BUSINESS AND TRANSFER TAXATION

CHAPTER 1: INTRODUCTION OF CONSUMPTION TAXES

1. Consumption tax – definition
2. Rationale of consumption tax
3. Income tax vs. consumption tax
4. Types of consumption
5. Consumption tax on domestic sales
6. The destination principle
7. Consumption tax on importation
8. Types of domestic consumption as to taxability
9. Exempt consumption
10. Comparison of Vat on importation and business tax
11. Structure of the VAT in importation
12. Structure of the business tax
13. VAT on importation vs. the VAT on sales

CHAPTER 2: THE VALUE ADDED TAX ON IMPORTATION

1. Importation and types of tax on importation
2. Exempt importation
3. Important of exempt goods
4. Importation by exempt person
5. Quasi-importation
6. Importation exempt under special laws or treaties
7. The VAT on importation and landed cost
8. Import of services
9. Nature of financial withholding VAT
10. VAT exempt import of services
11. Import of service specifically subject to percentage tax
12. Vatable import of service

CHAPTER 3: INTRODUCTION OF BUSINESS TAXATION

1. The nature and types of business tax
2. Comparison of business taxes
3. Procedure of business taxation
4. The concept of business
5. Habitual engagement
 6. Commercial activity
7. Business taxpayers
8. Types of business taxpayers
9. Business activities
10. Basis of business tax per type of activity
11. Gross selling price
12. Gross receipts
13. Types of percentage tax
14. Mandatory registration to VAT
15. Optional Vat registration
16. Differences of gross receipts and sales for VAT and Non-VAT taxpayers
17. Business accounting period
18. Modes of business tax reporting
19. Transition to the VAT
20. Timing of VAT registration

CHAPTER 4: EXEMPT SALES

1. Exempt sales of goods or properties
2. Mnemonic for exempt goods: SECRET tax-free Gold
3. Exempt sales of service
4. Mnemonic for exempt services: SEARCH VA TRIPS
5. Other exempt sales of goods or services
6. Sale to senior citizens and person with disability
7. Sales of exempt goods
8. Sales by cooperatives
9. Sale of real properties under certain condition
10. Export sales by non-VAT taxpayers
11. Exempt sales under treaties, international agreements or special laws
12. Tax-free exchange of property
13. Sale of gold to the BSP
14. Educational services of schools
15. Employment
16. Agricultural contract growers and millers
17. Residential leasing
18. Health or hospital services
19. Home owner’s association or condominium corporations
20. Regional area headquarters of a multinational company
21. Transport by international carriers
22. Services of printers and publishers
23. Services to senior citizens
24. Sales of goods or services covered by special laws
25. Exercises
CHAP TER 5: THE PERCENTAGE TAX
1. Percentage tax – definition
2. The scope of percentage tax
3. List of services specifically subject to percentage tax (BICAP FLOW)
4. Banks and Quasi-banks
5. Other financial intermediaries without quasi-banking functions
6. International carriers
7. Domestic carriers and keepers’ garage
8. Amusement taxes
9. Sale of stocks through the PSE
10. Franchise tax
11. Life insurance
12. Agents of foreign insurance companies
13. Overseas dispatch, message or conversation from the Philippines
14. Winning from horse race or jai-alai
15. Summary of percentage taxes
16. Withholding of percentage taxes at source
17. Tax on other taxable sales of non-VAT persons
18. Exemption from percentage

CHAPTER 6: INTRODUCTION TO THE VALUE ADDED TAX

1. The scope of VAT on sales
2. The VAT threshold – A comprehensive application
3. The VAT models
4. Output VAT and Input VAT
5. VAT reporting and accounting entries
6. Sales subject to special VAT rules
7. Zero – rated sales
8. Comparisons of zero – rated sales and exempt sales
9. Classifications of sales or receipts for VAT purposes
10. Classifications rules on sales
11. Other sales subject to VAT

CHAPTER 7: OUTPUT VAT – REGULAR SALES

1. Sources of regular output VAT
2. Sales of vatable goods
3. Unreasonably lower selling price
4. Sales of vatable services
5. Sales of vatable properties
6. Comparison of VAT on goods and VAT on properties
 7. Installment recognition of output VAT
8. VAT on interest and penalties
9. Transactions deemed sales
10. Invoicing requirements on deemed sales
11. Billing requirement on output VAT
12. Determination of output VAT on invoice
13. Rules on VAT not separately build and incorrect VAT billing

CHAPTER 8: OUTPUT VAT – ZERO-RATED SALES

1. What are zero-rated sales and its benefits
2. VAT exemption vs. zero-rating
3. Zero-rated sales of goods
4. Meaning of export sales
5. Sales to economic zones
6. Sales to person engaged in international transport
7. Effectively zero-rated sales
8. Requirements for effective zero-rating
9. Previously zero-rated sales
10. Zero-rated sales of services (mnemonic: FEED IN)
11. Sales of services to non-residents and zero-rating requirements
12. Effectively zero-rated sales of services
13. Services rendered to person engaged in international transport
14. Transport by domestic air or sea carriers
15. Sales of power of fuel through renewable sources of energy
16. Services to ecozone or tourism enterprise zones

CHAPTER 9: INPUT VAT

1. Input tax – definition
2. Determination of input tax
3. Requisites of creditable input VAT
4. Types of creditable input VAT
5. Transitional input VAT
6. Regular input VAT
7. Monthly aggregate acquisition cost
8. Deferred input tax
9. Presumptive input VAT
10. Standard input VAT
11. Input VAT carry-over
12. Exclusion in input VAT carry-over
 13. Rules on claim of input VAT
14. Computation and presentation of allowable input VAT
15. Composition of creditable input VAT

CHAPTER 10: VAT PAYABLE AND OTHER REQUIREMNTS

1. Determination of VAT payable
2. Tax credits / payments against net VAT payable
3. Final withholding VAT
4. Advanced VAT
5. Advanced VAT of refined sugar
6. Advanced VAT on flour
7. Advanced VAT in timber
8. VAT still due/overpayment
9. Alternative treatment of certain overpayments
10. Instances of input VAT refund
11. Basic illustration – VAT payable computation
12. Illustration – with mixed transactions
13. Illustration – with non-traceable or common input VAT
14. Integrated illustrations
15. VAT compliance requirements
16. Filling of VAT returns
17. Quarterly summary lists
18. Relief system
19. Suspensions of business operations and cancellation of VAT registration
20. Liability of non-VAT persons who issues VAT invoice or receipts
21. Final withholding by government agencies or GOCCs

CHAPTER 11: EXCISE TAX

1. Excise tax
2. Scope of Philippines exercise tax
3. List of excisable articles and services subject to excise tax
4. Timing of imposition of excise tax
5. Nature of excise tax
6. Differences and similarities of excise tax with other business taxes
7. Types of excise taxes
8. Basis of ad valorem tax
9. Who are liable to excise tax
10. When to file and pay excise tax
11. Tax-free importation by exempts persons
12. Export of excisable goods
13. Excise tax on alcohol products
 14. Excise tax on tobacco products
15. Excise tax on petroleum products
16. Excise tax on minerals
17. Excise tax on automobiles
18. Excise tax on non-essentials goods
19. Excise tax on non-essentials services (cosmetic surgery)
20. Excise tax on sweetened beverages

CHAPTER 12: INTRODUCTION TO TRANSFER TAXATION

1. The concept of transfer and types of transfers
2. Bilateral transfers
3. Unilateral transfers
4. Comparison of inter-vivos and mortis causa donation
5. Complex transfers
6. Rationale of transfer taxation
7. Comparison of estate tax and donor’s tax
8. Nature of transfer tax
9. Classification of transfer taxpayers
10. Situs of transfer
11. General rule in transfer taxation
12. Properties deemed located in Philippines
13. Reciprocity rule with non-resident aliens
14. Classifying donation as inter-vivos or mortis causa
15. Transfer in contemplation of death
16. Motives associated with life
17. Transfers intended to take effect upon death
18. Incomplete transfers
19. Complex incomplete transfers
20. Non-taxable transfers

CHAPTER 13: THE CONSEPT OF SUCCESSION AND ESTATE TAX

1. Succession and its types
2. Will
3. Nature of succession
4. Element of succession
5. Heirs in intestate succession
6. Basic intestate partition procedures
7. Heirs under intestate succession
8. Legitime
9. Disinheritance and repudiation if inheritance
 10. Estate taxation and nature of estate tax
11. Classification of decedents
12. The estate tax model
13. Exercises
CHAPTER 13-A: GROSS ESTATE-COMMON RULES
1. The concept of gross estate
2. Summary rules on inclusion in gross estate
3. Procedures in establishing gross estate
4. The gross estate formula
5. Exempt transfers
6. Transfers of properties not owned by the decedent
7. Legal inclusions
8. Withdrawal from decedent’s bank account
9. Taxable transfers
10. Composition of gross estate
11. Integrated illustrations
12. Valuation of the gross estate

CHAPTER 13-B: GROSS ESTATE – SPECIAL RULES FOR MARRIED DECEDENTS

1. Composition of gross estate of married decedents
2. Property relations between spouses
3. Common types of property regimes
4. Default rules on property regimes
5. Basic rules in the determination of property interests
6. Conjugal partnership of gains
7. Absolute community of properties
8. Special features of the absolute community of properties
9. Exception to the consistent classification rule under ACP
10. Rules on acquisition of exempt properties

CHAPTER 14: DEDUCTION FROM GROSS ESTATE

1. Concept of deductions from gross estate
2. Presentation of deductions in the estate tax return
3. Classification of deductions
4. General principles of estate deductions
5. Ordinary deductions
6. Losses, indebtedness and taxes (LIT)
7. Claims against insolvent persons
8. Classifications of losses
9. Claims against the estate
 10. Classification rules for claims against the estate
11. Transfer for public use
12. Vanishing deductions
13. Special deduction
14. Family home
15. Standard deductions
16. Benefit under RA 4917
17. Share of the surviving spouse
18. Actual share of surviving spouse vs. the statutory deduction
19. Note on presentation of RA 4917 benefits
20. Rules and claimable deductions per decedent classifications
21. Deductions allowable to non-resident alien decedents
22. Determination of the pro-rated ELIT
23. Standard deductions for NRA decedents
24. Additional requirements on deductions for non-resident aliens

CHAPTER 15: ESTATE TAX PAYABLE

1. Determination of the net taxable estate
2. Illustration – single resident or citizens decedent
3. Illustration – single non-resident alien decedent
4. Illustration – married non-resident alien decedent
5. Determination of foreign tax credit
6. Illustration – tax credit on one or multiple foreign country
7. Determination of the net taxable estate per country
8. Tax credit illustration – single decedent
9. Tax credit illustration – married decedent
10. Estate tax requirements
11. Place of filing and payment of estate tax

CHAPTER 16: INTRODUCTION TO DONATION & DONOR’S TAX

1. The concept of donation
2. Essential requisites of donation
3. Formal requisites of donation
4. Types of inter-vivos donation
5. Types of donors
6. Donor’s tax
7. Nature of donors’ tax
8. Rationale behind donor’s taxation
9. Exempt donations
10. Donations to exempt donees
11. Insufficient consideration of transfer of properties
 12. Renunciation of inheritance
13. Renunciation by the surviving spouse
14. Donation with reserved power
15. Requisites of exemption of donation to non-profit institution
16. Quasi-transfer
17. The reciprocity rule
18. Taxable donations

CHAPTER 17: DONOR’S TAX

1. The donor’s tax and rate structure
2. Valuation of gross gifts
3. Timing of Valuation of gross gifts
4. Donation of common properties
5. Encumbrances on the property
6. Donor’s tax return
7. Donor’s tax computation and reporting
8. Foreign tax credit
9. Tax credit illustrations – one or multiple foreign countries
10. Practical case application
11. Exercises
CHAPTER 18: DOCUMENTARY STAMP TAX
1. Nature of the documentary stamp tax
2. Who is liable to DST?
3. Mode of payment and deadlines of DST
4. List of transaction subject to DST
5. Basic principle of DST imposition
6. Stamp taxes on real properties
7. Stamp taxes on shares of stocks
8. Stamp on certificates of profit or accumulations
9. Stamp on debt instruments
10. Stamp on bonds, debentures and foreign securities
11. Stamp on tax mortgages, pledges and deeds of trusts
12. Stamp on bills exchanges, drafts or order
13. Stamp on bank checks and certificates of deposits
14. Stamp on bills of landing or receipts
15. Stamp on lease agreements
16. Stamp on charter parties
17. Stamp on indemnity bonds, annuities, pre-need and insurance
18. Stamp on certificates, proxies and power of attorneys
19. Stamp tax on number games tickets
20. Stamp tax on assignment and renewals of certain instruments
 21. Documents not subject to stamp tax

CHAPTER 19: TAX REMEDIES

1. Introduction of tax remedies
2. Primary remedies of the government
3. Assessment and prescriptive period
4. Deadlines of various taxes
5. Exception to the 3-year prescriptive period
6. Stages of assessment
7. The BIR audit process
8. Power of the CIR to obtain information
9. Determining the amount of taxes and increments
10. Assessment procedures
11. Preliminary assessment notice (PAN)
12. Formal letter of demand
13. What is jeopardy assessment?
14. Types of taxpayer’s protest
15. Collection and its stages
16. Distraint or levy
17. Constructive distraint
18. Levy on real property
19. Prescriptive period for collection
20. Suspension of the statutes of limitation
21. Remedies of the taxpayers
22. Disputing as assessment
23. Recovery of erroneously paid taxes
24. Claim for refund
25. Counting of the 2-year prescriptive period for refund
26. Authority of the CIR to compromise, abate, refund or credit taxes