4.

1 Land and Agrarian Reform in the Philippines

What is land/ agrarian reform?

Land reform refers to a wide variety of programs and measures usually by the government to
bring about more effective control and use of land for the benefit of the community. Land reform
generally comprise the takeover of land by state from big land lords with compensation, and
transfer it to small farmers or landless workers. It is aimed at changing the agrarian structure to
bring equity and to increase productivity. The structure includes both the relationship of man to
his land, and man’s relationship with others(tenant and landlord).
Agrarian reform is more complex. Along with land reform it also includes measures to modernize
the agricultural practices and improving the living conditions of everyone within the entire
agrarian community. It includes various supports to agricultural education, the establishment of
cooperatives; development of institutions to provide agricultural credit and other inputs;
processing and marketing of agricultural produce; and establishment of ago-based industries,
and others.
The desire to obtain social justice and full development of the dignity of man within given
situations of land reform has gained great importance across the years in many countries of the
world especially in agricultural countries.
One of the effects of colonizing periods was the concentration of landholdings in the hands of
the law. These few people whom they call as landlords or “caciques” have yielded tremendous
influence in the social and economic life of the nation that they had been able to dictate to their
dependents (the tenants and their families) to such matters as to whom to vote for in political
elections. They have also influenced political action in various ways in order to maintain the
status quo.

History of Land Reform in the Philippines

Pre-Spanish Era

Before the Spaniards came to the Philippines, the Filipino social system was feudal. Like the
feudalistic system in the medieval Europe, a warrior class existed bound by fealty to a warlord.
This class lived on the labor of the serfs and slaves but in exchange, this warrior class protected
them and exercised a ready though rough kind of justice.
Within the Filipino social structure, the datus (chiefs) comprised the nobility (maharlikas). Then
there are the timawas (freemen), followed by the aliping namamahay (serfs) and aliping
saguiguilid (slaves).
The freeborn did not pay tributes or taxes to the datu, but were bound to follow him to war. They
provided their own weapons and gears, manned the cars when they set sail, built their houses,
and planted their rice fields.
The serfs served his master or lord, who may be a datu or someone else who is a maharlika,
and tilled his land. Both master and serfs equally divided the produce of the land. They had
houses of their own, maintained private property, and passed these on to their children as
legacy. They were also allowed the free disposal of their chattels (movable personal properties)
and their lands. The serfs corresponded to the aparceros (tenants) of the late 19th century
Spanish era. The slaves served the lord or master in both his house and farm. They were
allowed some share of the harvest, but they were their master’s property. Thus they could be
sold, particularly those captured in wars, or born and reared as farm hands. In the subsistence
economy of the early Filipinos, money was unknown, and rice served as the medium of
exchange.

Spanish Era (1565-1898)

During the Spanish colonial period, lands were divided and granted to encourage Spanish
settlers or reward soldiers who served the Crown. These were called encomiendas. The
conditions of this grant state that the encomendero must defend his encomienda from external
attack, maintain peace and order within, and support the missionaries. In consideration of these
services, the encomendero acquired the right to collect tribute from the indios (natives) in the
amount and form determined by the royal government.
The encomienda system was originally established more for the benefit of the natives than of
the encomenderos. Thus the latter could not be called lords because they were considered
protectors, advocates and tutors of the natives. The system, however, degenerated into abuse
of power by the encomenderos. The tributes they were authorized to collect soon became land
rents, and the people living within the boundaries of the encomienda became tenants. The
encomenderos became the first group of hacenderos in the country. Meanwhile, the colonial
government took the place of the datus. The datu was now called cabeza de barangay, but it
was the proprietors of the estates who held the real power in the barangay or community.
There were four classes of estate proprietors in the Philippines during the Spanish period: first,
the religious orders Dominican and Augustinian; second, the Spanish peninsulares; third, the
criollos and mestizos; and lastly, the native principales.
The Dominican friars leased their lands to both the natives and mestizos, who became known
as inquilinos. Each inquilino paid a fixed ground rent for the area he cultivated, and the estate
owner was not allowed to lease the land to others unless the incumbent leaseholder failed to
pay the rent for two consecutive years.
However, the inquilinos abused this policy by disposing off the lands as if they owned them.
They sold their interest in them or mortgaged to wealthy takers, or sub-leased them at rents
higher than what they themselves paid. Thus by being inquilinos, they earned more than the
estate owners without doing virtually any work.
This became the root of a system in which native agricultural entrepreneurs that tilled and
cleared the land with the aid of tenants whom they hired on a sharecropping basis had to lease
the land. In time, the system evolved a set of practices that soon began to exploit the tenant
tillers.
Although Spanish authorities were aware of these pernicious practices, no effective measures
were made in spite of two royal decrees issued in 1880 and 1184 urging landholde rs to secure
titles. Under these decrees, the government granted a term of one year within which claims for
free titles were to be filed. But because the large majority of peasants either did not understand
the law or found the procedure too complicated and alien to tradition, only a few took advantage
of the offer.
Those few were mostly of the cacique class, who claimed more lands than they actually had a
right to. As a result, the actual tillers were driven out of their land or forced to become tenants of
the caciques.
Spanish land practices came to a halt with the outbreak of the Philippine Revolution when
Spanish land owners started to sell off their lands as brought about by the power shift in
government where Spain was on a losing side against the Filipinos who had declared their
independence in 1898 and the Americans who were insisting to stay.

First Philippine Republic (1899-1901)

Immediately after the establishment of the First Republic of the Philippines on January of 1899,
the government of President Emilio Aguinaldo declared its intention to confiscate large estates,
especially the so-called Friar Lands.
The declaration was contained in the Malolos Constitution: “All the lands, buildings, and other
properties belonging to the religious corporations in these islands shall be understood to have
been restored to the Filipino state.” However, as the Republic was short-lived, Aguinaldo’s plan
was never implemented.

American Regime (1901-1935)

During the American era, several laws were passed to regulate and improve land tenure.
Among the significant legislative pieces:
1. Philippine Bill of 1902 – imposed specific conditions on the disposition of public lands 2.
Land Registration Act of 1902 (Act No. 496) – provided for a comprehensive registration of
land titles under the Torrens system
3. Rice Share Tenancy Act of 1933 (Act No. 4054) – regulated relationships between
landowners and tenants of rice lands
4. Tenancy Act of 1933 (Act No. 4113) – regulated relationships between landowners and
tenants of sugar cane fields

At the start of the American era, some 400,000 native farmers were without titles because of the
defective land system rooted in Spanish institutions, and of the farmers’ ignorance of various
laws. The situation was aggravated by the absence of records of issued titles and accurate land
surveys. Land disputes began and agrarian troubles worsened.
To remedy the problem, the Americans introduced the Torrens system of land registration
whereby government-purchased titles were granted only after the completion of a survey and
land ownership had been proven in court. This, however, did not solve the problem completely.
As with the Spanish system, the majority of farmers did not avail of the government’s offer.
Either they were not aware of the law or if they did, they could not pay the survey cost and other
fees required in applying for a Torrens title.
As for the Friar Lands, even American authorities could not touch them as these were covered
by valid land titles issued during the Spanish era. Furthermore, the Treaty of Paris of 1898
bound the U.S. government to protect the property interests of religious orders. The best
solution offered for such condition was the outright purchase of the lands. By 1919, about 69
percent of all Friar Lands had been bought and disposed of by the U.S. Civil Government of
the Philippines.
Commonwealth Period (1935-1946)

Manuel Quezon (1935-1944)

By the time the Commonwealth was established under Manuel L. Quezon, the malingering
problem of land tenure relationships had already given cause to armed discontent among
oppressed tenants of estates. Pedro Calosa spearheaded the so-called Colorum Revolt in
Tayug, Pangasinan in 1931 and four years later, Benigno Ramos mounted the Sakdal Revolt in
Cabuyao, Laguna.
In response to the spreading unrest, Quezon championed the tenants’ plight and faced the
agrarian crisis squarely by implementing a program of social justice.
During his administration, Quezon improved and strengthened existing laws on land tenure by
giving more freedom to landowners and tenants to enter into tenancy contracts not contrary to
laws, morals and public policy. These laws likewise provided for the compulsory arbitration of
agrarian conflicts, and suspend any action to eject tenants from the land they till and live in.
Dictated by Quezon’s social justice program, the expropriation of landed estates and other big
landholdings was started.
Another key policy was the orderly settlement of virgin public agricultural lands, with focus on
Mindanao under the National Land Settlement Administration.
The Quezon administration began under the 1935 Constitution which declares, “The promotion
of social justice to ensure the well-being and economic security of all people should be the
concern of the State.”
In 1933, the Republic Act No. 4054 or the Rice Share Tenancy Act was passed. The act
provided for a 50-50 sharing arrangement between landowners and tenants.

The Third Republic

The following are the accomplishments in land and agrarian reform of the administrations under
the Third Republic.

Manuel Roxas (1946-1948)

Republic Act No. 34 – Amends RA 4054; established a 70-30 sharing arrangement between
tenant and landlord. It provided that whoever shouldered the expenses of planting and
harvesting and provided the work animals would be entitled to 70 percent of the harvest. It
also
reduced the interest on landowner loans to tenant at no more than 6 percent instead of 10
percent.

Elpidio Quirino (1948-1953)

Executive Order No. 355 – Replaced the National Land Settlement Administration with Land
Settlement Development Corporation (LASEDECO), which took over the responsibilities of the
Agricultural Machinery Equipment Corporation and the Rice and Corn Production
Administration.

Ramon Magsaysay (1953-1957)

Under the Magsaysay administration, the following were accomplished:

● Republic Act No. 1166 – Creation of National Resettlement and Rehabilitation
Administration (NARRA). It was particularly aimed at the peasant of the HUK movement
and was successful in attracting rebels to return back to a peaceful life by giving them
home lots and farms in NARRA settlement in Palawan and some parts of Mindanao.
● Republic Act No. 1199 – Agricultural Tenancy Act provided security of tenure for tenants.
It also granted tenants the choice of shifting from share tenancy to leasehold. It also
created the Courts of Agrarian Relations.
● Republic Act No. 1400 – Land Reform Act provided for the acquisition of large tenanted
rice and corn lands over 200 hectares if owned by individuals; 600 hectares if owned by
corporations.

Diosdado Macapagal (1961-1965)

Under the Macapagal administration, the Republic Act No. 3844, otherwise known as the,
Agricultural Land Reform Code was enacted. It abolished share tenancy; institutionalized
leasehold; invested rights of preemption and redemption for tenant farmers; provided for
administrative machinery for implementation; institutionalized a judicial system of agrarian
cases; incorporated extension, marketing and supervised credit system of services to farmer
beneficiaries.

Martial Law and the Fourth Republic

Ferdinand Marcos (1965-1986)

Under the Marcos administration, the following were accomplished:

● Republic Act No. 6389 – Instituted Code of Agrarian Reform and created the Department
of Agrarian Reform
● Presidential Decree No. 2 – Placed the whole country under the land reform program ●
Presidential Decree No. 27 – Restricted land reform scope to tenanted rice and corn
lands

Presidential Decree (P.D.) 27

On October 21, 1972, a month after the proclamation of martial law, President Marcos issued
P.D. 27 with the main goal of emancipating farmers from the bondage of the soil. To the decree,
there is no more leasehold in tenanted rice and corn land. The tiller automatically becomes the
amortizing owner of the land he tills.

Two Aspects of Land Distribution

1. Determination of the land to be transferred – Rice and corn areas were selected because
they were the areas of urgent reforms because of social unrest associated with rice tenancy.
2. Financing – The - decree solved the problem of financing by fixing the value of land at a
relatively modest rate, and directing compensation that may be paid directly by the tiller to the
landowner or converted into three-way arrangement.Coverage of P.D. 27

All private tenanted agricultural land devoted to rice and corn in excess of seven (7) hectares.
Priorities of coverage shall be:
1. Larger than 24 hectares
2. Less than 24 but not below 12 hectares
3. 12 hectares less retention limit

Beneficiaries of P.D. 27
Bonafide tenant farmer of private agricultural land devoted to rice and corn are benefited with an
economic size farm fixed at three (3) hectares of irrigated lands and maximum of five (5)
hectares for non-irrigated.

Retention Limit of P.D. 27

Landowners may retain an area not more than seven (7) hectares, on conditions that each
landowner is cultivating such area.

Letter of Instruction 143 (October 31, 1973) compels landowner to transfer to their tenant, if
determined by DAR to be absentee-farmer, with sources of income other than their holdings.

Letter of Instruction 474 (October 21, 1976) provides that tenanted areas of seven (7) hectares
or less could be placed under P.D. 27, if the owner own other agricultural lands not devoted to
rice and corn, or other lands used for residential, industrial, or other urban purposes from which
they receive adequate income to support themselves and their families.

The Fifth Republic

Corazon Aquino (1986-1992)

The achievements of the Cory Aquino administration on agrarian reform: ● 1987

Constitution (Art. II, Sec. 21) – “The State shall promote comprehensive rural
development and agrarian reform.”
● Proclamation No. 131 – Institutionalized the Comprehensive Agrarian Reform Program
(CARP) and Agrarian Reform Fund (ARF). It covers all agricultural lands regardless of
tenurial arrangement and commodity produced, all public and private agricultural lands
and other lands of public domain suitable to agriculture.
● Executive Order No. 129-A – Reorganized, streamlined and expanded power and
 operation of DAR. Executive Order No. 228 – Declared full ownership to qualified
farmer-beneficiaries covered by P.D. 27. It also provided for the manner of payment by
the farmer beneficiary and mode of compensation to the landowners.
● Executive Order No. 229 – Provided mechanism for the implementation of CARP such
as administrative procedures and mechanics for land registration, private land
acquisition, and mode of compensation to the landowners.
● Republic Act No. 6657 – Comprehensive Agrarian Reform Law. It is an act instituting a
comprehensive agrarian reform program to promote social justice and industrialization
providing the mechanism for its implementation and for other purposes.

Republic Act (R.A.) 6657

Accordingly, the centerpiece of the Cory Aquino administration was the launching of the
Comprehensive Agrarian Reform Program by virtue of Proclamation 131 and Executive Order
229 which was signed by President Cory Aquino on July 22, 1987. The latter provided the
mechanism needed initially to implement the CARP.
The implementation of the CARP is supported into law by the enactment of Republic Act 6657
otherwise known as the “Comprehensive Agrarian Reform Law” which was signed by President
Aquino on June 10, 1988; thus all matters involving the implementation of agrarian reform are
nor governed by the said act.
Existing laws such as R.A. 3844 as amended, P.D. 27, and other laws consistent with the
Act shall have only suppletory effect.
Executive Order No. 129-A provided for the strengthening of the DAR as the lead agency
responsible for the implementation of CARP.
The Comprehensive Agrarian Reform Law otherwise known as RA 6657 emerged nearly after a
year of debates, pressure demonstrations and deadlocks between interest groups. President
Aquino signed it on June 10, 1988 and it became effective on June 15, 1988. Since then,
various measures were adopted to facilitate CARP implementation such as the formulation of
implementing guidelines, institutionalization of implementing and coordinating mechanisms,
information dissemination and initial registration of lands, landowners and farmer beneficiaries.
To strengthen CARP and speed up its implementation, President Aquino issued in June 1990
three key executive orders namely:
1. Executive Order No. 405 – vested in the Land Bank of the Philippines the primary
responsibility for land valuation.
2. Executive Order No. 406 – emphasized that CARP is central to the government’s efforts to
hasten countryside agro-industrial development and directed the implementing agencies to
align
their respective programs and projects with the CARP; created CARP implementing teams from
the national to the municipal levels; and, identified and gave priority to 24 Strategic Operating
Provinces (SOP) where the bulk of CARP workload lies, without prejudice to the program
implementation in the other provinces of the country.
3. Executive Order No. 407 – directed all government instrumentalities, including financial
institutions and corporations, to turn over to DAR all lands suitable for agriculture for coverage
under CARP. Furthermore, the 1987 Constitution, which was ratified on February 2, 1987,
contains several provisions directly dealing with agrarian reform.

WEEKS 14-15: THE HISTORICAL BACKGROUND OF

PHILIPPINE GOVERNMENT A. What is a Constitution?

A Constitution is a body of fundamental rules and maxims by which the powers of government
are defined by the sovereign and in accordance with which those powers are habitually
exercised. It is the supreme, fundamental law of the land.

HISTORY OF PHILIPPINE CONSTITUTIONS

A. Constitution of Biak-na-Bato (1897)

The Katipunan revolution led to the Tejeros Convention where, at San Francisco de Malabón,
Cavite, on 22 March 1897, the first presidential and vice-presidential elections in Philippine
history were held—although only the Katipuneros (members of the Katipunan) were able to
take part, and not the general populace.

A later meeting of the revolutionary government established there, held on 1 November 1897
at Biak-na-Bato in the town of San Miguel de Mayumo in Bulacán, established the Republic of
Biak-na-Bato. The republic had a constitution drafted by Isabelo Artacho and Félix Ferrer and
based on the first Cuban Constitution.

Malolos Constitution (1899)

The Malolos Constitution was the first republican constitution in Asia. It declared that
sovereignty resides exclusively in the people, stated basic civil rights, separated the church
and state, and called for the creation of an Assembly of Representatives to act as the
legislative body. It also called for a Presidential form of government with the president elected
for a term of four years by a majority of the Assembly.
B. Commonwealth and Third Republic (1935)

The 1935 Constitution was written in 1934, approved and adopted by the Commonwealth of
the Philippines (1935–1946) and later used by the Third Republic of the Philippines
(1946–1972). It was written with an eye to meeting the approval of the United States
Government as well, so as to ensure that the U.S. would live up to its promise to grant the
Philippines independence and not have a premise to hold onto its "possession" on the
grounds that it was too politically immature and hence unready for full, real independence.

The original 1935 Constitution provided for unicameral National Assembly and the President
was elected to a six-year term without re-election. It was amended in 1940 to have a
bicameral Congress composed of a Senate and House of Representatives, as well the
creation of an independent electoral commission. The Constitution now granted the President
a four-year term with a maximum of two consecutive terms in office.

A Constitutional Convention was held in 1971 to rewrite the 1935 Constitution. The convention
was stained with manifest bribery and corruption. Possibly the most controversial issue was
removing the presidential term limit so that Ferdinand E. Marcos could seek election for a
third term, which many felt was the true reason for which the convention was called. In any
case, the 1935 Constitution was suspended in 1972 with Marcos' proclamation of martial law,
the rampant corruption of the constitutional process providing him with one of his major
premises for doing so.

C. Second Republic (1943)

The 1943 Constitution was drafted by a committee appointed by the Philippine Executive
Commission, the body established by the Japanese to administer the Philippines in lieu of the
Commonwealth of the Philippines which had established a government-in-exile.

The Preparatory Committee for Philippine Independence tasked with drafting a new
constitution was composed in large part, of members of the prewar National Assembly and of
individuals with experience as delegates to the convention that had drafted the 1935
Constitution.

Upon approval of the draft by the Committee, the new charter was ratified in 1943 by an
assembly of appointed, provincial representatives of the KALIBAPI, the organization
established by the Japanese to supplant all previous political parties. Upon ratification by the
KALIBAPI assembly, the Second Republic was formally proclaimed (1943–1945). José P.
Laurel was appointed as President by the National Assembly and inaugurated into office in
October 1943. Laurel was highly regarded by the Japanese for having openly criticized the US
for the way they ran the Philippines.
The 1943 Constitution remained in force in Japanese-controlled areas of the Philippines, but
was never recognized as legitimate or binding by the governments of the United States or of
the Commonwealth of the Philippines and guerrilla organizations loyal to them. His
government in turn went into exile in December, 1944, first to Taiwan and then Japan. After
the announcement of Japan's surrender, Laurel formally proclaimed the Second Republic as
dissolved.

D. The New Society and the Fourth Republic (1973)

The 1973 Constitution, promulgated after Marcos' declaration of martial law, was supposed to
introduce a parliamentary-style government. Legislative power was vested in a National
Assembly whose members were elected for six-year terms. The President was ideally
supposed to be elected as the symbolic and purely ceremonial head of state from the
Members of the National Assembly for a six-year term and could be re-elected to an unlimited
number of terms. Upon election, the President ceased to be a member of the National
Assembly.

During his term, the President was not allowed to be a member of a political party or hold any
other office. Executive power was meant to be exercised by the Prime Minister who was also
elected from the Members of the National Assembly. The Prime Minister was the head of
government and Commander-in-Chief of the armed forces. This constitution was
subsequently amended four times.

On 16–17 October 1976, a majority of barangay voters (Citizen Assemblies) approved that
martial law should be continued and ratified the amendments to the Constitution proposed by
President Marcos.

The 1976 amendments were:

❖ an Interim Batasang Pambansa (IBP) substituting for the Interim National Assembly

❖ the President would also become the Prime Minister and he would continue to exercise
legislative powers until martial law should have been lifted.

The Sixth Amendment authorized the President to legislate:

Whenever in the judgment of the President there exists a grave emergency or a threat or
imminence thereof, or whenever the Interim Batasang Pambansa or the regular National
Assembly fails or is unable to act adequately on any matter for any reason that in his
judgment requires immediate action, he may, in order to meet the exigency, issue the
necessary decrees, orders or letters of instructions, which shall form part of the law of the
land.

The 1973 Constitution was further amended in 1980 and 1981. In the 1981 amendments, the
false parliamentary system was formally modified into a French-style semi-presidential
system:

❖ executive power was restored to the President;

❖ direct election of the President was restored;
❖ an Executive Committee composed of the Prime Minister and not more than fourteen
members was created to "assist the President in the exercise of his powers and
 functions and in the performance of his duties as he may prescribe;" and the Prime
Minister was a mere head of the Cabinet.
❖ Further, the amendments instituted electoral reforms and provided that a natural born
citizen of the Philippines who has lost his citizenship may be a transferee of private
land for use by him as his residence.

In actual practice, while the 1973 Constitution was ideally supposed to set up a true
parliamentary system, the late President Marcos had made use of subterfuge and
manipulation in order to keep executive power for himself, rather than devolving executive
powers to the Parliament, as headed by the Prime Minister.

The end result was that the 1973 Constitution - due to all amendments and subtle
manipulations - was merely the abolition of the Senate and a series of cosmetic text-changes
where the old American-derived terminologies such House of Representatives became known
as the "Batasang Pambansa" (National Assembly), Departments became known as
"Ministries", cabinet secretaries became known as "cabinet ministers", and the President's
assistant - the Executive Secretary - became known as the "Prime Minister."

E. "The 1986 Freedom Constitution"

Following the EDSA People Power Revolution that removed President Ferdinand E. Marcos
from office, the new President, Corazon C. Aquino issued Proclamation No. 3 as a provisional
constitution. It adopted certain provisions from the 1973 Constitution and granted the
President broad powers to reorganize this government
and remove officials from office, and mandated that the president would appoint a commission
to draft a new constitution.

Background of the 1987 Constitution

In 1986, following the People Power Revolution which ousted Ferdinand E. Marcos as
president, and following on her own inauguration, Corazon C. Aquino issued Proclamation
No. 3, declaring a national policy to implement the reforms mandated by the people,
protecting their basic rights, adopting a provisional constitution, and providing for an orderly
translation to a government under a new constitution. President Aquino later issued
Proclamation No. 9, creating a Constitutional Commission to frame a new constitution to
replace the 1973 Constitution which took effect during the Marcos martial law regime. Aquino
appointed 50 members to the Commission.

The members of the Commission were drawn from varied backgrounds, including several
former congressmen, a former Supreme Court Chief Justice (Roberto Concepción), a Catholic
bishop (Teodoro Bacani) and film director (Lino Brocka). Aquino also deliberately appointed 5
members. After the Commission had convened, it elected as its president Cecilia
Muñoz-Palma, who had emerged as a leading figure in the anti-Marcos opposition following
her retirement as the first female Associate Justice of the Supreme Court.

The Commission finished the draft charter within four months after it was convened. Several
issues were heatedly debated during the sessions, including on the form of government to
adopt, the abolition of the death penalty, the continued retention of the Clark and Subic
American military bases, and the integration of economic policies into the Constitution.

The ConCom completed their task on 12 October 1986 and presented the draft constitution to
President Aquino on October 15, 1986. After a period of nationwide information campaign, a
plebiscite for its ratification was held on February 2, 1987. More than three-fourths of all votes
cast, 76.37% (or 17,059,495 voters) favored ratification as against 22.65% (or 5,058,714
voters) who voted against ratification. On 11 February 1987, the new constitution was
proclaimed ratified and took effect.

F. Significant Features of the 1987 Constitution

The Constitution establishes the Philippines as a "democratic and republican State", where
"sovereignty resides in the people and all government authority emanates from them"
(Section 1, Article II).

Consistent with the doctrine of separation of powers, the powers of the national government
are exercised in main by three branches — the Executive branch headed by the President,
the Legislative branch composed of Congress and the Judicial branch with the Supreme
Court occupying the highest tier of the judiciary.

The President and the members of Congress are directly elected by the people, while the
members of the Supreme Court are appointed by the President from a list formed by the
Judicial and Bar Council.

As with the American system of government, it is Congress which enacts the laws, subject to
the veto power of the President which may nonetheless be overturned by a two-thirds vote of
Congress (Section 27(1), Article VI).

The President has the constitutional duty to ensure the faithful execution of the laws (Section
17, Article VII), while the courts are expressly granted the power of judicial review (Section 1,
Article VIII), including the power to nullify or interpret laws. The President is also recognized
as the commander-in-chief of the armed forces (Section 18, Article VII).

The Constitution also establishes limited political autonomy to the local government units that
act as the municipal governments for provinces, cities, municipalities, and barangays.
(Section 1, Article X) Local governments are generally considered as falling under the
executive branch, yet local legislation requires enactment by duly elected local legislative
bodies.

The Supreme Court has noted that the Bill of Rights "occupies a position of primacy in the
fundamental law". Many of these guarantees are similar to those provided in the American
constitution and other democratic constitutions. The scope and limitations to these rights have
largely been determined by Philippine Supreme Court decisions.
Whether these provisions may, by themselves, be the source of enforceable rights without
accompanying legislation has been the subject of considerable debate in the legal sphere and
within the Supreme Court. The Court, for example, has ruled that a provision requiring that
the State "guarantee equal access to opportunities to
public service" could not be enforced without accompanying legislation, and thus could not bar
the disallowance of so-called "nuisance candidates" in presidential elections.

∙ PREAMBLE
We, the sovereign Filipino people, imploring the aid of Almighty God, in order to build a just and humane
society and establish a Government that shall embody our ideals and aspirations, promote the common
good, conserve and develop our patrimony, and secure to ourselves and our posterity the blessings of
independence and democracy under the rule of law and a regime of truth, justice, freedom, love, equality,
and peace, do ordain and promulgate this Constitution.

ARTICLE II: DECLARATION OF PRINCIPLES AND STATE POLICIES

PRINCIPLES

SECTION 1. The Philippines is a democratic and republican State. Sovereignty resides

in the people and all government authority emanates from them.
Explanation:
❖ The Philippines, is a democratic and republican state.
a) A republican government is a democratic government by representatives chosen by the
people at large. The essence therefore, of a republican state is indirect rule.
b) It embodies some features of a pure or direct democracy such as initiative,
referendum, and recall. ❖ Manifestations of a democratic and republican state:
a) The existence of a bill of right;
a) The observance of the rule of majority;
b) The observance of the principle that ours is a government of laws, and not of men;
c) The presence of election through popular will;
d) The observance of the principle of separation of powers and the system of
checks and balances; e) The observance of the principle that the legislation
cannot pass irrepealable laws;
f) The observance of the law on public officers;
❖ Sovereignty implies the supreme authority to govern, thus the Filipino people, being
sovereign people have the right to constitute their own government, to change it, and
define its jurisdiction and powers.
SECTION 2. The Philippines renounces war as an instrument of national policy, adopts
the generally accepted principles of international law as part of the law of the land and
adheres to the policy of peace, equality, justice, freedom, cooperation, and amity with
all nations.
Explanation:
❖ The declaration refers only to the renunciation by the Philippines of aggressive war, not a
war in defense of her national honor and integrity. Thus, when provoked and attacked the
Philippines can retaliate and engage into war.
❖ The doctrine of incorporation is the automatic adoption of international law as part of the
law of the Philippines.
❖ The Philippines seeks only peace and friendship with her neighbors and all countries of the
world, regardless of race, creed, ideology, and political system, on the basis of mutual
trust, respect, and cooperation. SECTION 3. Civilian authority is, at all times, supreme
over the military. The Armed Forces of the Philippines is the protector of the people
and the State. Its goal is to secure the sovereignty of the State and the integrity of
the national territory.
Explanation:
Supremacy of civilian authority over the military is -
❖ Inherent in a republican system. As a republican government, it is that civilian authority is
above the military and is internationally recognized. This is a traditionally accepted
principle as one of the separation of powers which is significant during periods of martial
law or suspension of the writ of habeas corpus. (Article III, Sec. 15; Art. VII, Sec. 18)
❖ It is a safeguard against military dictatorship. To safeguard the abuses of the military civilian
government like the republican and democratic government has the authority to appoint
and control the military, like the President who is the Commander-In-Chief of the Armed
Forces of the Philippines.
SECTION 4. The prime duty of the Government is to serve and protect the people. The
Government may call upon the people to defend the State and, in the fulfillment
thereof, all citizens may be required, under conditions provided by law, to render
personal military or civil service.
❖ Prime duty of the Government
Defense of the State by the people against foreign aggression …the government may call
upon the people to defend the State. For self-preservation and to defend its territorial honor
and integrity, the Philippines can engage in a defensive war.
Military and civil service by the people
1. Defense of State performed through an army. The joint obligations of the government
and the people cannot be performed without an army. It is apparently clear that an
army should be organized, thus, military and civil service.
2. Compulsory. Compulsory is the compulsion of citizens to render military, or civil service.
Any citizen recruits cannot refuse to render military or civil service according to law.
3. Personal. Personal means rendering of service not through another.
4. By Law. This point to preventive arbitrariness on the part of public officials to render
military or civil service.
SECTION 5. The maintenance of peace and order, the protection of life, liberty, and
property, and the promotion of the general welfare are essential for the enjoyment by
all the people of the blessings of democracy.
SECTION 6. The separation of Church and State shall be inviolable.
Under ART. II, Sec. 6 of the Philippine Constitution, “The separation of Church and State shall
be inviolable.”

Principle of separation of the Church and State. - The principle simply means that the
Church is not to interfere in purely political matters or temporal aspects of man’s life and the
State, in purely matters of religion and morals, which are the exclusive concerns of the other.

• The State shall have no official religion; The State cannot set up a church, whether or not
supported with funds; nor aid one religion, aid all religions, or prefer one religion over
another; Every person is free to profess belief or disbelief in any religion;
• Meaning of “establishment of religion clause. - Every religious minister is free to practice
his calling; and the State cannot punish a person for entertaining or professing religious
beliefs or disbeliefs. Preamble – The command that Church and State be separate is not
to be interpreted to mean hostility to religion.
• Respect of religion. - Our Constitution and laws exempt from taxation, properties devoted
exclusively to religious purposes; No hostility towards religion.
• The use of public money or property is not prohibited when a priest, preacher, minister, or
dignitary as such is assigned to the armed forces, or to any penal institution, or
government orphanage or leprosarium; Thursday and Friday of Holy Week, Christmas
Day and Sundays are made legal holidays because of the idea that their observance is
conducive to beneficial moral results; and the law punishes polygamy and bigamy, and
certain crimes against worship are considered crimes against the fundamental laws of
the State.

SECTION 7. The State shall pursue an independent foreign policy. In its relations with
other states the paramount consideration shall be national sovereignty, territorial
integrity, national interest, and the right to self-determination.

Explanation:
❖ Foreign policy is a set of guidelines followed by a government of a country in order to
promote its national interest through the conduct of its relations with other countries.
❖ Foreign policy therefore is an instrument of domestic policy. As constituted in our
constitution, the State has to pursue an independent foreign policy, but limits its
dependency from another.
❖ Formulation and conduct of foreign policy. - The president formulates our foreign policy
principally with the help of the Department of Foreign Affairs.
❖ Pursuit of an independent foreign policy. - An independent foreign policy means one that is
 not subordinate or subject to nor dependent upon the support of another government. In
general, our basic foreign policy objective is to establish friendly relations with all countries
of the world regardless of race, religion, ideology
and social system and to promote as much beneficial relationship with them particularly in
economic and trade activities.
❖ Paramount consideration. - In its relations with other states, the paramount consideration of
the Philippines shall be national sovereignty, territorial integrity, national interest, and the right
to self-determination.

SECTION 8. The Philippines, consistent with the national interest, adopts and pursues a
policy of freedom from nuclear weapons in its territory.

Explanation:
❖ The Philippines, as a ratifier to the Biological Weapons Convention, bans all production and
import of biological weapons in the country. It also signed the Southeast Asian
Nuclear-Weapon-Free Zone Treaty, thus promoting a nuclear-weapons-free Southeast
Asia.

SECTION 9. The State shall promote a just and dynamic social order that will ensure the
prosperity and independence of the nation and free the people from poverty through
policies that provide adequate social services, promote full employment, a rising
standard of living, and an improved quality of life for all.

Explanation:
❖ All the advanced countries that had achieved a developed status had undergone the same
process of economic development. The core of this process is the training, education and full
employment of its people. SECTION 10. The State shall promote social justice in all
phases of national development.

Explanation:
❖ In the fulfillment of this duty, the State must give preferential attention to the welfare of the
less fortunate members of the community, those who have less in life.

SECTION 11. The State values the dignity of every human person and guarantees full
respect for human rights.

Explanation:
❖ …the individual enjoys certain rights which cannot be modified or taken away by the
lawmaking body.” These rights are protected or guaranteed because of the belief in the
inherent dignity and basic moral worth of every human person.
SECTION 12. The State recognizes the sanctity of family life and shall protect and
strengthen the family as a basic autonomous social institution. It shall equally protect
the life of the mother and the life of the unborn from conception. The natural and
primary right and duty of parents in the rearing of the youth for civic efficiency and the
development of moral character shall receive the support of the Government.
Explanation:
❖ Right to life of unborn from conception. According to the Catholic Moral Code, the unborn
child is already considered a human being and subject to human rights. It is the obligation
of the State to protect the unborn child.
❖ This provision of the Constitution is a preventive measure of the possibility of abortion being
legalized by future legislation.
SECTION 13. The State recognizes the vital role of the youth in nation-building and shall
promote and protect their physical, moral, spiritual, intellectual, and social well-being.
It shall inculcate in the youth patriotism and nationalism, and encourage their
involvement in public and civic affairs.

Explanation:
❖ The youth as future leaders. - The youth are the backbones of the Philippine society and
comprise the great majority of our people and therefore is the concern of the State to
promote and protect their well-being. It could not be denied that today’s youth are more
informed and articulate and politically informed.

SECTION 14. The State recognizes the role of women in nation-building, and shall
ensure the fundamental equality before the law of women and men.

Explanation:
❖ Women participation in nation-building. - It is generally accepted that the role of women
both in business and politics cannot be over-emphasized. It must be recalled that Filipino
women during the past decades especially during the colonization days took active part in
nation-building, much more the current events that women played an important role in
politics.

SECTION 15. The State shall protect and promote the right to health of the people and
instill health consciousness among them.
Explanation:
❖ Right to health. - Since people are the basic social unit of government, it is the obligation of
the State to promote and protect the right of the people to health. Healthy people mean
productivity and consciousness to their participation in nation-building. (Article XIII, Secs.
11-13)

SECTION 16. The State shall protect and advance the right of the people to a balanced
and healthful ecology in accord with the rhythm and harmony of nature.

SECTION 17. The State shall give priority to education, science and technology, arts,
culture, and sports to foster patriotism and nationalism, accelerate social progress,
and promote total human liberation and development.

Explanation:
❖ Specially, the State shall protect and promote the right of all citizens to quality education at
all levels. ❖ Towards this end, the Constitution provides the exercise of academic freedom.
Academic Freedom, in Lovejoy’s Encyclopedia of Social Sciences, is the freedom of the
teacher or research worker in higher institutions of learning to investigate and discuss the
problem of his science and to express his conclusions, whether through publication or in the
instruction of students, without interference from political or ecclesiastical authority, or from
administrative officials of the institution in which he is employed, unless his methods are
found by qualified bodies of his profession to be clearly incompetent or contrary to
professional duties.

SECTION 18. The State affirms labor as a primary social economic force. It shall protect
the rights of workers and promote their welfare.

Explanation:
❖ The State shall afford full protection to labor, local, and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for
all. It shall guarantee the rights of all workers to self-organization, and peaceful concerted
activities, including the right to strike in accordance with law. They shall be entitled to
security of tenure, humane condition of work, and a living wage. They shall also participate
in policy and decision-making processes affecting their rights and benefits as may be
provided by law.
❖ The State shall regulate the relations between workers and employers, recognizing the right
to labor to its just share in the fruits of production and the right to enterprises to
reasonable returns of investments and to expansion and growth.
SECTION 19. The State shall develop a self-reliant and independent national economy
effectively controlled by Filipinos.

Explanation:
❖ Economic development is the ultimate goal of the State. - In the declaration, Section 19
outlines the constitutional guidelines in the development of the economy as a policy in
order to achieve economic self reliance, independent national economy and effective
Filipino control of the economy. (Article XII, National Economy and Patrimony, Sec. 1)

SECTION 20. The State recognizes the indispensable role of the private sector,
encourages private enterprise, and provides incentives to needed investments.

Explanation:
❖ The Public-Private Partnership (PPP) can be broadly defined as a contractual agreement
between the Government and a private firm targeted towards financing, designing,
implementing and operating infrastructure facilities and services that were traditionally
provided by the public sector. It embodies optimal risk allocation between the parties –
minimizing cost while realizing project developmental objectives.

❖ PPP offers monetary and non-monetary advantages for the public sector. It addresses the
limited funding resources for local infrastructure or development projects of the public
sector thereby allowing the allocation of public funds for other local priorities. PPP is
geared for both sectors to gain improved efficiency and project implementation processes
in delivering services to the public.
SECTION 21. The State shall promote comprehensive rural development and agrarian
reform.

Explanation:
❖ This is the Constitutional basis of the present Agrarian Reform Program started by former
Pres. Corazon Aquino known as CARP (Comprehensive Agrarian Reform Program)
aimed at promoting “social justice and industrialization.”
SECTION 22. The State recognizes and promotes the rights of indigenous cultural
communities within the framework of national unity and development.

Explanation:
❖ “Cultural minorities” refers to that groups of Filipinos with cultural inferiority. This is so
because these groups had shied away from civilization of Philippine society.

SECTION 23. The State shall encourage non-governmental, community-based, or

sectoral organizations that promote the welfare of the nation.

Explanation:
❖ NGO activities include, but are not limited to, environmental, social, advocacy and human
rights work. They can work to promote social or political change on a broad scale or very
locally. NGOs play a critical part in developing society, improving communities, and
promoting citizen participation.

SECTION 24. The State recognizes the vital role of communication and information in
nation-building.

Explanation:
❖ A national policy on information and communication for development provides a necessary
conceptual and institutional framework for the coordination and integration of technical
and social interventions undertaken by institutions ranging from agricultural extension to
education and health ministries, from NGOs such as women’s resource groups and
human rights activists, to private sector interests such as chambers of commerce or
banks.
❖ An approach that considers information and communication as a «sector» for development
planning would also help to rationalize investments as well as provide a basis for
integrating information and communication interventions within national development
strategies.

SECTION 25. The State shall ensure the autonomy of local governments.

Explanation:
❖ Pursuant thereto, Congress enacted RA 7160,[227] otherwise known as the "Local
Government Code of 1991" (LGC), wherein the policy on local autonomy had been more
specifically explicated as follows: ❖ Sec. 2. Declaration of Policy. – (a) It is hereby declared
the policy of the State that the territorial and political subdivisions of the State shall enjoy
genuine and meaningful local autonomy to enable them to attain their fullest development as
 self-reliant communities and make them more effective partners in the attainment of national
goals. Toward this end, the State shall provide for a more responsive and accountable local
government structure instituted through a system of decentralization whereby local
government units shall be given more powers, authority, responsibilities, and resources. The
process of decentralization shall proceed from the National Government to the local
government units.
❖ (c) It is likewise the policy of the State to require all national agencies and offices to conduct
periodic consultations with appropriate local government units, nongovernmental and
people‘s organizations, and other concerned sectors of the community before any project
or program is implemented in their respective jurisdictions. (Emphases and underscoring
supplied)

SECTION 26. The State shall guarantee equal access to opportunities for public service,
and prohibit political dynasties as may be defined by law.

Explanation:
❖ In a democratic system of government, it is a constitutional policy that prohibits political
dynasties. This is so because when political dynasties exist there is no equal access to
opportunities for public service.

SECTION 27. The State shall maintain honesty and integrity in the public service and
take positive and effective measures against graft and corruption.

Explanation:

SECTION 28. Subject to reasonable conditions prescribed by law, the State adopts and
implements a policy of full public disclosure of all its transactions involving public
interest.
Explanation:
❖ The essence of democratic system of government is that the people have the right to
examine all government transactions. In a society like ours, where democratic principles
are adhered to all transactions by the government which involve public interest must be
publicly presented and discussed to the Filipino people.

4.3. Taxation: The Fundamentals of Taxation and Some Features of the TRAIN

Law Fundamentals of Taxation

The beginning of the idea of taxation cannot be dated in the continuum of our history. It came
as a matter of survival for the government. The development of tax law as a comprehensive
and general system is a recent phenomenon resulting from the evolution of taxes and
increasing state-economy relationship. A tax law is a body of rules passed by the legislature
by virtue of which the government acquires a claim or property as a matter of legal duty or
obligation by operation of law.
Taxation may be defined then, as the power of the sovereign to impose burden or charges
upon persons, property or property rights for the use and support of government in order to
enabl e it to discharge its function

Nature of Taxation Power

The power of taxation is both inherent and legislative in character because it has been
reserved by the State for it to exercise. It is an essential and inherent attribute of sovereignty,
belonging as a matter if right to every independent government. The government possesses it
without being conferred by the people. The power is inherent because the sustenance of
government requires contribution from them.
The power of taxation is legislative in character because only the legislature can make tax
laws. It is an exercise of the high act of sovereignty to be performed only by the legislature
upon consideration of the policy, necessity and public welfare. Having the power to tax, it
must also possess the sole power to prescribe the means by which the tax shall be collected,
and designate the officers through whom it shall be enforced.

Purpose of Taxation

The primary purpose of taxation is to raise revenues for public needs so that the people may
be enabled to live in a civilized society. It also serves a variety of purpose. It may be
increased in order to stabilize prices and stimulate greater production; taxes on imports may
be increased to favor domestic production; or decrease to encourage foreign trade; it can
also mobilize capital to be poured into capital deficient fields of business.
Thus, taxation is an instrument of fiscal policy, and fiscal policy influences the direction
and structure of money supply, prices and of the national economy.

Basis of Taxation

The power of taxation originated from the theory that the existence of a government is a
necessity. No government, whether democratic or despotic, can exist without resources
to finance its operations. A true tax is an exaction for revenue that is for the support of
the government.

Inherent Limitations of the Power of Taxation

1. Limitation of public purpose – A tax is for public purposes where it is for the support of
the government, or any of the recognized objects of the government, or where it will
directly promote the welfare of the community in equal measure.
2. Limitation of territorial jurisdiction – The general rule is that sovereignty of a state extends
only as far as its territorial jurisdiction. It follows that its taxing power does not extend beyond
its territorial limits, but within its limit, it may tax persons, property, income or business. 3.
Limitation of double taxation – Double taxation may be understood as direct duplicate taxation
which means taxing twice by the same public authority for the same purpose during the taxing
period of some of the property in the territory in which the tax is paid without taking all of them
a second time.
4. Limitation of non-delegation of taxing power – The constitution provides that sovereignty
resides in the people and all government authority emanates from them. Under a republican
form of government, the people created a legislative department for the exercise of their
legislative power in the manner in which those rules shall be given effect. The power cannot
be delegated to the President and to local government. However, it may be delegated to the
municipal corporations which are the instrumentalities of the state for the better administration
of the government in matters of local concerns.
5. Limitation of exemption of government agency or instrumentality – The general rule is
that agencies and instrumentalities of the government are exempted from taxation. So,
properties owned by the Philippine government, any province, city, municipality, or
municipal districts are exempted from taxation. However, government entities performing
profit-making activities are not exempted from taxation.
Basic Principles of Taxation

1. Fiscal adequacy – emphasizes the source of revenue as a whole must be sufficient to

meet the expanding governmental expenses regardless of business conditions, export
taxes, trade balances, and problems of economic adjustments.
2. Equality or theoretical justice – refers to the use of revenues which must be believed
based on the taxpayer’s ability to pay.
3. Administrative feasibility – means that the tax system must be clear to the taxpayers, can
be enforced and is convenient and not burdensome or discouraging to a business activity.

Inherent Powers of the Government

1. Police Power – authority of the government to regulate the activities of an individual even
in the absence of law for the benefit and protection of public welfare.
2. Taxation – authority of the government to improve taxes, charges and fees from its
taxpayers under its sovereignty and/or territorial jurisdiction, to support its necessary
expenses. 3. Eminent Domain – authority of the government to expropriate private property
for public use upon payment of a just compensation.

A tax may be defined then, as a forced and involuntary burden assessed in accordance
with some reasonable rule of appointment by the authority of a sovereign government
upon the persons or properties within its jurisdiction, to provide public revenues for the
support of the government.
It proceeds upon the theory that the existence of the government is a necessity, that it
cannot continue to operate without the means to pay for its expenses, and for those means
has the right to compel all citizens and properties within its limit to contribute.

Essential Characteristics of Taxes

1. It is an enforced contribution
2. It is exacted pursuant to legislative authority
3. It is contribution in money
4. It is levied upon person, property and property rights
5. It is for the purpose of raising revenue
6. It must be for public purpose
7. It must be proportionate in character

Classification of Taxes
1. According to Purpose
a. Fiscal Taxes – designed to raise revenues for governmental needs.
Ex. Percentage tax on locally manufactured commodities
b. Regulatory Taxes – designed to achieve some social and economic goals
irrespective of whether revenue is actually raised or not.
Ex. protective tariff or custom duties
2. According to Object
a. Personal, Captivation or Poll Tax – imposed on individuals within the jurisdiction of
the taxing power, without regard to the amount of their property or occupation in which
they are engaged.
Ex. residence tax
b. Property Taxes – computed upon the valuation of property and assessed at
the owner’s domicile, although privileges may be included in the valuations
Ex. real estate tax
c. Excise Tax – imposed directly by the legislature and the sum is measured by
the amount of business done or the extent to which the privilege has been
enjoyed or exercised.
3. According to Subject
a. Direct Tax – when the person on whom the tax is imposed absorbs the tax or bears
it. Ex. income tax
b. Indirect Tax – charge paid by a person other than the one on whom it is
legally imposed.
Ex. value-added tax
4. According to determination of amount
a. Specific Tax – of fixed amount by the hear or member, or by some standards of
weight and measurement, and requires no assessment other than a listing or
classification of the subjects to be taxed
Ex. excise taxes on wines and liquors
b. Ad Valorem Tax – of fixed proportion, of the value of the property with respect to
which the taxes are assessed, and require the intervention of assessors to appraise
the value of such property before the amount due from each taxpayer can be
determined. Ex. real state tax, excise tax on cigars and cigarettes
5. According to authority imposing the tax
a. National Taxes –levied and collected by the national government
Ex. income tax
b. Municipal Tax – levied and collected by the municipal government
Ex. real state tax
6. According to rate
a. Proportional Tax – based on a fixed percentage regardless of the amount of
income, property or other bases to be taxed, a single rate being applied to different
objects with different values.
b. Progressive Tax –the tax rate increases as the tax base increases.
Ex. income tax
c. Regressive Tax –the effective rate decreases as the base increases.
Ex. value-added tax

Forms of Escape from Taxation

1. Shifting – transfer of the burden of a tax by the original payer on the one on whom the
tax was assessed or imposed to another or someone else.
2. Capitalization – special form of backward shifting. It occurs when the good is durable good,
the whole series of future taxes is to be shifted backward at the time of purchase, and the
future taxes must be capitalized and deducted in a lump sum from the price offered. 3.
Transformation – this is effected through the process of production. When the producer pays
the taxes himself and recovers the additional expenses by improving his production thereby
turning out units of his production at lower cost.
4. Evasion – illegal effort to avoid payment of tax
5. Avoidance –use of legally permissible means to reduce tax liability
6. Exemption – grant of immunity to a particular person or corporation from a tax
upon properties or exercise which they are obligated to pay.
Local Taxation

Since the power of taxation is an incidence of sovereignty that is absolutely necessary to

maintain government and therefore inherent in the state, local government units (LGUs) such
as provinces, municipalities, cities and barangays can exercise the power not only if conferred
on them. The constitutional provisions as to taxation of LGUs are ordinarily not self-executing
because they require conferring the power to tax. The local power of taxation is subject to
such conditions and restrictions as may be prescribed, and only such purposes as may be
expressed.
Local tax may be valid only for the public purpose and yet invalid for private purposes.
Except when allowed by law, local funds shall be devoted exclusively to local purposes.

The policy of taxation in the Philippines is provided primarily by the Constitution of

the Philippines and three Republic Acts.
● Constitution: Article VI, Section 28 of the Constitution states that "the rule of taxation
shall be uniform and equitable" and that "Congressshall evolve a progressive system
of taxation."
● National laws: National Internal Revenue Code—enacted as Republic Act No. 8424 or
the Tax Reform Act of 1997, and subsequently amended by Republic Act No. 10963
or the Tax Reform for Acceleration and Inclusion Act of 2017; [3] and,
● Local laws—major sources of revenue for the local government units (LGUs) are the
taxes collected by virtue of Republic Act No. 7160 or the Local Government Code of
1991, [4] and those sourced from the proceeds collected by virtue of a local ordinance.

Taxes imposed at the national level are collected by the Bureau of Internal Revenue (BIR),
while those imposed at the local government level, which are the provincial, city,municipal and
barangay, are collected by the local treasurer's office.

The following are some of the Salient Features of RA 10963 otherwise known as the
TAX REFORM ACCELERATION AND INCLUSION (TRAIN) Law. Example given here is
the income tax.

Background
On December 19, 2017, the President signed into law Package I of the Tax Reform for
Acceleration and Inclusion (“TRAIN”) bill otherwise known as Republic Act No. 10963. The law
contains amendments to several provisions of the National Internal Revenue Code of 1997. It
shall take effect on January 1, 2018, following its complete publication in the Official Gazette
or in at least one newspaper of general circulation. The law was published in the Official
Gazette on December 27, 2017.
1. Tax Schedule Effective January 1, 2018 until December 31, 2022
2. Minimum Wage Earner
● Statutory minimum wage rates are EXEMPTED from income tax.
● Also exempted are the holiday pay, overtime pay, night shift differential pay and hazard
pay earned by MWE’s.
3. 13th Month Pay and Other Benefits
● Maximum of P90,000
4. Personal and Additional Exemptions
● NONE – already included in the P250,000 exempt from income tax
● repeals Sec. 33(A) of the Magna Carta for Persons with Disability, Sec.22(B) of the
Foster Care Act of 2012
5. VAT Threshold
● Three Million Pesos (P3,000,000)
● Any person whose sales or receipts are exempt under Section 109(B) of the Code from
the payment of VAT and who is not a VAT-registered person shall pay a tax equivalent to
3% of his gross quarterly sales or receipts.

Unit 5: EVALUATION AND PROMOTION OF LOCAL AND ORAL HISTORY,

MUSEUMS, HISTORICAL SHRINES AND CULTURAL PRESENTATIONS

V. Critical evaluation and promotion of local and oral history, museums, historical
shrines, cultural performances, indigenous practices, religious rites and rituals

Learning Outcome: Manifest interest in local history and show concern in promoting and
preserving the country’s historical and cultural heritage.

Methodology: Lecture/Discussion; Research in Local libraries and Local Studies Centers;

Tour in local museums, historical sites, art galleries, archeological sites and other places
where one could see cultural and heritage displays; Conduct Oral interview

Resources:
1. Historical Data Papers
2. Ereccion de Pueblos (Creation of Towns)
3. Museums, Local Studies Centers
4.Art Galleries, Painting collections
 5.Historical landmarks and UNESCO sites
6. Performances where one could see traditional arts and culture Fiestas and similar
local celebrations

Assessment: Each student is assigned to make Reflection paper, a Reaction paper or

critique of the shrines, historical sites, or museums that they visited; or make a
Letter to the editor; or create a Transcript of oral interview

To reflect on an experience in the visit to a historical site, local or national museums and
national shrines, the following shall be set as guidelines.

1. an actual feel of the place (to see is to believe);

2. better understanding of specific historical events;
3.the ability to create historical reenactments;
4.the ability for historical imagination;
5.the ability to confirm historical narratives (to find answers to questions)
Added to a reflection, the student shall suggest enhancements needed to improve the
sites, museums or shrines visited. He shall also recommend other educational sites to visit, and
why.

Final Examination: Objective 120 items OMR (Units 4 and 5)

SELECTING SITES FOR AN EDUCATIONAL TOUR

There are numerous museums, historical sites, art galleries, archeological sites and other places
where one could find history and cultural heritage which are recognized by the National
Historical Commission of the Philippines (NHCP). It is most convenient if, as part of the activities
of this course, that the tour or visit to a museum, site or gallery be conduction in areas that are
near the school. Considering the proximity is a pragmatic approach to the activity since it will
not require to much
expenses and will minimize the difficulty in reaching the location on the part of the students. It
is also a way in maximizing the student’s ability to appreciate more the site and tour it for a
longer period of time, and with ease.

However, it also must be of another consideration if the chosen place would be significantly
historical and cultural so as to create a greater benefit on the education of the students. The
value of the site is unbargainable. While proximity may offer ease and time, the richness of a
 chosen site creates the meaningful experience on the part of the student.

Another matter to be taken into consideration is that the choices of the sites should offer
various areas of learning for the student. In an educational tour, a student must be exposed to a
variety of interests as an appeal towards a greater appreciation of history and culture. It is
therefore most beneficial if a historical site will also be combined with an art gallery, a museum,
a park or an archeological site.

Lastly, it would more educational, comprehensive, and encompassing if the sites selected would
represent different time periods. Doing this would impose a continued curiosity on the part of
the historical tourist since different time periods offer changes in historical events and an
evolution to culture. Human development is greatly appreciated in presentation that considers
the aspect of chronology.

CULTURAL & HISTORICAL LANDMARKS

Name City/Municipality Province Region

Aguinaldo Shrine Kawit Cavite CALABARZON

Bagacay Point Lighthouse Liloan Cebu Central Visayas

Bahay Nakpil-Bautista Quiapo, Manila Metro Manila National Capital

Region

Basco Lighthouse Basco Batanes Cagayan Valley

Binondo Manila Metro Manila National Capital

Region

Bonifacio Monument Caloocan Metro Manila National Capital

Region

Cagsawa Ruins Daraga Albay Bicol Region

Cape Bojeador Lighthouse Burgos Ilocos Norte Ilocos Region

Cape Bolinao Lighthouse Bolinao Pangasinan Ilocos Region

Cape Engaño Lighthouse Santa Ana Cagayan Cagayan Valley

Cape Melville Lighthouse Balabac Island Palawan MIMAROPA

Capul Island Lighthouse Capul Northern Samar Eastern Visayas

Casino Español de Manila Ermita, Manila Metro Manila National Capital
Region

Corregidor Island Cavite City Cavite CALABARZON

Don Roman Santos Building Manila Metro Manila National Capital

Region

EDSA Shrine Quezon City Metro Manila National Capital

Region

Fort of San Antonio Abad Manila Metro Manila National Capital

Region

Fort Santiago Manila Metro Manila National Capital

Region

Heritage City of Vigan Vigan Ilocos Sur Ilocos Region

Intramuros Manila Metro Manila National Capital

Region

Lapu-Lapu Shrine Lapu-Lapu Cebu Central Visayas

Luneta Hotel Ermita, Manila Metro Manila National Capital

Region

Magellan's Cross Cebu City Cebu Central Visayas

Magellan Shrine Lapu-Lapu Cebu Central Visayas

Malacañang Palace Manila Metro Manila National Capital

Region

Maniguin Island Lighthouse Culasi Antique Western Visayas

Manila Army and Navy Club Manila Metro Manila National Capital
Region

Manila Central Post Office Manila Metro Manila National Capital

Region

Manila City Hall Manila Metro Manila National Capital

Region
 Manila Hotel Ermita, Manila Metro Manila National Capital
Region

Manila Metropolitan Manila Metro Manila National Capital

Theater Region

National Historical Manila Metro Manila National Capital

Commission of the Region
Philippines

Nielson Field Makati Metro Manila National Capital

Region

Paco Manila Metro Manila National Capital

Region

Philippine General Hospital Ermita, Manila Metro Manila National Capital

Region

Rizal Shrine Calamba Laguna CALABARZON

The Ruins Talisay Negros Occidental Negros Island Region

Tutuban railway station Manila Metro Manila National Capital

Region

MUSEUMS IN METRO MANILA (NCR)

Museum Name Location

Archdiocesan Museum of Manila 121 Arzobispo Street, Intramuros, Manila

Armed Forces of the Philippines Museum Bulwagang Heneral Arturo T. Enrile, Camp
Aguinaldo, Quezon City

Ateneo Art Gallery Katipunan Avenue, Loyola Heights, Quezon City

Ayala Museum Makati Avenue corner De La Rosa Street, San

Lorenzo, Makati

Bahay Nakpil-Bautista Quiapo, Manila

Bahay Tsinoy Kaisa Heritage Center, 32 Anda corner

Cabildo Streets, Intramuros, Manila

Bantayog ng mga Bayani Museum Quezon Avenue near EDSA, Pinyahan, Quezon City
 Bayanihan Folk Arts Museum Philippine Women's University, Taft Avenue, Malate, Manila

Casa Manila General Luna Street, Intramuros, Manila

CCP Museo ng Kalinangang Pilipino CCP Complex, Roxas Boulevard, Barangay 1, Pasay

The Museum at De La Salle University 2401 Taft Avenue, Malate, Manila

Escolta Museum Calvo Building, Escolta Street, Binondo, Manila

Eulogio "Amang" Rodriguez Museum EARIST, Lacson Avenue, Santa Mesa, Manila

The Galeón Bay City, Pasay

GSIS Museo ng Sining Macapagal Boulevard, Financial Center, Barangay

1, Pasay

Iglesia ni Cristo Museum Punta, Santa Ana, Manila

Iglesia ni Cristo Museum and Gallery INC Central Office, Commonwealth Avenue, New Era, Q.C.

Jorge B. Vargas Museum and UP Diliman, Roxas Avenue, U.P. Campus, Quezon City
Filipiniana Research Center

Jose P. Laurel Memorial Roxas Boulevard corner Pedro Gil Street, Malate, Manila
Foundation Museum

Lopez Museum Exchange Road corner Meralco Avenue, San

Antonio, Pasig

Mabini Shrine Polytechnic University of the Philippines Campus,

Sta Mesa, Mla.

Macuha Art Gallery Las Piñas

ezon Memorial Shrine Museum Quezon Memorial Circle,

Elliptical Road, Pinyahan, Quezon City

Metropolitan Museum of Manila BSP Complex, Roxas Boulevard, Malate, Manila

The Mind Museum Third Avenue, Bonifacio Global City, Taguig

The Money Museum BSP Complex, Roxas Boulevard, Malate, Manila

Museo ng Katipunan Pinaglabanan Shrine, Corazon de Jesus, San Juan

Museo ng Makati Jose P. Rizal Avenue, Poblacion, Makati

Museo Pambata Roxas Boulevard corner South Drive, Ermita, Manila

Museo Valenzuela Fatima Avenue, Marulas, Valenzuela

Museum of Contemporary Art and GF School of Design and Arts Bldg, De La Salle-College
Design (MCAD) of St. Benilde

Museum of Philippine Political History National Historical InstituteBuilding, Kalaw Avenue,

Ermita, Manila

National Museum of Anthropology Rizal Park, Ermita, Manila

National Museum of Fine Arts Rizal Park, Ermita, Manila

National Museum of Natural History Rizal Park, Ermita, Manila

QCX Quezon Memorial Circle, Elliptical Road, Pinyahan,

Quezon City

Pasig City Museum Plaza Rizal, San Jose, Pasig

Philippine Air Force Aerospace Museum Andrews Avenue, Villamor Air Base, Pasay

Philippine Army Museum and Library Philippine Army Complex, Lawton Avenue, Fort
Bonifacio, Taguig

Philippine Science Centrum E-Com Building, Riverbanks Center, Barangka, Marikina

The Presidential Museum and Library Malacañang Complex, Jose Laurel Street, San
Miguel, Manila

Rizal Shrine Museum Fort Santiago, Intramuros, Manila

San Agustin Church Museum General Luna corner Real Streets, Intramuros, Manila

The Shoe Museum Jose P. Rizal Street, San Roque, Marikina

UST Museum of Arts and Sciences España Boulevard, Sampaloc, Manila

UP Museum of a History of Ideas Pedro Gil Street corner Taft Avenue, Manila

Veterans Federation of the Veterans Center, Western Bicutan, Taguig

Philippines Museum

Yuchengco Museum RCBC Plaza, Ayala Avenue corner Gil Puyat Ave,
Bel-Air Village, Makati