 1.
11 At the end of the session, Cont’n. of Donor’s taxes Analytical 2. Lecture/Discussion Fairness
the student is expected to: 8. Computations: Ability 3. Comprehensive Patience
1. compute the net - Donor is not married Understanding application Transparency
taxable gift and - Husband and wife donors Problem 4. Fill up the donor’s tax
donor’s tax due for 9. Rule on reciprocity Solving Skills return.
married and single 10. Donor’s tax credit Presentation
donors 11. Filing of return and payment Skills
2. compute for the
donor’s tax credit
3. be familiar with the
filing of return and
payment of donor’s
tax due

12 Second Preliminary Examination

13 Business Taxes Analytical Lecture/ Discussion
At the end of the 2 1. Introduction to Business Taxes Ability
sessions, the student is 2. Major business taxes in the NIRC Understanding Exercises
expected to: - VAT Judgment
1. know the definition - Percentage taxes Problem
of business - Excise taxes Solving Skills

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 2. be familiar with the 3. Value Added Tax
three major business - Nature and Scope
taxes - Persons subject to VAT
3. determine correctly - Tax base – gross selling price,
which business tax gross receipts, landed cost Quiz 1
is due - Tax rates
4. understand the - Tax formula
nature, concepts
and rules of VAT
5. determine who are
subject to VAT
6. know the tax base,
rate and formula

Week Learning Objectives Focal Points/ Topics Competencies Teaching Strategies Values Evaluative
Measures
14-15 At the end of the 2 1. VAT transactions Analytical Lecture/ Discussion Love of
sessions, the student is 2. VAT on sale of goods or property Ability Country
expected to: - VAT on importation of goods Understanding Exercises Transparency
1. know the meaning - VAT on sale of service and use Problem Fairness
and computation of or lease of property Solving Skills
gross selling price, - Transactions deemed sales
gross receipts and 3. VAT exempt sales
landed cost 4. Zero-rated sales
2. identify transactions - Export sales
subject to VAT - Foreign currency denominated
3. know the sales
transactions exempt - Sales to accredited entities
from VAT 5. Input and output taxes
4. know the zero-rated 6. Transitional input tax
sales 7. Presumptive input tax
5. distinguish input 8. Compliance requirements
from output tax 9. Return and Payment Quiz 2

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 6. understand the 10. Withholding and remittance
nature of and
compute for
transitional input tax
7. understand the
nature of and
compute for
presumptive input
tax
8. know the formula for
VAT payable
9. be familiar with the
requirements of the
BIR
10. be familiar with the
filing, date and
payment of monthly
and quarterly VAT
returns
11. be familiar with the
withholding VAT
rates on transactions
with gov’t. entities
12. be familiar with the
refunds
Week Learning Objectives Focal Points/ Topics Competencies Teaching Strategies Values Evaluative
Measures
and credits to arrive at the
correct VAT payable
16 At the end of the 2 Percentage taxes Analytical Lecture/ Discussion Discipline
sessions, the student is 1. Percentage taxes enumerated Ability Accountability
expected to: 2. Tax bases an tax rates on: Understanding Exercises Fairness
1. know the nature and - VAT Exempt Sales Problem Patience

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 concepts of - Domestic Carriers and Keepers Solving Skills Honest
percentage taxes of Garage
2. know the rules and - International Carriers
certain limitations - Franchises
applicable - Overseas Communication
3. identify transactions - Banks and Non-Banks Financial
subject to Intermediaries Quiz 3
percentage taxes - Finance Companies
and the applicable - Life Insurance Premiums
percentage tax rates - Amusements
4. compute the - Winnings
percentage tax due - Sale, Barter, Exchange of Listed
on business and Traded Stocks
transactions - Stocks Exchanged Through IPO
- Capital gains

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Week Learning Objectives Focal Points/ Topics Competencies Teaching Strategies Values Evaluative
Measures
17 Analytical Ability Accountability
At the end of the 2 sessions, the Penalties and Remedies Understanding Discussion Fairness
student is expected to: 1. Penalties Patience
1. be familiar with the civil and - Civil Penalties Illustrative cases Honest
criminal penalties against the Surcharges
taxpayer for noncompliance Interest
with the BIR requirements and - Criminal Penalties
rules
2. compute for the correct 2. Remedies of the state
amount of surcharges and and the taxpayer
interests - Levy and Distraint
3. be familiar with the remedies - Prescription
of the state against the - Assessment
taxpayer - Collection
4. know the meaning of the - Protest
various terms – assessment, - Compromise
delinquency, deficiency, levy,
distraint, etc
5. be familiar with the remedies
of the taxpayer against an
assessment for tax
erroneously or illegally
collected
6. be familiar with the proper
period and procedures to
effect the remedies
18 Final Examination

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Computation of Grades:

Computation of Periodic Grades

Class Standing
Average Quizzes (AQ)………………………………………………….…….30%
Class Participation (CP) ………………………………………………...…...10%
Major Examination (PEx/MEx/FEx) ………………………………………….……..60%
Total …………………………………………………………………….…………….100%

a. Determine 1st Preliminary Grade (1st PG)

1st PG = AQ(30%) + CP (10%) + PEx (60%)

b. Determine 2nd Preliminary Grade (2nd PG) and Midterm Grade (MG)

2nd PG = AQ(30%) + CP (10%) + PEx (60%)

MG = 1st PG (50%) + 2nd PG (50%)

c. Determine Final Period (FP) and Final Grade (FG)

FP = AQ(30%) + CP (10%) + PEx (60%)

FG = MG (50%) + FP (50%)

Passing Grade is 75% with an equivalent point of 3.0

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 Grade Point System

Descriptive
Grade Point System Equivalent
95 100% 1.00
92 94% 1.25 Superior
90 91% 1.50
88 89% 1.75 Very Good
85 87% 2.00
82 84% 2.25 Good
80 81% 2.50
78 79% 2.75 Fair
75 77% 3.00 Barely Satisfactory
Below 75% 5.00 Failure

Reviewed by: Approved by:

RAMIL N. BALDRES, CIA, CPA, MBA EARL JOSEPH M. BORGOÑA, CPA, MBA
Department Chair – Accountancy & Internal Auditing OIC Dean - IABF
Department

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