ATENEO DE ZAMBOANGA UNIVERSITY

School of Management and Accountancy

Accountancy Department

TAXATION
Syllabus, A.Y. 2019-2020

Instructor: Kelvin Jaluag Culajara, CPA

Units: Three (3)

HOUSE RULES

1. Students are expected to be prepared when they come to class. At the start of each session, a
one(1)-item essay quiz will be given. The weighted average of all quizzes will comprise twenty
percent (20%) of their class standing for each half of the semester.
2. Make-up short quizzes will not be given to students regardless of their excuses. ICPAs, ICMA, or
ICFA shall only be given to students who are able to present proof of their valid absence (i.e. medical
certificate in case of illness, a letter approved by an authorized school official for attendance in extra-curricular
or co-curricular activities, etc.)
3. Questions are very much welcome during class.

I. PRINCIPLES OF TAXATION

A. NATURE, SCOPE, CLASSIFICATION, AND ESSENTIAL CHARACTERISTICS

B. PRINCIPLES OF SOUND TAX SYSTEM

C. LIMITATIONS ON THE POWER OF TAXATION

D. TAX EVASION AND TAX AVOIDANCE, DISTINGUISHED

E. SITUS AND PLACE OF TAXATION

F. DOUBLE TAXATION

G. LEGISLATION OF TAX LAWS

H. IMPACT OF TAXES IN NATION BUILDING

II. TRANSFER TAX

A. ESTATE TAX
a. Gross estate
b. Deductions allowed to estate
c. Tax credit
d. Venue and time of filing of tax returns
e. Venue and time of payment
f. Modes of payment
g. Use of tax tables (Note: Tax tables may no longer be applicable under R.A. No. 10963 or
the TRAIN Law)
h. Procedures (i.e. accomplishing tax returns and forms, attachments to the tax return,
administrative requirements.)

B. DONOR’S TAX
a. Gross gift

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 b. Exemptions
c. Tax rates in general and when the donee is a stranger
d. Procedures (i.e. venue and time of filing of tax returns, venue and time of payment, modes
of payment, use of tax tables, accomplishing of tax returns and forms, attachments to the tax
return, administrative requirements)

III. VALUE ADDED TAX

A. OUTPUT VAT

B. INPUT VAT

C. VAT CREDITS

D. REFUND OF EXCESS INPUT VAT

E. PROCEDURE (i.e. venue and time of filing of tax returns, venue and time of payment, modes of
payment, accomplishing of tax returns and forms, attachments to the tax return, invoicing and
accounting requirements)

IV. PERCENTAGE TAX

A. TAX BASE AND TAX RATES

F. PROCEDURE (i.e. venue and time of filing of tax returns, venue and time of payment, modes of
payment, use of tax rates, accomplishing of tax returns and forms)

V. EXCISE TAX

A. DESCRIPTION, ANALYSIS, AND COMPUTATION OF EXCISE TAX

a. Concept
b. Applicability
c. Classification of excisable materials and rates
d. Specific tax
e. Ad valorem tax
f. Coverage
g. Time of payment

VI. DOCUMENTARY STAMP TAX

A. DEFINITION

B. COVERAGE AND EXEMPTIONS

C. TAX BASE RATES

D. TIME AND MANNER OF PAYMENT

VII. TAXATION UNDER THE LOCAL GOVERNMENT CODE

A. REAL PROPERTY TAX

B. LOCAL BUSINESS TAX

C. PROCEDURE (i.e. venue and time of filing of tax returns, venue and time of payment)

VIII. PREFERENTIAL TAXATION

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 A. SENIOR CITIZENS’ LAW
a. Exemption from income tax of qualified senior citizens
b. Tax incentives for qualified establishments selling goods and services to senior
citizens

B. MAGNA CARTA FOR DISABLED PERSONS

a. Tax incentives for qualified establishments selling goods and services to senior
citizens

C. SPECIAL ECONOMIC ZONE ACT

a. Policy and the Philippine Economic Zone Authority (PEZA)
b. Registration of investments
c. Fiscal incentives to PEZA-registered economic zone enterprises

D. OMNIBUS INVESTMENTS CODE (BOOK 1 OF E.O. NO. 226)

a. Policy and the Board of Investments (BOI)
b. Preferred areas of investment
c. Investments Priority Plan
d. Registration of investments
e. Fiscal incentives to BOI registered enterprises

E. BARANGAY MICRO BUSINESS ENTERPRISES (BMBEs) ACT

a. Registration of BMBEs
b. Fiscal incentives to BMBEs

F. DOUBLE TAXATION AGREEMENTS (DTA)

a. Nature and purpose of DTAs
b. Manner of giving relief from double taxation
c. Procedure for availment of tax treaty benefits

IX. TARIFF AND CUSTOMS CODE

A. FUNCTIONS OF THE BUREAU OF CUSTOMS

B. FUNCTIONS OF THE TARIFF COMMISSION

C. NATURE OF TARIFF AND CUSTOMS DUTIES

D. BASIS OF ASSESSMENT OF DUTY

E. DOCUMENTS REQUIRED FOR IMPORTATION OF GOODS

F. DOCUMENTS REQUIRED FOR EXPORT OF GOODS

X. INCOME TAX

A. INCOME TAX FOR INDIVIDUALS

a. Gross income
i. Inclusions and exclusions in the gross income
ii. Income from compensation
iii. Income from business
iv. Passive income subject to final withholding tax
v. Capital gains tax
b. Deductions from gross income
i. Itemized deductions
ii. Items not deductible

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 iii. Optional standard deduction
iv. Deductions allowed under special laws
c. Accounting periods
d. Accounting methods
i. Reconciliation of income under the PFRS and income under tax
accounting
e. Tax return preparation, filing, and tax payments
i. Manual filing
ii. Electronic filing and E-submission
iii. Large taxpayers and non-large taxpayers
iv. Income tax credits
v. Venue and time of filing of tax returns
vi. Venue and time of payment
vii. Modes of payment
viii. Use of tax tables
ix. Accomplishing of various income tax returns and forms

B. INCOME TAX FOR CORPORATIONS

a. Gross income
i. Inclusions and exclusions in the gross income
ii. Income from business
iii. Passive income subject to final withholding tax
iv. Capital gains tax
b. Deductions from gross income
i. Itemized deductions
ii. Items not deductible
iii. Optional standard deduction
iv. Deductions allowed under special laws
c. Accounting periods
d. Accounting methods
i. Reconciliation of income under the PFRS and income under tax
accounting
e. Tax return preparation, filing, and tax payments
i. Manual filing
ii. Electronic filing and E-submission
iii. Large taxpayers and non-large taxpayers
iv. Income tax credits
v. Venue and time of filing of tax returns
vi. Venue and time of payment
vii. Modes of payment
viii. Use of tax tables
ix. Accomplishing of various income tax returns and forms

G. INCOME TAX FOR PARTNERSHIPS

a. Gross income
i. Inclusions and exclusions in the gross income
ii. Income from compensation
iii. Income from business
iv. Passive income subject to final withholding tax
v. Capital gains tax
b. Deductions from gross income
i. Itemized deductions
ii. Items not deductible
iii. Optional standard deduction
iv. Deductions allowed under special laws
c. Accounting periods
d. Accounting methods

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 i. Reconciliation of income under the PFRS and income under tax
accounting
e. Tax return preparation, filing, and tax payments
i. Manual filing
ii. Electronic filing and E-submission
iii. Large taxpayers and non-large taxpayers
iv. Income tax credits
v. Venue and time of filing of tax returns
vi. Venue and time of payment
vii. Modes of payment
viii. Use of tax tables
ix. Accomplishing of various income tax returns and forms

H. INCOME TAX FOR JOINT VENTURES

a. Gross income
b. Deductions from gross income
c. Accounting periods
d. Accounting methods
i. Reconciliation of income under the PFRS and income under tax
accounting
e. Tax return preparation, filing, and tax payments

I. INCOME TAX FOR ESTATES AND TRUSTS

a. Gross income
b. Deductions from gross income
c. Accounting periods
d. Accounting methods
i. Reconciliation of income under the PFRS and income under tax
accounting
e. Tax return preparation, filing, and tax payments

J. INCOME TAX FOR CO-OWNERSHIPS

a. Gross income
b. Deductions from gross income
c. Accounting periods
d. Accounting methods
i. Reconciliation of income under the PFRS and income under tax
accounting
e. Tax return preparation, filing, and tax payments

K. WITHHOLDING TAXES (i.e. at source, expanded or creditable withholding tax, final

withholding taxes, and withholding tax on government payments)
a. Time of withholding
b. Income payments subject to withholding
c. Year-end withholding of tax and requirements
d. Venue and time of filing of withholding tax returns
e. Venue and time of payment
f. Modes of payment
g. Time of payment
h. Use of tax tables and rates
i. Use of various withholding tax returns and forms

L. COMPLIANCE REQUIREMENTS
a. Administrative requirements (i.e. registration, issuance of receipts, printing of receipts)
b. Attachments to the income tax return, including CPA certificate, per NIRC
requirement
c. Keeping of books of accounts and records, including report of inventories

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 d. Prescriptive period of maintaining books of accounts and other accounting records

XI. TAX REMEDIES

A. REMEDIES OF THE GOVERNMENT

a. Definition, scope, prescriptive period
b. Administrative remedies
c. Judicial actions
d. Additions to tax (i.e. surcharge, interest, compromise penalty)
e. Other sanctions (i.e. criminal penalties, closure of business, collection of delinquent taxes)
f. Powers of the Bureau of Internal Revenue

B. REMEDIES OF THE TAXPAYER

a. Definition, scope, prescriptive period
b. Taxpayers rights
c. Administrative remedies (i.e. protesting of assessment, recovery of excess or erroneously
paid taxes, request for compromise, abatement or refund or credit of taxes, request for rulings)
d. Judicial remedies

C. EXPANDED JURISDICTION OF THE COURT OF TAX APPEALS

COVERAGE FOR MAJOR EXAMS (ICPAs, ICMA, ICFA)

ICPA 1 PRINCIPLES OF TAXATION
TRANSFER TAX (i.e. estate and donor’s tax)
ICPA 2 VALUE ADDED TAX
PERCENTAGE TAX
EXCISE TAX
ICPA 3 DOCUMENTARY STAMP TAX
TAXATION UNDER THE LOCAL GOVERNMENT CODE
PREFERENTIAL TAXATION (i.e. Senior Citizens’ Law, Magna Carta for Disabled Persons,
Special Economic Zone Act, Omnibus Investment Code)
ICMA ALL TOPICS COVERED UNDER ICPAs 1, 2, AND 3
ICPA 4 TARIFF AND CUSTOMS CODE
INCOME TAX FOR INDIVIDUALS
ICPA 5 INCOME TAX FOR CORPORATIONS
INCOME TAX FOR PARTNERSHIPS
INCOME TAX FOR JOINT VENTURES
INCOME TAX FOR ESTATES AND TRUSTS
INCOME TAX FOR CO-OWNERSHIP
ICPA 6 WITHHOLDING TAX SYSTEM
TAX REMEDIES
ICFA ALL TOPICS COVERED DURING THE SEMESTER