7. LAND REFORM AND TAXATION...final.pptx

7. LAND REFORM AND TAXATION...final.pptx

1. LAND REFORM AND TAXATION

2. LAND REFORM refers to all sets of activities and measure that may or should be taken to improve or correct the defects, or problems in the relations among men with respect to their rights to the land they till. It is also technically defined as an integrated set of measures designed to eliminate obstacles to economic and social development arising out of defects in the agrarian structure.

3. It is also technically defined as an integrated set of measures designed to eliminate obstacles to economic and social development arising out of defects in the agrarian structure.

4. Land and agrarian reform REFORM means to change.

5. Land and agrarian reform To look for change implies the existence of a defect, or that something is deformed or malfunctioning. It may also connote that something does not suit the existing condition. What has worked before may not be working now.

6. LAND TENURE STRUCTURE It refers to one or more systems regulating the rights to a man’s ownership, control, and usage of land. Basically, it is a system which defines a person’s legal rights and ownership over land, and the duties accompanying such rights.

7. DIFFERENT WAYS OF EFFECTING LAND TENURE REFORM MEASURES Redistribution of private lands through expropriation or purchase Distribution of lands in the public domain – resettlement or colonization Regulation of tenancy. Regulation of agricultural labor contracts and wages. 5. Control and / or elimination of absentee landlordism.

8. On October 21, 1972, then president Ferdinand E. Marcos signed into law the Tenant Emancipation Decree (PD 27): “emancipating the tenant-farmers from the bondage of the soil”.

9. PRODUCTION STRUCTURE It includes activities relating to the nature, type, and mode of operation to make land productive. This is the actual process of production or farm operation – producing output. These activities take into consideration the size, location, and shape of production unit or holding, or whether these production units are operating singly or in consonance with other farm units

10. Production structure reforms also try to promote cooperative or compact farming among submarginal farmers. Several activities to make sure that land becomes productive: Imposition of a floor on holdings or economic sign beyond which further subdivision is to be prevented. Imposition of a ceiling on holdings of non-cultivating owners. Organization of crop rotation system.

11. LAND TENURE AND PRODUCTION STRUCTURE DISTINGUISHED Land Tenure Structure Production Structure Rights over land ownership holding refers to the right over land, whether in terms of full ownership or as circumscribed by law, irrespective of the manner in which the holding is operated or managed. Production and use of land Operation holding Refers to the actual management of holding or the manpower in which the land is cultivated or operated irrespective of ownership.

12. STRUCTURE OF SUPPORT SERVICES To effectively implement reforms, several support mechanism have been instituted in support of tenant – farmers. These support services involve matters like credit, marketing, the supply of agricultural requisites, processing, storages, etc., and other technical assistance and / or services that have some immediate bearing on reforming of tenure and production structures.

13. These are designed insure the success of the farmer who has acquired a new tenure status as lessee in prepared the lessee for land ownership. They seek to assist the owner-cultivator to use the land more productively and thus increase income.

14. MEANING OF AGRARIAN STRUCTURE Agrarian structure is defined as a complex set of relationships within the agricultural sector, e.g., tenure structure, production structure, and the structure of support services. Reforms in the agrarian structure seek to remedy not only the defect in the distribution and use of land but also and especially, the accompanying economic, social, and political relations. aa

15. EXAMPLES OF AGRARIAN REFORM MEASURES Public health programs family planning education and training of farmers reorganization of land reform agencies Application of labor law to agricultural workers Construction of infrastructure facilities Organization of various types of voluntary associations Providing employment oppurtunities

16. Community development Elements Government Assistance and encouragement Knowledge science and technology Open to all interests Support Political and financial Support institutions Barrio associations and cooperatives benefit People Participation And initiative support Agrarian reform

17. Accompanying measures to agrarian reform Credit facilities 2. Marketing support 3. Farm technology training 4. cooperatives

18. VITAL POSITION OF AGRICULTURE IN NATIONAL ECONOMY Agriculture forms the predominant industry in the Philippines. A large proportion of the total working population is employed in agriculture and a large percentage contribution of the gross domestic products comes from agriculture. Export’s of agricultural products and their derivatives constitute a major source of valuable foreign exchange. Agriculture can thus claim priority as the most important component of the economic structure

19. Obstacles to Agricultural productivity Agricultural productivity does not occur by chance, it has to be worked out. It is clear that reforms are needed to removed barriers to increased agricultural productivity so that agriculture can contribute it’s maximum share to overall growth and economic development.

20. Agrarian reform is an instrument for increasing agricultural productivity Agrarian reform seeks to create an economic environment that will encourage farmers to produce more and market more of what they produce, to the end that an improvement in the level of living of rural population can be achieved at the earliest possible time and thus help to hasten the pace of national development

21. Agrarian Reform, a multifaceted program Agrarian reform as a government-sponsored program, implies socio-cultural transformation. Furthermore, regardless of whether agrarian reform attains its programmed objectives or not, so long as it is being undertaken, it would undoubtedly bring about far-reaching effects upon the life of the people concerned.

22. Assumptions about Filipino tenant farmers Tenancy problem has its root in pre-Spanish and Spanish past. 2. The tenancy system has created tenants who are strongly traditional and highly dependent on the land lord 3. There are three kinds of land lords: The benevolent ones The malevolent ones Combination of both

23. Socio-cultural changes from Agrarian reform A changes from self-subsistent outlook to one of surplus production. The farmers begin putting all theirs energies in the farm. A sound social order in the farming villages was enhanced significantly. The farmers become more conscious of the need to maintain peace and stability in the community so that they could continuously enjoy the increased benefits in the farm.

24. 3. Farmers initiative and active participation in leadership roles were promoted. Before, such roles were the monopoly of the landowning class. After land reform, farmer began forming associations and stood on equal footing with their erstwhile landlords in social gatherings and club meetings. They, too, began to take participation in local and national elections. 4. As land reform enhanced agricultural productivity and consequently, increased net family incomes, the farmers were able to send their children to school. They widened their contacts with the outside world through frequent trips to markets and other places or through communication facilities which they acquire .

25. Taxation and Tax Administration Governments have the prime responsibility of not only maintaining peace and order in their respective countries but also putting up an infrastructure like roads and bridges that would ensure economic development. Governments also have responsibility of providing basic services to their constituents, like basic education and basic health services. These all entail money which need to be spent for all these. This gives us an idea of how taxation becomes important. The taxes that people pay are a very basic source of revenue for the government. Taxes are very important since they give governments a source of money that will and should be spent for public service purposes. The evolution of taxes most likely started as soon as government became existent.

26. Taxation Defined Taxation is the act of imposing and collecting a tax. It is the process or means by which a sovereign entity like a government, through its law-making body, raises revenue to defray the necessary expenses of the government for the public. Taxes therefore can be defined as enforced and proportional contributions from persons and property imposed by the law-making body of the state for the support of the government and all public needs. Governments have this inherent capacity to impose and collect taxes by virtue of their sovereignty over their over their constituents.

27. Characteristics of Taxes Taxes are an enforced contribution Taxes are generally payable in money. Taxes are imposed on persons and property. Taxes are levied by the national or a local government unit which has a jurisdiction over a person or property. It takes a congressional act to put up taxes. Taxes are imposed solely for public purpose.

28. Classification of Taxes As to subject matter or object Personal, poll, or capitation These are fixed-amount taxes imposed on people residing in a specified territory without regard to their properties or the earnings from their profession. The best example of these is the community or formerly residence tax. Property These are taxes imposed on real property (Land, House and Lot) or personal property (Jewelry, Cars). This is usually done in proportion to the value of the property. Excise Excise is “a cut.” Therefore, it is a tax imposed on consumption (alcohol tax), engagement in the practice of a profession (physician’s PTR), performance of an act, or enjoyment of a privilege.

29. As to purpose General, fiscal or revenue Generally all taxes are imposed to generate income or revenue for the government. Therefore generally, all taxes fall in these categories (whether income, real or estate tax, ad valorem tax). Special or regulatory Some taxes, aside from their revenue-generating purpose seek to control consumption on certain things like excise taxes on cigarettes, energy consumption tax and others. These are special taxes and more specifically, regulatory taxes.

30. As to scope (or authority imposing the tax) National These are taxes imposed by the national government and are national in scope. Examples of these are income taxes, customs duties, and other national taxes. Both the coverage and valuation are these taxes are national – meaning, the rate of income taxes in Manila will be the same as those in Mindanao, for example. Municipal or Local These are taxes imposed by local governments (e.g. provincial and municipal governments). The taxation process and its rates may vary from one locality to the other.

31. As to determination of account Specific These are taxes that are imposed as specific amounts (X amount of pesos) on a specific standard of measurement (per carton of cigarettes, or per liter of gasoline). Ad valorem This taxes which is added into the assessed value of a taxable entity (thus Ad valorem). By definition, it requires assessment of the value of the entity being taxed. An example of this is “a 3% tax on the assess value of areal state property.”

32. As to graduation of rate Proportional These are taxes that are computed as a fixed proportion of the value of an entity being taxed or the rate of consumption. For example, EVAT is a taxed imposed that is fairly fixed in proportion to what is being consumed. Progressive or graduated These are taxes whose rates increase as the entity being tax also increases. For example, a person earning P 100,000.00 a year is taxed 15% in the income bracket, if his/her earnings increased to P 500,000.00 annually, the tax rate bracket will be about 30%. Regressive This is the opposite of progressive taxes. The tax or tax bracket decrease as the entity taxed increases. For example, you pay less tax on motor vehicles as the number of years of use of such increases.

33. DEFINITION OF DIFFERENT KINDS OF TAXES National Taxes Income Tax An income is the ability of a person to produce earnings by doing a professional occupation like being a physician, being employed, like a bank manager, or doing an economic activity, like doing a business. These earnings are taxed by the national government and are progressive in nature. Donors Tax A donor or a gift is the act of a person in disposing without the consideration of money, or giving a certain thing in favor of another who accepts it. In this transaction, there two entities: the donor who gives, and the donee’s taxes who accept. Before there we are both donor and donees taxes. Today it has been combined into one-donor tax.

34. Estate Tax An estate tax is a tax imposed on the right of a deceased person to transfer the estate to his lawful heir or beneficiary. The old inheritance tax falls under this category Value-added Tax This is a tax imposed on the sale and/or exchange of goods and services, lease of goods and real and personal properties. It is a percentage tax imposed on the value of a certain good or service. Thus the term value-added tax.

35. Excise tax This is a tax imposed on specific goods produced in the Philippines for local consumption or sale in the country, or to goods made in other countries and imported and consumed in the Philippines. More often than not good subjected to excise tax are also subject to value-added tax. If in case the good is an imported product, it is also subject to costume duties. Examples of goods subject to excise tax are alcohol products, tobacco, petroleum Products and others. Other percentage taxes Percentage tax is a tax imposed on and based on the selling price or gross value of goods and services being sold, imported, exchanged, or bartered. This is basically the same as value added tax; however, this is more specific (amusement tax, life insurance tax, sale of shares of tax, etc.). The rate of the tax also differs from one specific good or services to another.

36. Documentary stamp taxes This is a tax on legal documents and papers like stock certificates, financial statements from Securities and Exchange Commission, papers, bank note, and others. These documents act as an evidence of the transfer, sale or acceptance of rights, ownership, or obligation. These documents are stamped which gives them legal personality, thus, the term documentary stamp tax. To enforce payment of document stamp tax, all documents without such stamps are rendered void and legally non-usable. Customs duties and tariffs Customs duties are taxes imposed on the importation and exportation of goods in and out of the country. Customs Tariff is a “book of rates” of customs duties for different goods Different imported and exported goods have different duties. Therefore, it becomes obvious that customs tariff will have different rates

37. Travel tax This is a tax imposed on travel whether local or foreign. Energy tax This is a tax imposed on the use of petroleum products e.g., aircraft and watercraft and electric power. This is essentially a regulatory tax since it aims to prevent wasteful use of fuel and electricity. Private Motor Vehicles Taxes This tax is imposed on the owners of private motor vehicles for the use of the vehicles. It is paid yearly during renewal of motor vehicle registration.

38. Tax levying Is the act of putting up taxes on persons, activities, and products. It is also the process of determining the amount, rate, or percentage of taxes that will be imposed on such. Tax assessment On the other hand, is the official action of an officer duly authorized by law in determining the amount of tax due. Tax assessment is done based on tax levied. Therefore, tax assessment is based on what has been duly prescribed by the law and is imposed on a taxpayer Tax collection Is the process of getting the taxes imposed by the proper government agencies

39.   TAX COLLECTION is the process of getting the taxes imposed by the proper government agencies. Tax assessment and tax collection is done by the BIR using the internal revenue code, and by the bureau of customs through customs traffic.

40. LIMITATION ON THE POWER OF TAXATION A person has tax liabilities and not able to pay taxes may not be deprived of his property without his being given due notice, and other legal procedures. This is the principle of due process law. The principle of equal protection of the laws requires the tax system to treat all persons alike. The code of conduct that is applicable to one is applicable to all. Rule of uniformity in taxation states that all taxable properties, activities, or goods will have the same tax within the same class. There may develop differences among different classes of taxable objects and activities, however the same system is implemented on objects within the same class. Nobody can be imprisoned for non-payment of a poll tax. This is provided for under the constitution.

41. Non-impairment of the obligation of contracts is the taxation which stipulates that taxation cannot change or impair the stipulation of the contracts either by law or party without the agreement of the latter. No taxes shall be imposed or collected which would impair religious freedom. Taxes will be used solely for public purposes. No appropriation or use of religious purpose can be done. Religious, charitable, educational entities, non profit cemeteries, and churches are exempted from taxes.

42. Non stock, non profit educational institutions are likewise exempted from taxes. This is done to encourage and support the establishment of educational institutions. Tax exemptions cannot be done outright. To be to a person, or entity, concurrence by a majority of the Congress for the passage of a law granting tax exemption is needed. The president has the authority to veto a particular item or items in a revenue or tariff bill. While Congress has the power to define and levy taxes, tax cases in all levels of the court will be under the final jurisdiction of the Supreme Court.

43. EVASION AND TAX AVOIDANCE While we all know the importance of taxes in running governments and putting up basic services there seems to be a strong temptation among people to “escape” payment of taxes. Attempts to avoid payment of taxes are done both legally and illegally.

44. TAX AVOIDANCE is the use by a taxpayer of legally permissible means or methods in order to avoid or reduce tax liability. It is not punishable by law. TAX EVASION is the use by the taxpayer of illegal or fraudulent means to defeat or reduce the payment of a tax. When proper authorities encounter problems in assessing and collecting taxes from individuals or entities under normal circumstances, remedies are available to the government to enable it to impose and collect taxes.

45. There are several common administrative approaches which allow the government to collect taxes. They can be either of the following: Distraint of personal property or the seizure by the government of personal property to enforce the payment of taxes. These personal properties can either be tangible (car, jewelry) or non-tangible. This can be followed by public sale if the taxes are not voluntarily paid. Levy of real property is almost the same as a distraint but this time the seizure is on a real property. The property can eventually be held for public sale if the taxes are not voluntarily paid. Enforcement or forfeiture is the act of transferring the title or a specific thing from an individual or owner in favor of the government.

46. Entering into a compromise of tax liability is the act by which the government agency responsible for tax assessment and collection and a taxpayer agree to have concessions, or an amicable settlement to avoid litigation. Filing of bonds may be required of taxpayers to ensure compliance with the provisions of tax regulations. For late tax payments and delinquent taxpayer, surcharge and interest can be imposed.   Surcharge is an amount imposed and collected as an addition to the main or primary tax in cases of delinquency. Surcharge can vary from 25 to 50%. Interest in additional payment imposed on the primary tax imposed on taxpayers paying late. It is typically about 20% per annum.

47. Giving of rewards to informers is a legally way of allowing the government to get information about delinquent taxpayers or tax evaders. Certain officers of the Bureau of Internal Revenue are allowed to make arrests, searches, and seizures for the violation of any regulation. However, such activities are allowed by BIR officials only if the violation is penal in nature or of a regulation administered by the BIR. Aliens may be deported if they willingly refuse to pay taxes, or knowingly and fraudulently evade the payment of taxes. Inspection of books of accounts can be done on individuals, companies, or other entities, to check on the correctness of taxes paid.

48. Inquiring into bank deposit accounts. Even when an individual has an inherent right which protects him from a bank deposit inquiry, a deceased person’s bank account may be inquired upon by the proper Internal Revenue officers to assess the gross state of such. Likewise , a taxpayers who offers to compromise the payment of his tax liabilities on the ground that his financial situation prevents him from paying such may be asked to waive the privilege of bank account confidentiality.

49. Tax Levying TAX ADMINISTRATION ASSESSMENT AND COLLECTION OF TAXES Taxation