The Evolution of Philippine Taxation

___ writes to Rizal about taxes "The tax! With regard to your question on this, the answer is very long, as it is the cause of the prevailing misery here... Here, there are many taxes. What they call ____, even if it has no water, must pay a tax of 50 cavanes of ____ and ____ with ____ pay 5 pesos in cash"

- Mariano Herbosa - Irrigated rice land - 50 cavanes of palay - land with 6 cavanes of seed

He briefly served as the third and last president of the Commonwealth of the Philippines from May 28, 1946 to July 4, 1946 The first president of the independent Third Philippine Republic

Manuel Roxas

This law did not increase the ratio of income tax to general tax revenue

Omnibus Tax Law of 1969

A method of state intervention in the imports and exports of the country

Import and Exchange Controls

Is a tax on salaries, dividends and profits (Taxation in Spanish Philippines)

Industria

AN ACT RESTRUCTURING THE VALUE-ADDED TAX (VAT) SYSTEM, WIDENING ITS TAX BASE AND ENHANCING ITS ADMINISTRATION, AND FOR THESE PURPOSES AMENDING AND REPEALING THE RELEVANT PROVISIONS OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES.

RA 7716 of Fidel V Ramos in 1997

Money received by a government from taxes and non-tax sources to enable it to undertake public expenditure

Revenue

This was exemplar on how tax reform could impact social services as it allowed for the increase of DOH budget, triple in 2015, and free health insurance premiums for the poor people enrolled in PHILHEALTH increased

SIN TAX reform RA 10351 of Benigno Aquino III

in 1589, value of the tributes was raised to accommodate the needs of church that was called - ______

Sanctorum

During the 19th century, when economic growth increase exponentially, there were no excise taxes collected by the Spaniards throughout the years of colonialism. T or F?

TRUE

A compulsory financial charge on a tax payer by a governmental organization

Tax

Government raise revenue from the people they govern

Tax

Magsaysay, Garcia, and Macapagal promised to study the tax structure and policy of the country through the creation of a _____ in ____ by means of ____

Tax Commission in 1959 RA 2211

A failure in a timely manner along with evasion or resistance to taxation that is punishable by law

Tax Non-Compliance

This 1. Seeks to limit VAT exemptions 2. Increase excise tax on petroleum products and automobiles 3. Introducing tax on sugar-sweetened beverages 4. Raising additional funds to support the gov't's accelerated spending on its Build, Build, Build and social services programs

Tax Reform for Acceleration and Inclusion TRAIN Law Rodrigo Duterte

Ensures that taxpayers are paying the right amount of tax at the right time and securing correct tax allowances and tax reliefs

Tax compliance

The ratio between the share of the actual tax collection in gross domestic product and predictable taxable capacity

Tax effort

Government mechanism to raise funds

Taxation

This president increased the government spending without adjusting the tax collections

Gloria Macapagal Arroyo

3 New sources of tax introduced during the American period 1898-1935

1. 1914 Income Tax - imposed on individuals or entities in respect of the income or profile earned by them 2. 1919 Inheritance Tax - paid by a person who inherits money or property of a person who died - Estate tax - is a levy on the estate of a person who has died 3. 1932 National Lottery

Taxation during the Commonwealth Period 1935-1945

1. 1936 income tax increased 2. 1937 cedula tax was abolished 3. 1939 National Internal Revenue Code 4. 1940 Residence tax for 18yos and corporations

Under the administration of Corazon Aquino

1. 1986 Tax Reform Program - reformed the tax system 2. Value Added Tax - form of sales and indirect tax

Under the administration of Gloria Macapagal Arroyo

1. 2005 RA 9337 - Expanded VAT 2. 2006 VAT rate increased from 10% to 12%

Under the administration of Fidel V. Ramos

1. Comprehensive Tax Reform Program - broad-based, simple, and with reasonable tax rates 2. RA 7716 - included services to VAT base in 1997

Public Expenditures (7):

1. Economic Infrastructure 2. Military 3. Scientific research and dev't 4. Culture and arts 5. Public works 6. Public insurance 7. Operations of the gov't

2 Types of Fiscal Policies

1. Expansionary - to boost the economy 2. Contractionary - when gov't cuts spending or raises taxes

Under the administration of Elpidio Quirino:

1. Import and Exchange Controls - method of state intervention in the imports and exports of the country

Under the administration of Benigno Aquino III

1. Promised that no new taxes will be imposed and additional revenue would have to come from adjusting existing tax 2. RA 10351 - Sin Tax Reform - adjustment of excise tax on liquor and cigarettes

Under the administration of Magsaysay, Garcia and Macapagal

1. RA 2211 - Creation of a Tax Commission in 1959 2. Congress did not pass any tax legislation from 1959-1968 3. Omnibus Tax Law of 1969 - did not increase the ratio of income tax to general tax revenue

Under the administration of Rodrigo Duterte

1. Tax Reform - vowed to lower income tax rates 2. TRAIN Law - limit VAT exemptions - increase excise tax on petroleum and automobiles - sugar-sweetened beverages - add funds to support the gov't accelerated spending 3. EO 127 ADMINISTRATIVE Reform - restructuring of the DOF and BIR

Under the administration of Ferdinand Marcos

1. Taxes grew at an annual rate of 15% and generated a low tax yield 2. Tax effort was at a low 10.7% 3. Tax remained aggressive 4. 1981 - 1985 the tax system was still heavily dependent on indirect taxes, made up of 70% total tax collection

Taxation during the American Period 1898-1935

1. The Internal Revenue Law of 1904 - prescribed 10 major sources of revenue 2. 1907 - changes in cedula and industria tax 3. 1913 - Underwood-Simmons Tariff Act - US Pres. Woodrow Wilson and Gov-Gen. Francis Burton Harrison - to reduce levies on manufactured and semi-manufactured goods and to eliminate duties on most raw materials 4. New sources of taxes were introduced - income 1914, inheritance 1919, national lottery 1932

Under the administration of Manuel Roxas:

1. US advised the adoption of DIRECT TAXATION, but DECLINED the proposal as it did not want to alienate its allies in Congress

Under the administration of Ferdinand Marcos Jr.

1. Will implement a "sound fiscal management tax administration reforms" 2. Tax compliance procedures will be simplified 3. New TRAIN income tax table

In _____(year) two direct taxes were added and imposed on _____

1878, two direct taxes were added and imposed on URBAN INCOME

The cedula under this new law went through changes as the rate was fixed per adult male. Some places were authorized to double the fee for the cedula. The industria tax was levied on the business community and became a high complex system

1907 Changes in Cedula and Industria tax

New tax system during commonwealth, where the normal tax of 3% and the surtax on income was replaced by a single tax at progressive rate 2-3. Personal exemptions were reduced, introduced tax structure was an improvement of the earlier system introduced by the Americans, but still remain inequitable 4. Common character of taxation was not used to diversify the economy or direct economic development

1939 National Internal Revenue Code

This aimed to: 1. Improve the responsiveness of the tax system 2. Promote the horizontal equity between individuals and firms 3. Promote growth by withdrawing or modifying laws 4. Improve tax administration

1986 Tax Reform Program

Period of Taxation - Pre Colonial • ________ - Payment of tribute or taxes - Obligation to provide labor services - People pay their taxes to Datu or Chieftain It is the payment of tribute or taxes or the obligation to provide labor services in the pre-colonial period of taxation.

Buhis/Buwis/Handug

This type of fiscal policy is when the government either cuts spending or raises taxes

Contractionary

During the pre-colonial period of taxation, people pay their taxes to who?

Datu or Chieftain

The momentum of economic growth came during ____ time through the implementation of _____ that led to the import substitution development.

Elpidio Quirino

Restructuring of the Department of Finance and Bureau of Internal Revenue and improved the trust in the Bureau of Internal Revenue

Executive Order 127 Administrative Reform of Rodrigo Duterte

This type of fiscal policy is designed to boost the economy

Expansionary

It is the sister strategy to monetary policy through central bank influences a nations money supply

Fiscal Policy

The government adjusts to its pending levels and tax rates to monitor and influence a nation's economy

Fiscal Policy

It prescribed 10 major sources of revenue 1. License taxes on firms dealing in alcoholic beverages and tobacco 2. Excise taxes on alcoholic beverages 3. Taxes on banks and bankers 4. Document stamp taxes 5. Cedula 6. Taxes on insurance and insurance companies 7. Forest products 8. Mining concessions 9. Taxes on business and manufacturing 10. Occupational licenses

The Internal Revenue Law of 1904

Period of Taxation - Spanish • ______ - pay for Spanish governance - in 1589, value of the ____ was raised to accommodate the needs of church that was called - Sanctorum. It is the pay for Spanish governance during the Spanish period of taxation

Tributos (Tributes)

Is a tax on the annual rental value of an urban real estate (Taxation in Spanish Philippines)

Urbana

It is a tax consumption levied on the sale, barter, exchange or lease of goods or properties and services and an importation of goods in the Philippines. At each stage of the supply chain where value is added from initial production to the point of sale

Value-added Tax