This document discusses taxation and government finance. It defines taxation as an enforced contribution levied by governments on persons, property, and activities. It notes that taxation is used to generate government income needed to pay for public services and drive economic development. The document outlines various types of taxes in the Philippines including income tax, value added tax, and taxes on property transfers, businesses, and natural resources. It also describes the government agencies responsible for tax collection and administration, including the Bureau of Internal Revenue, Bureau of Customs, and Bureau of Treasury.

2. • A system of raising money to finance
government.
• All governments require payments of
money – taxes – from people.

3. • It is a government income
• The income of a government from all
sources, used to pay for as nation’s
expenses.

4. • Tax of Transfer of Real Property Ownership
• Tax on Business of Printing and Publication
• Franchise Tax
• Tax on Sand, Gravel and other Quarry
Resources
• Professional Tax
• Amusement Tax
• Annual Tax

5. • It is an enforced contribution;
• It is generally payable in money;
• It is proportionate in character;
• It is levied on persons, property or the
exercise of a right or privilege;
• It is levied by the state, which has
jurisdiction over the subject or object of
taxation;

6. • It is levied by the law-making body of the
state; and
• It is commonly required to be paid at
regular periods of intervals.

7. • State or government’s purpose – needs
finances for social goods and services
• Resources – needed to support the
operations of the government

8. • Development – as an instrument for
directing the economy towards
prosperity
– Capital formation
– Allocation of resources
– Redistribution of income and wealth
• Economic Stability

9. Department of
Finance
(DOF)
Bureau of Internal
Revenue
(BIR)
Bureau of Customs
(BOC)
Bureau of Treasury
(BTr)
Bureau of Local
Government Finance
(BLGF)
Financial Administrator
Major Tax Collecting Agencies

10. Bureaus
Bureau of the Treasury
Bureau of Local Government Finance
Offices
Privatization and Management Office

11. Agencies and Corporations
• Insurance Commission (IC)
• National Tax Research Center (NTRC)
• Central Board of Assessment Appeal (CBAA)
• Philippine Deposit Insurance Corporation (PDIC)
• Philippine Export-Import Credit Agency (PHILEXIM)
• Government Service Insurance System (GSIS)
• Social Security System (SSS)
• Public Estates Authority (PEA)
• Cooperative Development Authority (CDA)

12. The powers and duties of the BIR shall
comprehend the assessment and collection
of all national internal revenue taxes, fees
and charges, the enforcement of all
forfeitures, penalties and fines connected
therewith, including the execution of
judgments in all cases decided in its favor
by the Court of Tax Appeals and the
ordinary court.

13. Of the two functions of the BIR,
assessment and collection, the
effectiveness of the collection depends on
the quality of the assessment done by the
enforcement officers/officials assigned for
such duties.
Assessment functions can further be
subdivided into two major activities
– Voluntary or self-assessment
– Enforced assessment

14. • Responsible for assessment and
collection of the lawful revenue from
imported articles and all other duties,
fees, charges, fines and penalties
accruing under the tariff and customs law
• Prevention and suspension of smuggling
and other frauds upon customs

15. • Corporate Tax
–A tax that must be paid by a corporation
based on the amount of profit generated.
• Capital Gains Tax
–A tax imposed on the gains presumed to
have been realized by the seller from the
sale, exchange, or other disposition of
capital assets located in the Philippines,
including pacto de retro sales and other
forms of conditional sale.

16. • Customs Duty
–A tax levied on imports (and sometimes on
exports) by the customs authorities of a
country to raise revenue and/or to protect
domestic industries from more efficient or
predatory competitors from abroad.
• Value Added Tax
–Is a form of sales tax. It is a tax on
consumption levied on the sale of goods
and services and on the imports of goods
into the Philippines. It is an indirect tax,
which can be passed on to the buyer.

17. • Income Tax
–A tax on a person’s income, emoluments,
profits arising from property, practice of
profession, conduct of trade or business or
on the pertinent items of gross income
specified in the tax code of 1997 less the
deductions and/or personal and additional
exemptions, if any, authorized for such
types of income, by the Tax Code or other
special laws.

18. • Percentage Tax
–A business tax imposed on persons or
entities who sell or lease goods. Properties
or services in the course of trade or
business whose gross annual sales and/or
receipts do not exceed ₱750,000.00 and
who are not Value Added Tax (VAT)-
registered.

19. • What is Public Corporation?
These are corporations created or established
by a special charter or law in the interest of the
common good and subject tot the test of economic
viability.
They are directly under the Government
Corporate Monitoring and Coordinating Committee,
which has the primary responsibility to monitor,
coordinate and conduct performance evaluation of
all Government Owned and Controlled
Corporations (GOCCs).

20. • Based on the records of COA (8/10/2010)
(Some of the Selected Corporations)
Banko Sentral ng Pilipinas (BSP)
Bases Conversion Development Authority (BCDA)
Clark Development Corporation (CDC)
Cultural Center of the Philippines (CCP)
Development Academy of the Philippines (DAP)
Development Bank of the Philippines (DBP)
Duty Free, Philippines

21. Employers’ Compensation Commission (ECC)
Food Terminal Incorporated (FTI)
Government Service Insurance System (GSIS)
Home Development Mutual Fund (Pag-IBIG)
Home Guarantee Corporation (HGC)
Laguna Lake Development Authority (LLDA)
Land Bank of the Philippines (LBP)
Light Rail Transit Authority (LRTA)
Local Water Utilities Administration (LWUA)
Lung Center of the Philippines (LCP)
Manila International Airport Authority (MIAA)

22. Metropolitan Waterworks and Sewerage System
(MWSS)
National Electrification Administration (NEA)
National Food Authority (NFA)
National Housing Authority (NHA)
National Irrigation Administration (NIA)
National Power Corporation (NAPOCOR)
National Tobacco Administration (NTA)
National Transmission Corporation (TRANSCO)
Overseas Workers Welfare Adminstration
(OWWA)

23. Philippine Amusement and Gaming Corporation
(PAGCOR)
Philippine Charity Sweepstakes Office (PCSO)
Philippine Coconut Authority (PCA)
Philippine Deposit Insurance Corporation (PDIC)
Philippine Health Insurance Corporation
(PhilHealth)
Philippine Heart Center (PHC)
Philippine International Convention Center (PICC)
Philippine National Oil Company (PNOC)
Philippine National Railways (PNR)
Philippine Ports Authority (PPA)

24. Philippine Postal Corporation (PHILPOST)
Philippine Rice Research Institute (PRRI)
Radio Philippines Network (RPN)
Social Security System (SSS)
Subic Bay Metropolitan Authority (SBMA)
Technology and Livelihood Resource Center
(TLRC)

25. Thank You!