Transfer and Business Taxation Syllabus

Third Trisemester (SY 2016-2017)

TRANSFER TAXATION

Preliminary Topics

1. Concepts and nature of transfer taxes

2. Kinds of transfer taxes
3. History of death taxes
4. Estate tax vs inheritance tax
5. Nature and object of estate tax
6. Purpose and justification of estate tax
7. Incidence or burden of estate tax
8. Power to impose estate tax
9. Accrual of, and obligation to pay the tax
10. Basic concepts of succcession

Gross Estate

11. Gross estate in general

12. Concept of residence for estate tax purposes
13. Situs of intangible personal property, situs and reciprocity rule
14. Interest in property
15. Specific items includible in gross estate
16. Proceeds of life insurance
17. Inter vivos transfers subject to estate tax

Exclusions and Exemptions

18. Exclusions
19. Exclusive property of each spouse
20. Exemptions
21. Reciprocal exemptions as to intangible personal property
22. Exemptions under special laws

Deductions

23. Classes of Deductions

24. Funeral expenses
25. Judicial expenses
26. Claims against the estate
27. Claims against insolvent persons
28. Unpaid mortgage indebtedness
29. Unpaid taxes
30. Casualty losses
31. Transfers for public use
32. Family home
33. Vanishing deductions
34. Net share of conjugal property of surviving spouse
35. Medical expenses
36. Other deductions

Valuation

37. Basis of valuation

38. Valuation of real property
39. Valuation of personal property
40. Valuation of property transferred inter vivos

Schedule and computation of the tax

41. Estate tax imposed on net estate

42. Schedule of rates for estate tax
43. Procedure for computing net estate and estate tax due
44. Tax credit for estate taxes paid to a foreign country

Notice of Death, Filing of Return and Payment

45. When notice of death and return filed

46. When and by whom filed
47. Contents of Return
48. Time and place of filing
49. Persons liable to pay estate taxes
50. Extension of time for payment

Donors Taxes

51. Definition of donation or gift

52. Transactions covered
53. Kinds of donation
54. Formal requisites of donation
55. Definition of gift tax
56. Power to impose gift tax
57. Nature of gift tax
58. Kinds of gift tax
59. Purpose of gift tax

Application of the Tax

60. Essentials of a taxable gift

61. Gifts for insufficient consideration
62. Gifts given out of gratitude and remuneratory gifts
63. Forgiveness of indebtedness
64. Condonation solely for business considerations
65. Gift of community property
66. Donation between spouses
67. Renunciation of inheritance
68. Political Contributions

Exemption or Deductions

69. Exemptions or deductions from gifts

70. Gifts made in favor of children
71. Other deduction from gifts
72. Exemption under special laws

Valuation of Gifts and Computation of Tax

73. Valuation in general

74. Donors tax imposed on the net gifts
75. Procedure for computing net gifts and tax due
76. Tax credit for donors taxes paid to a foreign country

Return and Payment

77. Return to donor

78. Time and place for filing return and payment of tax
79. Notice of donation by donor engaged in business

Business Taxation

80. Definition of privilege tax

81. Nature of privilege tax
82. Power to impose and increase
83. Kinds of privilege taxes
84. Meaning of business
85. Meaning of to engage in business

Value-added tax

86. Definition of VAT

87. Tax base of VAT
88. Nature of VAT
89. Meaning of in the course of trade or business
90. VAT system
91. Persons liable to VAT
92. Transactions subject to VAT

Sale of Goods or Services

93. Rate and base of VAT on sale of goods or properties

94. Zero-rated sales of goods or services
95. Effectively zero-rated sale of goods or services
96. Export sales under the Omnibus Investments Code
97. Deemed sales transactions
98. Meaning of Gross selling price
99. Cross border doctrine
100. Gross sales vs gross receipts
101. Allowable deductions from gross selling price

Importation of Goods

102. Rate and base of VAT on importation

103. When importation begins and ends

Exemptions from VAT

104. Exempt transactions

105. Explanation of the exemptions
106. VAT thresholds
107. Election to subject exempt transaction to VAT
108. Zero-rating
109. Zero-rating vs exemption

Tax Credits or Refunds

110. Refunds or tax credits of input tax

111. Amount of refund or tax credit
112. Transitional input tax credits
113. Presumptive input tax credits
114. Substantiation of input tax credits

Computation of VAT

115. Computation of output tax

116. Determination of input tax deductible during the taxable quarter
117. Apportionment of input taxes between taxable and exempt operations
118. Computation of VAT payable or excess tax credits
119. Excess output/input tax

Compliance Requirements

120. Registration of Taxpayers

121. Registration of Non-VAT or exempt taxpayers
122. Compliance activities of Vat taxpayers
123. Invoicing and accounting requirements
124. Withholding of value-added tax
125. Power of Commissioner to suspend business operations of a taxpayer
126. Surcharge Interests and other penalties

Other percentage taxes and Excise tax

127. Percentage tax, in general

 128. Measurement of percentage tax
129. Kinds of percentage tax and percentage tax imposed
130. Excise tax, definition
131. Kinds of goods subject to excise tax

Reference: The Law on Transfer and business Taxation, De Leon, Hector S., Fifteenth Ed. (2013)