3. Zacchaeus the tax
collector
In the city of Jericho
there lived a man who
was a tax collector. His
name was Zacchaeus
Luke 19:1-10
4. The people didn’t like
tax collectors. Many tax
collectors cheated the
people and they often
got more taxes than
they were supposed to
get.
5. Many tax collectors in this
time would keep the extra
money for themselves.
Zacchaeus wasn’t just any
tax collector, he was the
head of the tax collectors
and Zacchaeus had a lot of
money.
6. Zacchaeus Was Not Very Tall
One day, Jesus came to
Jericho and a large crowd
came out to see him.
Zacchaeus wanted to see
Jesus but he was a short man
and couldn’t see over the
crowd. Zacchaeus ran ahead
of the crowd and climbed up
in a Sycamore-fig tree and
waited for Jesus to come by
the tree.
7. Jesus Tells Zacchaeus To
Come Down
When Jesus came by the tree
he stopped and looked up in
the tree and told Zacchaeus
to come down from the tree.
He told Zacchaeus that he
was going to go to his house
that day.
8. Zacchaeus Comes Down From
the Tree
Zacchaeus came right down
out of the tree. All the people
saw this and began to
complain. They said that
Zacchaeus was a sinner.
9. Jesus Goes to the House of
Zacchaeus
But Zacchaeus said he would give
half of all he owned to the poor
and if he had cheated anyone he
would give them four times what
he had taken. Jesus told
Zacchaeus that that salvation had
come to him today. Jesus said
that He came to seek and save
what was lost. Then Jesus went
home with Zacchaeus.
10. Taxes go back to the dawn of civilization.
Tax collectors are prominently mentioned
in the Bible, and they are reported in
ancient Egypt and China and India. It is
very doubtful that the notion of taxes was
invented in one spot, and shipped around
the world.
11. EGYPT
During the various reins of the Egyptian
Pharaohs tax collectors were known as scribes.
During one period the scribes imposed a tax on
cooking oil.
To insure that citizens were not avoiding the
cooking oil tax scribes would audit households
to insure that appropriate amounts of cooking oil
were consumed and that citizens were not using
leavings generated by other cooking processes
as a substitute for the taxed oil.
12. GREECE
In times of war the Athenians imposed a tax referred to as
eisphora. No one was exempt from the tax which was used to pay
for special wartime expenditures. The Greeks are one of the few
societies that were able to rescind the tax once the emergency was
over. When additional resources were gained by the war effort the
resources were used to refund the tax.
Athenians imposed a monthly poll tax on foreigners, people who did
not have both an Athenian Mother and Father, of one drachma for
men and a half drachma for women. The tax was referred to as
metoikion
13. HISTORY OF TAXATION IN THE PHILIPPINES
In the Philippines the tax department, popularly known as Bureau of Internal Revenue (BIR), is under
the aegis of the Department of Finance. The tax department has enormous and wide ranging
administrative and legislative powers when it comes to assessment, enforcing taxes and collection.
The tax department in the Philippines does not collect VAT (value added tax) and excise tax as these
are collected by the Bureau of Customs. The BIR is considered to be the main revenue "earning"
agency for the government of Philippines. Annual the bureau collects practically 80 percent of the
total generated revenue. The BIR has monthly and annual targets for collection and this is determined
by the Development Budget and Coordinating Council, which is an inter-agency council headed by the
Department of Budget and Management. History of taxation in the Philippines is not that old. Self
assessment system for individuals and corporations was introduced as early as 1934 when the first
Philippine Tax Code was enacted by the parliament. This code was immediately applied to income tax,
corporation income tax, and inheritance tax. Later on the area of application was expanded and other
national internal revenue taxes were encompassed. The Withholding Tax System was introduced and
implemented in 1951. Even today, this system is the main method of collecting income. Today tax
payers can directly pay taxes either to the BIR using conduits like RDOs or authorized banks. In the
Philippines, individual tax returns have to be filed by April 15 of the following year for the previous
calendar year. There is the option of paying and filing taxes electronically using the Internet banking
through Electronic Filing filing taxes electronically using the Internet banking through Electronic Filing
17. First, taxation is an inherent power of
the state. It exists just like the power of
eminent domain and police power,
independent of the constitution. Taxation
is essential to the existence of every
government. The state can still exercise
power, even if the constitution does not
mention anything about taxation.
18. Police Power is the capacity of the states to
regulate behavior and enforce order within
their territory for the betterment of the
health, safety, morals, and general welfare of
their inhabitants
19. Second, taxation is legislative in
nature. The power of taxation
cannot be exercised by the executive
or the judicial branch of the
governments. Only the legislative
body can impose taxes to local
government.
67. He got the fourth
highest number of
votes in that Senate
race. In 1998, he
bolted Lakas and
joined the Laban ng
Makabayang
Masang Pilipino
(LAMMP) and
supported Joseph
Estrada to the
presidency.
69. He was elected to
the Senate in 2001,
becoming the
youngest Senator of
the 12th Congress at
the age of 37. In the
Senate, he chaired
the Committees on
Ways and Means
and on Trade and
Industry.
71. He was appointed
by then President
Joseph Estrada to
head the
Presidential Anti-
Organized Crime
Task Force (PAOCTF)
and to serve as
Director-General of
the Philippine
National Police.
73. He first served as senator
from 1987 until 1992. By
this time, he had
established a reputation
as a resolute reformer
and firm leader, winning
praise for his non-
confrontational stance on
contentious domestic and
international issues, while
building consensus at the
same time.
75. An advocate of women’s
rights and welfare, she
pushed for the enactment
of the ‘Magna Carta of
Women’ which seeks to
end all forms of gender
discrimination, and the
‘Expanded Breastfeeding
Act,’ which establishes
lactation stations in the
workplace to encourage
nursing mothers to
continue breastfeeding
even at work.
77. He has chaired the Senate
Blue Ribbon Committee,
the Senate Justice and
Human Rights Committee,
and the Senate Public
Services Committee, during
the 13th congress. He
claimed to have never
traveled abroad on
government money and his
Statement of Assets and
Liabilities has remained
almost unchanged from the
time he entered public
service in 1986.
82. If you are part of the
legislative body, what tax
would you like to implement
and why?
83. Third, taxation is subject to
constitutional and inherent
limitations. The power of taxation is
subject to certain limitations most of
which are specifically provided in the
fundamental law of the taxing power
itself.
86. Taxation is the inherent power of the state,
acting through the legislature, to impose
and collect revenues to support the
government and its recognized objects.
Simply stated, taxation is the power of the
state to collect revenues for PUBLIC
purposes only.
87. Taxation is also defined as the act of
levying taxed or the process or means by
which the sovereign, through its law
making body, raises revenues to defray the
necessary expenses of the government.
88. It is a method of apportioning the cost of
government among those who, in some
measure, are privileged to enjoy its
benefits and must, therefore, bear its
burden.
89. A tax is an enforced contribution, generally
payable in money, proportionate in
character, levied by the law-making body
of the state on persons, property or
property rights where the state has its
jurisdiction, to raise revenue for the
government and to finance all public
needs.
94. The first canon or principle of a good tax system
emphasized by Adam Smith is of equality. According to
the canon of equality, every person should pay to the
Government according to his ability to pay, that is in
proportion of the income or revenue. Thus under the tax
system based on equality principle the richer persons in
the society will pay more than the poor. On the basis of
this canon of equality or ability to pay Adam Smith
argued that taxes should be proportional to income,
that is, everybody should pay the same rate or
percentage of his income as tax.
96. Another important principle of a good tax system on
which Adam Smith laid a good deal of stress is the
canon of certainty. To quote Adam Smith, ‘The tax which
each individual is bound to pay ought to be certain and
not arbitrary (chance). The time of payment, the
manner of payment, the quantity to be paid ought all to
be clear and plain to the contributor and to every other
person. A successful function of an economy requires
that the people, especially business class, must be
certain about the sum of tax that they have to pay on
their income from work or investment.
97. Moreover, lack of certainty in the tax system, as
pointed out by Smith, encourages corruption in
the tax administration. Therefore in a good tax
system, “individuals should be secure against
unpredictable taxes levied on their wages or other
incomes. The law should be clear and specific; tax
collectors should have little discretion about how
much to assess tax payers, for this is a very great
power and subject to abuse.”
98. In the actual practice in the country, the
individual can determine his tax due for the
period considered and the amount should be
paid every 15th day of March (for fixed
income) and every 15th day of April (for mixed
income other than salary.)
100. According to the third canon of Adam Smith,
the sum, time and/manner of payment of a
tax should not only be certain but the time
and manner of its payment should also be
convenient to the contributor. If land revenue
is collected at the time of harvest, it will be
convenient since at this time farmers reap
their crop and obtain income.
102. The Government has to spend money on collecting
taxes levied by it- Since collection costs of taxes add
nothing to the national product, they should be
minimized as far as possible. If the collection costs of a
tax are more than the total revenue yielded by it, it is
not worthwhile to levy it. More complicated a tax
system, more elaborate administrative machinery will
be employed to collect it and consequently collection
costs will be relatively larger. Therefore, even for
achieving economy in the tax collection, the taxes
should be as simple as possible and tax laws should not
be subject to different interpretations.
103. The tax to be levied must be just
enough to sustain the government
and its function.
105. Levy or imposition
this involves the impact of taxation. The
legislature is free to select the persons or
properties or the business, interests or privileges
that may be subjected to imposition or burdens,
as long as the legislative body does not violate
constitutional restrictions or limitations. Thus, the
wisdom of any legislative enactment imposing
charges or taxes upon inquiry.
107. According to the Philippine Constitution, the following
are exempted from taxes:
• Charitable institutions, churches, convents (religious community), mosques,
non-profit cemeteries, lands and buildings and improvements – actually,
directly, and exclusively used for religious, charitable and educational
purposes (according to Article VI, Section 28)
• All income, revenues, assets of non-stock and non-profit educational
institutions used actually, directly and exclusively for educational purposes
and all grants, endowments, donations, contributions (subject to conditions
prescribed by law) used actually, directly and exclusively for educational
purposes (according to Article XIV Section 4)
Tip: If properties, assets, revenues derived are related from religious,
educational, and non-profit organizations – they may be exempted for taxes.
108. •Non-stock and non-profit educational institution and government educational
institution
•Non-stock corporation and organization operated exclusively for religious,
charitable, scientific, athletic or cultural purposes
•Non-profit civic league or organization
•Non-profit business league, chamber of commerce or board of trade
•Cemetery company-owned and operated exclusively for the benefit of its
members
•Mutual savings bank and cooperative banks without capital stock and shares
organized and operated for mutual purposes without profit, and development
banks
•General professional partnership formed by persons for the sole purpose of
exercising their common profession; no part of the income is derived from
engaging in any trade or business
•A minimum wage earner or an individual pursuant to the provisions of the
National Internal Revenue Code Section 51 (2)
109. • A Non-resident citizen of the Philippines:
• who establishes to the satisfaction of the Commissioner the fact of his
physical presence abroad with a definite intention to reside therein
• who leaves the Philippines during the taxable year to reside abroad,
either as an immigrant or for employment on a permanent basis
• who works and derives income from abroad and whose employment
thereat requires him to be physically present abroad most of the time
during the taxable year
• who has been previously considered as a non-resident citizen and
who arrives in the Philippines at any time during the year to reside
permanently in the Philippines will likewise be treated as a non-
resident citizen during the taxable year in which he arrives in the
Philippines, with respect to his income derived from sources abroad
until the date of his arrival in the Philippines.
110. • Income from bonds and securities for sale in the international market
• Prizes and winnings from a charity horse race sweepstakes from the
Philippine Charity Sweepstakes Office
• SSS and GSIS Benefits
• Benefits received from the US government through the US Veterans
Administration
• Annual taxable income of Senior Citizens or those at least 60 years old
who have income of not more than P60,000 per year, subject to review
by NEDA
• Exemption for a limited period of new and necessary industries (RA No.
901)
• Exemption of pioneer and registered enterprises under the Investment
Incentives Act (RA No. 5186)
111. Assessment and collection
the basic guidelines on the assessment
and collection are laid down and the
administrative authorities are responsible
for the details in the collection of taxes.
112.
113. Tax evasion is the illegal evasion of taxes by
individuals, corporations and trusts. Tax evasion
often entails taxpayers deliberately
misrepresenting the true state of their affairs to
the tax authorities to reduce their tax liability and
includes dishonest tax reporting, such as
declaring less income, profits or gains than the
amounts actually earned, or overstating
deductions. Tax evasion is an activity commonly
associated with the informal economy.
114. Tax Evasion
Occurs when the taxpayer resorts to unlawful
means to lessen or to get away with his tax
liability.
115. Tax avoidance is the legal usage of
the tax rule to one's own advantage,
to reduce the amount of tax that is
payable by means that are within
the law.
116. Tax Avoidance
Happens when the taxpayers minimizes his tax
liability by taking advantage of legally available
tax planning opportunities. This is otherwise
known as tax minimization; other call it tax
planning. It is the process of controlling one’s
actions so as to avoid undesirable tax
consequences. It is completely legal activity.
117. Payment
this is referred to as the incidence of
taxation. The moment the legislature has
been seen to tax specified persons,
properties, business or privileges and, in the
process, observes the limitations imposed by
the fundamental law, the obligation to pay
the tax or charge becomes a mere incident.
151. The Income Tax Table for individual Taxpayers
Over But not Over Basic Tax Plus Of excess over
P 0.00 P 10,000.00 P 0 5% P 0.00
10,000.00 30,000.00 500 10% 10,000.00
30,000.00 70,000.00 2,500 15% 30,000.00
70,000.00 140,000.00 8,500 20% 70,000.00
140,000.00 250,000.00 22,500 25% 140,000.00
250,000.00 500,000.00 50,000 30% 250,000.00
500,000.00 125,000 32% 500,000.00
153. Mr. Gomez, married with three (3) qualified dependent children
receives P12,000 as regular semi-monthly compensation.
Compute for the annual tax due.
Gross Income: ( 12,000 x 2 x 12 ) P 288,000
Less: Personal Exemption P 50,000
Additional Exemption
( 3 x 25,000) P 75,000 125,000
Income subject to tax: P 163,000
158. Mr. Gomez, married with three (3) qualified dependent children
receives P12,000 as regular semi-monthly compensation.
Compute for the annual tax due.
P 11, 042
958 X 25%
P 937.50
239.50
P 1, 177
P 1, 177 x 2 x 12 = P 28, 248
160. Mr. Gomez, married with three (3) qualified
dependent children receives P12,000.
1. Compute the annual tax due of Mr. Gomez
assuming.
a. P 12,000 was received weekly
b. P 12, 000 was received semi-monthly
c. P12, 000 was received monthly
162. FINAL REQUIREMENT
• Research Collateral about Agrarian Reform
* Rationale
* Three (3) Objectives
* Two (2) Pre-test Questions
* Learning Cell/ Body
* Conclusion
* Two (2) Post-test Questions
* References (Books, Websites and Articles) minimum of four (4) books.
Note: Minimum of five (5) pages. Arial 12, Justify, Margin top (1), Bottom (1),
Right (1), Left (1.5).
Soft Copy/ E-Copy send them via FB (kevinjuniorgomez@yahoo.com)
Deadline: October 7, 2016 (Friday)
163. TOPICS
• Land Reform vs Agrarian Reform
• History of Agrarian Reform
• Resistance in the Implementation of Agrarian Reform
• Importance of Land Reform
• Aspects of Agrarian Reform
• Components of Agrarian Reform
• Pertinent Laws on Agrarian Reform
• The Comprehensive Agrarian Reform Law (CARL) of 1988
• Salient Feature of CARP (RA No. 6657)
166. The primary purpose of taxation is to raise
revenue or provide funds to promote the
general welfare and protection of its
citizens, and to enable the government to
finance its multifarious activities. Besides
its primary purpose, taxation is also
designed to satisfy the following
objectives.
167. •Equitably distribute the wealth of the nation, referring to the
case of estate and donor’s taxes.
•Protect new industries in which the rate of taxation may be
increased to regulate the proliferation (explosion) of
unnecessary industries and competition with foreign
investments.
•Protect locally produced goods against competition from
import by imposing higher custom duties.
•Uplift social conditions as in the case of regulatory taxes in
the exercise of police powers through taxation.
168. According to Professor Thomas M. Cooley,
taxation is based on the reciprocal duties
of protection and support between the
state and its citizens as well as its
residents, and on the sovereign power as
well as the jurisdiction by the state over
its people and property.
169. The basis of taxation is found in the reciprocal
duties of protection and support between the
state and its inhabitants. In return for his
contribution, the taxpayer receives benefits
and protection from the government. This is
termed as the benefit received principle.
173. ADMINISTRATIVE FEASIBILITY
the tax laws must be clear and concise. It
must be capable of proper enforcement that
is not burdensome and is convenient as to
time and manner of payment. Anybody who
is authorized to collect can do such function
with case.
175. Classifications of Taxes
•As to Subject Matter or Object
•As to Purpose
•As to Scope or Authority Imposing the Tax
•As to Determination of Account
•As to Who Bears the Burden
•As to Graduation or Raise
176. As to Subject Matter or Object
• Personal, Poll or Capitation Tax – refers to a tax of fixed amount
imposed on an individual residing within a specified territory, whether
a citizen or not, and regardless of property or the occupation they
engaged in. Example: community tax or the former residence tax.
• Property Tax – refers to the amount imposed on property, whether
real or personal, in proportion either to its value or in accordance
with some other reasonable method or appointment. Example: real
estate tax.
• Excise Tax – refers to any tax which does not fall within the
classification of a poll tax or property tax. It is charged or imposed
upon the performance of an act, the enjoyment of a privilege and in
engaging an occupation. Examples are estate, donors and income
taxes: value-added tax (VAT) and practically all business taxes.
177. Introduction
The Value Added Tax (VAT) is a system adopted by more than
70 countries around the world. It was in 1988 when the VAT
system was introduced and implemented in the Philippines
under Executive Order No. 273. Various amendments were
made to enhance the VAT laws. Among the major changes
were introduced by the Expanded VAT Law (R A No. 7716)
in 1996. Professionals were included in the expansion
but, however, implementation was deferred until
December 31, 2002
178.
179. • A controversial expanded value added tax (e-VAT) law, considered the
centerpiece of the Arroyo administration's economic reform agenda, was
implemented in November 2005, aiming to complement revenue-raising
efforts that could plug the country's large budget deficit.Her administration
originally set a target to balance the national budget by 2010. The tax
measure boosted confidence in the government's fiscal capacity and helped
to strengthen the Philippine peso, making it East Asia's best performing
currency in 2005–06. The peso strengthened by nearly 20% in 2007, making
it by far Asia's best performing currency for the year, a fact attributed to a
combination of increased remittances from overseas Filipino workers and a
strong domestic economy.
• Early in her presidency, Arroyo implemented a controversial policy of holiday
economics, adjusting holidays to form longer weekends with the purpose of
boosting domestic tourism and allowing Filipinos more time with their
families.
180. As to Purpose
• General, Fiscal or Revenue Tax – imposed for the
general purpose of the government to raise funds for
the governmental needs. Examples are income tax and
almost all taxes.
• Special or Regulatory Tax – imposed for a special
purpose to achieve some social or economic ends,
irrespective of whether revenue is actually raised or
not. Examples are protective tariffs or custom duties
on imports goods to protect the local industries.
181. As to Scope or Authority Imposing the Tax
•National Tax – imposed by the national
government. Example are national revenue
taxes, custom duties and national taxes
imposed by special laws.
•Municipal or Local Tax – imposed by
municipal or public corporations. Examples:
real estate tax.
182. As to Determination of Account
• Specific Tax – refers to the fixed amount imposed by the
head or number, or by some standard or weight or
measurement which requires assessment other than a
listing or classification of the subjects to be taxed.
• Ad Valorem Tax – is a fixed proportion of the value of the
property with respect to which the tax is assessed. This
requires the intervention of assessors or appraisers to
estimate and determine the amount due from each
taxpayer. Examples are real estate tax, percentage tax and
excise tax on cigars and cigarettes.
183. As to Who Bears the Burden
• Direct Tax – demanded from the person who also shoulders
the burden of the tax. Examples are community tax, corporate
and individual income taxes.
• Indirect Tax – demanded from one person in the expectation
and intention that he should indemnify himself at the expense
of another; or a tax imposed on goods before they reach the
customer who ultimately pays for them, not as a tax, but as
part of the purchase price to which it is added. Examples are
all business taxes, such as value added tax (VAT), percentage
taxes and other custom duties.
184. As to Graduation or Raise
• Proportional Tax – based on a fixed percentage of the
amount of the property, income or other basis to be
taxed. Examples are real property tax and all percentage
taxes.
• Progressive or Graduated Tax – refers to the rate which
increases as the base or bracket increases. Examples are
income tax, estate tax and donor’s tax.
• Regressive Tax – refers to the rate which decreases as the
tax base or bracket increases.
