...Spanish Taxation System and the Manila Food Market: Indications of an Early Commercialized Economy LUIS ALONSO ALVAREZ Translated from Spanish by Trinidad O. Regala Before the Spanish conquest, Filipinos thrived on a system of mere subsistence.The Spaniards realized that in order for them to effectively maintain control of the colony they must improve the production of food and resources in the islands. To do this, the Spaniards instituted revenue-generating measures such as systematic taxation and compulsory sale of agricultural products to the colonial government. Later, having been introduced to better farming equipment, the natives were able to practice a more intensive form of agriculture that enabled them to sell to Chinese traders at higher market prices and fulfill their tax requirements. The 16th century galleon trade and a war against the Dutch, both of which required a vast array of construction materials and manpower, put an enormous strain on food and supply requirements and prompted colonial authorities to implement more coercive taxation and forced labor. By the 17th century, a survey of Manila provisions revealed growing mercantilism and a stable food supply owed to improved trading and surplus from trade and friar farmlands. No longer dependent on galleon trade, new patterns of consumption, foreign demand for agrarian resources and a legitimate labor market at the beginning of the 19th century signaled the era of modernization and growth for the Philippine economy...
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...Efficient Taxation for a Progressive Nation By 3000 BC Egypt had become a nation of stability and distinguished itself as a country with its own system of writing that transmitted wisdom and learning from one generation to the next. A succession of pharaohs had ruled the country to administer the resources and businesses of far-flung communities. In the absence of the use of money, taxes in the form of wheat and other field produce were collected by government bureaucrats based on estimated harvest. As early as the Egyptian times, the government spent revenues that were yet to be collected. In modern times, when we hear about “deficit spending”, we learned it from the Egyptians. The wheat or grains collected were stored in granaries where they are tallied and the records kept in the books. Surpluses after every good harvest were returned to the farmers during times of want and calamities. Others were used to supply the needs of their soldiers in their camps. Before the fall of Roman Empire, Europe had become the world’s central authority and had a established trade network that stretched from England and Germany into the Mediterranean countries. Rome had also provided a means of currency or the use of money for commerce and trade. The Roman government had also left a legacy of extensive system of paved roads, aqueducts or water system, and a form of government based on the local system. From these local governments, an economic system developed where labor was provided by...
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...I.GENERAL PRINCIPLES ( THE POWER OF TAXATION ( Definitions: 1. Taxation: Power by which the sovereign raises revenue to defray the necessary expenses of the government from among those who in some measure are privileged to enjoy its benefits and must bear its burden. 2. Taxes: Enforced proportional contribution from properties and persons levied by the State by virtue of its sovereignty for the support of government and for public needs. ( Characteristics of Taxes: 1. forced charge; 2. generally payable in money; 3. levied by the legislature; 4. assessed with some reasonable rule of apportionment; 5. imposed by the State within its jurisdiction; 6. levied for public purpose. ( Theories or bases of taxation: 1. Lifeblood Theory Taxes are the lifeblood of the nation. Without revenue raised from taxation, the government will not survive, resulting in detriment to society. Without taxes, the government would be paralyzed for lack of motive power to activate and operate it. (CIR vs Algue, Inc., et. al.) Illustrations of Lifeblood Theory: a. Collection of taxes may not be enjoined by injunction. b. Taxes could not be the subject of compensation and set-off. c. A valid tax may result in destruction of the taxpayer's property. 2. Necessity Theory Existence of a government is a necessity and cannot continue without any means to pay for expenses. a. Marshall Dictum “ Power to tax is the power to destroy” – describes the unlimitedness of the power...
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...When the United States bought the Philippines from the Spanish as a part of the 1898 Treaty of Paris, which ended the Spanish-American War, few Americans knew the difficulties they would face in the islands’ administration. A Nationalist group under rebel leader Emilio Aguinaldo had already set up a Filipino government in Manila, capital of the Philippines. Many Filipinos viewed the Americans as liberators, and were shocked and dismayed to learn that the Americans did not intend to recognize their new government. No sooner had the Americans exerted their sovereignty over the islands than they faced a dogged guerrilla war. On December 21, 1898, President William McKinley set the course for American policy in the Philippines. It was largely an attempt to set American Imperialism apart from the abusive European Imperialism which had led to the Spanish-American War. He announced the military occupation of the islands but also outlined a plan for the benevolent assimilation of the natives. As he proclaimed, “we come, not as invaders or conquerors, but as friends,” therefore, “it should be the…paramount aim of the military administration to win the confidence, respect, and affection of the inhabitants of the Philippines.” In practical terms, this meant building roads, schools, hospitals, introducing improved farming techniques, and preparing the Filipinos for the day when they are able to govern themselves. Using this policy of benevolent assimilation, the Americans were...
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...Chapter I INTRODUCTION An ENTERPRISE RESOURCE PLANNING (ERP) is a cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company. ERP gives a company an integrated real-time view of its core business processes such as production, order processing, and inventory management, tied together by ERP applications software and a common database maintained by a database management system. ERP systems track business resources (such as cash, raw materials, and production capacity) and the status of commitments made by the business (such as customer orders, purchase orders, and employee payroll), no matter which department (manufacturing, purchasing, sales, accounting, and so on) has entered the data into the system. ERP facilitates information flow between all business functions inside the organization, and manages connections to outside stakeholders. This PAYROLL SYSTEM is a part of an ERP. This system involves calculations and registering of cash payment of the company to their employees (which involves Salaries, Incentives, Benefits and Taxation) as stated by the law itself. Even though PAYROLL is normally under Human Resource Department of a company, yet this system makes it much more independent from the core of the said department. A PAYROLL is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees...
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...An Analysis of the Government's Role in the Mining Industry in the Philippines Steven B. Baria Kim Edbonn C. Castillo Maridy D. Nuyda Economics 151 Prof. Teresa J Ho March 13, 2013 The stance of the government in recapturing the essence of the mining industry in the country has been reiterated time and again. The industry has been tapped as one of the most viable provider of revenues and employment through local and foreign investments. Past administrations had stressed the importance of favorable investment conditions that is supposed to promote the economic growth and progress, particularly in the mining industry. However, various issues has haunted the implementation of a holistic mining industry in the nation. This paper aims to provide a view of the efficiency and equity issues that plagues the whole of the mining sector and what the government can do in order to cater to these considerations. The Philippine case would be the vantage point of the study. The paper starts by defining some terms that is helpful in understanding the entire paper. A discussion of the externalities emanating from the mining industry and equity and efficiency arguments follows suit. Lastly an analysis of the government’s role in the Philippines and some recommendations are given. Mining: Some Definitions Mining is the useful extraction of minerals and other geological materials from the surface of the earth. This involves complicated and expensive processes and is accompanied by externalities...
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...OUTLINE CHAPTER ONE: INTRODUCTION A. Introductory Statement B. Statement of the Problem C. Significance of the Study D. Theoretical Framework E. Scope and Limitation F. Review of Related Literature CHAPTER TWO: JOHN RAWLS PHILOSOPHY A. Biography of John Rawls CHAPTER THREE: PHILIPPINE TAXATION A. Concept of Taxation B. Nature of Taxation and Its purpose C. Concept of Income Taxation D. Purpose of Taxation E. Current Uses of Taxation CHAPTER FOUR: SOCIAL JUSTICE IN TAXATION A. Social Justice B. Principles of Justice C. Well Ordered Society D. Original Position E. Veil of Ignorance F. Civil Disobedience CHAPTER FIVE: CONCLUSION CHAPTER ONE: INTRODUCTION A. INTRODUCTORY STATEMENT The works of John Rawls was basically centered on justice as depicted on his work “Theory of Justice” and “Political Liberalism. John Rawls is considered to be one of the most influential philosophers during his time as he specialized in the concept of justice and fairness as a tool for attaining social justice in the society. His works received various criticisms since it may be viewed as unrealistic but though it may be criticized, his works are one of the influential and most bought book and already translated in various language to be used as curriculum in philosophy classes. Rawls differentiate the concept of justice and fairness as he tried to show that the idea of justice is fairness and...
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...INCOME TAXATION GBS 1 OBJECTIVE: The students at the end of the module should be able to distinguish the different kinds of taxes, the nature, scope, basis, theory, purpose, situs, limitations, subject of taxation and escape from taxation, the powers of the sovereign, characteristics of taxes, and the basic principles of a sound tax system, as well as the different taxable income and deductions. Definition of Terms TAXATION – is a power inherent in every sovereign state to impose a charge or burden upon persons, properties or rights to raise revenues for the use and support of the government and to enable it to discharge its appropriate functions. - It is a mode of raising revenue for public purposes. (Cooley) TAX – is a forced burden, charge, imposition or contribution assessed in accordance with some reasonable rule of apportionment by authority of the sovereign state upon person, property, or rights exercised, within its jurisdiction to provide public revenues for the support of the government, administration of the law or payment of public expenses. INCOME TAX SYSTEM OF THE PHILIPPINES • GROSS INCOME TAXATION-where a Final Tax is imposed on the gross amount of specified types of income. Example: Interest, royalty, prize, dividend, capital gain • NET INCOME TAXATION- certain deductions are allowed and subtracted from the aggregates of income not subject ot final tax; the tax is computed based on the resulting net income. THEORY AND BASIS OF TAXATION > necessity to defray the...
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...E-commerce Taxation: Towards its Legalization Have you ever wanted to buy something with just one click without having to pay much as the usual? With the easy access and affordable prices, online purchasing has become the most convenient way of shopping for most teenagers. The popularity of the Internet particularly Facebook, Instagram and other social networking sites attracted many retailers to invest their businesses online without having to pay taxes like any other retailers do. By this, e-commerce continues to grow with the advancement in technology as it overshadows the traditional way of running a business by the insignificant purpose of the physical interaction between the buyer and the seller. E-commerce in itself is classified into three types: business-to-consumer in which online stores sell products to final consumers; consumer-to-consumer just in the case of eBay and Amazon and; business-to-business which involves job recruiting, online advertising, credit, sales, and the like (U, 2002, p.6). With the emergence of e-commerce, brick and mortar stores are slowly starting to degrade, thus alarming the government on the collection of lesser tax since the law regarding electronic commerce taxation is still being debated. This income generating phenomenon has been an attractive target to the government to cope with its huge loss on tax collection. So why pay tax? Richard Carlson (2002) once said, “At tax time, it helps to remember that if your tax obligation has increased...
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...Republic of the Philippines LagunaStatePolytechnicUniversity Siniloan Host Campu, Siniloan, Laguna CollegeofAgriculture Bachelor of Science in agribusiness COURSE SYLLABUS IN social science 4 first semester, a.y. 2013-2014 I. COURSE CODE: SOC.SCI 4 II. COURSE TITLE: GENERAL ECONOMICS WITH TAXATION AND LAND REFORM III. Course Description: This course provides a comprehensive coverage of all major topics in economics. Attention is given to establish student understands of key economic principles with particular emphasis on the Philippine Economic system, its growth and development. The course covers the foundation of economics, demand and supply analysis, the concept of elasticity, the theory of production and the fundamental concept of micro and macroeconomics with the use of simple graphical and mathematical illustrations. Likewise, the course involves topics on taxation and agrarian reform with discussion on issues and problems related to its implementation. IV. CREDIT UNIT: 3HOURS V. TIME ALLOTMENT: 54 hours/ 3 hours per week VI. GENERAL OBJECTIVE: At the end of the course, the students are expected to know the fundamental principles of economics, and their application to everyday life. SOCIAL SCIENCE 4 – GEN. ECON WITH LAND REFORM AND TAXATION Time Allotment |TOPICS/ CONTENT |SPECIFIC OBJECTIVES |TEACHING STRATEGIES |VALUES INFUSED |INSTRUCTIONAL MATERIALS...
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...COMPILED NOTES: SABABAN, MAMALATEO & CHAVEZ MARIVIC B. DE GRACIA TAXATION 2 MARIVIC DE GRACIA TRANSFER TAX -refers to the burden imposed upon the right to gratuitously transfer or transmit property, tangible or intangible from one person to another. Filing: within 6 months from the date of death 15%-relative 30%-stranger Filing: within 30 days from the date of donation -are taxes imposed upon the gratuitous disposition of private property. ESTATE TAX FORMULA: KINDS OF TRANSFER TAXES: ESTATE TAX NIRC Donation mortis causa Tax levied on the transmission of properties from decedent to his heirs Tax on the privilege to transmit property at death Excise tax or privilege tax Effective upon death Tax base is the net estate Net estate amounting to P200,000 is exempted 20% highest rate DONOR’S TAX NIRC Donation inter vivos Tax levied on the transmission of properties from a living person to another living person. Gross Estate (Sec. 85) TAX ON THE TRANSFER OF REAL PROPERTY LGC Less: Ordinary Deductions (Sec. 86)_____________ Equals: Net Estate before share of surviving spouse Less: Share of surviving spouse________________ Equals: Net estate before special deductions Less: Special deductions______________________ Equals: Net taxable estate Multiply:Tax Rate (Sec 84)______________________ Equals: Estate Tax Payable If there’s tax credit available: Excise tax or privilege tax Effective during the life time of the donor Tax base is the net gift within the calendar year...
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...INDIRECT TAXATION, IS IT GOOD OR BAD? Imposing Taxation is not bad after all because this is one way how government raises income or revenues to be used for the expenses of the government. Thus; a good taxation process is a foundation of the country’s economic status. Indirect taxation, levied on articles of consumption, has this great advantage,—that the consumer has the power of taxing himself or avoiding taxation as he pleases, and government has the satisfaction of knowing that he generally pleases to tax himself to the full extent of his means. Any man may regulate his expenditure as he thinks proper, and he has only to pay indirect taxes in proportion to his expenditure. This privilege of self-taxation is so highly prized, that the proposal to do it away by the imposition of an income tax, constitutes to many minds a valid and insurmountable objection to a tax which would press in an equal ratio on all, without regard to those just and rational motives by which men regulate their expenditure, and, as a consequence, the amount of their indirect taxation. We have seen that the advantages of indirect taxation are, that it is voluntarily imposed by each individual on himself; that he can increase or diminish it as his private circumstances require; that government rather gains, than loses, by allowing this liberty of self-taxation, as, in general, men tax themselves to the full extent of their means. Indirect tax collected by manufacturer from distributor and distributor...
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...(General Bank). In 1977, Lucio Tan acquired the General Bank for only P500,000 and renamed it as Allied Bank. In 1981, it was authorized by the Bangko Sentral ng Pilipinas to operate an expanded foreign currency division and became a universal bank. A year later, Allied Bank opened the Allied Capital Resources, Ltd. in Hong Kong. In 1979, it became the number one bank in terms of total resources among the 26 private banks in the Philippines. By 1982, the bank has been granted a universal banking license. In 1986, Allied Bank acquired a development bank and renamed it First Allied Savings Bank, which is now known as Allied Savings Bank. It was one of the nine founding members of BancNet in 1990. Allied Bank reached a milestone when it became the first commercial bank to open a branch in the People’s Republic of China—the Xiamen Commercial Bank (now Allied Commercial Bank). Since then, Allied Bank has put up representative offices in Tokyo, Sydney and Bangkok. In 2003, Allied Bank entered the bancassurance with a 25% stake in the New York Life Philippines, Inc. Four years later, it acquired an additional 50% of the life insurance company making New York Life a subsidiary of Allied Bank. Alliedbankers Insurance Corporation is formerly the Sincere Insurance Company, Inc. Which was incorporated in 1960. The Lucio Tan Group of Companies (LTGC) acquired 100 ownership of the company in 1980 and changed its name to Alliedbankers Insurance Corporation. Our Vision A...
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...Income Taxation (2009 Edition) Chapter 1 True or False 1-1 1. True 2. False. Taxation covers person, properties, rights and transactions. 3. False. Person in taxation includes the concept of partnership, corporation, estate and trust. 4. True 5. False. Taxation as a legislative process is under the power of the legislative body, the Congress. 6. False. Taxation is the primary source of government revenue. Usually, the government resorts to borrowing if taxes collected are not sufficient to defray its budgetary requirements. 7. True 8. True 9. False. Basically, taxes imposed are based on the ability of the taxpayer to pay. 10. False. It is the primary obligation of the state to protect all the constituents regardless of whether they pay or not their tax liabilities. True or False 1-2 1. True 2. True 3. True 4. True 5. True 6. False. The President cannot delegate the power of taxation, since taxation is not vested in the President. Taxation is vested in the legislative body. 7. False. Taxation cannot be separated from the state. The moment a state exists, taxation also exists. 8. False. The making of tax law is undertaken ahead of the collection of taxes. 9. False. Levying refers to the making of tax laws. 10. False. Only the legislative body, the Congress, can grant tax exemptions. True or False 1-3 1. False. It is the legislative branch of the government that is vested with the power of taxation. 2. False...
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...you will need to visit the following offices: Homeowners Association for businesses inside villages and subdivisions, Barangay Hall to secure a barangay clearance to operate your business, Local Government Unit (LGU) to process your business permit, Bureau of Internal Revenue (BIR) to apply for a business taxpayer identification number (TIN), register your books of accounts, point-of-sales (POS) machines and receipts. In the past, economists thought that government policies has no impact on business, but after the 1930’s Great Depression, a great economist named Keynes, showed that businesses are affected by the government policies. The following policies of a government can impact business directly or indirectly: (a) taxation, (b) subsidies, (c) interest rates, (d)...
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