UB 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.
INSTITUTIONAL OBJECTIVES (REVISED 2012)
The University of Baguio aims to produce a graduate who:
1. exemplifies a higher standard of learning;
2. manifest the mastery of relevant skills;
3. upholds a conduct that is rightful and just;
4. undertakes scientific and significant researches;
5. advocates sustainable programs for the community and the environment; and
6.
leads and demonstrates exemplary performance in the field of specialization.
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
BUSINESS AND TRANSFER TAX
Effectivity:
1ST Semester
SY 2013-2014
Date Revised
April 2013
Prepared by:
Jeffreyson M. Pakias
Approved by:
Dr. Kareen B. Leon
Page 1 of 14
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.
SBAA OBJECTIVES:
The School of Business Administration and Accountancy aims to produce a graduate who:
1. cultivates the knowledge that is imperative for success in globalized setting;
2. displays expertise appropriate to the profession;
3. typifies professional integrity with humility;
4. undertakes researches to promote systematic bases for business decisions;
5. utilizes macro-environmental acumen for economic growth and development; and
6. exhibits commendable accomplishments in business and accountancy.
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
BUSINESS AND TRANSFER TAX
Effectivity:
1ST Semester
SY 2013-2014
Date Revised
April 2013
Prepared by:
Jeffreyson M. Pakias
Approved by:
Dr. Kareen B. Leon
Page 2 of 14
The Bachelor of Science in Accountancy Program aims to produce a graduate who:
P1.
P2.
P3.
P4.
P5.
P6.
UNIVERSITY GOALS
2
3
4
5
1
applies accounting knowledge to meet the demands of the business community;
demonstrates high proficiency in the practice of the profession;
conforms with the highest degree of ethical standards;
employs researches to elevate professional knowledge and skills in sound business decisions;
satisfies the demands of a dynamic industry for a better community;
Typifies excellences in the practice of the accounting profession.


















6



2. Program Outcomes and Relationship to School/ Program Objectives
Program Outcomes
O1. Students graduate to become professionals imbued with high moral/ ethical standards.
O2. Graduates are highly competitive with their acquired knowledge, skills and values in the practice of their profession.
O3. Graduates are confident of their academic and industry preparations and the entry competencies learned to tackle the rigors of
the business world.
O4. Students can carry out researches that can be utilized in the community and in the business profession.
O5. Students recognize their responsibility and accountability as professionals and as workers in the community.
O6. Students become aware of and strive for their physical, mental and spiritual well-being.
O7. Students are prepared to meet the needs and demands of global employment without losing the Filipino spirit.
O8. Students become aware of their responsibility to the environment and participate actively in environmental programs.
P1
√
√
SCHOOL/ PROGRAM
OBJECTIVES
P2
P3 P4
P5
P6
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
3. Course Objectives and Relationship to Program Outcomes
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
BUSINESS AND TRANSFER TAX
Effectivity:
1ST Semester
SY 2013-2014
Date Revised
April 2013
Prepared by:
Jeffreyson M. Pakias
Approved by:
Dr. Kareen B. Leon
Page 3 of 14
Course Objectives
COGNITIVE DOMAIN
C1. Identify the objectives of Philippine tax system.
C2. Determine overall considerations in the rationale, basis and computation of the various business and transfer taxes.
C3. Distinguish business transactions as to tax imposed
C4. Define the Reformed Value-Added Tax (R-VAT) policies
C5. Identify the recent developments of Philippine tax laws.
AFFECTIVE DOMAIN
C6. Conform with values geared towards becoming socially responsible, morally upright, and globally competitive office
workers
C7. Develop awareness of social responsibilities of business enterprises.
C8. Show sustained interest in the subject
C9. Cultivate the values of honesty, industry, perseverance, patience, and discipline
PSYCHOMOTOR DOMAIN
C10 Apply the skills in the presentation of a BIR tax form.
C11. Present and explain solutions on the board and defend solutions to tax problems.
C12. Develop adequate speed and techniques in answering tax related problems.
C13. Develop efficient use of time in answering multiple choice questions
O1
O2
PROGRAM OUTCOMES
O3
O4
O5
O6
O7
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
O8
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
4. Prerequisite: ATAXTN1/TAXATN1
5. Course Description
The course covers business taxes, transfer taxes and local taxes. It is designed to enable the students to acquire an understanding and appreciation of basic business
taxation – percentage tax, excise tax and value-added tax; as well as transfer taxation – pertaining to estate and donor’s taxes. The combination of theories and
computations will enable future business professionals to be aware of the complexity of tax laws and their applications, and also be cognizant of recent tax laws related to
topics mentioned.
Rationale: The government cannot achieve its development goals without the people’s favorable support of its tax system. It is in the light of this situation that the study and the
teaching of the subject require relevance and importance.
6. Course Coverage
Learning Contents/Topics
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
No.
of
BUSINESS AND TRANSFER TAX
School Objectives
P1
P2 P3 P4
P5
Effectivity:
1ST Semester
SY 2013-2014
O
O
Program Outcomes
O
O
O
O
O
Date Revised
April 2013
O
Prepared by:
Jeffreyson M. Pakias
Activity and
Learning Approach
Evaluation
Approved by:
Dr. Kareen B. Leon
Page 4 of 14
hour
s
1
Course Syllabus
VMO
Seat Plan
Leveling of Expectations
Unit 1: BUSINESS TAXES
1
4





4





2
3
4
5
6
7












8
1.1 Nature of Business Taxes
1.2 Types of Business Taxes
1.2.1 Excise Tax
1.2.2 General Consumption Tax/ Percentage Tax
1.2.3 Value-Added Tax
1.3 Compliance Requirements
1.4 Initial Registration
1.5 Annual Registration
1.6 Exemption from payment of P500 Registration
Fee
1.7 Registration Threshold
Orientation
Internalize the VMO
Arrange students
Requirements and
Grading system
Recitation
-Lecture
Discussion
-Case Analyses
-Quiz
-Presentation of
Answers to case
Analyses
-Recitations
-Lecture-discussion
-Reading
Assignment
-problem solving
-Quiz
-Seatworks
-Board Exercises
1.8 Keeping of Books of Accounts and Records
1.9 Invoices and Receipts
1.9.1 Invoicing Requirements
1.10Filing and Payment of Internal Revenue Taxes
Unit 2: PERCENTAGE TAXES


6.1 Percentage Tax
6.2 Optional Registration
6.3 Business Subject to Percentage Taxes
6.3.1 Domestic Carriers and Keepers of Garages
6.3.2 Transport of Goods and Cargoes
6.3.3 International Air Carriers and Shipping
Carriers
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
BUSINESS AND TRANSFER TAX
Effectivity:
1ST Semester
SY 2013-2014
Date Revised
April 2013
Prepared by:
Jeffreyson M. Pakias
Approved by:
Dr. Kareen B. Leon
Page 5 of 14
6.3.4 Franchise
6.3.5 Bank and Non-Bank Financial
Intermediaries
6.3.6 Insurance Companies
6.3.7 Amusement Places
6.3.8 Winnings
6.3.9 Shares of Stocks
6.3.10 Shares of Stocks Sold through Initial
Public Offering
6.4 Withholding Percentage Tax
6.5 Returns and Payments of Taxes Withheld
6.6 Certificate of Internal Revenue Taxes Withheld
6.7 Returns and Payment of Percentage Tax
Unit 3: VALUE-ADDED TAX
2










4.1 Nature of Value-Added Tax
4.2 Characteristics of Value-Added Tax
4.3 Evolution of Present Vat System
4.4 Rationale of the VAT System
4.5 VAT vs. Percentage Tax
4.6 Basic Formula of VAT
4.7 Manner of Billing VAT Transaction
4.8 Elements of VAT System
4.9 Sources of Creditable Input Tax
4.9.1 Transitional Input Tax
4.9.1 Presumptive Input Tax
4.10Output Tax
4.11Sales Discounts, Returns and Allowances
4.12Accounting Treatment of VAT
4.13Liability for VAT Payment
-Lecture discussion
-Reading
Assignment
-problem solving
-case analyses
-Quiz
-Seatworks
Requirement: Reaction papers on:
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
BUSINESS AND TRANSFER TAX
Effectivity:
1ST Semester
SY 2013-2014
Date Revised
April 2013
Prepared by:
Jeffreyson M. Pakias
Approved by:
Dr. Kareen B. Leon
Page 6 of 14
1.
new ruling on transactions with senior
citizens
2. VAT on toll fees
Unit 4: EXCISE TAX
4












-Lecture-Discussion
-problem solving
-Reading
Assignments
- board works
-Quiz
-case analyses
-Seatworks
2.1 Excise Tax, defined
2.2 Classification of Excise Tax
2.3 Purposes of Excise Tax
2.4 Goods Subject to Excise Tax
2.4.1 Alcohol Products
2.4.2 Tobacco Products
2.4.3 Petroleum Products
2.4.4 Miscellaneous Articles
2.4.5 Non-Essential Goods
2.4.6 Mineral Products
2.5 Return and Payment of Excise Tax
5.3 Objects of VAT
5.4 VAT on Sale of Goods or Properties
5.4.1 Transactions deemed sale
5.4.1.1 Consumption of Inventory
5.4.1.2 Distribution to Stockholders
5.4.1.3 Distribution to Creditors
5.4.1.4 Consignment of Goods
5.4.1.5 Retirement from Business
5.5 Sale of Real Property
5.5.1 Taxable Base on Installment Sale of Real
Property
5.5.1.1 Initial Payments
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
BUSINESS AND TRANSFER TAX
Effectivity:
1ST Semester
SY 2013-2014
Date Revised
April 2013
Prepared by:
Jeffreyson M. Pakias
Approved by:
Dr. Kareen B. Leon
Page 7 of 14
5.6 Sale of Services/Use and Lease of Properties
5.6.1 Requirements for VAT Taxability of Services
5.6.2 Taxable Base on Services
5.6.3 Constructive Receipts
5.6.4 Sale or Exchange of Services
5.6.5 Professional/Technical Services
5.6.6 Transfer of Technology
5.6.7 Lease or Use of Intangible Property
5.6.8 Lease or Use of Tangible Property
5.6.9 Lease of Real Property
5.7 VAT on Importation of Goods
5.8 Zero-Rated Transactions
5.8.1 Input Tax on Zero-Rated Sales
5.9 VAT-Exempt Transactions
5.10Effect of Collecting VAT by Non-VAT Persons
5.11Business with VAT and Non-VAT Transactions
5.12Transactions with Government Agencies
5.13 Latest VAT-related Revenue Regulations
Unit 6: VAT REQUIREMENTS AND APPLICATIONS
2 HOURS
6.1
6.2
6.3
6.4
6.5
6.6
2











VAT Requirements
Registration
Invoicing
Filing and Payment of VAT Return
Place of Filing and Payment
Accounting Application
Unit 7: TRANSFER TAXES AND BASIC
SUCCESSION
7.1 Nature of Transfer Taxes
7.1.1 Onerous Transfer of Property
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
5
BUSINESS AND TRANSFER TAX





Effectivity:
1ST Semester
SY 2013-2014



Date Revised
April 2013



Prepared by:
Jeffreyson M. Pakias
- lecture discussion
-quiz
-reading
Assignment
-problem solving
-seatwork
- lecture discussion
-quiz
-reading
Assignment
-seatwork
Approved by:
Dr. Kareen B. Leon
Page 8 of 14
7.1.2 Gratuitous Transfer of Property
7.2 Nature of Estate Tax
7.3 Justification of Estate Tax
7.3.1 Redistribution of Wealth Theory
7.3.2 Benefit-Received Theory
7.3.3 Privilege of State-Partnership Theory
7.3.4 Ability to Pay Theory
7.4 Effectivity of the Transfer of Property
7.5 Nature of Donor’s Tax
7.6 Purposes of Donor’s Tax
7.7 Basic Concept of Succession
7.8 Basis of Succession
7.9 Elements of Succession
7.10Persons Authorized to Take Charge of the
Estate
7.10.1 Successors
7.10.2 Primary Compulsory Heir
7.10.3 Secondary Heirs
7.11Kinds of Succession
7.11.1 Testamentary Succession
7.11.2 Testamentary Distribution of Net Estate
7.12Free Portion
7.13Legitime
7.14Surviving Spouse
7.14.1 Surviving Spouse with Legitimate Children
7.14.2 Surviving Spouse with Illegitimate
Children
7.14.3 Surviving Spouse with Legitimate Children
and Illegitimate Children
7.14.4 Surviving Spouse Alone
-problem solving
7.15Disinheritance
7.15.1 Disinheritance of Children and
Descendants
7.15.2 Disinheritance of Ascendants
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
BUSINESS AND TRANSFER TAX
Effectivity:
1ST Semester
SY 2013-2014
Date Revised
April 2013
Prepared by:
Jeffreyson M. Pakias
Approved by:
Dr. Kareen B. Leon
Page 9 of 14
7.16Succession
7.16.1 Intestate Succession
7.16.2 Intestate Distribution of Net Estate
7.16.3 Mixed Succession
Midterms Examination (2 hours)
Unit 8:
GROSS ESTATE
5











8.1 The Gross Estate
8.1.1 Valuation of the Gross Estate
8.1.2 Classification of Decedent
8.1.3 Summary of Properties Included in the
Gross Estate
8.2 Additions to the Gross Estate
8.2.1 Transfer in Contemplation of Death
8.2.2 Sale for an Adequate and Full Consideration
8.2.3 Revocable Transfer
8.2.4 Property Passing Under General Power of
Appointment
8.2.5 Proceeds of Life Insurance
8.2.6 Transfer for Insufficient Consideration
8.2.7 Claims against Insolvent Persons
8.2.8 Amounts Received by Heirs under Republic
Act No 4917
- lecture discussion
-reading
Assignment
-problem solving
-quiz
-seatwork
8.3 Exemptions from Estate Tax
8.3.1 Merger of Usufruct in the Owner of Naked
Title
8.3.2 Transmission of Legacy by the Legatee to
Fedeicommissary
8.3.3 Second Transfer as Desired by the
Predecessor
8.3.4 Transfer to Social Welfare, Cultural
Charitable Institutions
8.3.5 Reciprocity Clause
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
BUSINESS AND TRANSFER TAX
Effectivity:
1ST Semester
SY 2013-2014
Date Revised
April 2013
Prepared by:
Jeffreyson M. Pakias
Approved by:
Dr. Kareen B. Leon
Page 10 of
14
8.3.6 Capital of Surviving Spouse
8.3.6.1 Property Relations between Spouses
8.3.6.1.1 Conjugal Partnership of Gains
8.3.6.1.2 Absolute Community of Property
8.3.6.1.3 Conjugal Partnership of Gains vs.
Absolute
Community of Property
Unit 9: DEDUCTION FROM GROSS ESTATE
5











- lecture discussion
-reading
Assignment
-problem solving
-quiz
-seatwork
3











- lecture discussion
-reading
Assignment
-problem solving
-quiz
-seatwork
9.1 Nature of Deductions
9.2 Deductions from Estate of
9.2.1 Resident Citizen
9.2.2 Non-Resident Citizen
9.2.3 Resident Alien
9.2.4 Non-Resident Alien
9.3 Allowable Deductions
9.3.1 Funeral Expenses
9.3.2 Medical Expenses
9.3.3 Claims against the Estate
9.3.4 Claims against the Insolvent Person
9.3.5 Unpaid Mortgage
9.3.6 Unpaid Taxes
9.3.7 Casualty Losses
9.3.8 Transfer for Public Use
9.3.9 Vanishing Deduction
9.3.10 Standard Deduction
9.3.11 Amount Received by Heirs RA 4917
9.3.12 Family Home
9.3.13 Share of Surviving Spouse
Unit 10: ESTATE TAX
10.1Net Taxable Estate
10.2Rates of Estate Tax
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
BUSINESS AND TRANSFER TAX
Effectivity:
1ST Semester
SY 2013-2014
Date Revised
April 2013
Prepared by:
Jeffreyson M. Pakias
Approved by:
Dr. Kareen B. Leon
Page 11 of
14
10.3Notice of Death
10.4Filing of Estate Tax Return
10.4.1 Time of Filing
10.4.2 Extension of Time
10.4.3 Place of Filing
10.4.4 Time of Payment
10.4.5 Extension of Time of Payment
10.4.6 Liability for Payment
10.4.7 Surcharges, Interest and Penalties
10.4.8 Safeguards for the Payment of Estate
Taxes
Unit 11: DONOR’S TAX
11.1Nature of Donation
11.2Kinds of Donation
11.2.1 Inter Vivos
11.2.2 Mortis Causa
11.3Essential of Donation
11.4Donation of Real Property
11.5Donation of Personal Property
11.6Conjugal Donations
11.6.1 Gift to Children
11.6.2 Donation between Husband and Wife
11.7Valuation of Donation or Gifts
11.8Transfer for Inadequate Consideration
11.9Deduction from Gross Gifts
11.9.1 Dowries
11.9.2 Encumbrance Assumed by the Donee
11.9.3 Donations to National Government
11.9.4 Destroyed Donations
11.9.5 Tax-Exempt Donations
11.10 Computations of Donor’s Tax
11.11 Gift to Relatives
11.12 Gift to Strangers
11.13 Donor’s Taxes Paid to a Foreign Country
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
4
BUSINESS AND TRANSFER TAX





Effectivity:
1ST Semester
SY 2013-2014



Date Revised
April 2013



Prepared by:
Jeffreyson M. Pakias
- lecture discussion
-reading
Assignment
-problem solving
-quiz
-seatwork
Approved by:
Dr. Kareen B. Leon
Page 12 of
14
11.13.1 Limitations on Tax Credit
11.14 Returns and Payment of Tax
11.14.1 Attachments to the Donor’s Tax Return
11.14.2 Filing and Payment
11.14.3 Penalties
Requirement: Reaction paper on a recent article
on Estate Tax or Donor’s Tax
Final Examination (2 hours)
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
X. Textbook and References:
TEXTBOOK
Ballada Win Lu, et al (2012) Business and Transfer Taxes (R.A.9337) Manila, DomDane Publishers
REFERENCES:
www.bir.gov.ph
www.dti.gov.ph
www.prctaxman.com
www.gov.ph/fags/tax info.asp
www.punongbayan-araullo.com
taxation.lawyers.com/Business-Taxation-FAQs.html
Revised EVAT Law (R.A. 9337)
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
BUSINESS AND TRANSFER TAX
Effectivity:
1ST Semester
SY 2013-2014
Date Revised
April 2013
Prepared by:
Jeffreyson M. Pakias
Approved by:
Dr. Kareen B. Leon
Page 13 of
14
The Comprehensive Tax Reform Program (R.A. 8424)
BALLADA, Win Lu, Income Taxation Domedane Publisher 2012
AMPONGAN, Omar, Transfer and Business Taxation, 2012
VALENCIA & ROXAS, Transfer and Business Taxation, 2012
DE LEON, Transfer and Business Taxation, Manila, Rex Bookstore, 2012
Syllabus Evaluation Committee:
RHAD VIC ESTOQUE, CPA, MBA
Program Chair
Course Title:
ATAXTN2/TAXATN2 (3 u)
Description:
Ms. Allyn Garibay
DR. KAREEN B. LEON, CPA
Dean, School of Business Administration and Accountancy
Library Section Head
BUSINESS AND TRANSFER TAX
Effectivity:
1ST Semester
SY 2013-2014
Date Revised
April 2013
Prepared by:
Jeffreyson M. Pakias
Approved by:
Dr. Kareen B. Leon
Page 14 of
14