VISION
In pursuit of perfection, the University of Baguio is committed to provide balanced quality
education by nurturing academic excellence, relevant social skills and ethical values in a fun
learning environment.
MISSION
The University of Baguio educates individuals to be empowered professionals in the global
community.
INSTITUTIONAL OBJECTIVES
The University of Baguio aims to produce a graduate who:
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Exemplifies a higher standard of learning;
Manifest the mastery of relevant skills;
Upholds a conduct that is rightful and just;
Undertakes scientific and significant researches;
Advocates sustainable programs for the community and the environment; and
Leads and demonstrates exemplary performance in the field of specialization.
Course Number
TAXATN1 (3 UNITS)
Description:
INCOME TAXATION
Effectivity:
First Semester SY 2013 - 2014
Date Revised
May 29, 2013
Page 1 of 9
SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY MISSION
The University of Baguio educates individuals to be empowered professionals in a
global community. The School of Business Administration and Accountancy edifies
competitive and morally upright individuals.
OBJECTIVES
The School of Business Administration and Accountancy, in an exuberant learning
climate, aims to nurture a business graduate who:
1. Cultivates the knowledge, that are imperative for career success in a globalized
setting;
2. Demonstrates relevant skills;
3. Utilizes macro-environmental acumen for economic growth and development;
4. Typifies professional integrity with humility;
5. Undertakes researches to promote systematic bases for business decisions; and
6. Models exemplary performance in business
CORE VALUES
1. Professional Ethics
2. Integrity
3. Objectivity and Independence
4. Professional Competence and Due Care
5. Confidentiality
6. Professional Behavior
7. Fairness
8. Transparency
9. Accountability
10. Hard Work
11. Honesty
12. Patience
13. Diligence
14. Innovativeness
15. Risk-taking
Course Number
TAXATN1 (3 UNITS)
Description:
INCOME TAXATION
Effectivity:
First Semester SY 2013 - 2014
Date Revised
May 29, 2013
Page 2 of 9
1. Program Learning Outcomes (PLO) vis-à-vis Program Objectives
PROGRAM
OBJECTIVES
P1
P2
P3
Program Learning Outcomes
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O2.
O3.
O4.
O5.
O6.
O7.
O8.
Students graduate to become professionals imbued with high moral/ ethical standards.
Graduates are highly competitive with their acquired knowledge, skills and values in the practice of their profession.
Graduates are confident of their academic and industry preparations and the entry competencies learned to tackle the rigors of the business world.
Students can carry out researches that can be utilized in the community and in the business profession.
Students recognize their responsibility and accountability as professionals and as workers in the community.
Students become aware of and strive for their physical, mental and spiritual well-being.
Students are prepared to meet the needs and demands of global employment without losing the Filipino spirit.
Students become aware of their responsibility to the environment and participate actively in environmental programs.
P4
P5
P6
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PROGRAM OUTCOMES
O1
O2
O3
O4
O5
O6
O7
O8
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C2 Classify taxpayers and determine applicable income tax liability for each taxpayer.
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C3 Identify the sources of income and distinguish the applicable tax liability.
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C4 Delineate deductible from non-deductible expenditures.
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C5 Know the remedies available to taxpayers and to the government in cases of tax disputes.
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C6 Recognize the value of honesty and integrity
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C7 Appreciate that taxation is the lifeblood of the government.
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C8 Be aware of one’s responsibility of paying right taxes.
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PSYCHOMOTOR DOMAIN
C9 Apply the rules of taxation to real life situations.
C10 Compute income tax due through accurate use of income tax rates and tables.
C11 Prepare correct income tax returns.
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2. Course Objectives vis-à-vis Program Learning Outcomes
Course Objectives
COGNITIVE DOMAIN
C1 Describe the nature, scope, characteristics, principles and limitations of taxation.
AFFECTIVE DOMAIN
Course Number
TAXATN1 (3 UNITS)
Description:
INCOME TAXATION
Effectivity:
First Semester SY 2013 - 2014
Date Revised
May 29, 2013
Page 3 of 9
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4. PRE-REQUISITE
BACTNG2 Partnership and Corporation Accounting
5. COURSE DESCRIPTION
The course basically involves the principles of income taxation for individuals and businesses. It discusses the importance and impact of taxation on the
country’s growth and developments. It focuses on tax rates and computation of taxes due as well as when, how and where to file the taxes due.
6. DETAILED COURSE OUTLINE
Session Learning Objectives
/ Goals (SLO/G)
To be able to understand the
nature and purpose of taxation
To be able to understand and
apply rules of tax for
individuals
To be able to understand and
apply rules of tax for
corporations
To be able to apprehend the
essence of MCIT
Content Topic
I.
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II.
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III.
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Basic Principles
Introduction
Taxation
Taxes
Tax Laws
Income and Income taxes
Taxation of Individuals
Classification of individual income taxpayers
Sources of income
Categories of income and tax rates
Passive income
Allowable deductions
Taxable income and tax due
Graduated income tax schedule
Taxation of Corporations
Classification of Income Taxpayers (other
than individuals)
 Sources of Income
 Categories of income and tax rates
 Allowable deductions
 Taxable income and tax due
 Corporations exempt from income tax
 Taxation for cooperatives
FIRST GRADING EXAMINATION
IV.
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Course Number
TAXATN1 (3 UNITS)
Minimum Corporate Income Tax
(MCIT), Improperly Accumulated
Earnings Tax (IAET), and Gross
Income Tax (GIT)
Minimum Corporate Income Tax
Description:
INCOME TAXATION
Outcomes Based
Methodologies/
Strategies &
Approaches
 group activity:
reporting
Case analysis (actual
tax cases)
Group Activity:
interview
Problem Solving
Library and Internet
Research
Learning
Outcomes
Time
Allotment
Values
Evaluative
Measures
Define taxation
and relate its
importance to
other fields and
how important it is
to the business
3 hrs
Transparency
Seatwork
Quiz
Prepare income
tax return for
individuals
9 hrs
Hard work
Assignments
Quiz
Seatwork
5 hrs
Fairness
Assignments
Quiz
Seatwork
Accountability
Assignments
Quiz
Seatwork
Determine tax
liability of individual
tax payers
Prepare income
tax return for
corporations
Problem Solving
Determine tax
liability of
corporate
taxpayers
Problem Solving
Effectivity:
First Semester SY 2013 - 2014
SUBTOTAL
Identify who are
liable for MCIT
Date Revised
May 29, 2013
1 hr
18 hrs
3 hrs
Page 4 of 9
PRC TOS
Session Learning Objectives
/ Goals (SLO/G)
Content Topic
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To be able to understand and
apply rules of tax for estates
and trusts
V.
To be able to understand and
apply rules of tax for
partnerships
VI.
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To be able to correctly
determine the composition of
gross income
VII.
To be able to understand
proper tax treatment for fringe
benefits
VIII.
Course Number
TAXATN1 (3 UNITS)
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Outcomes Based
Methodologies/
Strategies &
Approaches
Improperly Accumulated Earnings Tax
Gross Income Tax for Corporations
Corporations and Double Taxation
Taxation of Estates and Trusts
Definition of terms
Taxable Estates
Taxable Trusts
Gross Income
Allowable Deductions
Consolidation of Income of Two or More
Trusts
Taxation of Partnerships and Partners
Classification of General Partnerships in
Taxation
General Professional Partnership
General co-partnerships
Co-ownerships
Gross Income
Definition
Compensation income
Business income
Gains Derived from Dealings in property
Interests
Rents
Royalties
Dividends
Annuities
Prizes and winnings
Pensions
Income from whatever source
Sources of income
Exclusions from gross income
Fringe Benefits
Definition of terms
Tax base
Monetary value
Description:
INCOME TAXATION
Learning
Outcomes
Time
Allotment
Values
Evaluative
Measures
Library and Internet
Research
Problem Solving
Prepare income
tax return for
estates and trusts
3 hrs
Risk-taking
Assignments
Quiz
Seatwork
Library and Internet
Research
Problem Solving
Understand tax
liabilities of GPP
and partnership, in
general
3 hrs
Accountability
Assignments
Quiz
Seatwork
Library and Internet
Research
Problem Solving
Compute correct
Gross income
6 hrs
Transparency
Assignments
Quiz
Seatwork
Library and Internet
Research
Problem Solving
Understand the
nature and
taxability of fringe
benefits
1 hr
Integrity
Assignments
Quiz
Seatwork
Effectivity:
First Semester SY 2013 - 2014
Date Revised
May 29, 2013
Page 5 of 9
PRC TOS
Session Learning Objectives
/ Goals (SLO/G)
Content Topic
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To be able to determine the
proper tax treatment for gains
and losses from dealings in
property
Gains and Losses from Dealings in
Property
 Gains and Losses on Sale or exchange of
property
 Capital gains and losses on sale or
exchange of property
 Capital gains tax on disposition of real
property
 Capital gains and losses on stock
transactions
MIDTERM EXAMINATION
X.
To be able to get acquainted
with withholding taxes
XI.
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Course Number
TAXATN1 (3 UNITS)
XII.
Learning
Outcomes
Time
Allotment
Values
Evaluative
Measures
Determine the tax
treatment for gains
and losses from
dealings in
property
1 hr
Accountability
Assignments
Quiz
Seatwork
1 hr
18 hrs
9 hrs
integrity
Assignments
Quiz
Seatwork
Fringe benefits not subject to fringe
benefit tax
Accounting for fringe benefit
IX.
To be able to correctly
determine the expenditures
deductible from gross income
To be able to understand the
Outcomes Based
Methodologies/
Strategies &
Approaches
Allowable Deductions
Deductions from Gross Income
Itemized Deductions
 Business expenses
 Interest
 Taxes
 Losses
 Bad debts
 Depletion
 Depreciation
 Charitable and other contributions
 Research and development
 Pension trusts
 Items not deductible
Withholding Taxes
Types of withholding taxes
Withholding of tax at source
Summary of BIR Forms with description and
filing dates
Income payments subject to final creditable
withholding taxes, tax rates
Foreign Tax Credit
Description:
INCOME TAXATION
Library and Internet
Research
Problem Solving
Library and Internet
Research
Problem Solving
SUBTOTAL
Determine correct
amount of
allowable
deductions
Library and Internet
Research
Problem Solving
Understand
withholding taxes
1 hr
Integrity
Assignments
Quiz
Seatwork
Library and Internet
understand the tax
1 hr
Accountability
Assignments
Effectivity:
First Semester SY 2013 - 2014
Date Revised
May 29, 2013
Page 6 of 9
PRC TOS
Session Learning Objectives
/ Goals (SLO/G)
Content Topic
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tax deductibility of foreign
taxes paid
To be able to determine the
corresponding penalties for
non-observance of the rules of
taxation
XIII.
To be able to become aware
of the required BIR Forms,
income tax returns and date of
filing and payment of income
tax
XIV.
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To become familiar with
accounting methods and
periods
XV.
To be able to understand and
identify the proper remedies
available to the taxpayer as
well as to the government
To be able to understand the
importance of keeping
records for income tax
purposes
Course Number
TAXATN1 (3 UNITS)
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XVI.
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XVII.
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Tax deduction versus tax credit
Taxpayers entitled to tax credit
Taxpayers not entitled to tax credit
Philippine income tax due
Limitations on tax credit for foreign taxes
Years of credit for foreign taxes
Penalties
Civil penalties
Compromise penalties
Returns and Payment of Tax
Summary of BIR Forms
Income Tax Returns
Large Taxpayers
Filing of Returns and payment of Taxes
by Large Taxpayers
Accounting Methods and Periods
Role of Accounting in Taxation
Method of Accounting to be employed
Timing of income and deductions
Accounting periods
Allocation of gross income
Remedies
period of limitation upon assessment and
collection
authority to compromise, abate and
refund or credit taxes
remedies for collection of delinquent taxes
remedies of the taxpayer
forfeiture of cash refund and tax credit
Compliance Requirement
keeping of books of accounts
preservation of books of accounts
registration requirements
issuance of receipts, sales invoices or
commercial invoice
Description:
INCOME TAXATION
Outcomes Based
Methodologies/
Strategies &
Approaches
Research
Problem Solving
Library and Internet
Research
Problem Solving
Learning
Outcomes
Time
Allotment
Values
Evaluative
Measures
deductibility of
foreign taxes paid
Quiz
Seatwork
Awareness on
corresponding
penalties for nonobservance of the
rules of taxation
Identify correct BIR
Forms and filing
and payment dates
1 hr
Risk-taking
Assignments
Quiz
Seatwork
1 hr
Accountability
Assignments
Quiz
Seatwork
Library and Internet
Research
Problem Solving
Determine proper
accounting
methods and
periods
1 hr
Integrity
Assignments
Quiz
Seatwork
Library and Internet
Research
Problem Solving
Awareness on
remedies available
to taxpayer
2 hrs
accountability
Assignments
Quiz
Seatwork
Library and Internet
Research
Problem Solving
understand the
importance of
bookkeeping
1 hr
accountability
Assignments
Quiz
Seatwork
Library and Internet
Research
Problem Solving
Effectivity:
First Semester SY 2013 - 2014
Date Revised
May 29, 2013
Page 7 of 9
PRC TOS
Session Learning Objectives
/ Goals (SLO/G)
Content Topic
Outcomes Based
Methodologies/
Strategies &
Approaches
Learning
Outcomes
Time
Allotment
Values
Evaluative
Measures
PRC TOS

printing of receipts, sales invoice or
commercial invoice
 financial statements to be attached to the
annual ITR or information return
 accreditation of tax practitioners and
agents
FINAL EXAMINATION
SUBTOTAL
TOTAL
1 hr
18 hrs
54 hrs
Grading System:
For Professional Board Examination Subjects: the cut-off score is 70%. The highest possible grade is ninety-nine (99); the lowest passing grade is seventy-five (75); and the lowest failing grade is
sixty-five (65).
First grading Class standing = 70 % ; Exam = 30 %
Midterms
Class standing = 60 % ; Exam = 40 %
( Tentative Midterm Grade x 2 + First Grading ) / 3 = Midterm Grade
Finals
Class standing = 50 % ; Exam = 50 %
( Tentative Final Grade x 2 + Midterm Grade ) / 3 = Final grade
Textbook and References:
TEXTBOOK
th
Ballada, Win. Income Taxation: Made Easy. 12 ed. Philippines: Domdane Publishers.c2011
REFERENCES
De Leon, Hector S. The Fundamentals of taxation 2009. Manila: Rex, c2009.
Conti, Indalicio P. Fundamentals of Philippine Income Taxation. Manila: Rex, c2009.
Reyes, Virgilio D. the income tax simplified: a handbook for the non-accounting student: a guide for the do-it-yourself taxpayer. 2008 ed. Philippines:[s.n],c 2008.
Valencia, Edwin G. Income Taxation, 2013, Baguio; Valencia Educational Supply, c 2013
Course Number
TAXATN1 (3 UNITS)
Description:
INCOME TAXATION
Effectivity:
First Semester SY 2013 - 2014
Date Revised
May 29, 2013
Page 8 of 9
Internet sites
www.bir.gov.ph
www.sec.gov.ph
PREPARED BY
ACC/TAX/BL GROUP
NOTED BY
MS. ALLYN C. GARIBAY
Assigned Librarian
MR. RHAD VIC F. ESTOQUE, MBA, CPA
Program Chair, Accountancy
APPROVED BY
DR. KAREEN B. LEON, CPA
Dean, SBAA
Course Number
TAXATN1 (3 UNITS)
Description:
INCOME TAXATION
Effectivity:
First Semester SY 2013 - 2014
Date Revised
May 29, 2013
Page 9 of 9