Book Review: Co Untian's Tax Digest

Admittedly, Taxation is a very hard subject to understand, since it is basically a mathematical subject crouched in undecipherable language known as the NIRC. This is where Crescencio Co Untian's book Tax Digest comes in handy.

Co Untian uses the Q&A format, ideal for exam reviews. The important concepts are organized into topics, which makes for easier reading. He also uses plain and clear language, in contrast to the convoluted language used in the NIRC. It is good for memorization, since enumerations are conspicuously presented. Moreover, some parts are explained with illustrative problems and solutions, to gauge the reader's understanding.

A word of caution, though. More often than not, the legal bases for the answers are not given. So it is hard to cross-refer to the codal provisions or case laws. And while this edition was published in 2005, R.A. 9337 (a law enacted on the same year) is not yet inlcuded. Thus, in the book, a corporation's income tax rate is still pegged at 32% (when it should be 35% for 2008 and 30% for 2009); and VAT rate is still at 10% (when it should be 12%). However, I noticed that in Rex Bookstore's website, the published date was 2005/06. *Maybe* the 2006 version has already included R.A. 9337. I'll have to check on that.

I don't this book should and can be used as a primary book for Tax I or II because it does not elaborate on the topics, it just gives the bare essentials. But precisely because the book presents Taxation at its simplest, it is ideal for the bar exam, or for your final reading for an upcoming exam, or as a reference just to refresh your memory.



Title: Tax Digest: A Compact Reviewer on Internal Revenue Taxes, Local Government and Real Property Taxes, Tariff and Customes Duties
Author: Crescencio P. Co Untian, Jr.
Edtion: 3rd
Year of Publication: 2005
Publisher: Rex Bookstore, Inc.
Number of Pages: 216


Image courtesy of rexpublishing.com.

Take a break: Income Taxes

Social Weather Station conducted a survey about income taxes. The SWS interviewer chanced upon a rice smuggler and his laborer.

The interviewer first asked the rice smuggler about income tax. The rice smuggler answered, "I know what income is. In fact, mine tripled during the past couple of months. But what is tax?"

When it was his turn to answer, the laborer said, "I know what taxes are, I've been paying them all my life. But what is this income that you speak of?"

"Vatican says aliens could exist"

This is a post totally unrelated to law, but it's so interesting that I just can't resist.

BBC, Yahoo and WorldNetDaily report that the Pope's chief astronomer, Fr. Jose Gabriel Funes, said that the search for forms of extraterrestrial life, does not contradict belief in God.

"To say it with St. Francis, if we can consider some earthly creatures as 'brothers' or 'sisters,' why could we not speak of a 'brother alien'? He would also belong to the creation."

The Bible "is not a science book," Funes said, adding that he believes the Big Bang theory is the most "reasonable" explanation for the creation of the universe.

Now I wonder what the creationists have to say about this...

Image courtesy of jurvetson

Raise the (Tax Exemptions) Roof! Part 2

I'm not anti-labor. However, I believe that House Bill no. 3971 is just a band-aid solution, without addressing the country's real malady. Yes, it has a laudable purpose. But at what expense?

With less tax revenue coming in, where will the government get the money to import Thai rice? How can it buy Meralco? How will it fund a broadband deal? How can it make more overpriced boulevards?

In all seriousness, I think this Bill is compromising the country's fiscal situation. It was only four years ago that the Philippines was on the brink of an Argentina-like financial crisis. That's why the VAT and excise tax were raised. But despite these measures, we still have not achieved a budget surplus. Obviously, we are still not far off from a financial meltdown scenario.

The laborers may be appeased with the passing of this Bill. But again I ask: at what expense?

J. Tinga Hearsay

I heard that Justice Tinga is going to be a tougher nut to crack than Justice Azcuna. I heard that bar takers will have to read a greater breadth than before. For example, if the Nachura book was enough for the past Poli bar exams, that's not the case for J. Tinga (allegedly). You have to study Nachura and Cruz and/or Bernas. I also heard that he was a former dean of UE. So get reacquainted with your UE law student-friends and ask for some tips.

But you know what they say about hearsay: "... [it] can not be given credence for it has no probative value."

Stated differently: don't take my word for it!

Raise the (Tax Exemptions) Roof!

Kudos to the Lower House for actually doing something! Hurrah!

Members of the House of Representatives yesterday voted to approve House Bill No. 3971, which seeks to grant a uniform personal tax exemption of P50,000. The bill also seeks to raise the exemption of each of four dependents to P25,000, from the current P8,000.

The current law also provides that single individual has an annual tax exemption of A P20,000; a head of the family has exemption of P25,000; and a married individual has a P32,000 exemption.

This all seems good on paper. After all, such tax relief is very much welcome amid rising prices of rice, gas and Caramel Macchiato.

I'm no economist, but where will the government get all the money to offset the expected revenue loss? According to the Inquirer news report:

At the same time, the bill seeks a simplified net income taxation (SNIT) scheme for the self-employed and professionals. XXX

Under the proposed SNIT, a 40 percent discount will be given to self-employed and professionals to encourage them to declare their income.

XXX the government is expected to raise an additional P14 billion pesos from this scheme or a net gain of P1 billion to P2 billion minus the expected losses from the higher tax exemptions.

Um, yeah...

Anyway, I have a feeling that we will not recognize this House Bill after the final Final Bill comes out of Bicam. So honest taxpayers all over the country, I hate to piss at your fun, but don't keep your hopes up just yet.

Take a Break: The Dregs of Society

Lawyer: I hate coming out here at seven in the morning and having to sit downstairs with a bunch of criminals.

Judge: I have to do the same thing every day.

Lawyer: Yeah, but you don't have to sit down in a holding tank with 'em.

Judge: Every day I come in and I meet the dregs of society, and then I have to meet their clients. Think of that.