• A system of raising money to finance government.

• All governments require payments of money – taxes – from people.

• It is a government income

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

• 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

• 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;

• It is levied by the law-making body of the state; and

• It is commonly required to be paid at regular periods of intervals.

• State or government’s purpose – needs finances for social goods and services

• Resources – needed to support the operations of the government

• Development – as an instrument for directing the economy towards prosperity– Capital formation

– Allocation of resources

– Redistribution of income and wealth

• Economic Stability

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

Bureaus

Bureau of the Treasury

Bureau of Local Government Finance

Offices

Privatization and Management Office

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)

The powers and duties of the BIR shall comprehend the assessment and collectionof 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.

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

• 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

• 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.

• 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.

• 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.

• 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.

• 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).

• 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

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)

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)

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)

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)

Thank You!