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:
1.
2.
3.
4.
5.
6.

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--vis Program Objectives

PROGRAM
OBJECTIVES
P1
P2
P3

Program Learning Outcomes

O1.
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

PROGRAM OUTCOMES
O1
O2
O3
O4

O5

O6

O7

O8

C2 Classify taxpayers and determine applicable income tax liability for each taxpayer.

C3 Identify the sources of income and distinguish the applicable tax liability.

C4 Delineate deductible from non-deductible expenditures.

C5 Know the remedies available to taxpayers and to the government in cases of tax disputes.

C6 Recognize the value of honesty and integrity

C7 Appreciate that taxation is the lifeblood of the government.

C8 Be aware of ones responsibility of paying right taxes.

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.

2. Course Objectives vis--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

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
countrys 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.

II.

III.

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.

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

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.

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)

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

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.

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

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.

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)

XVI.

XVII.

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