REVISED 2011 COURSE SYLLABUS FORMAT

COLLEGE:
College of Business
DEPARTMENT: Commercial Law
COURSE CODE: B U C O T A X /The Law on Business and Income Taxation
CLASS DAYS AND CLASS TIME:
COURSE DESCRIPTION: The course is principally a study of the basic principles of Taxation, Income Taxation, Estate and
Donors taxes and the different business and transfer taxes imposed under the National Internal Revenue Code (NIRC).The first
part is aimed at situating Taxation as a law in the context of the Philippine legal system and introduces the student to the
concept of Taxation and its significance as a State Power. It also seeks to thoroughly acquaint the student with the general
principles of Taxation. The second part is specifically primarily devoted to the study of the concept of Income and Income
Taxation; business taxes specifically, Value-Added Tax (VAT), as well as other business taxes namely: excise taxes, other
percentage taxes, documentary stamp taxes, and community tax certificate.
LEARNING OUTCOME (LO):
On the completion of the term, the student is expected to accomplish the following:
To assess, interpret and analyze the taxpayers obligations and responsibilities, and apply the existing tax principles and
encourage tax compliance in dealing with personal and business concerns.
FINAL COURSE OUTPUT:
As evidence of attaining the above learning outcomes, the student is required to do and submit the following during the
indicated dates of the term.
1. Computation of tax liabilities and filing-out of tax returns of individual taxpayers and business entities
2. Determination of Proper Business Permit for different business
3. Preparation of VAT Returns / other business taxes
4. Preparation and presentation of business tax plans for various entities.
RUBRICS FOR ASSESS:
GENERAL RUBRIC FOR CLASS ACTIVITIES
Criteria
Recitation
and other oral
activities

Case
Analyses and
Case Digests

Drafting and
Compilation
of Relevant
Legal
Documents
Long Tests
and Written
Examinations

Exemplary
Consistent
participation
and accurate
discussion of
the law and
jurisprudence.
The work
manifests
qualities,
which go
beyond the
requirements.
The work
manifests
qualities,
which go
beyond the
requirements.
Outstanding

Satisfactory
Substantial
knowledge
and discussion
of the law and
jurisprudence.

Developing
Fair knowledge of law and
jurisprudence, but cannot
properly and holistically
integrate overall doctrines.

Beginning
Familiarity in overview or
outline of the subject
matter but cannot
sufficiently discuss.

Unsatisfactory
Needs
improvement.

The work
manifests the
required
qualities.

The work partially

manifests the required
qualities, but certain
aspects or parts are either
incomplete or need
improvement.
The work partially
manifests the required
qualities, but certain
aspects or parts are either
incomplete or need
improvement.
Acceptable

The work only contains

the basic skeletal outline
and needs improvement.

Unsatisfactory.

The work only contains

the basic skeletal outline
and needs improvement.

Unsatisfactory.

Needs improvement

Fail

The work
manifests the
required
qualities.
Very
Satisfactory

RUBRIC FOR ORAL RECITATION1

Criteria
Knowledge /
understanding
of the law,
jurisprudence
and related
materials

Exemplary
90-100
Very high
degree of
understanding
of ideas /
concepts /
arguments /
evidence on the

Satisfactory
80-89
Able
understanding
of idea /
concepts /
arguments /
evidence on the
topic

Developing
70-79
Moderate understanding
of ideas / concepts /
arguments / evidence on
the topic

Beginning
Below 70
Insufficient understanding of
ideas / concepts / arguments /
evidence on the topic

Rating

Rubric:
Formal
in
Class
Oral
Defence,
available
at
<http://www.markville.ss.yrdsb.edu.on.ca/history/honours/inclassoraldefence.pdf> (last accessed June 5, 2011).

Thinking /
inquiry and
ability to
respond to
questions

Communicatio
n and ability
to articulate

Application:
organization
of ideas and
clear
connections
(synopsis and
oral
summary)

topic
Highly effective
use of critical /
analytical
thinking skills
to respond to
challenges /
questions using
concrete
examples,
concepts or
analogies
Exceptionally
effective and
professional
oral
communication
skills (e.g.
scholarly /
academic
language;
correct
grammar and
sentence
structure;
rhetorical
devices; voice
projection;
gestures; body
language;
timing)
Excellent
organization
and application
of researched
ideas or studied
materials,
presented in a
logical and
coherent
method

Uses effective
critical /
analytical
thinking skills to
respond to
challenges /
questions using
examples,
concepts or
analogies

Uses critical / analytical

thinking skills to respond
to challenges / questions
using examples,
concepts or analogies
with moderate
effectiveness

Uses little critical / analytical

thinking skills to respond to
challenges / questions

Concrete oral
communication
skills that reflect
professionalism
(e.g. academic
language;
correct
grammar and
sentence
structure;
rhetorical
devices; voice
projection;
gestures; body
language;
timing)

Adequate
professionalism in oral
communication skills
(e.g. academic
language; correct
grammar and sentence
structure; rhetorical
devices; voice
projection; gestures;
body language; timing)
with a moderate degree
of effectiveness

Uses little application of oral

communication skills or
professionalism (e.g. correct
grammar and sentence
structure; rhetorical devices;
voice projection; gestures; body
language; timing)

Organizes and
applies
researched
ideas or studied
materials
effectively

Adequate organization
and application of
researched ideas or
studied materials

Lack of organization and

application of researched ideas
or studied materials

Total
RUBRIC FOR CASE ANALYSIS2
Criteria
Competence

Understanding

Analysis and
application

Exemplary
90-100
Complete in all
respects; reflects all
requirements
Demonstrates a
sophisticated
understanding of
the topics and
issues
Presents an
insightful and
thorough analysis
of all questions;
makes appropriate
and powerful
connections
between the case
featured and the
concepts studied in
the reading

Satisfactory
80-89
Complete in most
respects;
completes most
requirements
Demonstrates an
accomplished
understanding of
the topics and
issues
Presents an
effective analysis
of all questions;
makes appropriate
connections
between the case
featured and the
strategic concepts
studied in the
reading

Developing
70-79
Incomplete in many
respects; reflects few
requirements

Beginning
Below 70
Incomplete in most
respects; does not
reflect requirements

Demonstrates an
acceptable
understanding of the
topics and issues

Demonstrates an
inadequate
understanding of the
topics and issues

Presents a superficial
analysis of some of
the questions; makes
appropriate but
somewhat vague
connections between
the case featured and
the concepts studied
in the reading

Presents an incomplete
analysis of the
questions; makes little or
no connection between
the case featured and
the strategic concepts
studied in the reading

Rating

Rubric
for
Case
Analysis,
available
at
<http://myedison.tesc.edu/tescdocs/Web_Courses/rubrics/Case_rubric_PJM640-JUN09.htm> (last accessed June
5, 2011).

Writing
mechanics

Writing
demonstrates a
sophisticated
clarity, conciseness
and correctness;
includes thorough
details and relevant
data and
information;
extremely well
organized

Writing is
accomplished in
terms of clarity and
conciseness and
contains only a few
errors; includes
sufficient detail
and relevant data
and information;
well organized

Writing lacks clarity or

conciseness and
contains numerous
errors; gives
insufficient detail and
relevant data and
information; lacks
organization

Writing is unfocused,
rambling or contains
serious errors; lacks
detail and relevant data
and information; poorly
organized

Total
RUBRIC FOR CASE DIGEST3
Criteria
Ability to
identify issues

Competence

Understanding

Writing
Mechanics

Exemplary
90-100
Exceptional ability
to identify all
issues; ability to
clearly and
concisely state the
issues identified
Exceptional ability
to summarize in a
clear and concise
manner
Demonstrates a
sophisticated
understanding of
the issues
Writing
demonstrates a
sophisticated
clarity, conciseness
and correctness;
includes thorough
details and relevant
data and
information;
extremely well
organized

Satisfactory
80-89
Ability to identify
most issues; ability to
state the issues
identified in an
effective manner

Developing
70-79
Acceptable ability to
identify some issues;
acceptable ability to
state the issues
identified

Beginning
Below 70
Lacks the ability to
identify the relevant
issues; unsatisfactory
ability to state the
issues

Effective ability to
summarize in a clear
and concise manner

Demonstrates an
acceptable ability to
summarize in a clear
and concise manner
Demonstrates an
acceptable
understanding of the
issues
Writing lacks clarity
or conciseness and
contains numerous
errors; gives
insufficient detail and
relevant data and
information; lacks
organization

Lacks the ability to

summarize in a clear
and concise manner

Demonstrates an
accomplished
understanding of the
issues
Writing is
accomplished in
terms of clarity and
conciseness and
contains only a few
errors; includes
sufficient detail and
relevant data and
information; well
organized

Rating

Demonstrates an
inadequate
understanding of the
issues
Writing is unfocused,
rambling or contains
serious errors; lacks
detail and relevant data
and information; poorly
organized

Total
RUBRIC FOR DRAFTING AND/OR COMPILATION OF LEGAL DOCUMENTS 4
Criteria
Formatting
Proofreading
Punctuation
Total

Exemplary
90-100
Document
formatted correctly
All words spelled
correctly
0 errors

Satisfactory
80-89
1 formatting error
1misspelled or
incorrect word
1 error

Developing
70-79
2 formatting
errors
2 misspelled or
incorrect words
2 errors

Beginning
Below 70
3 or more formatting errors

Rating

3 or more misspelled or incorrect

words
3 or more errors

OTHER REQUIREMENTS AND ASSESSMENTS:

Aside from the final exam, the student will be assessed at other times during the term by the following:

Case Reviews/Analyses

Case Digests

Drafting of Relevant Legal Documents

Group Reports

Voluntary and Mandatory Class Recitations

Long/Periodical Tests
3

See also id.

Legal
Document
Creation
Rubric,
available
at
<http://staffnet.southcentral.edu/Portals/0/assessments/Document%20Creation%20Rubric.pdf> (last accessed
June 5, 2011).
4

Midterm Exam

GRADING SYSTEM:
Category
Class Standing (Recitations, Seatwork, Papers, Case Digests, Group Works, Reports)
Long / Periodical Tests
Midterm Examination
Final Examination
Total

LEARNING PLAN:
Learning Outcome
On the completion of the term, the
student is expected to accomplish
the following: To assess, interpret
and
analyze
the
taxpayers
obligations and responsibilities, and
apply the existing tax principles and
encourage
tax
compliance
in
dealing with personal and business
concerns.

Percentage
30%
20%
20%
30%
100%

Topic

Wee
k
No.
1-3

A. Introduction General Principles of Taxation

A.

Income, Defined

Income vs. Capital

Systems of Taxation
1.
Global/Unitary Approach
2. Schedular
Approach
C.
Taxable Period
1.
Fiscal Year
2.
Calendar
D.
Guiding Principles in the Study of Income
Taxation
E.
Three Kinds of Income

Lecture,
Class Discussion
Case Digest

1. Taxation, Defined
a. Definition
b. Nature and Characteristics
2.
Taxation Power, Compared with Other Powers of the
State
a. Police Power
b. Power of Eminent Domain
3. Characteristics of a Sound Tax System
a. Fiscal Adequacy b. Administrative Feasibility
c. Theoretical Justice
4.
Limitations to the Power of Taxation
a. Inherent
i. Public Purpose ii. Non-delegability
iii.
Exemption of Government
iv. International Comity v. Situs/Jurisdiction
b. Constitutional
i.
Implied
ii.
Express
5. Distinction from Other Kinds of Payment
a.
Debt b.
License Fee
c. Special
Assessment
d.
Toll
e. Penalty
6.
Classification of Taxes
a.
As to the Imposing Authority
i. Local
ii. National
b.
As to the Person Destined to Pay It
i. Direct
ii. Indirect
c. As to Its Object
i. Personal
ii. Property
iii. Excise
d.
As to Purpose
i. Fiscal
ii Regulatory: Taxation is a Power to
Destroy
e. As to Application
i
Special
ii General
f.
As to the Tax Base
i Specific
ii Ad Valorem
g. As to Rate
i Progressive (Operation of a Progressive Tax
System)
ii Proportional
iii.
Regressive
7. Forms of Escape from Taxation (Tax Evasion vs. Tax
Avoidance)
B. Income Taxation

Learning
Activities

4-8

Lecture,
Class Discussion
Case Analysis

B.

1.
a)
b)

F.

G.

ily

Tax Payers

Compensation Income
Employer-Employee
Relationship
Tests to Determine an EmployerEmployee Relationship
i)
Right to Control test
ii)
Selection
&
Management of Employees
iii) Economic Test
iv) Power of Dismissal
2.
Gross/Business Income
3.
Income Subject to Final
Tax/Passive Income
a) Transactions/Items subject to
Final tax
Exclusions, Concept of
1. Proceeds
of
Life
Insurance
(Insurance, defined)
2. Return of Premiums
3. Compensation for Injuries/Sickness
4. Gifts, Bequests, & Devices
5. Retirement
Benefits,
Pensions,
Gratuities
6. Interest on Government Securities
7. 13th month pay and other benefits
to the extent of P30,000
8. Misc. Items
9. Fringe Benefits
10. Income exempt under a treaty
11. Income Subject to Final Tax (Passive
Income)
Deductions
1.
Exemptions, defined
a. Personal
i Single ii Married iii Head of the
Fam
b.Additional
2. Itemized Deductions (Direct Costs) for
Individual

3. Optional Standard Deduction

H. Formula in Computing Individual Income Tax
1.
Filipino Citizens
a) Resident(Concept
of
Residence)
b) Non-Resident
2.
Aliens
a. Resident
b) Non-Resident
Aliens
i. Engaged in Business in the Phils.
ii. Not Engaged in Business
I.
The Withholding Tax System
J.
Corporate Income Tax
1.
Deductions for Corporation
2.
Domestic Corporation
3.
Foreign Corporation
a.Resident
b.Non-Resident
K.
Tax on Estates and Trusts
L.
Filing of Return and Payment of Tax
9-10
C. The Value-Added Tax
A.

Old

Introduction

Lecture
Class Discussion
Long Test

1. Concept
2. What taxes were changed by VAT (VAT & the
System)
B. The Operation of the Value-Added Tax System
1.
Imposition of the Tax
2.
The Input and Output Tax
3.
Exempt Transactions

VAT

4.

The Advantages and Disadvantages of

11

D. Excise Taxes

Class Discussion
Case Digest
Integration

A. Articles Subject to Excise Taxes

1.Specific Taxes 2.Ad Valorem
B.
Accrual; Computation and Payment
12
E. Other Percentage Taxes
A.
Who are subject; Tax Base
and Rate
B.

Lecture,

Lecture,
Class Discussion
Case Digest

Return and Payment of the Tax

13

Lecture
Class Discussion
Long Test
Integration

14

Final Exam

G. Documentary Stamp Tax

A.
Who are required to pay;
Documents subject to tax

B.

Effect of Non-Payment

H. Community Tax Certificate

A. Persons subject to tax;
time and manner of payment
Final Exam
References
1)
2)
3)
4)
5)
6)
7)
8)
9)

Fundamentals of Taxation By Hector de Leon (Latest Edition)

Income Tax Law and Accounting, A New Approach, By. Virgilio Reyes
National Internal Revenue Code Annotated, By Hector De Leon
The Law on Transfer and Business Taxation, By Hector S. de Leon
Comprehensive Review of Taxation By Hector de Leon (2010)
Basic Principles of Taxation and Income Tax,By Ruben Karunungan (Latest Edition)
Business and Transfer Taxation,By Ruben Karunungan
The National Internal Revenue Code
Supreme Court Rulings

ONLINE AND ELECTRONIC RESOURCES:

Sources of Case-Laws / Jurisprudence:

Lex Libris, CD Technologies Asia, Inc.

Supreme Court Website www.sc.judiciary.gov.ph

BIR Website: www.bir.gov.ph

Philippine Laws and Jurisprudence Databank: www.lawphil.net

CLASS POLICIES:
Attendance. Students are expected to come to class diligently and on time. The maximum class days that a student may be
absent is 5 day. 2 occasions of tardiness constitute 1 absence from class. Absence approved and sanctioned by the University
shall not be counted against the student. However, the student is nevertheless responsible and therefore not excused for
missed class activities, tests and other class requirements.
Written Output. All exams, projects, reports, papers and other written outputs must be submitted on time or not later than
the date and the time specified by the professor. Any requirement submitted after the specified date and time shall no longer
be received and accepted, and shall get a grade of 0.0.
Respect and Decorum. The students are expected to observe proper decorum and shall give respect to both his/her professor
and classmates.
Final Grade. As a general rule, the passing grade for the class is 1.0. However, for Accountancy students, the passing grade is
2.0.
Cheating, Plagiarism and Acts of Dishonesty. Any form of dishonesty is extremely prohibited and shall be severely dealt with
by the University through the Discipline Office and the Student Handbook.