1

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 Exemplary Satisfactory Developing Beginning Unsatisfactory
Recitation and
other oral
activities
Consistent
participation
and accurate
discussion of the
law and
jurisprudence.
Substantial
knowledge and
discussion of the
law and
jurisprudence.
Fair knowledge of law and
jurisprudence, but cannot
properly and holistically
integrate overall doctrines.
Familiarity in overview or
outline of the subject matter
but cannot sufficiently
discuss.
Needs
improvement.
Case Analyses
and Case
Digests
The work
manifests
qualities, which
go beyond the
requirements.
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 only contains the
basic skeletal outline and
needs improvement.
Unsatisfactory.
Drafting and
Compilation of
Relevant Legal
Documents
The work
manifests
qualities, which
go beyond the
requirements.
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 only contains the
basic skeletal outline and
needs improvement.
Unsatisfactory.
Long Tests and
Written
Examinations
Outstanding Very
Satisfactory
Acceptable Needs improvement Fail

RUBRIC FOR ORAL RECITATION
1


Criteria Exemplary
90-100
Satisfactory
80-89
Developing
70-79
Beginning
Below 70
Rating
Knowledge /
understanding
of the law,
jurisprudence
and related
materials
Very high degree
of understanding
of ideas /
concepts /
arguments /
evidence on the
topic
Able
understanding of
idea / concepts /
arguments /
evidence on the
topic
Moderate understanding of
ideas / concepts /
arguments / evidence on
the topic
Insufficient understanding of ideas /
concepts / arguments / evidence on
the topic

Thinking /
inquiry and
ability to
respond to
questions
Highly effective
use of critical /
analytical
thinking skills to
respond to
challenges /
Uses effective
critical /
analytical thinking
skills to respond
to challenges /
questions using
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


1
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).
2
questions using
concrete
examples,
concepts or
analogies
examples,
concepts or
analogies
Communication
and ability to
articulate
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)
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)

Application:
organization of
ideas and clear
connections
(synopsis and
oral summary)
Excellent
organization and
application of
researched ideas
or studied
materials,
presented in a
logical and
coherent method
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 ANALYSIS
2


Criteria Exemplary
90-100
Satisfactory
80-89
Developing
70-79
Beginning
Below 70
Rating
Competence Complete in all
respects; reflects all
requirements
Complete in most
respects; completes
most requirements
Incomplete in many
respects; reflects few
requirements
Incomplete in most respects;
does not reflect
requirements

Understanding Demonstrates a
sophisticated
understanding of the
topics and issues
Demonstrates an
accomplished
understanding of the
topics and issues
Demonstrates an
acceptable understanding
of the topics and issues
Demonstrates an inadequate
understanding of the topics
and issues

Analysis and
application
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
Presents an effective
analysis of all
questions; makes
appropriate
connections between
the case featured and
the strategic concepts
studied in the reading
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

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 DIGEST
3



2
Rubric for Case Analysis, available at <http://myedison.tesc.edu/tescdocs/Web_Courses/rubrics/Case_rubric_PJM640-
JUN09.htm> (last accessed June 5, 2011).
3
See also id.
3
Criteria Exemplary
90-100
Satisfactory
80-89
Developing
70-79
Beginning
Below 70
Rating
Ability to identify
issues
Exceptional ability to
identify all issues;
ability to clearly and
concisely state the
issues identified
Ability to identify most
issues; ability to state the
issues identified in an
effective manner
Acceptable ability to
identify some issues;
acceptable ability to
state the issues
identified
Lacks the ability to identify
the relevant issues;
unsatisfactory ability to
state the issues

Competence Exceptional ability to
summarize in a clear
and concise manner
Effective ability to
summarize in a clear
and concise manner
Demonstrates an
acceptable ability to
summarize in a clear
and concise manner
Lacks the ability to
summarize in a clear and
concise manner

Understanding Demonstrates a
sophisticated
understanding of the
issues
Demonstrates an
accomplished
understanding of the
issues
Demonstrates an
acceptable
understanding of the
issues
Demonstrates an
inadequate understanding
of the issues

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 DRAFTING AND/OR COMPILATION OF LEGAL DOCUMENTS
4


Criteria Exemplary
90-100
Satisfactory
80-89
Developing
70-79
Beginning
Below 70
Rating
Formatting Document formatted
correctly
1 formatting error 2 formatting
errors
3 or more formatting errors
Proofreading All words spelled
correctly
1misspelled or
incorrect word
2 misspelled or
incorrect words
3 or more misspelled or incorrect words
Punctuation 0 errors 1 error 2 errors 3 or more errors
Total


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
Midterm Exam

GRADING SYSTEM:
Category Percentage
Class Standing (Recitations, Seatwork, Papers, Case Digests, Group Works, Reports) 30%
Long / Periodical Tests 20%
Midterm Examination 20%
Final Examination 30%
Total 100%



LEARNING PLAN:
Learning Outcome Topic Week
No.
Learning Activities
On the completion of the term, the
student is expected to accomplish the
following: To assess, interpret and
analyze the taxpayers obligations and
A. Introduction General Principles of Taxation
1. Taxation, Defined
1-3 Lecture, Recitation,
Class Discussion
Case Digest

4
Legal Document Creation Rubric, available at
<http://staffnet.southcentral.edu/Portals/0/assessments/Document%20Creation%20Rubric.pdf> (last accessed June 5, 2011).
4
responsibilities, and apply the existing
tax principles and encourage tax
compliance in dealing with personal and
business concerns.

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
A. Income, Defined
Income vs. Capital
B. 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

1. Compensation Income
a) Employer-Employee Relationship
b) Tests to Determine an Employer-Employee
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
F. 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. 13
th
month pay and other benefits to the
extent of P30,000
8. Misc. Items

4-8

Lecture, Recitation,
Class Discussion
Case Analysis
5
9. Fringe Benefits
10. Income exempt under a treaty
11. Income Subject to Final Tax (Passive
Income)
G. Deductions
1. Exemptions, defined
a. Personal
i Single ii Married iii Head of the
Family
b. Additional
2. Itemized Deductions (Direct Costs) for
Individual Tax Payers
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

C. The Value-Added Tax
A. Introduction
1. Concept
2. What taxes were changed by VAT (VAT & the Old
System)
B. The Operation of the Value-Added Tax System
1. Imposition of the Tax
2. The Input and Output Tax
3. Exempt Transactions
4. The Advantages and Disadvantages of VAT
9-10 Lecture
Class Discussion
Long Test

D. Excise Taxes
A. Articles Subject to Excise Taxes
1.Specific Taxes 2.Ad Valorem
B. Accrual; Computation and Payment
11 Lecture, Recitation,
Class Discussion
Case Digest
Integration

E. Other Percentage Taxes
A. Who are subject; Tax Base and Rate
B. Return and Payment of the Tax
12 Lecture, Recitation,
Class Discussion
Case Digest

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
13 Lecture
Class Discussion
Long Test
Integration
Final Exam 14 Final Exam
References
1) Fundamentals of Taxation By Hector de Leon (Latest Edition)
2) Income Tax Law and Accounting, A New Approach, By. Virgilio Reyes
3) National Internal Revenue Code Annotated, By Hector De Leon
4) The Law on Transfer and Business Taxation, By Hector S. de Leon
5) Comprehensive Review of Taxation By Hector de Leon (2010)
6) Basic Principles of Taxation and Income Tax,By Ruben Karunungan (Latest Edition)
7) Business and Transfer Taxation,By Ruben Karunungan
8) The National Internal Revenue Code
6
9) 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.