Land reform – refers to the improvement of the farmer’s relationship to the land that they cultivate.

However, farmers’
life means not only to till the land, because they are also part of society.

- Refers to the full range of measures that may or should be taken to improve or remedy the defect in the
relations among men with respect to the rights in the use of land. (Marcelino, Viray, Bato, Bautista)

Agrarian Reform comprises not only the land reform but also the reform and development of complimentary
institutional frameworks such as the administrative agencies of the national government created to undertake land
reform, local governments, rural educational and social welfare institutions, and voluntary associations, particularly
farmers’ organizations.
It includes transfer of lands, package of support services, economic and physical infrastructure support services,
credit, extension, irrigation, roads and bridges, marketing facilities and human resource and institutional development
or social infrastructure building and strengthening.

AGRARIAN HISTORICAL BACKGROUND

PERIOD SIGNIFICANCE OF THE PERIOD
Pre- Spanish Period
 Land was commonly used.
 Production for self/family and/or clan

Spanish Period
 Feudal System was introduced (production for Landlord).
American Period
 Left hacienda untouched
 Capitalism was introduced – production for export
 Plantation system was introduced
 Share System was introduced – Kasama
 Land Registration Act of 1902 provided for the registration of Torrens Titles or titles of ownership of private
property after presentation of proofs of ownership.
 Public Lands Act of 1903, better known as Homestead System in the Philippines, which provided for portions
of public land to be sold to agricultural families who had occupied and cultivated the land since August 1,
1898.
Commonwealth Era
 Rice Tenancy Law (Act No. 4054) which provided 50 – 50 sharing between landlords and tenants and
established 10 percent a year as the maximum interest ceilings for agricultural loans extended to tillers.
Japanese Occupation
 The war was a golden opportunity for peasants to demonstrate peasant’s initiative through HUKBALAHAP.
Roxas and Qurinio Administration  70 – 30 sharing
Magsaysay Administration
 Declared “land for the landless” policy as a centerpiece upon his assumption of office.
 Agricultural Tenancy Act of 1954, which established agricultural tenancy relations on the basis of social
justice.
 Land Reform Act of 1955, which formed the Land Tenure Administration, the agency which had jurisdiction
over government acquired private land estates.
 National Resettlement and Rehabilitation Administration (NARRA) where there was free distribution of
agricultural lands to landless tenants and farm workers
Garcia Administration  Continued Magsaysay’s Campaign

Macapagal Admnistration
 R.A. 3844 – Agricultural Land Reform Code – abolished share tenancy to give way to leasehold
Marcos Land Reform Program
 Hastened implementation of R.A 3844
 R.A 6389 – Land Reform Code
 R.A 9390 – funding for land reform
 PD 1081 – Declaration of Martial Law
 PD 2 – subjecting entire country to land reform
 PD 27 – decreasing the emancipation of the tenant from the bondage of the soil transferring to then the land
they till
 Limited the coverage of land reform to tenanted rice and corn lands.
Aquino Administration  RA 6657 – Comprehensive Agrarian Reform Program (CARP)

Ramos Administration  RA 8532 – extending the implementation period of CARP until 2008
 Estarda Administration
 Continued CARP
 E.O No. 151, (Farmer’s trust Fund) – allowed the voluntary consolidation of small farm operation into
medium and large scale integrated enterprise that can access long-term capital,
 Launched the “Magkabalikat Para sa Kaunlarang Agraryo” or MAGKASAKA. The DAR forged into joint
ventures with private investors into agrarian sector to make (Fund Bills) FBs competitive
Macapagal-Arroyo administration
 Land Tenure Improvement – DAR will remain vigorous in implementing land acquisition and distribution
component of CARP.
 KALAHI AR Zone – the KALAHI Agrarian Reform (KAR) Zones were also launched. These zones consist of one
or more municipalities with concentration of ARC population to achieve greater agro-productivity.
 Agrarian Justice – to help clear the backlog of agrarian cases, DAR will hire more paralegal officers to support
undermanned adjudicatory boards and introduce quota system to compel of adjudicators to work faster or
agrarian reform cases.
(N.B: These sections where adapted from the brochures, leaflets, and website of the Department of Agrarian Reform.
www.dar.gov.ph)

Constitutional and Legal Bases of Agrarian Reform

Agrarian reform is mandated by the Philippine Constitution. The State has the right to regulate private
ownership of land to ensure the greatest good to the greatest number of its citizens.

The CARP is implemented pursuant to Republic Act 6657, otherwise known as the Comprehensive Agrarian
Reform Law (CARL), which took effect on June 10, 1988. It is an act instituting a CARP to promote social justice and
industrialization, providing the mechanism for its implementation.

PHILIPPINE TAXATION

Taxation defined as
1. A power by which an independent state, through its law making body, raises and accumulates revenue from its
inhabitants to pay the necessary expenses of the government.

2. A process or act of imposing a charge of governmental authority on property, individuals or transactions to raise
money for public purposes.

3. A means by which the sovereign state through its law- making body demands for revenue in order to support its
existence and carry out its legitimate objectives.

- Article III Sec. 20 “No person shall be imprisoned for debt or non-payment of a poll tax.”

- Taxation is the “lifeblood” or the “blood and butter” of the government and every citizen must pay his taxes.
(Commissioner VS Pineda, 21 SCRA 105, cited in Cebu Portland cement VS Court of Tax Appeals G.R. No. L –
29059, 15 Dec 1987)

Purposes of Taxation
1. Principal Purpose – it is a means to raise revenues for the use and support of the government to enable it to
carry out its appropriate functions.
2. Secondary Purpose – it is a means to contended social, general welfare and economic development.

Tax – refers to the burden or enforced contribution imposed by the government based on its power of taxation, upon
persons, property or rights.

Sources of Philippine tax laws

1. Constitution of the Philippines
2. Statutes (ex. RA 8424 – RA 9337 the VAT reform Law)
3. Executive orders
4. Tax treaties and Conventions with foreign countries
5. Revenue Regulations promulgated by the Department of Finance
6. BIR Revenue Memorandum and Bureau of Customs, Memorandum Orders
7. BIR rulings
8. Judicial Decisions
9. Local tax ordinances
Entities exempted from taxation
1. Religious institutions (churches, mosques, and personages)
2. Charitable institutions
3. Nonprofit, nonstick educational institution
4. Nonprofit cemeteries
5. Government institutions
6. Foreign diplomats (by virtues of treaty, Art. XV, Sec. 3&4, 1987 Constitution, Art. VII, Sec. 28, Par.1)

Essential Characteristics of Tax

1. An enforced contribution
2. imposed in accordance with law or legislative in nature
3. imposed for public purpose
4. proportionate in character
5. generally paid in money
6. paid at regular intervals
7. imposed upon persons, property or rights

Classification of Taxes

1. Classes of taxes as to subject matter

a. Personal or Capitation or Poll Tax - refers to those fixed amounts of taxes imposed upon certain class
of persons, or upon persons residing within the territorial jurisdiction of the state regardless of their
property, professions or occupations. Example – community tax.
b. Property Tax - refers to those taxes imposed upon the taxpayers’ property, real or personal, situated
within the territorial jurisdiction of the state in proportion to its value or some other reasonable method
of apportionment. Example – real Property Tax.
c. Excise Tax - otherwise known as Privilege Tax, refers to those taxes imposed on the taxpayers’ exercising
their right and privileges of performing act or engaging in an occupation. All taxes that do not fall under
the poll tax or property tax shall be deemed as excise tax. example – donors Tax, Income Tax. (VAT)

VAT – a form of sales tax. A tax on consumption levied on the sale of goods and services and on the imports
of goods into the Philippines.

2. Classes of Taxes as to Scope or Authority

a. National Tax - refers to those imposed by the National government through the Bureau of Internal
Revenue or the Bureau of Customs. Example – Estate and donor’s taxes, Income tax, VAT, Excise tax,
Customs Duties (Travel Tax), and Documentary Stamp Taxes.
b. Local Tax – refers to those imposed by the local government such as cities, municipalities, or provinces.
Example – Real Estate Tax, Community taxes, Municipal licenses taxes, and Professional tax.

3. Classes of Taxes as to Purpose

a. General Tax – refers to those taxes imposed for general purposes, the proceeds of which to the
national/general funds. example – Estate Tax
b. Special Tax – refers to those taxes imposed for special purposes, the proceeds of which go to certain
special funds. example – Gasoline Tax

4. Classes of Taxes as to Liabilities

a. Direct Tax – refers to those taxes imposed upon directly bound to pay the tax. example – Individual
Income Tax
b. Indirect Tax – refers to those taxes imposed upon persons liable to pay said taxes but are permitted by
law to shift said taxes to others for payment. example – Value Added Tax

5. Classes of Taxes as to Determination of Amounts

a. Specific tax – refers to those taxes imposed upon property which amounts are determined based on
weight or volume capacity or any physical unit of measurements. Example – Excise Tax on wines/liquors.

b. Ad –Valorem Tax – refers to those taxes imposed upon property which amounts are determined based
on the sales price or other specified values of the properties. Example – Value Added Tax.
 6. Classes of Taxes as to Graduation or Rate

a. Progressive / Graduated Tax – refers to those taxes imposed upon persons, which amount of tax
increases as the bracket increases. example – Gift Tax
b. Regressive Tax – refers to those taxes imposed upon persons, which amount of tax decreases as the
bracket increase. At present, there is no regressive tax in the Philippines.
c. Proportionate Tax - refers to those taxes imposed upon persons which amount of tax may be higher or
lower depending upon the bracket or classification. Example – Real Property Tax.

Classification of Taxpayers
1. Individual taxpayer
a. Resident citizens
b. Nonresident citizens
c. Resident aliens
d. Nonresident Aliens
2. Corporate Taxpayer
a. Domestic Corporation
b. Foreign
c. Resident Corporation
d. Nonresident Corporation
3. General Professional Partnership
a. CPA
b. Lawyer
4. Estates and Trusts

Public Officers in Charge of Tax Collection

1. Finance Secretary 4. Commissioner on Internal Revenue
2. Commissioner of Customs 5. City Treasurer
3. Provincial Treasurer 6. Municipal Treasurer

Income - Refers to all wealth which flows into the taxpayer other than as mere return on capital.
Capital – refers to the investment made which is the source of income.

Income taxation – refers to the tax imposed on the net income or on the entire income received by a taxpayer in one
taxable period.

Gross income – refers to all income but not including exempt income and income subject to final income tax.
Deductions – those amounts which the law allows to be deducted from the gross income to arrive at taxable income.
The following are the allowable deductions:
1. Business expenses
2. Interests, losses (not paid insurance)
3. Bad debts
4. Depreciations of properties, depletion of natural resources
5. GSIS/SSS contributions
6. Medicare/PhilHealth
7. Pag-IBIG Fund
8. Premium payment on health/hospitalization and insurance amounting to P2,400.00 if the gross income is
not more than P250,000.00 per annum.
Taxable income – refers to a pertinent item of gross income specifies in the tax code less deduction of personal and/ or
additional exemptions.

Net income – refers to the gross income less allowable deductions.

Status of taxpayers
1. Single
2. Head of the family
3. Married