THE TAX SYSTEM AND THE PHILIPPINE

DEVELOPMENT EXPERIENCE
 Prior to the Coming of Spaniards

Taxation has been considered among the primary purpose of

leadership and governance.

The datu or local chieftain imposed tributes to his subordinates

in return for the protection to be accorded by his men.

 Spanish Period

The system of tax collection become more institutionalized because the

natives were regarded as conquered people and were required to Py
tributes in order to enrich the royal exchequer and the officers who
accomplished the conquest.
Cabeza- authorized to collect taxes
Tax rates were fixed or based on percentages to ensure that a certain
portion would go to the Spanish Crowd
1867- codified law on taxation was published

Taxes were categorized into:

1. Direct taxes- includes personal tax and income tax
2. Indirect tax/ customs duties-
3. Monopolies that include the stamp tax, sale of quick silver, salt, playing
cards, gun powder, liquors, tobacco, opium
4. Lotteries
5. Public domain
6. miscellaneous
At Present…..
National Internal Revenue Code, revised with the passage of the
Tax Reform Act of 1997 and Tax Reform Acceleration and
Inclusion(Train Law) 2017.
Power of Taxation
- inherent power of the state to impose and collect revenue
for the purpose of supporting the government and its recognized
objectives.
ACCORDING TO DE LEON(2009), TAXES ARE CATEGORIZED
UNDER SIX CLASSES:
1. As to the subject:
a. poll, personal or capitation tax- one imposed on residents
b. Property Tax- imposed on property
c. Excise tax- imposed on privilege or right

2. As to the purpose:
a. Revenue- to raise money for the government
b. Regulatory- to regulate an act or practice

3. As to Scope
a. Local/ Municipal- based on certain locality
b. National – national in Nature
4. As to determination of the amount of the tax to be paid
a. Ad valorem Tax- based on the value of object taxed
determined by the appraiser
b. Specific tax- based on weight and measurement

5. As to who bears the burden:

a. Direct tax- I posed on a person directly involved
b. Indirect Tax- forms part of the purchase price of the
commodity and passed on to consumers
6. As to the graduation or rate:
a. Proportional tax- based on fix percentage
b. Progressive tax- based on certain tax bases
c. regressive tax- the tax rate decreases as the base
increases.