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Legal Process

of
Taxation
ED 240 Chapter 4
Prof. Benhope J. Ruelo Ed. D

President
- is the Head or
chief Executive under
the present system
of government

Legislative Function

- is vested in the
bicameral congress.

Members of the House


of Representatives

- are elected from


legislative
district
apportion
among
provinces, cities and
Metro Manila.

Other House Members

- are those who shall be


elected through a partylist system of registered
national,
regional
and
sectoral
representatives
or organizations.

The Department of
- is Finance
the principal
office charge with the
formulation
and
implementation
of
tax policies.

The
Secretary
of
- recommends to the
Finance
president
the
tax
policy measures which
are submitted to the
congress.

Major Operating
Bureaus

1. The Bureau of
Customs
2. Bureau of Internal
Revenue

1991 Local Government Code

- the taxes are levied


by
the
respective
Sanggunian
and
approved by the local
chief executive.

Budget
a. Nature of
Budgeting
b. Budget
Formulation

a. Nature of Budgeting
The budget is defined as the financial
plan of the government.
In short, the budget translate the
program of the government into
monetary terms.
The content and structure of the
budget document is related to the
various
functions
the
budget
performs:

It is a legal document, an act of the


legislative department whereby the
executive is authorized to incur
certain expenditure and to levy
taxes, with its own requirements for
content and structure.
It is a political document setting for
the
financial
policies
of
the
government.

It is a management tool and the


basis for accounting, specifying
for each agency how much they
can spend and for what purpose.
Finally, it is a document
indicating the economic
significance of the governments
policies and program.

b. Budget Formulation
- In the formulation of the
national budget, the finances of
the government are analyzed and
determined as the aggregate of
revenue, expenditure and debt of
all units of government, including
the national government and its
agencies controlled corporations.

The
budget
process
metamorphosed from the early
years of American period up to
the passage of the Jones Law in
1916 when a budget office was
created within the Department
of Finance to exercise the
budgeting function.

1935 Constitution
- established budget policy
and procedure, both of
which were amplified in a
series of laws and executive
acts over the years.

The Budget
Commission
- was established

by
Executive Order No. 25
issued on April 25, 1936. It
became a Ministry by virtue
of P.D. No. 1405, signed on
June 11, 1978.

The Budget Act

this
process
was
established by Commonwealth
Act No. 246 which was passed
by the Philippine Assembly on
December 17, 1937.

Budget Reform Decree


of 1997

- a series of budgetary
reforms were directed by the
constitution of 1973 and
various presidential decrees
that culminated in P.D. No.
1177.

Thank you...

MICHELLE S. TINGCANG
MASTERAND