Property Taxation Case Study

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PHILIPPINE PROPERTY TAX IN PERSPECTIVE Introduction Government officials have been striving to improve property taxation in the Philippines since 1972, with considerable external financial and technical assistance. Philippine reformers have been clear and consistent in their rationale for devoting substantial resources to property tax reform: development of local government capacity to generate adequate revenue for the sustained provision of community facilities and services responsive to local needs. Philippine reformers have felt that poor property tax performance has been due to weak field implementation rather than faulty system design, especially local governments' failure to maintain complete, accurate, and current property valuation…show more content…
Unfortunately, the basic design of the Philippines' property tax system is not sound and the principal constraint to revenue generation is not insufficient and low quality property-related data: system design should be greatly simplified and reform efforts should encompass all subsystems of field implementation. A narrow and primarily technical focus has resulted in temporarily improved tax rolls that can neither be maintained nor translated into substantial revenue gains. Most increases in property tax receipts during the past two decades should be attributed to activitiesthat would have been conducted with or without concurrent property tax reform projects: periodic application of new unit cost tables to property already on the tax rolls, as well as periodic reclassification of this same property. The following case study will examine the premises, execution, and results of property tax reform in the Philippines. Cases and Argument The Bureau of Internal Revenue (BIR) today filed two criminal complaints with the Department of Justice against Erwin V. Salaveria and Portia Y. Gonzales for Willful Failure to make/file Income Tax Return and pay tax for taxable year 2012, in violation of Section 255 of the National Internal Revenue Code of 1997, as amended (Tax…show more content…
They violated Revenue Memorandum Circular (RMC) No. 31-2013 issued by the BIR clarifying the taxability of the compensation income received by Philippine Nationals and alien individuals employed by foreign governments/embassies/diplomatic missions and international organizations situated in the Philippines, including ADB. The Agreement between ADB and the Government of the Republic of the Philippines states that only officers and staff of the ADB who are not Philippine Nationals shall be exempt from Philippine Income

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