GE2

• Commonwealth period


  Spanned from 1935 to 1945 in the Philippines
• Taxation during the Commonwealth period

  1. Several measures and legislation were implemented to alter the taxation system in an effort to promote fairness

  2. Key changes:
• Income tax rate


  Increased in 1936
• Surtax


  Introduced for individuals with net incomes exceeding 10,000 pesos
• Corporate tax rate


  Increased in 1936
• Cedula tax


  Abolished in 1937
• Residence tax


  Introduced in 1940 and imposed on every citizen aged 18 years old and on every corporation to compensate for the revenue loss resulting from the abolition of the cedula tax
• Major changes in the new tax system introduced in 1939

  1. Normal tax and surtax on income replaced by a single tax at a progressive rate

  2. Personal exemptions reduced

  3. Corporation income tax slightly increased by introducing taxes on inherited estates or gifts donated in the name of dead persons

  4. Cumulative sales tax replaced by a single turnover tax of 10% on luxuries

  5. Taxes on liquors, cigarettes, forestry products, and mining increased

  6. Dividends made taxable
• The introduction of the residence tax

  Was to make up for the loss of revenue from the abolition of the cedula tax
• The tax system introduced during the Commonwealth period aimed to address some of the inequities present in the earlier American system
• Despite improvements, the tax system still had shortcomings as the lower class continued to bear a significant portion of the tax burden, while the upper class found ways to benefit more
• The agriculture sector was still taxed at a relatively low rate to promote agricultural growth and support rural livelihoods
• There was a lack of incentives for industrial investment, and the tax structure did not encourage industrialization or provide favorable conditions for industries to flourish
• The tax revenue collected during the American occupation was not effectively utilized to diversify the economy or drive targeted economic development, hindering overall economic progress
• The Japanese military administration immediately continued the system of tax collections based on the sales tax law under the Commonwealth period
• Tax collection by the Japanese military administration

  35% on articles of luxury, 30% on merchandise, 10% on imports and exports, excluding articles belonging to the Japanese armed forces
• Due to the fall in foreign trade, the main sources of taxation fell on amusements, manufactures, professions and business licenses
• The Japanese military authorities issued military notes to cover its expenditure and extended advances to the Philippine government to cover budgetary expenditures
• The Japanese authorities exploited the Philippine economy in various ways to extract resources, including requisitioning goods and materials, forced labor, and confiscating assets
• Rice was subject to special taxation and procurement measures by the Japanese, with farmers often required to sell a portion of their rice harvest at fixed prices
• There were instances of resistance to Japanese taxation among the Filipino population, but resistance often came with severe consequences
• Constitution


  The set of fundamental principles or established precedents according to which a state or other organization is governed
• Constitution


  • It means to be part of a whole, the coming together of distinct entities into one group, with the same principles and ideals
  • It defines the nature and extent of government
• Constitution of Biak-na-Bato


  1897
• Organs of government under the Constitution of Biak-na-Bato


  • The Supreme Council
  • The Consejo Supremo de Garcia Y Justicia
  • The Asamblea de Representantes
• The Constitution of Biak-na-Bato was never fully implemented, since a truce, the Pact of Biak-na-Bato, was signed between the Spanish and the Philippine Revolutionary Army
• Philippine declaration of independence issued

  1898
• Malolos Congress elected, which selected a commission to draw up a draft constitution

  1898
• The document they came up with approved by the congress

  1898
• Malolos Constitution promulgated by Aguinaldo

  1899
• Malolos Constitution


  • 39 Articles divided into four Titles with eight Articles of transitory provisions and the final additional article
• Influences on the Malolos Constitution


  • Spanish constitution of 1812
  • Charters of Belgium, Mexico, Brazil, Nicaragua, Costa Rica, and Guatemala
  • French Constitution of 1793
  • Kartilya and the Sanggunian-Hukuman
  • Biak-na-Bato Constitution of 1897
  • Mabini's Constitutional Program of the Philippine Republic of 1898
  • The provisional constitution of Mariano Ponce in 1898
  • The autonomy projects of Paterno in 1898
• Malolos Constitution


  • Sovereignty was retroverted to the people
  • People delegated governmental functions to civil servants
  • 27 Articles of Title IV detail the natural rights and popular sovereignty of Filipinos
  • Title III, Article V declares that the state recognizes the freedom and equality of all beliefs; separation of church and state
• Malolos Constitution


  • Form of government is to be popular, representative, alternative, and responsible and shall exercise three distinct powers-- legislative, executive and judicial
• Legislative power under the Malolos Constitution


  • Unicameral, Assembly of Representatives (4 year term)
  • Secretaries of the government, meet annually for a period of 3 months (Right to select its own officer, to impeach the President, Cabinet members, Chief Justice, Solicitor General)
• Executive power under the Malolos Constitution


  • Vested on the President, elected by the Assembly of Representatives for 4 years without re-election
• Judicial power under the Malolos Constitution

  • No details provided
• Philippine Organic Act passed by the US Congress

  1902
• Philippine Organic Act of 1902


  • Legislative power vested in a bicameral legislature (Philippine Commission as the upper house and the Philippine Assembly as lower house)
  • Bill of Rights for Filipinos
  • Appointment of two non-voting Filipino Resident Commissioners of the Philippines as representative to the United States House of Representatives
• Philippine Autonomy Act (Jones Law) passed by the US Congress


  1916