Agrarian Reform in the Philippines

Agrarian Reform in the Philippines

• Agrarian Reform involves redistributing lands to landless farmers and farm workers.
• It aims to resolve land ownership conflicts and promote harmony between rural and urban populations.
• It seeks political stability and elevates the economic status of beneficiaries.
• Land Reform tackles economic and social obstacles within the agrarian structure.

Aspects of Agrarian Reform

• Economically, it shifts agriculture from being self-sufficient to producing surpluses for sale.
• It significantly improves social order in farmlands and empowers farmers in leadership.
• It enhances agricultural productivity and family incomes, enabling farmers to send their children to school.
• It promotes a modern outlook among farmers, including receptiveness to modern family planning.
• Religiously, it aligns with the concept that God owns the earth and its resources are for all.

Comprehensive Agrarian Reform (CARP)

• Comprehensive Agrarian Reform (CARP) is also known as Republic Act 6657
• Comprehensive Agrarian Reform (CARP) aims to redistribute public and private agricultural lands to landless farmers and farmworkers.
• Land Tenure Improvement is the main program
• Land Tenure Improvement Program aims to accelerate land distribution.
• Republic Act No. 6657, also known as the Comprehensive Agrarian Reform Law (CARL), provides the legal basis for CARP.
• President Corazon C. Aquino signed the Comprehensive Agrarian Reform Law (CARL) on June 10, 1988.

Historical Context of Agrarian Reform

• Before colonization, communities had organizations and lands known as "barangays", which consisted of 30-100 families, administered by chiefs.
• The Spanish introduced the "pueblo" agricultural system in 1521.
• During the Japanese occupation, peasants and workers formed the HUKBALAHAP on March 29, 1942.
• Manuel L. Quezon's administration passed RA 4054 or the Rice Tenancy Law, legalizing a 50-50 crop sharing arrangement between landlord and tenant.
• Manuel Roxas' administration passed Republic Act No. 34, establishing a 70-30 sharing arrangement between tenant and landlord.
• Elpidio Quirino's administration established the Land Settlement Development Corporation (LASEDECO) via Executive Order No. 355 to boost peasant resettlement.
• President Magsaysay pursued a more honest land reform program.

Agrarian Reform Laws and Acts

• The main aim is to end conflicts pertaining to land ownership and bring about political stability.
• Socio-agrarian reform promotes equality in opportunities, income, and wealth.
• Agrarian reform programs facilitate activities like land acquisition.

Key Legislation

• Land Reform Act of 1955 (R.A 1400) defines land tenure policy and allocates funds.
• Revised Agricultural Land Reform Code (R.A 6389) abolished personal cultivation and enabled conversion to residential subdivisions.
• It allowed automatic conversion of share-tenants to leasehold tenants, created the Department of Agrarian Reform, and increased funding.

Land Coverage

• Lands covered by the code include tenanted areas, landed estates, old settlements, and proposed settlements.

Lands Covered by CARL

• All alienable and disposal lands of the public domain fall under CARL.
• All lands of the public domain exceeding a specific term are covered.
• Lands owned by the government and all private lands are included.

Qualified Beneficiaries

• Agricultural lessees, share tenants, regular farm workers, seasonal farm workers and other farm workers can benefit.
• Actual tillers or occupants of public lands, collectives or cooperatives are considered qualified beneficiaries

Comprehensive Agrarian Reform Program Extension with Reform (CARPER Law)

• Enhanced and improved CARP
• CARPER LAW has a budget of 150 billion
• Includes seven new provisions and 26 reform provisions
• Restores compulsory land acquisition and extends the land acquisition.
• A Congressional Oversight Committee on Agrarian Reform (COCAR) was created

The Constitution of the Philippines

• The term "constitution" refers to regulations and orders and is defined as a set of fundamental principles that govern a state or organization.
• It serves as the fundamental law.
• It provides the essential framework of government by defining the executive, legislative, and judicial branches.

Malolos Constitution

• Known as La Constitution Politica de Malolos.
• It was written in Spanish and drafted in Malolos, Bulacan in 1899.
• It was Asia's first republican constitution.

The 1935 Constitution

• The 1935 Constitution was approved in 1934.
• The 1935 Constitution was crafted to meet US approval to ensure Philippine independence.

The 1943 Constitution

• 1943 constitution provided strong executive power
• The 1943 constitution legislative branch was the National Assembly comprised of pro-Japanese members.

The 1973 Constitution

• The 1973 Constitution was ratified in 1973.
• The 1973 Constitution shifted the government to a parliamentary system.
• In 1976 the assembly was replaced

The 1986 Provisional Constitution

• The 1986 Provisional Constitution, known as the Freedom Constitution, was issued after the People Power Revolution.
• Under the 1986 Provisional Constitution executive and legislative powers were held by the president until a new legislature convened.

1987 Constitution

• The 1987 Constitution was ratified on February 2, 1987.

History of Taxation (Pre-Colonial Period)

• Early Filipinos had a taxation system before Spanish colonization.
• Taxes or tributes were called "buwis" or "handug."
• The barangay was the unit of government, ruled by a "I" or "raha."
• The classes paying taxes were the "Tumao" (includes the datu), "Timawa" (warriors), and "Oripun" (commoners and slaves).

Taxation under Americans

• From 1898-1903, the Spanish system was followed.
• The "urbana" tax was replaced by a land tax on urban and rural real estate.
• The Bureau of Internal Revenue (BIR) was created on July 2, 1904.
• The BIR became operational on August 1, 1904 and assesses and collects national internal revenue taxes, fees, and charges.
• The Internal Revenue Law of 1904 introduced licensed and excise taxes with taxes on banks, stamp taxes, forest products, mining concessions, and business licenses.
• The cedula tax rate was fixed per adult male, with some places doubling the fee.
• The purpose of The Underwood-Simmons Tariff Act (October 3, 1913) was to reduce levies on manufactured goods and eliminate duties on raw materials.
• Income tax (1914) and inheritance tax (1919) were introduced.
• Cedula tax was abolished on Nov. 15, 1937, due to its burden on the poor.

Taxation - Commonwealth Period

• Residence Tax was imposed in The Philippines, starting January 1, 1940 .
• Every Filipino over 18, regularly employed, and every corporation was subject to residence tax.
• Exemptions included US officials, US military personnel, foreign powers, and transient visitors.
• The National Internal Revenue Code of 1939 introduced a new tax system.

Taxation - Japanese Regime & Post War

• During World War II, the Bureau was combined with the Customs Office.
• The Bureau was re-established on July 4, 1946, after independence, and reorganized on October 1, 1947.
• On January 1, 1951, three new departments were created: Legal, Assessment, and Collection.
• The Withholding Tax Unit was created on January 1951 and the withholding tax was adopted per Republic Act (RA) 690.
• A third reorganization occurred on March 1, 1954, creating the Specific Tax Division, Litigation Section, Processing Section, and the Office of the City Revenue Examiner.
• The first 2 Regional Offices in Cebu and in Davao were created on July 20, 1955.

Taxes - Regional Offices

• Tax Audit;
• Collection;
• Investigation;
• Legal; and
• Administrative.
• The creation of the Regional Offices marked the division of the Philippine islands into three (3) revenue regions.
• In January 1957, the title of the head of the Bureau was changed from Collector to Commissioner and Jose Aranas was appointed.
• The Tax Census Division and Tax Census Unit were established in 1958 and consolidated statements of assets, incomes, and liabilities into a National Tax Census.
• RA No. 233, the Rewards Law, was passed on June 19, 1959 for tax evasion.

Taxes - Marcos Administration

• In 1964, the Philippines was re-divided into 15 regions and 72 inspection districts and The Tobacco Inspection Board and Accountable Forms Committee created.
• Misael Vera's appointment in 1965 led to the "Blue Master Program" and "Voluntary Tax Compliance Program".

Taxpayer Programs

• A program to curb abuses by taxpayers and BIR personnel.
• A program designed to encourage professionals to report their true income.
• Permanent Tax Account Numbers (TAN) were introduced in 1970 to facilitate identification and verification.
• Payments through banks were enabled through Executive Order No.206.

Martial Law

• Martial Law was proclaimed in 1972.
• Tax amnesty decrees were issued.
• The National Office transferred to a building in Quezon City in 1976.
• The National Internal Revenue Code of 1977 updated the 1934 Tax Code.

Aspects of Taxation

• Taxation enables a state to impose and collect revenues to support the government.
• Taxes should be enforced contributions, payable in money, proportionate, and imposed by the state which has jurisdiction over the person or property.
• Revenues are levied for public purposes.

Types of Taxes

• Direct taxes are paid directly by the taxpayer:
  • Capital gains tax is imposed on profit from selling an asset at a higher price.
  • Withholding tax is deducted from an employee's wages and paid to the government.
  • Income tax is imposed on profits and earnings from various sources.
  • Donor's tax applies when transferring property to another person without expecting much in return.
  • Estate tax is imposed on the value of assets left behind by a deceased individual.
• Indirect taxes are paid by the taxpayer but can be shifted to others:
  • Value Added Tax (VAT) is imposed on the sale of goods and services, levied at each production stage, and passed to the consumer.
  • Excise tax is imposed on manufacturers or importers, with costs passed to consumers.
  • Documentary stamp tax is for legal and commercial documents related to property or financial obligations.

Canons of Good Taxation

• Equity: based on ability to pay.
• Certainty: the amount and manner of payment must be clear.
• Convenience: the time and collection method should not be oppressive.
• Economy: tax revenue should sustain the government's function.

Taxation Phases

• Levy or imposition: involves selecting persons, properties, or privileges.
• Assessment and collection: involves guidelines for assessment and authorities responsible for collection.
• Payment: refers to the incidence of taxation.