Canares , Anecito

BSBA GBM
1st Year
SOCSCI031

1. What were the major changes in Philippine taxation during the Spanish colonial period?
- The tax system in the Philippines underwent significant changes during the Spanish colonial
period (1565-1898), as the colonial government sought to extract resources from the colony
to support its administration and expansionist activities. The following were the major
changes in Philippine taxation during the Spanish colonial period: Tribute system,
Encomienda System, Real Situado, Special taxes. During the Spanish colonial period, the tax
system was designed to extract resources from the colony in order to support the Spanish
administration and expansionist activities. The main form of taxation was the tribute system,
while the encomienda system and Real Situado were used to extract resources from
indigenous communities and to facilitate trade between the Philippines and Mexico. In
addition, the colonial government levied special taxes on certain goods and activities.
2. How did the Philippine tax system evolve during the American colonial period, and what
were its effects on the country's economy?
- The impact of the US colonial tax system on the Philippines' economy has been mixed. On
the one hand, modernizing the tax system has helped create a stable revenue base for the
government, enabling investment in public infrastructure and services. This encouraged
economic growth and development.

3. What were the main features of the Philippine tax system during the Commonwealth period,
and how did it differ from previous systems?
- There were 5 main features of the Philippine tax system which is 1st The enactment of a
new Constitution in 1935, which provided the legal framework for the Philippine tax system.
2nd The introduction of a corporate income tax, which was first imposed in 1936. This tax was
levied on the net income of corporations and other business entities. 3 rd The establishment of
a sales tax, which was first imposed in 1939. This tax was levied on the sale of goods and
services, and it was intended to provide a stable revenue source for the government. 4th The
expansion of the income tax, which was first imposed during the American colonial period.
The income tax was broadened to include a wider range of income earners, including
professionals and self-employed individuals. And 5th The establishment of a tax court, which
was created in 1938 to hear and decide tax disputes. The tax court was intended to provide a
fair and impartial forum for taxpayers to contest tax assessments and penalties.

4. What were the factors that led to the enactment of the National Internal Revenue Code in
1939, and how did it shape Philippine taxation?
- The desire to generate more revenue for the government was another factor that led to the
enactment of the NIRC. The Philippines was still recovering from the Great Depression's
effects, and the government needed to find new revenue sources to fund its programs and
services. To generate more revenue for the government, the NIRC imposed new taxes and
raised the rates of existing ones.

5. How did the Philippine tax system adapt to the challenges posed by World War II and its
aftermath?
- During and after World War II, the Philippine tax system faced significant challenges, as the
war disrupted economic activity and caused widespread damage to infrastructure, while the
country struggled to rebuild and recover from the devastation. Despite these obstacles, the
Philippine tax system has adapted to changing circumstances in a variety of ways.
6. What were the major reforms introduced by the Marcos administration in Philippine
taxation, and how did they affect the country's economy and society?
- The major reforms introduced by the Marcos administration is the Tax Code of 1977: This
was a comprehensive overhaul of the Philippine tax system. It simplified and modernized the
tax system by consolidating various taxes and fees into a single code, 2nd Tax incentives for
investors: The Marcos administration introduced tax incentives to attract foreign investment
to the Philippines. 3rd Imposition of martial law: The declaration of martial law in 1972
allowed the Marcos administration to implement a range of economic policies, including tax
reforms and lastly Tax evasion crackdown: The Marcos administration also cracked down on
tax evasion, which was seen as a significant problem in the Philippines.

7. What were the main criticisms of the Philippine tax system during the post-Marcos era, and
how did policymakers respond to these criticisms?
- The main criticisms of the Philippine tax system during the post-Marcos era are Complexity
and inefficiency, High tax rates, Corruption and tax evasion, Inequity and lack of
progressivity.

8. What were the major changes introduced by the Aquino administration in Philippine
taxation, and how did they contribute to economic growth and development?
- The major changes introduced by the Aquino administration that contributed to economic
growth and development are the Comprehensive Tax Reform Program (CTRP), Rationalization
of Fiscal Incentives(RFI), Sin Tax Reform Law, Introduction of Electronic Payment Systems,
Overall, the Aquino administration's tax reforms aided in improving the efficiency, equity,
and revenue collection of the Philippine tax system. These changes also aided the country's
economic growth and development by providing the government with a stable source of
revenue, encouraging investment, and promoting public health.
9. What were the main challenges faced by the Philippine tax system in the 21st century, and
how did policymakers address these challenges?
- Low tax collection efficiency was one of the main challenges, which was attributed to poor
tax administration, insufficient tax education and awareness, and complex tax laws. To
address this issue, policymakers implemented a number of reforms, including the adoption of
e-filing and e-payment systems, the simplification of tax forms, and the enhancement of tax
audit and enforcement.

10 . What are the prospects for future reforms in Philippine taxation, and what are the key
issues that policymakers need to address?
- There are several prospects for future reforms in Philippine taxation which are
Strengthening tax administration, Simplifying the tax system, Addressing tax evasion and
corruption, Broadening the tax base, Improving tax education and awareness, To ensure the
effectiveness of these reforms, policymakers must address several key issues. These include
improving tax administration, simplifying the tax system, combating tax evasion and
corruption, expanding the tax base, and increasing tax education and awareness. Addressing
these issues will allow the government to collect more revenue, promote transparency and
accountability, and create a more equitable tax system.