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FABM2 Q2 MOD6

Accountancy (Notre Dame of Marbel University)

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SHS

Fundamentals of Accountancy,
Business and Management 2
Quarter 2: Module 6

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ABM • Fundamentals of Accountancy, Business and Management 2

Grade 12: Quarter 2: Module 6
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Narciso A. Martin Jr., T-II

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent
German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Lorna O. Gaspar, EPS in Charge of ABM
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II

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Fundamentals of Accountancy,
Business and Management 2
Quarter 2: Module 6

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Target

After reading these learning materials, the learner must evaluate the
principles, purposes, and the basic cycle of taxation to help individuals, businesses,
and the Philippine Government succeed.

Business people’s success in the country is also the government’s success in

funding and delivering essential social services and economic sustainability for its
countrymen. The government carries out these responsibilities and helps realize the
goals through the Bureau of Internal Revenue (BIR). When a taxpayer shares tax for
the government, he becomes a concerned citizen in helping out the nation towards
progress and development.

After going through this information sheet, the learner expects to

Explain the principles and purposes of taxation (ABM_FABM12-IIh-j-19)

Pretest. Fill in the blanks.

Directions: Copy first the paragraph and supply the correct word that will complete
the thought. Use the information provided inside the box. Use one (1) short
construction paper for your answers.

tax build schools citizen permanent

Php 25,000.00 repair bridges taxpayer

construct roads countrymen salary

Mario is a (1) employee of Bangko de Filipinas. He earns a monthly

net take-home pay of (2) . He is aware that every salary he gets every month
gives his share to the Bureau of Internal Revenue (BIR) through his
_________(3)______. The amount deducted from his monthly salary will be used by the
Government to (4) , (5) and (6) . He wishes
to be promoted in the office to gain more (7) . Mario believes that the more
salary he gets, the more tax he could share. By paying the correct amount of taxes,
he becomes an honest (8) . By doing so, Mario helps his
(9) to improve their living statuses. Only then he becomes a concerned
(10) in supporting the general welfare of his nation.

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Jumpstart
For you to understand the lesson well, let us have first
an exercise. Have fun and enjoy!

Activity 1: Finding Nemo!

Directions: From the given examples of noted issues and concerns observed in one
(1) Barangay, try to suggest possible solutions or ways on how to achieve
sustainability, progress, and development in your community. Use your creativity to
present the on-going situations in your Barangay.

No internet
No clean water supply

No electricity

Discover

The Principles of Taxation

The governing tax agency in the Philippines is the Bureau of Internal Revenue
(BIR). It is the sole implementing agency for tax computation and tax collection of the
Republic of the Philippines, and its basis is the National Internal Revenue Code of
1997. Taxation is the process in which the government collects revenue from
legitimate taxpayers to defray its expenses. Income tax defines as the tax on the net

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income or the entire income realized in one taxable year. Tax is the amount of money
given by the individuals and businesses as revenue for the government to use for its
plans, programs, and projects beneficial for the country.
Further, Section 23 of the National Internal Revenue Code [NIRC] of 1997
provides the governing rules that support an equal form of our country’s taxation
system.
The following individuals and businesses that must pay their regular taxes are
the focuses of this tax law.
A citizen living in the Philippines is taxable on all income earned inside and
outside the Philippines. A non-resident citizen is taxable only on income earned in
the Philippines. An OFW is taxable only on income earned in the Philippines. A
foreigner living in the Philippines is taxable only on income earned in the Philippines.
A domestic corporation is taxable on all income derived from sources inside and
outside the Philippines. A foreign corporation is taxable only on the income derived
inside the Philippines.
Give to Caesar what belongs to Caesar, and give to God what belongs to God!
(Luke 20:25) How is the tax being collected, protected, and remitted in favor of the
Bureau of Internal Revenue? In the objective tax management systems employed by
different individuals and entities across the country, there will always be series of
steps or procedural approaches on how to handle the collected tax and its timely
remittance for the collecting agency. Let us observe the cycle below concerning an
efficient and an effective tax collection system on how a regular earning employee
withheld the tax and how the tax is remitted and used by the government to fund its
programs and projects indispensable to all.

Employer/Company Bureau of Internal Revenue

(Withholding Agent) (Implementing Agency)

Tax Remittance
Mario received salary

Supply the proper

Employer withheld tax

cash allocation

Enjoys the programs

and projects

Mario Philippine Government

(Taxpayer) (Infrastructures, Social Services, Others)

Delivers the services

Figure 1. The Basic Cycle of Taxation

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The Purposes of Taxation

Taxation requires all citizens to understand the concepts and purposes of why
we are paying taxes starting from the day we earned income from legitimate sources.
Sari-sari stores that operate around the corner to the big companies pay their
corresponding taxes before the deadlines.
1. The primary purpose of taxation will finance the projects that will promote the
Filipino people’s general welfare, such as paying the “uniformed men” who
guard and defend Philippine sovereignty.
2. The secondary purposes of taxation are the imposition of high customs duties
or taxes on imported goods for the local products to remain competitive and
the imposition of a progressive form of the taxation system to reduce
inequalities between our people’s wealth and income (rich and poor). An
efficient government taxation system may mitigate the effect of impending
inflation. It is a situation whereby the Philippine peso’s purchasing power will
go down due to rising prices of commodities.

Explore
Let us check how well you have understood the
lessons by working on some of the enrichment
activities below. Good luck!

Enrichment Activity 1: Barangay Projects and/or Programs

Directions: Using any social media platforms, interview one employee (private or
public) in your community and ask his opinions with some government projects or
programs that help his community achieve sustainability, progress, and
development. Copy and write your answers using the table below in a separate sheet.

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Programs or Projects Significance/Purpose Opinions

Enrichment Activity 2: Crossword Puzzle

Directions: Watch an online video (your teacher will provide the link) and jot down
the significance of a sound taxation system by evaluating how tax remittances helped
the government sustain our country’s economic stability and progress. Your notes
will guide you to answer the next exercise. Use a separate sheet for your answer. Best
of luck!

Crossword Puzzle

1 7

2 9

3 6

5 10

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Clue
1. It is an employee benefit derived from one’s performance of work or job.
2. The one who is assigned to ensure economic stability and continuous
improvement for its citizen’s general welfare.
3. The amount of money collected from the taxpayers.
4. The primary recipients of government spending and funding of programs and
projects in the country.
5. The process of the imposition of taxes on individuals and businesses to fund
government projects and expenditures.
6. The primary essential among the social services offered to all to change and
improve living standards, especially the less fortunate ones.
7. It helps the farmers reach out to the public market and sell their products
such as rice, corn, and vegetables.
8. Their primary duties are to defend the civilian authority and ensure public
safety, peace, and order of the country at all times.
9. The amount remitted to the Bureau of Internal Revenue.
10. The basis for the computation of taxes.

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Deepen

Activity 1: Barangay Development Projects/Programs

Directions: Using social media platform, interview your Barangay Captain and
humbly ask regarding his previous and present projects and programs, including its
estimated funds or budget used to help the Barangay. Use one (1) long construction
paper to list down all your answers.

Barangay Development Projects/Programs

Previous Present Future

Estimated Estimated Estimated
Programs or Programs Programs
Budget Budget Budget
Projects or Projects or Projects

Great job! You have understood the lesson well! Are you
now ready to take the final assessment?

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Gauge

Posttest. Picture Perfect!

Directions: Take a photo of your area of concern in your Barangay and suggest
plans, programs, or projects that you think need government budget to effect change
and improvement on the lives of the people in the community. Summarize your
answers in one (1) construction paper. There is a provided rubric on the next page
on how to assess your outputs. Good luck!

Picture Perfect

You’re done on this part. Great job! Congratulations!

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Rubric

3 2 1 0 0
90%+ 80%+ 70%+ 60%+ Less than
60%
Approaching
Mastered Exceeded Attained Unattained
Attainment
The learner The learner Learner meets Learner Learner
presents a clear, presents a clear, written works’ knowledge of knowledge of
specific specific expectations. the topic is the subject is
understanding understanding understood but not shown.
of the of the The learner at a minimum Steps through
competency. All competency. demonstrates level of the process
notes, All notes, new knowledge competency. were not
assignments, assignments, learned in oral The written followed. Notes
tests, work tests required participation works are and written
completed on are completed and or written occasionally works lack
time, exemplary on time, tasks. The work incomplete and neatness,
well-organized, organized, and is well- could organize organization,
and questions answered organized and better. detail, and
are answered accurately. complete. The evidence of new
accurately. learner Some resources knowledge.
The learner understood the have been used, Work does not
High interest has used more assignments. but it is not meet the
and excitement resources clear what the requirements.
have led the then required The learner learner Parts are
learner to reach and used the understood. missing.
far beyond the demonstrates resources
requirements. new knowledge required and The learner Participation is
in written work organized does most of weak, or learner
The learner has and uses information in what is is often not
used his/her this knowledge all written required, but participating.
new knowledge in his/her works, carefully nothing more.
when assignments done Some of the The learner has
participating in and oral and the learner work may not failed to grasp
making participation. meets just be finished. new concepts
assignments above the Tasks are not covered in the
and written All tests are minimum carefully done, competency.
work. beyond the requirements and the
standard level of and information The level of
The learner achievement expectations. from the achievement is
obtained the between 80%. resources is not below
highest level of All tests, used. 60%.
achievement participation
above 90%. and Written works
assignments are at a level of
meet the achievement
standard level between
of 60% to 69%.
achievement
between
70% to 79%.
https://www.uky.edu/ie/sites/www.uky.edu.ie/files/uploads/Assessment/Accounting.pdf

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KEY ANSWER
Pretest
1. permanent
2. Php 25,000
3. tax
4. build schools
5. repair bridges
6. construct roads
7. salary
8. taxpayer
9. countrymen
10. citizen
Mario is a permanent employee of Bangko de Filipinas. He earns a monthly
net take-home pay of Php 25,000.00. He is aware that every salary he gets every month
gives his share to the Bureau of Internal Revenue (BIR) through his tax. The amount
deducted from his monthly salary will be used by the Governmen t to build schools,
construct roads, and repair bridges. He wishes to be promoted in the office to gain
more salary. Mario believes that the more salary he gets , the more tax he could
share. By paying the correct amount of taxes, he becomes a n honest taxpayer. By
doing so, Mario helps his countrymen to improve their living statuses. Only then he
becomes a concerned citizen in supporting the general welfare of his nation.
Jumpstart
The photo refers to
the on-going situation in our
barangay. Our primary
concern here is the rough
road that seems like not
given preferential attention.
I respectfully
suggest that the Barangay
Officials earnestly exert
effort to provide actions
since the Government
usually allocates funds for
the Build, Build, Build
programs.
KEY ANSWER
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Explore
Enrichment Activity 1: Barangay Projects and/or Programs
Programs or Projects Significance/Purpose Opinions
Barangay Official Action
Ensure COVID-19
Task Force –
Monitor in/out free Barangay by
Continuous Information
individuals in the vicinity guarding the main
Campaign for Public
entrance/exit points
Safety
Enrichment Activity 2: Crossword Puzzle
S A L A R I E S
O
A P
D G O V E R N M E N T
T A X E S L O
A D I I N C O M E
X P U B L I C E
A C E Y
T A
I T
O I
N O
N
Key Answers
1. SALARIES
2. GOVERNMENT
3. TAXES
4. PUBLIC
5. TAXATION
6. EDUCATION
7. ROADS
8. POLICE
9. MONEY
10. INCOME
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Gauge
Picture Perfect
Summary
In our barangay surrounded by fish ponds and flowing rivers, I see many business
potentials to create a livelihood for the citizens. If the Local Government Unit (LGU) may
prioritize these business possibilities, citizens will have stable means of income to support
subsistence and raise their living standards. Most of the citizens belonged to marginal income
earners why they strive more to earn a living despite the fish pond’s potentials.
KEY ANSWER
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References

Books
National Internal Revenue Code (1997). Bureau of Internal Revenue.
Republic Act 8424. Pp 1-228

Electronic Sources
https://www.youtube.com/watch?v=YYUC1vWhtXE

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