TAXATION

AND
AGRARIAN
REFORM
PURPOSE OF TAXATION
To raise revenues from all possible
sources to support government
expenditures and services and to
promote the general well-being and
protection of its citizens.
To safeguard newly-opened industries by
extending tax exemptions to pioneering
and new industries and other enterprises
To shield domestic producers by levying a
much higher custom duties on imported
goods
Canons of Taxation
1. FISCAL ADEQUACY taxes collected by
the BIR must be sufficient enough to
fund the necessary govt. Expenditures
and basic services in a given year
2. ADMINISTRATIVE FEASIBILITY payment
of taxes must be taxpayer friendly,
accessible and convenient
3. THEORETICAL JUSTICE ability to pay
principle, tax burden must be in
proportion to the taxpayers level of
income
SITUS OF TAXATION
SITUS location
1. Income tax

2. Real property tax

3. Personal property tax

4. Business and occupational taxes

LIMITATIONS ON TAXATION
1. Tax revenues must only be used for
public purpose
2. There should be proper delegation of
legislative power to tax
3. Government entities are exmpted
4. There are territorial jurisdictions
5. There is an observance of international
law
DOUBLE TAXATION
Refers to an instance when an income, a
property, or a transaction was imposed
with two or more taxes by taxing
authority in the same year
AVOIDING TAXATION
1. SHIFTING passing of tax burden from one
person to another
2. CAPITALIZATION reducing the price of the
taxable product or service to lower the tax
that will be imposed on its consumption
3. TAX AVOIDANCE - refers to the availing by
the taxpayer of legally allowable means in
reducing or minimizing the tax due on
certain properties, items, and services
4. TAX EVASION refers to use by the taxpayer
of illegal means in escaping, defeating or
lessening the tax due
5. TAX EXEMPTION immunity by the taxing
community on the taxpayer from the
obligation of payment
TAX
ONUS, latin term burden or obligation
An enforced proportional contribution
from persons and property, levied by the
state by virtue of its sovereignty for the
support of government and for all public
needs
CHARACTERISTICS OF TAX
It is an obligatory or a forced contribution
to the government
It is usually monetary in form
It is proportionate in character
It is imposed on persons and properties
It is levied by the state that has
jurisdiction over the person or porperty
It is levied by the legislative body of the
state
It is levied for public purposes
CLASSIFICATION OF TAXES
1. According to object
1. Personal tax
2. Property tax
3. Consumption tax
2. According to who bears the burden
1. Direct tax
2. Indirect tax
3. According to the determination of amount of
tax to be paid
1. Specific tax
2. Ad valorem
CLASSIFICATION OF TAXES
4. According to purpose
1. General tax
2. Special tax
5. According to scope or authority
imposing the tax
1. National tax
2. Local tax
6. According to tax system
1. Proportional tax
2. Progressive tax
3. Regressive tax
INCOME TAX
Imposed at a progressive rates
Considered as a privilege tax

Purpose is to earn revenue

FUNCTIONS OF INCOME TAX

1. provide revenues
2. offset regressive sales and
consumption taxes
3. mitigate the evils arising from the
inequalities in the distribution of income
and wealth
Classification/status of tax
payers
classification
Individuals

Corporations

General partnerships

Status
Married

Head of the family

single
Computation of income tax
Gross taxable income
Gross income (monthly income x 12months)
Tax exemptions/non taxable items (SSS, PHILHEALTH, pag-ibig,
contributions) x 12months
_________________________
gross taxable income
Net taxable income
gross taxable income
- personal exemptions
______________________
net taxable income
AGRARIAN REFORM
One of the major demands in the 1896
Katipunan uprising
Promise often heard

REFORM change in something, process or an

act to achieve improvements in its current
state or quality
LAND REFORM measure to be undertaken to
improve the relationship between the tillers
and the landonwers
AGRARIAN REFORM broader improvement,
includes credit measure, product devt.,
training and finances
CARP R.A. No. 6657, June 15, 1988
ASPECTS OF AGRARIAN
REFORM
ECONOMIC agricultural development is
prior to industrial development and
progress
SOCIO-CULTURAL self reliance, self-
esteem, dignity, and improved quality of
life for the people
RELIGIOUS solidly grounded in the
teachings of the church
MORAL sound reasons sees the need
for a just and equal distribution
POLITICAL willingness on the part of the
government to implement laws on
HISTORY OF AGRARIAN
REFORM
Spanish era American era
Commonwealth era Japanese
occupation
Roxas administration Quirino
administration
Magsaysay administration Garcia
administration
Macapagal admiistrationMarcos
administration
Aquino administration Ramos
 FROM QUEZON TO MACAPAGAL ADMIN.
Rice share tenancy act of 1933
Sugar tenancy act of 1934
Agricultural tenancy act of 1954
Land reform act of 1955
Land reform code of 1963
 COMPREHENSIVE AGRARIAN REFORM LAW
(CARL)
R.A. No. 6657

JUNE 10, 1988
Most fundamental and far reaching program of
the Aquino Admin.
Arroyo Admin
COMPREHENSIVE AGRARIAN REFORM PROGRAM
EXTENSION AND REFORMS(CARPER)
R.A. No. 9700
August 7, 2009
Strengthen the CARL