Reference No: KLL-FO-ACAD-000 | Effectivity Date: August 3, 2020 | Revisions No.

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VISION MISSION
A center of human development committed to the pursuit of wisdom, truth, Establish and maintain an academic environment promoting the pursuit of
justice, pride, dignity, and local/global competitiveness via a quality but excellence and the total development of its students as human beings,
affordable education for all qualified clients. with fear of God and love of country and fellowmen.

GOALS
Kolehiyo ng Lungsod ng Lipa aims to:
1. foster the spiritual, intellectual, social, moral, and creative life of its client via affordable but quality tertiary education;
2. provide the clients with reach and substantial, relevant, wide range of academic disciplines, expose them to varied curricular and co-curricular
experiences which nurture and enhance their personal dedications and commitments to social, moral, cultural, and economic transformations.
3. work with the government and the community and the pursuit of achieving national developmental goals; and
4. develop deserving and qualified clients with different skills of life existence and prepare them for local and global competitiveness

LESSON 4 (ATTACHMENT D)
SOCIAL, POLITICAL, ECONOMIC, AND CULTURAL ISSUES IN PHILIPPINE HISTORY
A. EVOLUTION OF THE PHILIPPINE CONSTITUTION
The Constitution considered as “the highest expression of the law” because this is a set of
laws that guide the actions of national governments and citizens. Create power-related balance, fairness,
and justice in which no one can overpower another.
The foundation of the system of government of the Philippines is the constitution. In its broad
sense, the term constitution refers to the “body of rules and principles in accordance with which the
powers of sovereignty is regularly exercised.”
A constitution is important because it ensures that those who make decisions on behalf of the
public fairly represent public opinion. It also sets out the ways in which those who exercise power may
be held accountable to the people they serve.The Philippine Constitution is created by the Filipinos for
the Filipinos.
A constitution provides the basis for governance in a country, which is essential to making sure
that everyone's interests and needs are addressed. It determines how laws are made, and details the
process by which the government rules.
The constitution is based on important principles that help to ensure government by popular
sovereignty. The Constitution set those limits so that citizen know what their government is allowed to do
and what it is not allowed to do The Articles of Confederation were not working. It establishes checks
and balances within the main branches of government namely the Executive, the Legislature and the
Judiciary, through the doctrine of separation of powers. A constitution establishes government based on
the rule of law and which is limited by law.
The Philippine Constitution has been through a lot of amendments, seeking to uplift the Filipino
people, and stressed the importance of freedom, independence, equality and democracy.
ACTIVITY A
DIRECTIONS: Make a video presentation on the evolution of the Philippine Constitution focusing on its
importance, key features and the issues and challenges faced by each constitution. Here is the list of the
Constitution of the Philippines.

 1897 Constitution of Biak-na-Bato

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 1899 Constitution ( Malolos Constitution )
 1935 Constitution
 1943 Constitution ( Constitution During the Japanese Occupation )
 1973 Constitution
 1986 Provisional “ Freedom” Constitution
 1987 Constitution
APPLICATION ( Group Work )
DIRECTIONS: Research on The Bill of Rights in the 1987 Constitution. Write your insights regarding
your rights as citizens and its importance in your lives.
B. POLICIES ON AGRARIAN REFORM
AGRARIAN REFORM HISTORY
Pre-Spanish Period
“This land is Ours God gave this land to us”
Before the Spaniards came to the Philippines, Filipinos lived in villages or barangays ruled by chiefs or
datus. The datus comprised the nobility. Then came the maharlikas (freemen), followed by the aliping
mamamahay (serfs) and aliping saguiguilid (slaves).
However, despite the existence of different classes in the social structure, practically everyone had access
to the fruits of the soil. Money was unknown, and rice served as the medium of exchange.
Spanish Period
“United we stand, divided we fall”
When the Spaniards came to the Philippines, the concept of encomienda (Royal Land Grants) was
introduced. This system grants that Encomienderos must defend his encomienda from external attack,
maintain peace and order within, and support the missionaries. In turn, the encomiendero acquired the
right to collect tribute from the indios (native).
The system, however, degenerated into abuse of power by the encomienderos The tribute soon became
land rents to a few powerful landlords. And the natives who once cultivated the lands in freedom were
transformed into mere share tenants.
First Philippine Republic
“The yoke has finally broken”
When the First Philippine Republic was established in 1899, Gen. Emilio Aguinaldo declared in the
Malolos Constitution his intention to confiscate large estates, especially the so-called Friar lands.
However, as the Republic was short-lived, Aguinaldo’s plan was never implemented.
American Period

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“Long live America”
Significant legislation enacted during the American Period:
 Philippine Bill of 1902 – Set the ceilings on the hectarage of private individuals and corporations
may acquire: 16 has. for private individuals and 1,024 has. for corporations.
 Land Registration Act of 1902 (Act No. 496) – Provided for a comprehensive registration of land
titles under the Torrens system.
 Public Land Act of 1903 – introduced the homestead system in the Philippines.
 Tenancy Act of 1933 (Act No. 4054 and 4113) – regulated relationships between landowners and
tenants of rice (50-50 sharing) and sugar cane lands.
The Torrens system, which the Americans instituted for the registration of lands, did not solve the problem
completely. Either they were not aware of the law or if they did, they could not pay the survey cost and
other fees required in applying for a Torrens title.
Commonwealth Period
“Government for the Filipinos”
President Manuel L. Quezon espoused the "Social Justice" program to arrest the increasing social unrest
in Central Luzon.
Significant legislation enacted during Commonwealth Period:
 1935 Constitution – "The promotion of social justice to ensure the well-being and economic
security of all people should be the concern of the State"
 Commonwealth Act No. 178 (An Amendment to Rice Tenancy Act No. 4045), Nov. 13, 1936 –
Provided for certain controls in the landlord-tenant relationships
 National Rice and Corn Corporation (NARIC), 1936 – Established the price of rice and corn
thereby help the poor tenants as well as consumers.
 Commonwealth Act. No. 461, 1937 – Specified reasons for the dismissal of tenants and only with
the approval of the Tenancy Division of the Department of Justice.
 Rural Program Administration, created March 2, 1939 – Provided the purchase and lease of
haciendas and their sale and lease to the tenants.
Commonwealth Act No. 441 enacted on June 3, 1939 – Created the National Settlement
Administration with a capital stock of P20,000,000.
Japanese Occupation
“The Era of Hukbalahap”
The Second World War II started in Europe in 1939 and in the Pacific in 1941.

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Hukbalahap controlled whole areas of Central Luzon; landlords who supported the Japanese lost their
lands to peasants while those who supported the Huks earned fixed rentals in favor of the tenants.
Unfortunately, the end of war also signaled the end of gains acquired by the peasants.
Upon the arrival of the Japanese in the Philippines in 1942, peasants and workers organizations grew
strength. Many peasants took up arms and identified themselves with the anti-Japanese group, the
HUKBALAHAP (Hukbo ng Bayan Laban sa Hapon).
Philippine Republic
“The New Republic”
After the establishment of the Philippine Independence in 1946, the problems of land tenure remained.
These became worst in certain areas. Thus the Congress of the Philippines revised the tenancy law.
President Manuel A. Roxas (1946-1948) enacted the following laws:
 Republic Act No. 34 -- Established the 70-30 sharing arrangements and regulating share-tenancy
contracts.
 Republic Act No. 55 -- Provided for a more effective safeguard against arbitrary ejectment of
tenants.
Elpidio R. Quirino (1948-1953) enacted the following law:
Executive Order No. 355 issued on October 23, 1950 -- Replaced the National Land Settlement
Administration with Land Settlement Development Corporation (LASEDECO) which takes over the
responsibilities of the Agricultural Machinery Equipment Corporation and the Rice and Corn Production
Administration.
Ramon Magsaysay (1953-1957) enacted the following laws:
 Republic Act No. 1160 of 1954 -- Abolished the LASEDECO and established the National
Resettlement and Rehabilitation Administration (NARRA) to resettle dissidents and landless
farmers. It was particularly aimed at rebel returnees providing home lots and farmlands in Palawan
and Mindanao.
 Republic Act No. 1199 (Agricultural Tenancy Act of 1954) -- governed the relationship between
landowners and tenant farmers by organizing share-tenancy and leasehold system. The law
provided the security of tenure of tenants. It also created the Court of Agrarian Relations.
 Republic Act No. 1400 (Land Reform Act of 1955) -- Created the Land Tenure Administration
(LTA) which was responsible for the acquisition and distribution of large tenanted rice and corn
lands over 200 hectares for individuals and 600 hectares for corporations.
 Republic Act No. 821 (Creation of Agricultural Credit Cooperative Financing Administration)
-- Provided small farmers and share tenants loans with low interest rates of six to eight percent.
President Carlos P. Garcia (1957-1961)

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Continued the program of President Ramon Magsaysay. No new legislation passed.
President Diosdado P. Macapagal (1961-1965) enacted the following law:
Republic Act No. 3844 of August 8, 1963 (Agricultural Land Reform Code) -- Abolished share
tenancy, institutionalized leasehold, set retention limit at 75 hectares, invested rights of preemption and
redemption for tenant farmers, provided for an administrative machinery for implementation,
institutionalized a judicial system of agrarian cases, incorporated extension, marketing and supervised
credit system of services of farmer beneficiaries.
The RA was hailed as one that would emancipate Filipino farmers from the bondage of tenancy.
President Ferdinand E. Marcos (1965-1986)
Proclamation No. 1081 on September 21, 1972 ushered the Period of the New Society. Five days after
the proclamation of Martial Law, the entire country was proclaimed a land reform area and simultaneously
the Agrarian Reform Program was decreed.
President Marcos enacted the following laws:
 Republic Act No. 6389, (Code of Agrarian Reform) and RA No. 6390 of 1971 -- Created the
Department of Agrarian Reform and the Agrarian Reform Special Account Fund. It strengthen the
position of farmers and expanded the scope of agrarian reform.
 Presidential Decree No. 2, September 26, 1972 -- Declared the country under land reform
program. It enjoined all agencies and offices of the government to extend full cooperation and
assistance to the DAR. It also activated the Agrarian Reform Coordinating Council.
 Presidential Decree No. 27, October 21, 1972 -- Restricted land reform scope to tenanted rice
and corn lands and set the retention limit at 7 hectares.
President Corazon C. Aquino (1986-1992)
The Constitution ratified by the Filipino people during the administration of President Corazon C. Aquino
provides under Section 21 under Article II that “The State shall promote comprehensive rural development
and agrarian reform.”
On June 10, 1988, former President Corazon C. Aquino signed into law Republic Act No. 6657 or
otherwise known as the Comprehensive Agrarian Reform Law (CARL). The law became effective
on June 15, 1988.
Subsequently, four Presidential issuances were released in July 1987 after 48 nationwide consultations
before the actual law was enacted.
President Corazon C. Aquino enacted the following laws:
 Executive Order No. 228, July 16, 1987 – Declared full ownership to qualified farmer-
beneficiaries covered by PD 27. It also determined the value remaining unvalued rice and corn
lands subject of PD 27 and provided for the manner of payment by the FBs and mode of
compensation to landowners.

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  Executive Order No. 229, July 22, 1987 – Provided mechanism for the implementation of the
Comprehensive Agrarian Reform Program (CARP).
 Proclamation No. 131, July 22, 1987 – Instituted the CARP as a major program of the
government. It provided for a special fund known as the Agrarian Reform Fund (ARF), with an
initial amount of Php50 billion to cover the estimated cost of the program from 1987-1992.
 Executive Order No. 129-A, July 26, 1987 – streamlined and expanded the power and operations
of the DAR.
 Republic Act No. 6657, June 10, 1988 (Comprehensive Agrarian Reform Law) – An act which
became effective June 15, 1988 and instituted a comprehensive agrarian reform program to
promote social justice and industrialization providing the mechanism for its implementation and for
other purposes. This law is still the one being implemented at present.
 Executive Order No. 405, June 14, 1990 – Vested in the Land Bank of the Philippines the
responsibility to determine land valuation and compensation for all lands covered by CARP.
 Executive Order No. 407, June 14, 1990 – Accelerated the acquisition and distribution of
agricultural lands, pasture lands, fishponds, agro-forestry lands and other lands of the public
domain suitable for agriculture.
President Fidel V. Ramos (1992-1998)
When President Fidel V. Ramos formally took over in 1992, his administration came face to face with
publics who have lost confidence in the agrarian reform program. His administration committed to the
vision “Fairer, faster and more meaningful implementation of the Agrarian Reform Program.
President Fidel V. Ramos enacted the following laws:
 Republic Act No. 7881, 1995 – Amended certain provisions of RA 6657 and exempted fishponds
and prawns from the coverage of CARP.
 Republic Act No. 7905, 1995 – Strengthened the implementation of the CARP.
 Executive Order No. 363, 1997 – Limits the type of lands that may be converted by setting
conditions under which limits the type of lands that may be converted by setting conditions under
which specific categories of agricultural land are either absolutely non-negotiable for conversion or
highly restricted for conversion.
 Republic Act No. 8435, 1997 (Agriculture and Fisheries Modernization Act AFMA) – Plugged
the legal loopholes in land use conversion.
 Republic Act 8532, 1998 (Agrarian Reform Fund Bill) – Provided an additional Php50 billion for
CARP and extended its implementation for another 10 years.
President Joseph E. Estrada (1998-2000)
“ERAP PARA SA MAHIRAP’. This was the battle cry that endeared President Joseph Estrada and made
him very popular during the 1998 presidential election.

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President Joseph E. Estrada initiated the enactment of the following law:
Executive Order N0. 151, September 1999 (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.
During his administration, President Estrada launched the Magkabalikat Para sa Kaunlarang
Agraryo or MAGKASAKA. The DAR forged into joint ventures with private investors into agrarian sector
to make FBs competitive.
However, the Estrada Administration was short lived. The masses who put him into office demanded for
his ouster.
President Gloria Macapacal-Arroyo (2000-2010)
The agrarian reform program under the Arroyo administration is anchored on the vision “To make the
countryside economically viable for the Filipino family by building partnership and promoting social equity
and new economic opportunities towards lasting peace and sustainable rural development.”
Land Tenure Improvement - DAR will remain vigorous in implementing land acquisition and distribution
component of CARP. The DAR will improve land tenure system through land distribution and leasehold.
Provision of Support Services - CARP not only involves the distribution of lands but also included
package of support services which includes: credit assistance, extension services, irrigation facilities,
roads and bridges, marketing facilities and training and technical support programs.
Infrastrucre Projects - DAR will transform the agrarian reform communities (ARCs), an area focused and
integrated delivery of support services, into rural economic zones that will help in the creation of job
opportunities in the countryside.
KALAHI ARZone - The KALAHI Agrarian Reform (KAR) Zones were also launched. These zones
consists 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 adjudicators to work
faster on agrarian reform cases. DAR will respect the rights of both farmers and landowners.
President Benigno Aquino III (2010-2016)
President Benigno Aquino III vowed during his 2012 State of the Nation Address that he would complete
before the end of his term the Comprehensive Agrarian Reform Program (CARP), the centerpiece
program of the administration of his mother, President Corazon Aquino.
The younger Aquino distributed their family-owned Hacienda Luisita in Tarlac. Apart from the said farm
lots, he also promised to complete the distribution of privately-owned lands of productive agricultural
estates in the country that have escaped the coverage of the program.

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Under his administration, the Agrarian Reform Community Connectivity and Economic Support
Services (ARCCESS) project was created to contribute to the overall goal of rural poverty reduction
especially in agrarian reform areas.
Agrarian Production Credit Program (APCP) provided credit support for crop production to newly
organized and existing agrarian reform beneficiaries’ organizations (ARBOs) and farmers’ organizations
not qualified to avail themselves of loans under the regular credit windows of banks.
The legal case monitoring system (LCMS), a web-based legal system for recording and monitoring
various kinds of agrarian cases at the provincial, regional and central offices of the DAR to ensure faster
resolution and close monitoring of agrarian-related cases, was also launched.
Aside from these initiatives, Aquino also enacted Executive Order No. 26, Series of 2011, to
mandate the Department of Agriculture-Department of Environment and Natural Resources-Department of
Agrarian Reform Convergence Initiative to develop a National Greening Program in cooperation with other
government agencies.
President Rodrigo Roa Duterte (2016 – present) 
Under his leadership, the President wants to pursue an “aggressive” land reform program that would help
alleviate the life of poor Filipino farmers by prioritizing the provision of support services alongside land
distribution.
The President directed the DAR to launch the 2nd phase of agrarian reform where landless farmers would
be awarded with undistributed lands under the Comprehensive Agrarian Reform Program (CARP).
Duterte plans to place almost all public lands, including military reserves, under agrarian reform.
The President also placed 400 hectares of agricultural lands in Boracay under CARP.
Under his administration the DAR created an anti-corruption task force to investigate and handle reports
on alleged anomalous activities by officials and employees of the department.
The Department also pursues an “Oplan Zero Backlog” in the resolution of cases in relation to agrarian
justice delivery of the agrarian reform program to fast-track the implementation of CARP.
ACTIVITY B
DIRECTIONS : Make a video presentation discussing the history, laws, and problems of Agrarian Reform.
You may use this lesson and your research to make it more informative.
C. EVOLUTION OF PHILIPPINE TAXATION
In today’s world, taxation is a reality that all citizens must contend with for the primary reason that
governments raise revenue from the people they govern to be able to function fully. In exchange for the
taxes that people pay, the government promises to improve the citizens’ lives through good governance.
Taxation, as government mechanism to raise funds, developed and evolved through time, and in the
context of the Philippines, we must understand that it came with colonial experience.
Pre-colonial Era

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 During the time before the Spaniards came, the country had various kingdoms, called barangays,
which was ruled by the datus ( or rajahs in some areas ) who offered protection to all its subordinates.
Since barter was the leading form of trade back then, tax ( called buwis or handug, with the variant
handog ) came in forms of crops or goods, which the people living under the datu share a portion of their
harvest or property, in exchange for security and protection.
Only the timawa ( free men ) pay taxes, since the maharlikas ( nobility ) and the datu offer
protection, while the oripun or uripon ( slaves ) couldn’t offer anything since they live to serve; thus the
highest and lowest of the castes were exempted from tax payment.
Taxation During the Spanish Period
Taxes during the Spanish period was compulsory. All the Spanish Colonies in America and the
Philippines were required to pay taxes for two reasons.
1. As recognition of Spain's Sovereignty over the Colonies.
2. To defray the expenses of pacification (The act of forcibly suppressing hostility within the colonies) and
governance, thereafter.
Tributo
Tributo was a general tax paid by the Filipinos to Spain which amounted to eight reales. Those who were
required to pay the tributo the:
a. 18 to 50 years old males
b. The Carpenters, bricklayers, blacksmiths, tailors and shoemakers
C. Town workers such as those in road construction, and those whose is public in nature.
Sanctorum
Sanctorum was a tax in the amount of 3 reales. These were required for the cost of Christianization,
including the construction of the churches and the purchase of materials for religious celebrations
Donativo
Donativo was the tax in the amount of half real for the military campaign of the government against the
muslims. In the later years, however, the amount collected from donativo was almost exclusively used for
the Spanish fort in Zamboanga.
Caja de Comunidad
Caja de comunidad was a tax collected in the amount of 1 real for the incurred expenses of the town in
the construction of roads, repair of bridges, or the improvement of public buildings.
Servicio Personal
Polo y servicio is the system of forced labor which evolved within the framework of the encomienda
system, introduced into the South American colonies by the Conquistadores and Catholic priests who
accompanied them. It was present in almost all of the Spanish colonial government around the world. Polo

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y servicio is the forced labor for 40 days of men ranging from 16 to 60 years of age who were obligated to
give personal services to community projects. One could be exempted from polo by paying the falla
(corruption of the Spanish Falta, meaning "absence"), a daily fine of one and a half real.
Revolts against Tribute
There are several revolts that are against the implementation of tax by the Spanish Authorities.
Cagayan and Dingras Revolts (1589)
The Cagayan and Dingras Revolts Against the Tribute occurred on Luzon in the present-day
provinces of Cagayan and Ilocos Norte in 1589. Ilocanos, Ibanags and other Filipinos revolted against
alleged abuses by the tax collectors, including the collection of high taxes. It began when six tax collectors
who had arrived from Vigan were killed by the natives. Governor-General Santiago de Vera sent Spanish
and Filipino colonial troops to pacify the rebels. The rebels were eventually pardoned and the Philippine
tax system reformed.
Sumuroy's Revolt
In the town of Palapag today in Northern Samar, Agustin Sumuroy, a Waray, and some of his
followers rose in arms on June 1, 1649 over the polo y servicio or forced labor system being undertaken in
Samar. This is known as the Sumuroy Revolt, named after Agustin Sumuroy.
The government in Manila directed that all natives subject to the polo are not to be sent to places
distant from their hometowns to do their forced labor. However, under orders of the various town alcaldes,
or mayors, The Waray were being sent to the shipyards of Cavite to do their polo y servicio, which
sparked the revolt. The local parish priest of Palapag was murdered and the revolt eventually spread to
Mindanao, Bicol and the rest of the Visayas, especially in places such as Cebu, Masbate, Camiguin,
Zamboanga, Albay, Camarines and parts of northern Mindanao, such as Surigao. A rebel government
was successfully established in the mountains of Samar.
The defeat, capture and execution of Sumuroy in June 1650 delivered a big setback to the revolt.
His trusted co conspirator David Dula sustained the quest for freedom with greater vigor but in one of a
fierce battles several years later, he was wounded, captured and later executed in Palapag, Northern
Samar by the Spaniards together with his seven key lieutenants.
Maniago's Revolt
The Maniago Revolt was an uprising in Pampanga during the 1660s named after its leader,
Francisco Maniago. During that time, Pampanga drew most of the attention from the Spanish religious
orders because of its relative wealth. They also bore the burden of more tribute, forced labor, and rice
exploitation. They were made to work for eight months under unfair conditions and were not paid for their
labor and for the rice purchased from them. Their patience was put to the limit and they signified their
intention to revolt by setting their campsite on fire. The fight soon began and because the Spaniards were
busy fighting against the Dutch, they were badly depleted by the Kapampangans. The Maniago revolt was
the start of a much bigger and even bloodier revolt in Pangasinan. This battle was led by a man named
Andres Malong who had heeded the call of Maniago to revolt against the Spaniards.
Malong's Revolt

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 Andres Malong was the maestro de campo of Binalatongan, now San Carlos City, Pangasinan in
the 1660s. He assisted many Spaniards in governing different towns in Pangasinan, and as such, had
learned and was trained to use force and cruelty. He hoped of being the King of the province, however,
set this plan aside when a war, led by Francisco Maniago, broke out in Pampanga. Malong started his
campaign in a small barangay called Malunguey, but failed. Having the same condition as in Pampanga,
he led the people in Pangasinan to take up arms against the Spaniards. It spread like wild fire in
Pangasinan. Because of his success, he proclaimed himself King of Pangasinan.
The Tax Reform of 1884
One of the good reforms which Spain introduced in the 19th century was the Tax Reform o 1884,
as provided by the Royal Decree on March 6, 1884, this tax reform contained two important provisions.
1. Abolition of the hated Tribute and its replacement of Cedula Tax and;
2. Reduction of the 40-day annual forced labor (polo) to 15 days.
Cedula Personales
Cedulas were first issued based on the Royal Decree on March 6, 1884. All men and women
residents of the island- Spaniards, foreigners, and natives- who were over 18 years old were required to
obtain a cedula. The only exceptions were the Chinese, who paid another poll tax, the remontados d
infieles,that were not subject to local administration, and the natives and colonist of the archipelago of
Jolo and of the islands of Balabac and Palawan.
All in all, there were 16 different classes of cedulas. Originally, there were 9 classes taxed, the
rates of Taxes ranged from 1.50 to 25 Pesos, and a tenth, grantis, for priest, soldiers and privileged
classes.
Philippine Taxation under American Period (1898-1935)
1898-1903:Americans followed the Spanish system of taxation.
The urbana which is a tax on the annual rental value of an urban real estate was replaced known
as land tax that charge both urban and rural real estate.
Civil Government in the Philippines:-
William H. Taft (1902)
Luke E. Wright (1904)
July 2, 1904: Bureau of Internal Revenue (BIR) was created through the passage of Reorganization
Act No. 1189
August 1, 1904: the BIR was formally organized and made operational. The bureau is mandated by law
to assess and collect all national internal revenue taxes, fees, and charges
1904:The Internal Revenue Law of 1904

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-licensed and excise taxes, taxes on banks, doc. Stamp taxes, cedula, taxes on insurance company,
forest products, mining concessions, taxes on business, occupational licenses
1907:Changes in cedula and industria tax The cedula under the new law went through changes as the
rate was fixed per adult male. Some places were authorized to double the fee for the cedula. The industria
tax was charged
October 3, 1913:Underwood-Simmons Tariff Act
U.S Pres. Woodrow Wilson
Governor-General Francis Burton Harrison
Its purpose was to reduce levies on manufactured and semi-manufactured goods and to eliminate
duties on most raw materials.
New sources of tax were introduced:
Income tax (1914)
Inheritance Tax (1919)
National Lottery (1932)
Japanese Period (1942-1945)
At the outbreak of World War II, the Bureau was combined with the Customs Office and was
headed by a Director of Customs and Internal Revenue.
1942,The first issue in consisted of denominations of 1, 5, 10 and 50 centavos and 1, 5, and 10 Pesos.
1943, The next year brought "replacement notes" of the 1, 5 and 10 Pesos.
1944, ushered in a 100 Peso note and soon after an inflationary 500 Pesos note. a box of matches cost
more than 100 Mickey Mouse pesos. During January, Inflation plagued the country with the devaluation of
the Japanese money, evidenced by a 60% inflation.
1945, the Japanese issued a 1,000 Pesos note. This set of new money, which was printed even before
the war, became known in the Philippines as “Mickey Mouse Money” due to its very low value caused by
severe inflation. A kilogram of camote cost around 1000 Mickey Mouse Money

Post War Era

July 4, 1946, when the Philippines gained its independence from the United States, the Bureau was
eventually re-established separately.
October 1, 1947,This led to a reorganization, by virtue of Executive Order No. 94, wherein the following
were undertaken:
1) the Accounting Unit and the Revenue Accounts and Statistical Division were merged into one;
2) all records in the Records Section under the Administrative Division were consolidated;

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 3) all legal work were centralized in the Law Division.
October 23, 1947, Revenue Regulations No. V-2 dated divided the country into 31 inspection units,
each of which was under a Provincial Revenue Agent (except in certain special units which were headed
by a City Revenue Agent or supervisors for distilleries and tobacco factories).
January 1, 1951, The second major reorganization of the Bureau took place on through the passage of
Executive Order No. 392. Three (3) new departments were created, namely:
1) Legal, 2) Assessment 3) Collection.
On the latter part of January of the same year, Memorandum Order No. V-188 created the
Withholding Tax Unit, which was placed under the Income Tax Division of the Assessment Department.
Simultaneously, the implementation of the withholding tax system was adopted by virtue of Republic Act
(RA) 690. This method of collecting income tax upon receipt of the income resulted to the collection of
approximately 25% of the total income tax collected during the said period.
March 1, 1954 ,The third major reorganization of the Bureau took effect, through Revenue Memorandum
Order (RMO) No. 41. This led to the creation of the following offices:
1) Specific Tax Division 2) Litigation Section , 3) Processing Section 4) Office of the City
Revenue Examiner.
September 1, 1954, a Training Unit was created through RMO No. V-4-47
January 1957, the position title of the head of the Bureau was changed from Collector to
Commissioner. The last Collector and the first Commissioner of the BIR was “Jose Aranas”.
1958 ,A significant step undertaken by the Bureau. The establishment of the Tax Census Division and
the corresponding Tax Census Unit for each Regional Office. This was done to consolidate all statements
of assets, incomes and liabilities of all individual and resident corporations in the Philippines into a
National Tax Census.
June 19, 1959 ,To strictly enforce the payment of taxes and to further discourage tax evasion, RA No.
233 or the Rewards Law was passed, whereby informers were rewarded the 25% equivalent of the
revenue collected from the tax evader.
1964, the Philippines was re-divided anew into 15 regions and 72 inspection districts. The Tobacco
Inspection Board and Accountable Forms Committee were also created directly under the Office of
the Commissioner.
Marcos Administration (1965-1986)
1965,The appointment of Misael Vera as Commissioner led the Bureau. The most notable programs
implemented were the "Blue Master Program" adopted to curb the abuses of both the taxpayers and
BIR personnel and the "Voluntary Tax Compliance Program“ was designed to encourage professionals
in the private and government sectors to report their true income and to pay the correct amount of taxes.
It was also during Commissioner Vera's administration that the country was further subdivided into
20 Regional Offices and 90 Revenue District Offices, in addition to the creation of various offices which

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included the Internal Audit Department (replacing the Inspection Department), Administrative Service
Department, International Tax Affairs Staff and Specific Tax Department.
1970,Providing each taxpayer with a permanent Tax Account Number (TAN) not only facilitated the
identification of taxpayers but also resulted to faster verification of tax records. Similarly, the payment of
taxes through banks (per Executive Order No. 206), as well as the implementation of the package audit
investigation by industry are considered to be important measures which contributed significantly to the
improved collection performance of the Bureau.
September 21, 1972, The proclamation of Martial Law marked the advent of the New Society and
ushered in a new approach in the developmental efforts of the government.  (1972-1980),Organization-
wise, the Bureau had also undergone several changes during the Martial Law period.
1976, under Commissioner Efren Plana's administration, the Bureau's National Office transferred from
the Finance Building in Manila to its own 12- storey building in Quezon City, inaugurated on June 3, 1977.
Year 1977 that President Marcos promulgated the National Internal Revenue Code of 1977, which
updated the 1934 Tax Code.
August 1, 1980, the Bureau was further reorganized under the administration of Commissioner Ruben
Ancheta. New offices were created and some organizational units were relocated for the purpose of
making the Bureau more responsive to the needs of the taxpaying public.

Corazon Aquino Administration (1986 – 1992)

February 1986, After the People's Revolution, a renewed thrust towards an effective tax administration
was pursued by the Bureau. "Operation: Walang Lagay" was launched to promote the efficient and
honest collection of taxes.
On January 30, 1987, the Bureau was reorganized under the administration of Commissioner
Bienvenido Tan, Jr. pursuant to Executive Order (EO) No. 127. Under the said EO, two (2) major
functional groups headed and supervised by a Deputy Commissioner were created, and these were: 1)
the Assessment and Collection Group; 2) the Legal and Internal Administration Group.
1988 , the advent of the value-added tax (VAT) in, a massive campaign program aimed to promote and
encourage compliance with the requirements of the VAT was launched. The adoption of the VAT system
was one of the structural reforms provided for in the 1986 Tax Reform Program, which was designed to
simplify tax administration and make the tax system more equitable.
1988, that the Revenue Information Systems Services Inc. (RISSI) was abolished and transferred back
to the BIR by virtue of a Memorandum Order from the Office of the President dated May 24, 1988. This
transfer had implications on the delivery of the computerization requirements of the Bureau in relation to
its functions of tax assessment and collection.
The entry of Commissioner Jose Ong in 1989 saw the advent of the "Tax Administration
Program" which is the embodiment of the Bureau's mission to improve tax collection and simplify tax
administration. The Program contained several tax reform and enhancement measures, which included

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the use of the Taxpayer Identification Number (TIN) and the adoption of the New Payment Control
System and Simplified Net Income Taxation Scheme.

Ramos Administration (1992 – 1998)

The year 1993 marked the entry into the Bureau of its first lady Commissioner, Liwayway
Vinzons-Chato. In order to attain the Bureau's vision of transformation, a comprehensive and integrated
program known as the ACTS or Action-Centered Transformation Program was undertaken to realign
and direct the entire organization towards the fulfillment of its vision and mission.  It was during
Commissioner Chato's term that a five-year Tax Computerization Project (TCP) was undertaken in
1994. This involved the establishment of a modern and computerized Integrated Tax System and Internal
Administration System. Further streamlining of the BIR was approved on July 1997 through the passage
of EO No.430, in order to support the implementation of the computerized Integrated Tax System.
Highlights of the said EO included the:
1) creation of a fourth Revenue Group in the BIR, which is the Legal and Enforcement Group
(headed by a Deputy Commissioner)
2) creation of the Internal Affairs Service, Taxpayers Assistance Service, Information Planning and
Quality Service and the Revenue Data Centers.

Estrada Administration (1998 – 2001)

With the advent of President Estrada's administration, a Deputy Commissioner of the BIR,
Beethoven Rualo, was appointed as Commissioner of Internal Revenue. One of the most significant
reform measures was the implementation of the Economic Recovery Assistance Payment (ERAP)
Program, which granted immunity from audit and investigation to taxpayers who have paid 20% more
than the tax paid in 1997 for income tax, VAT and/or percentage taxes.
1999 ,In order to encourage and educate consumers/taxpayers to demand sales invoices and receipts,
the raffle promo "Humingi ng Resibo, Manalo ng Libo-Libo" was institutionalized. The Large
Taxpayers Monitoring System was also established under Commissioner Rualo's administration to
closely monitor the tax compliance of the country's large taxpayers.
The coming of the new millennium ushered in the changing of the guard in the BIR with the
appointment of Dakila Fonacier as the new Commissioner of Internal Revenue. ◦ Under his
administration, measures that would enhance taxpayer compliance and deter tax violations were
prioritized. The most significant of these measures include:

 full utilization of tax computerization in the Bureau's operations;

 expansion of the use of electronic Documentary Stamp Tax metering machine and
establishment of tie-up with the national government agencies and local government units
for the prompt remittance of withholding taxes;
 and implementation of Compromise Settlement Program for taxpayers with outstanding
accounts receivable and disputed assessments with the BIR.

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Memoranda of Agreement were also forged with the league of local government units and several private
sector and professional organizations (i.e. MAP, TMAP, PCCI, FFCCCI, etc.) to help the BIR implement
tax campaign initiatives.
September 1, 2000, the Large Taxpayers Service (LTS) and the Excise Taxpayers Service (ETS)
were established under EO No. 175 to reinforce the tax administration and enforcement capabilities of the
BIR. Shortly after the establishment of said revenue services, a new organizational structure was
approved on October 31, 2001 under EO No. 306 which resulted in the integration of the functions of the
ETS and the LTS.
In line with the passage of the Electronic Commerce Act of 2000 on June 14, the Bureau
implemented a Full Integrated Tax System (ITS) Rollout Acceleration Program to facilitate the full
utilization of tax computerization in the Bureau's operations. Under the Program, seven (7) ITS back-end
systems were released in stages in RR 8 - Makati City and the Large Taxpayers Service.

Arroyo Administration (2001 – 2010)

Following the momentous events of EDSA II in January 2001, newly-installed President Gloria
Macapagal-Arroyo appointed a former Deputy Commissioner, Atty. René G. Bañez, as the new
Commissioner of Internal Revenue.
Under Commissioner Bañez's administration, the BIR’s thrust was to transform the agency to
make it taxpayer-focused. This was undertaken through the implementation of change initiatives that
were directed to:
1) reform the tax system to make it simpler and suit the Philippine culture
2) reengineer the tax processes to make them simpler, more efficient and transparent
3) restructure the BIR to give it financial and administrative flexibility
4) redesign the human resource policies, systems and procedures to transform the workforce to
be more responsive to taxpayers' needs.
Measures to enhance the Bureau's revenue-generating capability were also implemented, the
most notable of which were the implementation of the Voluntary Assessment Program and
Compromise Settlement Program and expansion of coverage of the creditable withholding tax system.
A technology-based system that promotes the paperless filing of tax returns and payment of taxes was
also adopted through the Electronic Filing and Payment System (eFPS).
August 19, 2002 With the resignation of Commissioner Bañez, Finance Undersecretary Cornelio C.
Gison was designated as interim BIR Commissioner. Eight days later (on August 27, 2002), former
Customs Commissioner, Guillermo L. Parayno, Jr. was appointed as the new Commissioner of Internal
Revenue (CIR).
Barely a month since his assumption to duty as the new CIR, Commissioner Parayno offered a
Voluntary Assessment and Abatement Program (VAAP) to taxpayers with under-declared
sales/receipts/income. To enhance the collection performance of the BIR, Commissioner Parayno adopted

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the use of new systems such as the Reconciliation of Listings for Enforcement or RELIEF System to
detect under-declarations of taxable income by taxpayers and the electronic broadcasting system to
enhance the security of tax payments. It was also under Commissioner Parayno’s administration that the
BIR expanded its electronic services to include the web-based TIN application and processing;
electronic raffle of invoices/receipts; provision of e-payment gateways; e-substituted filing of tax returns
and electronic submission of sales reports.
The conduct of special operations on high profile tax evaders, which resulted to the filing of tax
cases under the Run After Tax Evaders (RATE) Program marked Commissioner Parayno’s
administration as well as the conduct of Tax Compliance Verification Drives and accreditation and
registration of cash register machines and point-of-sale machines. To improve taxpayer service, the
Bureau also established a BIR Contact Center in the National Office and eLounges in Regional Offices.
On October 28, 2006, Deputy Commissioner for Legal and Inspection Group, Jose Mario C. Buñag was
appointed as full-fledged Commissioner of Internal Revenue. Under his administration, the Bureau
attained success in a number of key undertakings, which included the expansion of the RATE Program to
the Regional Offices; inclusion of new payment gateways.
2007, the National Program Support for Tax Administration Reform (NPSTAR), a program funded by
various international development agencies, was launched to improve the BIR efficiency in various areas
of tax administration (i.e. taxpayer compliance, tax enforcement and control, etc.).
June 29, 2007, Commissioner Buñag relinquished the top post of the BIR and was replaced by Deputy
Commissioner for Operations Group, Lilian B. Hefti, making her the second lady Commissioner of the
BIR. Commissioner Hefti focused on the strengthening of the use of business intelligence by embarking
on data matching of income payments of withholding agents against the reported income of the concerned
recipients. Information sharing between the BIR and the Local Government Units (LGUs) was also
intensified through the LGU Revenue Assurance System, which aims to uncover fraud and non-payment
of taxes. To enhance the Bureau’s audit capabilities, the use of Computer-Assisted Audit Tools and
Techniques (CAATTs) was also introduced in the BIR under her term.
October 2008 , With the resignation of Commissioner Hefti, former BIR Deputy Commissioner for Legal
and Enforcement Group, Sixto S. Esquivias IV was appointed as the new Commissioner of Internal
Revenue. Commissioner Esquivias’ administration was marked with the conduct of nationwide closure of
erring business establishments under the “Oplan Kandado” Program. ◦ A Taxpayer Feedback
Mechanism (through the eComplaint facility accessible via the BIR Website) was also established under
his term where complaints on erring BIR employees and taxpayers who do not pay taxes and do not issue
ORs/invoices can be reported.
In 2009, the Bureau revived its “Handang Maglingkod” Project where the best frontline offices were
recognized for rendering effective taxpayer service.  November 2009, When Commissioner Esquivias
resigned Senior Deputy Commissioner, Joel L. Tan-Torres assumed the position of Commissioner of
Internal Revenue. Under his administration, Commissioner Tan-Torres pursued a high visibility public
awareness campaign on the Bureau’s enforcement and taxpayers’ service programs. He institutionalized
several programs/projects to improve revenue collections, and these include Project R.I.P (Rest in
Peace); intensified filing of tax evasion cases under the re-invigorated RATE Program; conduct of
Taxpayers Lifestyle Check and development of Industry Champions. Linkages with various agencies (i.e.

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LTO, SEC, BLGF, PHALTRA, etc.) were also established through the signing of several Memoranda of
Agreement to improve specific areas of tax administration.
Benigno Aquino III Administration (2010 – 2016)
Following the highly-acclaimed inauguration of President Benigno C. Aquino III on June 30, 2010,
a former BIR Deputy Commissioner, Atty. Kim S. Jacinto-Henares, was appointed as the new
Commissioner of Internal Revenue on July 2, 2010.
During her first few months in the BIR, Commissioner Henares focused on the filing of tax evasion
cases under the Run After Tax Evaders (RATE) Program, in compliance with the SONA pronouncements
of President Aquino. She also continued the closure of erring business establishments under the “Oplan
Kandado” Program.
Many electronic services were also developed under her term to automate various taxpayer
service transactions. These include the eBIRForms System;Electronic Certificate Authorizing
Registration (eCAR); Mobile Revenue Collection Officers System (MRCOS); Electronic
Documentary Stamp Tax (eDST) System; Electronic Authority to Release Imported Goods
(eATRIG); Internal Revenue Stamps Integrated System (IRSIS) for Alcohol Products; Electronic
Official Registry Book (eORB); and Electronic Tax Remittance Advice (eTRA) System.
Several internal processes were also automated to promote good governance within the BIR, and
these include the development of Accounts Receivable Management System (ARMS); Collection
Reconciliation System (CRS); and Electronic Letter of Authority Monitoring System (eLAMS).
To improve the BIR’s delivery of taxpayer services, Commissioner Henares also initiated the
establishment of eLounge in Revenue District Offices and the ISO Certification of the Bureau’s business
registration processes, which started in Quezon City’s district offices.
Commissioner Henares also delivered historic achievement during her term by being the first
Commissioner to hit the trillion-peso mark tax collection in CY 2012 and in the succeeding years. It
was also during Commissioner Henares’ term that the Bureau’s “Net Sincerity Rating in Fighting
Corruption” dramatically improved, from a “Very Bad” rating to “Neutral” (per result of survey conducted by
the Social Weather Station from November 14, 2014 to May 12, 2015).
Several organizational changes also happened in the BIR during Commissioner Henares’
administration, which resulted to the renaming, merging, splitting, abolition and creation of several offices.
Five (5) new divisions were created under the Large Taxpayers Service (LTS) to establish industry-based
groupings among the respective divisions. These divisions were the Regular LT Audit Division II, Regular
LT Audit Division III, Excise LT Audit Division I, Excise LT Audit Division II, and Excise LT Regulatory
Division (ELTRD). The ELTRD was created in line with the BIR’s policy for a more taxpayer-focused
delivery of services and provide a “one-stop shop/fast lane” service to excise taxpayers.
In addition, five (5) new divisions were created in the National Office, namely: Project
Development and Management Division; Project Monitoring and Evaluation Division; VAT Credit Audit
Division; Tax Audit Review Division; and Collection Performance Monitoring Division;
In the Revenue District Offices (RDOs), the Document Processing Section was abolished and a
Document Processing Division was created in the Regional Office to centralize and systematize the

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processing of tax returns and other documents in the region. A Compliance Section was also created in
the RDO to monitor taxpayer’s compliance with the Bureau’s registration, tax filing, and payment
requirements.
Duterte Administration
After the inauguration of President Rodrigo Roa Duterte on June 30, 2016, Atty. Caesar R. Dulay
was appointed as the new Commissioner of Internal Revenue.
In his first few days in the Bureau, Commissioner Dulay ordered the streamlining of processes and
requirements involving the BIR’s frontline transactions, specifically the processing of Tax Clearance
Certificates and issuance of Certificates Authorizing Registration. This was followed by the streamlining of
the processes and requirements involving the BIR’s registration processes.
The filing of cases under the RATE Program and closure of erring business establishments (which
include POGOs) under the “Oplan Kandado” Program were further intensified. Other tax enforcement
activities, such as Post-Evaluation of Cash Register Machines/Point-of-Sale (POS) Machines, inventory
and stocktaking activities and Tax Compliance Verification Drives, were also conducted on a regular basis
by the Revenue District Offices nationwide.
It was during Commissioner Dulay’s term that significant revisions in the tax laws were passed and
implemented by the BIR through the issuance of Revenue Regulations and other revenue issuances. The
first revision was made under the Tax Reform for Acceleration and Inclusion or TRAIN Act (per RA
No. 10963), which took effect on January 1, 2018. This was followed by the passage of the Corporate
Recovery and Tax Incentives for Enterprises (CREATE) Act per RA No. 11534, which took effect on
April 11, 2021. A Tax Amnesty Program (per RA No. 11213) was also implemented covering tax
delinquencies and unpaid Estate Tax.
With the passage of the new tax laws, Commissioner Dulay ordered the conduct of massive tax
information dissemination activities using all available electronic media, tri-media and social media. Amidst
the challenges brought by the COVID-19 pandemic starting in 2020, the BIR pursued a Digital
Transformation (DX) Program covering the automation of the Bureau’s key internal and external
processes.
It was also during Commissioner Dulay’s administration that the BIR has received a commendation
from the House of Representatives “for achieving an all-time high of 15.14% over its tax collection target
for the Fiscal Year 2020”. In House Resolution No. 1538, it was stated that the “BlR has exceeded its tax
collection target for the Fiscal Year 2020 despite the crippling effect of the COVlD-19 pandemic on the
national economy”. A total of P 1.94 Trillion was collected by the BIR in 2020, exceeding its goal of P 1.69
Trillion by 15% or P 255.19 Billion. The last time the BIR reached its goal was in 2001 and 2003.
ACTIVITY C
DIRECTIONS : Make a video presentation on the Evolution of Taxation discussing the history, laws and
problems of Philippine taxation. You may use the lesson or your research to make it more informative.
OUTPUT
Submission of your video is on January 3, 2021 until 8P.M.

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