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VISION
The University of Baguio, in its pursuit of relevant and responsive education, envisions itself to be a leading institution of focused yet balanced learning.
MISSION
§ The UB family is committed to create a dynamic academic environment conducive to the development of globally competitive professionals whose skills and talents are put to use.
§ Guided by the Divine Providence, UB provides relevant and responsive education where students enjoy focused yet balanced learning using up-to-date curricula and facilities.
§ Towards this goal, UB empowers its officers, faculty and employees who shall serve with the highest degree of professionalism, competence, integrity and dedication.
GOALS
In the pursuit of its noble vision and mission, the University of Baguio (UB) endeavors to:
- Provide a globally competitive professional:
- Who can pass all relevant tests needed in the practice of his/her profession;
- Who is armed with the relevant skills, talents, abilities and knowledge needed for the optimum application of his/her chosen career;
- Whose English and computer proficiency are second to none among graduates in North Luzon.
- Provide moral and intellectual training that promotes the internalization of values founded on human rights;
- Make itself a responsible instrument in promoting and developing social, political, economic, and environmental awareness towards achieving equity and social justice;
- Provide programs that promote, develop and enhance mental, physical and spiritual fitness; and
- Develop and enhance among its studentry, administrators, faculty, and employees, a strong sense of patriotism.
Course Title:ATAXTN1 (6 units) / Description:
Income Taxation / Effectivity:
Second Semester,
SY 2012-2013 / Date Revised
November, 2012 / Prepared by:
Carren Moira F. Cheong, CPA / Approved by:
Dr. Kareen B. Leon, CPA, MSBA. PhD / Page 1 of 10
School of Business Administration
And Accountancy
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ACCOUNTANCY PROGRAM OBJECTIVES:
The Program endeavors to:
1. Provide globally competitive accounting professionals who are responsive to the needs of society.
2. Make available socially responsible and ethical accounting professionals.
3. Utilize a holistic approach on the teaching-learning process, resulting to physical and mental fitness of accounting graduates and students.
4. Develop and apply programs that imbibe and strengthen the value system of its faculty, students and administrators in terms of : love for God, love for country and love for family.
5. Create opportunities for increased awareness of accounting students on social, political and moral issues and subsequently equip them to help address such issues.
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Program Objectives / UNIVERSITY GOALS1 / 2 / 3 / 4 / 5
P1. Provide globally competitive accounting professionals who are responsive to the needs of society. / √
P2. Make available socially responsible and ethical accounting professionals. / √
P3. Utilize a holistic approach on the teaching-learning process, resulting to physical and mental fitness of accounting graduates and students. / √
P4. Develop and apply programs that imbibe and strengthen the value system of its faculty, students and administrators in terms of : love for God, love for country and love for family. / √
P5. Create opportunities for increased awareness of accounting students on social, political and moral issues and subsequently equip them to help address such issues. / √
2. Program Outcomes and Relationship to College/ Program Objectives
Program Outcomes / COLLEGE/ PROGRAMOBJECTIVES
P1 / P2 / P3 / P4 / P5
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. / √ / √ / √ / √
3. Course Objectives and Relationship to Program Outcomes
Course Objectives / PROGRAM OUTCOMESO1 / O2 / O3 / O4 / O5 / O6 / O7 / O8
COGNITIVE DOMAIN
C1. know the generally accepted accounting principles, applicable to the recognition, measurement and statement presentation of creditors’ and stockholders’ equities; / √ / √ / √ / √ / √ / √ / √ / √
C2. integrate and apply the generally accepted accounting principles to problem situations involving creditors’ and stockholders’ equities that are likely encountered in practice; / √ / √ / √ / √ / √ / √ / √ / √
C3. learn the application of accounting principles and reporting practices about financial accounting problems and issues such as leases, deferred income tax, retirement benefits, and changing prices; / √ / √ / √ / √ / √ / √ / √ / √
C4. integrate the application of the topics learned to situations most likely to be encountered in everyday life; / √ / √ / √ / √ / √ / √ / √ / √
C5. develop a system for higher learning designed specifically in preparation for the CPA Licensure Examinations. / √ / √ / √ / √ / √ / √ / √ / √
AFFECTIVE DOMAIN
C6. develop the value of honesty, objectivity and perseverance. / √ / √ / √ / √ / √ / √ / √ / √
C7. realize the contributions of accounting standards or GAAP to the development of a more socially responsible and morally upright professional accountant. / √ / √ / √ / √ / √ / √ / √ / √
C8. appreciate the role of financial accounting in meeting the informational needs of stakeholders as a basis for decision-making. / √ / √ / √ / √ / √ / √ / √ / √
C9. appraise critically the role of International Accounting Standards in achieving harmonization of accounting standards throughout the world. / √ / √ / √ / √ / √ / √ / √ / √
PSYCHOMOTOR DOMAIN
C10. apply the principles and concepts of accounting which focus on equities and related revenue and expense items in the presentation of financial and related information to meet external and internal obligations. / √ / √ / √ / √ / √ / √ / √ / √
C11. apply the skills in systematic problem solving. / √ / √ / √ / √ / √ / √ / √ / √
C12. solve accounting problems within the minimum speed required in the CPA Licensure Examinations; / √ / √ / √ / √ / √ / √ / √ / √
C13. apply concepts and procedures of advanced accounting in meeting the requirement of the course such as quizzes, group work, case studies, and other problem solving activities. / √ / √ / √ / √ / √ / √ / √ / √
4. Pre-requisite BACTNG1 and BACTNG2
5. Course Description This course basically involves the principles of Income Taxation for individuals and businesses. It discusses the impact of taxation on the industry’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. Course Coverage
Learning Contents/ Topic / No. of Hrs. / College Objectives / Program Outcomes / Activity and Learning Approach / Evaluation /P1 / P2 / P3 / P4 / P5 / O1 / O2 / O3 / O4 / O5 / O6 / O7 / O8 /
Course Syllabus
VMO
Seat Plan
Leveling of Expectations / 2 / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / Orientation
Internalize the VMO
Arrange students
Requirements and
Grading system / Graded recitation
1. Basic Principles:
1.1 Taxation
1.1.1 Definition, nature and basis of taxation
1.1.2 State powers
1.1.2.1 Police Power
1.1.2.2 Eminent Domain
1.1.2.3 Taxation
1.1.3 Importance
1.1.4 Aspects of taxation
1.1.5 Basic principles of sound tax system
1.1.6 Situs of taxation
1.1.7 Limitations on the powers of taxation
1.1.7.1 Inherent
1.1.7.2 Constitutional
1.1.8 Doctrines in taxation
1.1.8.1 Prospectivity of tax laws
1.1.8.2 Imprescriptibilitiy
1.1.8.3 Double taxation
1.1.8.4 Escapes from taxation
1.1.8.5 Exemption
1.1.8.6 Equitable recoupment
1.1.8.7 Set-off of taxes
1.1.8.8 Taxpayer’s suit
1.1.8.9 Compromises
1.1.8.10 Marshall doctrine
1.1.8.11 Holmes doctrine / 10 / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / Lecture-discussion, Recitations, Group Discussion, Reporting / Quiz, Assignments, Research, Recitation
1.2 Taxes
1.2.1 Definition of tax
1.2.2 Essential characteristics of tax
1.2.3 Classification of taxes
1.2.4 Tax distinguished from other fees
1.3 Tax laws
1.3.1 Definition
1.3.2 Nature of tax laws
1.3.3 Sources of tax laws
1.3.3.1 Constitution
1.3.3.2 Statutes
1.3.3.3 Executive Orders
1.3.3.4 Revenue Regulations
1.3.3.5 BIR Circulars/rulings
1.3.3.6 Judicial decisions
1.3.3.7 Local tax ordinances
1.3.3.8 Tax administration
1.3.3.9 Commission
1.3.3.10 Land Transportation Office
1.3.4 Powers and duties of the BIR
1.3.4.1 Assessment
1.3.4.2 Assessment period
1.3.4.3 Assessment procedure
1.3.4.4 Collection
1.3.4.5 Remedies / 8 / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / Lecture-discussion, Board exercises, Recitations, Group Activity / Quiz, Assignments, Research, Examination
Preliminary Examinations / 2
1.4 Taxes on individuals
1.4.1 Classification of individual taxpayers
1.4.1.1 Resident citizens
1.4.1.2 Non-resident citizens
1.4.1.3 Resident Alien
1.4.1.4 Special Alien
1.4.2 Capital Gains and Passive Income
1.4.3 Personal Exemptions
1.4.4 Taxpayers allowed for personal exemption
1.4.5 Taxpayers NOT allowed personal exemption
1.4.6 Kinds of personal exemptions
1.4.6.1 Additional exemption
1.4.6.2 Special deductions
1.4.6.3 Change status
1.4.7 Taxable income and tax due / 8 / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / Lecture-discussion, Board exercises, Recitations, Group Activity / Quiz, Assignments, Research
First Grading Examinations / 6
2. Income tax on domestic corporation
2.1. Capital gains
2.1.1. Passive income with final tax
2.1.2. Other income
2.2. Minimum Corporate Income tax
2.3. Quarterly and year-end income tax
2.4. Improperly Accumulated Income Tax
3. Income tax on partnership, co-ownership and estates
3.1. Income tax on ownership
3.2. General professional partnership
3.3. Certain joint ventures
3.4. Other partnership / 8 / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / Lecture-discussion, Board exercises, Recitations, Group Activity / Quiz, Assignments, Research
4. Income tax on co-ownership / 2 / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / Lecture-discussion, Board exercises, Recitations, Group Activity / Quiz, Assignments, Research
5. Income tax on estates and trusts / 2 / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / Lecture-discussion, Board exercises, Recitations, Group Activity / Quiz, Assignments, Research
6. Concept of Income
6.1. Gross Income
6.1.1. Sources of income
6.1.2. Exclusion from income
6.1.3. Gross income from business
6.1.4. Professional or service Income
6.1.5. Passive Income
6.1.6. Capital Gain
6.2. Classification of Income
6.2.1. Within the Philippines
6.2.2. Without the Philippines
6.2.3. Partly within and partly without the Philippines
6.3. Forms of Income / 10 / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / Lecture-discussion, Board exercises, Recitations, Group Activity / Quiz, Assignments, Research
7. Fringe benefit and fringe benefit tax
7.1. Definition
7.2. Scope
7.3. Valuation
7.3.1. Housing
7.3.2. Expense
7.3.3. Motor vehicle
7.3.4. Interest
7.3.5. Fees
7.3.6. Educational Assistance
7.3.7. Life/Health Insurance
7.3.8. De minimis benefits / 8 / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / Lecture-discussion, Board exercises, Recitations, Group Activity / Quiz, Assignments, Research
Examination
Midterm Examinations / 6
8. Exclusion from Gross Income
8.1. Proceeds of life insurance
8.2. Return of premium
8.3. Gifts, bequests, devises
8.4. Compensation for injuries or sickness
8.5. Income exempt under treaty
8.6. Retirement Benefits
8.7. Pensions
8.8. Gratuities
8.9. Miscellaneous Items / 12 / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / Lecture-discussion, Board exercises, Recitations, Group Activity / Quiz, Assignments, Research
9. Deductions from gross income
9.1. Tax formulas
9.1.1. Itemized deductions
9.1.2. Non-deductible expenses and losses
9.1.3. Premiums on hospitalization or health insurance
9.1.4. Optional standard deduction
9.1.5. Pension trust / 8 / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / √ / Lecture-discussion, Board exercises, Recitations, Group Activity / Quiz, Assignments, Research
10. Sale or exchange of property
10.1. Ordinary asset vs. capital asset
10.2. Ordinary gains and losses
10.2.1. Installment reporting of income
10.2.2. Deferred payment method of reporting income
10.3. Capital gains with capital gains tax
10.3.1. Shares of stocks
10.3.2. Real property
10.3.3. Lump sum payment of tax
10.3.4. Installment payment of the tax
10.3.5. Other capital gains and losses / 10
11. Income tax return and payment
11.1. Income tax return
11.1.1.1.1. Who are required and not required to pay
11.1.1.1.2. Attachment
11.2. Payment
11.2.1. Deadline for filling
11.2.2. Place of filling
11.2.3. Installment payment
11.2.4. Application of withholding tax
11.2.5. Tax credit for foreign income tax paid or incurred. / 8
Final Examinations / 6
Grading System: