Tax 1

Assignments for April 3, 2017

Study :

1. Different kinds of Income Tax Systems

2. Features of Philippine Income Tax System

3. Criteria in Imposing Income Tax

4. Types of Philippine Income Tax

5. Kinds of Taxpayers
5.1. Individuals
5.1.1citizens
a. Resident citizens
b. Non resident citizens
5.1.2. aliens
a. resident aliens
b. non-resident aliens
b.1. engaged in trade
b.2. not engaged in trade
5.1.3. Special class of Individuals/employees
a. Minimum wage earner

5.2. Corporations
5.2.1 Domestic corporations
5.2.2 Foreign Corporations
a. Resident Foreign Corporations
b. Non resident foreign Corporation
5.2.3 Joint Venture and Consortium
5.2.4 Partnerships
5.2.5. General Professional Partnerships
5.2.6 Estates and Trusts
5.2.7. Co-Ownerships

6. What is "Income Taxation"? (Definition ,Nature, General Principles)

7. Meaning of Income

8. When does an income become taxable (Existence of Income)

9. Meaning of "Realization of Income"

9.1. Test of Realization
 9.2. Recognition of income
9.3. Actual v. constructive receipt
9.4. Tests in determining whether income is earned for tax purposes
9.4.1.Realization principle
9.4.2.Claim of Right Doctrine
9.4.3. Economic Benefit Theory
9.4.4. Severance Theory Test

10. Taxation of Resident Citizens, Non Resident Citizens and Resident aliens

10.1. Resident Citizens are taxable on Income derived from all sources within
and without the Phils.
10.2. Non resident Citizens are taxable on income derived from sources
within the Phils (OFW)
10.3. Resident aliens are taxable on income derived from within the
Philippines

11. Taxation of Non-Resident Aliens

11.1 engaged in trade
11.2. Not engaged in trade

12. Taxation of domestic Corporations

13. Taxation of Resident Foreign Corporations

14. Taxation of Non Resident Foreign Corporations

Resource Materials:
Guide Notes on Income Taxation

Relevant Provisions in the 1997 National Internal Revenue Code as Amended

Sections 22 to 30

Revenue Regulation No. 1-79

Revenue Regulation No. 001-11
Revenue Regulation No. 02-40
Revenue Regulation No. 10-2012

Garrison v CA, 187 SCRA 525

State Investment House v Citibank 203 SCRA 9
Marubeni Corp. v.. CIR 177 SCRA 500