Chapter 1: basic principles of taxation

Defenition, purposes, classification and characteristics of taxation

Inherent powers of the state

Distinction among the three inherent powers

Limitations between inherent and constitutional limitations

Inherent limitations

Territorial jurisdiction

Situs of taxation

International comity

Non-delegation of the power to tax

Exemption of govenment agencies

Double taxation

Constitiutional limitations

Equal protection of the laws

Rule of uniformity and equity in taxation

Non-imprisonment for non-payment of poll tax

Non-impairment of the obligation of contracts

Power of the president to veto

Regressive system of taxation

Distinction of tax from other charges from poll

National taxes under special laws,sources of tax law

Exemptions from taxation

Tax avoidance vs tax evasion

Shifting

Chapter 2: income taxation for individuals, estates and trust

Classification of individuals

Format of computation(annual return)

Tax base and tax rate

Personal exemptions

Basic personal exemption

Additional exemptions

Premium paid on health and/or hospitalization insurance

Head of the family

Rules on change of status

Estate and trust

Important pointers on estates and trusts

Several trust with a common grantor and a common beneficiary

Filing of returns and payment of tax (estate and trust)

Income tax returns for individuals, estates and trust

Tax rates for individual taxpayers, estates and trusts

Final tax rates on certain passive income form philippine sources (rate of tax on certain passive income)

Capital gains tax

Tax rates for special aliens and their filipino counterparts

Chapter 3: income taxation for corporations & partnerships

Corporation and other terms defined

Classification of corporations

Format of computation (annual income tax return)

Tax base and tax rate

Special corporations

Special domestic corporations

Special resident foreign corporation

Special non-resident foreign corporation

Partnership, joint venture and co-ownership

Important pointers in non-taxable partnerships

Important pointers in taxable partnerships

Important pointers in joint ventures

Important pointers in co-ownership

Corporation returns

Exemption from tax on corporation

Tax rates in general

Optional corporate income tax

Tax on income derived under expanded foreign currency deposit system

Optional corporate income tax

Minimum corporation income tax (MCIT)

Improperly accumulated earnings tax (for closely held corporations)

Chapter 4: Sources of income

Classification on income as to sources

Determination on income as to sources

Deduction of taxpayers whose taxable income is from within only

Income partly from sources within partly from sources without

Computation of taxable income

Meaning of income

Gross income defined

Income distinguised from other items

Compensation for personal services

Gross income derived from the trading business, or exercise of profession

Gains derived from dealings in property

Interest income

Rent income (income of lesser under lease agreement)

Advance payment not representing rent

Leasehold improvement

Royalties

Divident income (including shares in the net income of certain entities)

Annulties

Prizes and winnings

Pensions (See exclusions from gross income)

Partner's distributive share

Chapter 5: exclusions from gross income

Exclusions defined

Proceeds of life insurance

Amount recieved by insured as return premium

Gifts, beqeusts and devises

Compensation for injuries or sickness

Income exempt under treaty

Retirement benefits

Miscellaneous

Chapter 6: fringe benefits & fringe benefit tax

Defenition of certain terms

Imposition of fringe benefit tax

Example of fringe benefits

De minimis benefits

Example of de minimis benefits

Deductable fringe benefit and fringe benefit tax

Computation of monetary value

Monetary value of housing prvilege

Other fringe benefits

Fringe benefits that are not subject to fringe benefits tax

Capital assets

Terms associated with capital assets

Summary of important points

General professional partnership

Sales of capital assets which are subject to capital gains tax

Transactions resulting in capital gains or losses (no sale or exchange)

Chapter 7: deductions from gross income

Taxpayers earning compensation income

Allowable deductions (items not deductible)

Deductions from gross income

Itemized deductions amplified (expenses in general)

Interest expense

Taxes

Losses

Bad debts

Depreciation

Depletion of oil and gas wells and mines

Charitable and other contributions

Research and development

Pension trusts

Optional standard deductions (rr 16-2008)

Chapter 8: Accounting periods, methods, itr, payment and addtions to tax

Accounting periods and methods

Essentials of an acceptable accounting method

Example of constructive receipt of income

Installment method of reporting income

Payment of capital gains tax in installments

Capital gains tax on sale of real property (capital assets)

Documentary stamp on sale of real property

Capital gains tax on sales of shares of stocks

Documentary stamp tax on sale of share of stock

Persons required to file an income tax return

Place and time of filing of return and payment of tax

Income tax return of husbands and wife, parents and person under disability

Forms, statements and information to accompany the income tax return

Manual and electronic filing remittance of tax withheld

Chapter 9: powers and authority of the commissioner

Power and authority of the commissioner of internal revenue

Power to interpret tax laws and to decide tax cases

Power to obtain information and to summon, examine, abd take testimony of persons

Power to make assessments and prescribe additional

Requirements for tax administration and enforcement

Authority of the commissioner to delegate power