READINGS IN PHILIPPINE HISTORY

1st Semester / Semi – Finals/ BS Accountancy / AF – 7

which are essential for a functioning

TOPIC OVERVIEW democracy.
I. The Philippine Constitution o Judicial Independence: The Constitution
II. Agrarian Reform emphasizes the independence of the judiciary,
a) Policies (Spanish and ensuring that judges can make decisions free
American Colonial Eras) from political pressure. This is vital for
b) A Historical Overview upholding the rule of law and protecting
III. Taxation citizens' rights.
a) Taxation under Americans o Bill of Rights: The Bill of Rights guarantees
and Taxation during fundamental rights and freedoms to
Commonwealth Period individuals, such as freedom of speech,
b) Evolution of Taxation and religion, and assembly. It also establishes the
Taxation during Spanish Commission on Human Rights to protect these
Philippines rights.

Executive Department:
I. The Philippine Constitution
Roles:

I. Introduction to Philippine History o President: The President serves as the head of

state and government, elected for a single six-
Overview of Philippine History: year term. This limitation is designed to
o The history of the Philippines is marked by a prevent the consolidation of power and
series of significant events that have shaped its promote democratic governance.
national identity. From pre-colonial societies o Vice President: The Vice President supports
with rich cultural traditions to the impact of the President and assumes the presidency if
colonization by Spain and later the United the President is unable to fulfill their duties.
States, understanding this timeline is crucial This role is crucial for maintaining continuity in
for grasping the complexities of modern leadership.
Philippine society. o Cabinet: The Cabinet consists of heads of
o Importance of Historical Context: Historical executive departments who advise the
events influence contemporary governance, President. Cabinet members are nominated by
societal norms, and national identity. the President and must be confirmed by the
Recognizing the struggles and achievements of Commission of Appointments, ensuring
past generations helps in understanding accountability and oversight.
current political and social issues. Legislative Department:
II. The Constitution of the Philippines o Composition: The legislative branch is
1987 Constitution: bicameral, consisting of the Senate and the
House of Representatives. The Senate has 24
o Structure: The 1987 Constitution is composed members elected at large, while the House can
of 18 articles, making it one of the most have up to 250 members elected from
comprehensive constitutions in the world. It legislative districts.
includes provisions on the Bill of Rights, the o Party-List System: This system allows for the
structure of government, and the representation of marginalized sectors in
responsibilities of various branches. Congress, ensuring that voices from labor,
o Separation of Powers: This principle divides peasant, urban poor, and other groups are
the government into three branches— heard. This is a significant step towards
Executive, Legislative, and Judiciary—to inclusive governance.
prevent the concentration of power and
ensure a system of checks and balances. Each
branch has distinct functions and powers,
READINGS IN PHILIPPINE HISTORY
1st Semester / Semi – Finals/ BS Accountancy / AF – 7

Judicial Department: V. Key Historical Events

o Functions: The judiciary interprets laws, o Philippine Revolution: The revolution against
applies them to individual cases, and ensures Spanish colonial rule began in 1896, leading to
that laws comply with the Constitution. This the declaration of independence on June 12,
role is essential for maintaining justice and 1898. This event marked the birth of the First
protecting citizens' rights. Philippine Republic and was a significant step
o Judicial Review: The power of judicial review towards self-determination.
allows courts to invalidate laws or government o American Colonization: Following the Spanish-
actions that violate the Constitution. This American War, the Philippines became a U.S.
serves as a critical check on legislative and territory. American governance introduced
executive powers. new political structures and educational
reforms but also faced resistance from
III. Fundamental Powers of the State
Filipinos, leading to the Philippine-American
Inherent Powers: War (1899-1902).
o Martial Law Era: Under President Ferdinand
o Police Power: This is the authority of the state Marcos, martial law was declared in 1972,
to enact laws and regulations to promote leading to widespread human rights abuses
public health, safety, morals, and general and the suppression of dissent. The period is a
welfare. It allows the government to intervene critical chapter in Philippine history,
in private affairs for the common good. highlighting the importance of civil liberties
o Power of Eminent Domain: The state has the and democratic governance.
right to take private property for public use,
provided that just compensation is given to the VI. Conclusion
owner. This power is essential for
o Significance of the Constitution: The 1987
infrastructure development and public
Constitution represents the aspirations
projects.
o of the Filipino people for democracy, human
o Power of Taxation: The government can
rights, and social justice. It serves as a
impose taxes to fund public services and
framework for governance and a safeguard
programs. This power is vital for the
against tyranny.
functioning of the state and the provision of
o Ongoing Relevance: Understanding historical
essential services to citizens.
documents and events is crucial for addressing
IV. Historical Context of Philippine Political Law contemporary issues in Philippine society. The
lessons learned from history.
o Influence of American Jurisprudence: The
transition from Spanish to American political II. Agrarian Reform
laws occurred after the U.S. acquired the
Agrarian reform in the Philippines represents a
Philippines in 1898. The American legal system
critical social and economic initiative aimed at
introduced concepts such as individual rights,
redistributing land from wealthy landowners to
due process, and the separation of powers,
landless farmers. Its primary objectives are not only to
which have become integral to Philippine law.
achieve social justice and economic equity but also to
o Separation of Powers: The concept of
enhance agricultural productivity and improve the
separation of powers, influenced by
living standards of rural families.
Enlightenment thinkers like Montesquieu, is
foundational to the American system of I. Brief Summary about Agrarian Reform
government. This principle was adopted in the
Agrarian reform is defined as the process of
Philippine Constitution to prevent abuses of
redistributing agricultural land to address inequality in
power and ensure accountability among
land ownership. In the Philippines, it has evolved into a
government branches.
key policy for socio-economic development,
particularly aimed at improving the conditions of the
READINGS IN PHILIPPINE HISTORY
1st Semester / Semi – Finals/ BS Accountancy / AF – 7

rural poor who depend on agriculture for their The Torrens System, instituted for land
livelihoods. The reform seeks to empower tenant registration, failed to adequately protect the rights of
farmers and landless individuals and involves direct small farmers. Many were unable to afford the costs
government intervention to resolve systemic issues of associated with securing land titles and as a result,
landlessness and inequality which has persisted increased numbers of squatters emerged. Land
through centuries of colonial and post-colonial rule. originally owned by friars was purchased by the
government, yet much of it was subsequently acquired
Historically, agrarian reform initiatives have
by American investors or local elites, perpetuating the
encountered significant challenges. These include
cycle of land concentration.
strong opposition from entrenched landowning elites,
bureaucratic inefficiencies, lack of funding, and Throughout the American colonial period, peasant
inadequate support mechanisms for beneficiaries. uprisings were common as tenants demanded better
Despite these obstacles, several reform programs, working conditions and land ownership. The agrarian
particularly the Comprehensive Agrarian Reform discontent during this era laid the groundwork for
Program (CARP), have made strides in land future reform movements, culminating in post-war
distribution, while ongoing issues continue to reform efforts.
challenge the effectiveness of such initiatives.
IV. Post-war Interventions toward Agrarian Reform
II. Land Ownership in the Philippines Under Spain
After WWII, the Philippine government
The Spanish colonial regime introduced several recognized the acute need for agrarian reform, driven
systems of land tenure that significantlyaffected land by the devastation of war, social unrest, and the
ownership patterns. The most notorious was the persistent problems of landlessness and tenant
encomienda system, established in the late 16th exploitation. Various policies and laws were
century, which granted Spanish settlers introduced, including President Roxas's Republic Act
(encomienderos) control over land and the right to No. 34, which established a sharing arrangement of 70-
collect tribute from the indigenous population. While 30 in favor of tenants.
intended to protect and convert the natives to
Despite several attempts to regulate landlord-
Christianity, it quickly devolved into exploitation,
tenant relationships, such as the Agricultural Land
where tributes became land rents payable to powerful
Reform Code of 1963 and subsequent initiatives,
landlords.
challenges in enforcement and land distribution
Under this system and subsequent policies, hampered success. Many landlords resisted reform
land was concentrated in the hands of a few, while the efforts, leading to protests and violence, and the
majority of the population became sharecroppers or government struggled to raise the necessary funding
serfs, losing their previous rights to land. This transition for land acquisition.
resulted in profound social inequality and created a
V. Agrarian Efforts Under Marcos
class of impoverished farmers reliant on the land,
leading to increased tensions and grievances that Ferdinand Marcos initiated a significant
would later spur demands for reform in the 19th and agrarian reform program in 1972, encapsulating his
20th centuries. vision of a "New Society." Presidential Decree No. 27
aimed to redistribute rice and corn lands to tenant
III. Land Ownership in the Philippines Under the
farmers. However, reform limits were set to just 7
Americans
hectares per landowner, which did not significantly
Following the Spanish-American War in 1898, alter the landscape of land ownership in the
American colonization brought changes to land Philippines. Furthermore, many landlords were not
ownership dynamics in the Philippines. The U.S. compensated, resulting in widespread dissatisfaction
administration implemented various land laws, most and allegations of corruption and inefficiency in the
notably the Philippine Bill of 1902, which set ceilings on program's implementation.
land ownership to limit the power of large landholders.
Marcos's strategy to consolidate power and
However, the reality of land distribution under
appease the rural poor via land reform was often
American rule was complex and often ineffective.
READINGS IN PHILIPPINE HISTORY
1st Semester / Semi – Finals/ BS Accountancy / AF – 7

criticized as a façade, as many of the intended In conclusion, agrarian reform in the

beneficiaries encountered bureaucratic red tape and Philippines has a rich historical context marked by
insufficient support systems. The result was a mixed efforts to rectify deep-seated injustices in land
legacy of limited land redistribution amidst growing distribution. While progress has been made,persistent
unrest. challenges continue to hinder the full realization of its
goals. As the country moves forward, it is essential to
VI. Post-1986 Agrarian Reform
foster inclusive and equitable policies that not only
The fall of Marcos in 1986 gave rise to a distribute land but also provide the necessary support
renewed focus on agrarian reform under President to ensure that agrarian reform truly transforms the
Corazon Aquino, who emphasized social justice and lives of the rural poor.
rural development. She enacted the Comprehensive
II. a)Policies (Spanish and American Colonial Eras)
Agrarian Reform Law (CARL) through Republic Act No.
6657 in 1988, which aimed to redistribute a total of 8 Land Ownership and Agrarian Reform in the
million hectares to agrarian reform beneficiaries. Philippines: Spanish and American Colonial
Eras
While CARP made strides in land distribution,
achieving notable levels of land allocation to tenant I. Spanish Colonial Period (1565-1898)
farmers, it was criticized for inefficiencies and legal A. Introduction of the Pueblo System
complexities that delayed implementation. Many
landowners were able to evade the full extent of the 1. Rural communities were organized into pueblos
law, particularly through loopholes that allowed 2. Land was given to Filipinos to cultivate, but not to
amendments to land-use agreements and ownership own
structures. 3. The King of Spain retained ownership of all lands
VII. CARPER and the Future of Agrarian Reform in the
Philippines B. Encomienda System

The Comprehensive Agrarian Reform Program 1. Spanish authorities awarded land to:
Extension with Reforms (CARPER), implemented in  Religious orders
2009, aimed to address the shortcomings of CARP by  Spanish military personnel
extending the land distribution period and enhancing  Spanish colonizers
support services for agrarian reform beneficiaries. 2. Filipinos worked the land and paid tributes to
CARPER sought to provide a more structured, encomenderos
transparent process and emphasized legal support for 3. Filipinos had no right to own land
beneficiaries facing disputes.

Despite these initiatives, CARPER has faced C. Hacienda System (19th century)
challenges such as funding deficits, landowner 1. Developed as the Philippines entered the capitalist
resistance, and bureaucratic inefficiencies. Many world economy
agrarian reform communities are still grappling with 2. Philippines became an exporter of raw materials and
issues such as incomplete land transfers, lack of importer of goods
agricultural support, infrastructure, and ongoing land
3. Agricultural exports were in high demand
conflicts.
For the future, advocacy for sustainable
D. Land Registration Act of 1860s
agricultural practices and comprehensive support
services will be crucial in making agrarian reform a 1. Ordered landholders to register their lands
viable solution to rectify centuries of land inequity. 2. Only benefited those who knew about the process
Empowering farmer organizations, ensuring and could comply
transparent processes, and addressing the needs of the 3. Many lands were claimed and registered under other
most marginalized groups will be key components to
people's names
achieving lasting change.
READINGS IN PHILIPPINE HISTORY
1st Semester / Semi – Finals/ BS Accountancy / AF – 7

E. Consequences
D. Commonwealth Era Attempts (1935-1946)
1. Agrarian revolts became common
2. Increased hatred and discontent among Filipino 1. President Quezon's social justice program
farmers  Focus on purchasing haciendas to be divided
3. System favored the wealthy and powerful, especially and sold to tenants
Spanish colonizers and religious orders 2. Creation of NARIC (National Rice and Corn
II. American Colonial Period (1898-1946) Corporation)
3. Appointment of public defenders to assist tenants in
A. Initial Attempts at Reform
court battles
1. Philippine Bill of 1902 4. Establishment of Court of Industrial Relations
 Regulated disposal of public lands
5. Continuation of homestead program through NLSA
 Private individuals could own up to 16 hectares
(National Land Settlement Administration)
 Corporations could own up to 1,024 hectares
 Americans given rights to own agricultural E. Failure of Commonwealth Era Reforms
lands
1. Budget allocation problems
2. Land Registration Act of 1903 (Act No. 496)
2. Widespread peasant uprisings
 Introduced Torrens system for land titles
3. World War II and Japanese occupation halted reform
 Aimed to address absence of earlier records
efforts
and conduct accurate land surveys
Conclusion
3. Homestead Program (1903)
 Allowed tenants to acquire farms of up to 16 The land ownership and agrarian reform issues in the
hectares Philippines during the Spanish and American colonial
 Limited to areas in Northern Luzon and periods were characterized by:
Mindanao
1. Systemic inequality
2. Exploitation of Filipino farmers
B. Challenges and Failures
3. Concentration of land ownership among the
1. Land ownership did not improve; in some ways, it elite
worsened 4. Failed attempts at meaningful reform
2. Limited accessibility to land ownership 5. Persistent social unrest and peasant uprisings
 Only those who could afford to buy, register,
and acquire property titles benefited These historical issues continue to influence land
3. Lack of support mechanisms for new landowners ownership patterns and agrarian reform efforts in the
4. Many farmers forced to return to tenancy due to Philippines to this day.
debt
II. b) A Historical Overview
C. Sakdal Uprising (1935)
Agrarian Reform in the Philippines:
1. Led by the Sakdalista Party (founded 1933)
A Historical Overview
2. Demanded reforms such as:
I. Post-War Interventions (1946-1965)
 Removal of taxes
 Equal ownership of land A. Republic Act No. 34 (1946)
 Immediate independence from the United  Established 70-30 sharing arrangement
States
between tenants and landlords
3. Uprising quickly suppressed by government forces
 Reduced interest on landowners' loans to
tenants to 6% or less
READINGS IN PHILIPPINE HISTORY
1st Semester / Semi – Finals/ BS Accountancy / AF – 7

B. Land Settlement Development Corporation C. Limitations

(LASEDECO) Lack of funding from Congress hindered full
 Established under President Elpidio Quirino implementation
 Aimed to expand resettlement programs for III. Agrarian Reform under Marcos (1965-1986)
landless farmers A. Presidential Decree No. 27 (1972)
 Later became the National Resettlement and  Core of Marcos' agrarian reform program
Rehabilitation Administration (NARRA)  Applied to tenant farmers of private
C. Agricultural Tenancy Act of 1954 (Republic Act No. agricultural lands devoted to rice and corn
1199)  Allowed farmers to own portions of land (3-5
 Passed under President Ramon Magsaysay hectares depending on irrigation)
 Governed relationships between landholders  Landowners could retain up to 7 hectares if
and tenant farmers cultivating the land themselves
 Created the Court of Agrarian Relations to B. Implementation Challenges
improve tenancy security  Limited focus on rice and corn lands
D. Other Initiatives  Landlords found ways to circumvent the law
 Agricultural Credit and Cooperative Financing (e.g., changing crops)
Administration (ACCFA)  Increased landlessness in some areas
 Agricultural and Industrial Bank IV. Post-1986 Agrarian Reform
 National Resettlement and Rehabilitation A. Corazon Aquino Administration (1986-1992)
Administration (NARRA)  Comprehensive Agrarian Reform Law (CARL) of
II. Agricultural Land Reform Code of 1963 (Republic 1988
Act No. 3844)  Introduced the Comprehensive Agrarian
A. Key Objectives Reform Program (CARP)
1. Establish owner-cultivatorship and economic family-  Limited success due to funding issues and
size farms resistance from landed elites
2. Achieve dignified existence for small farmers B. Fidel Ramos Administration (1992-1998)
3. Create a viable social and economic structure in  Accelerated CARP implementation
agriculture  Republic Act 8532 (1998) extended the
4. Provide systematic land resettlement and public program for another 10 years
land distribution C. CARP Extension with Reforms (CARPER)
B. Main Provisions  Republic Act 9700 signed in 2009
 Abolished share tenancy  Extended the deadline for land distribution by
 Aimed to convert tenant farmers to 5 more years
leaseholders and eventually owner-cultivators  Distributed 1 million hectares to 900,000
 Emphasized farmer independence and equity farmer beneficiaries from 2009-2014
READINGS IN PHILIPPINE HISTORY
1st Semester / Semi – Finals/ BS Accountancy / AF – 7

b) Excise taxes on alcoholic beverages and

tobacco products
V. Challenges and Future of Agrarian Reform
c) Taxes on banks and bankers
A. Persistent Issues d) Document stamp taxes
e) Cedula (personal identification) tax
 Powerful landed elite resisting reform
f) Taxes on insurance companies
B. Ongoing Efforts g) Taxes on forest products
h) Mining concessions
ment of Environment and Natural Resources (DENR)
i) Taxes on business and manufacturing
continue implementation j) Occupational license taxes
 Approximately 500,000 hectares remain to be 4. Changes to Cedula Tax
distributed  Changed from income/property-based to fixed
rate per adult male
C. Future Outlook  In 1907, some provinces allowed to double the
 Need to address challenges of landed elite fee for infrastructure development
5. Industrial Tax
influence and bureaucratic inefficiency  Imposed on the business community
 Continued struggle for genuine agrarian  Complex system assigning tax rates based on
profitability
reform and farmer land ownership
III. Taxation a). Taxation under Americans and C. Impact of Underwood-Simmons Tariff Act (1913)
Taxation during Commonwealth Period  Reduced tariffs on imported goods, including
those from the Philippines
Taxation in the Philippines during American  Led to loss of export tax revenue
Rule and Commonwealth Period  Governor-General Francis Burton Harrison
I. American Period (1898-1935) urged for increased tax receipts to compensate
A. Initial Approach
D. Introduction of New Taxes
1. Americans aimed to make the Philippine  1914: Income tax introduced
economy self-sufficient  1919: Inheritance tax created
2. Goal was to run the government with minimal
revenue and create a budget surplus II. Commonwealth Period (1935-1946)
3. From 1898 to 1903, Americans largely followed A. Tax Reforms
the Spanish taxation system with some
modifications 1. 1936: Increase in income tax rates
 Introduction of surtax on individual net
B. Key Changes and Developments incomes exceeding 1,000 pesos
1. Military government suspended contracts  Increase in corporate income tax rates
related to: 2. 1937: Abolition of cedula tax
 Sale of opium 3. 1939: National Internal Revenue Code
 Lottery  Major changes to promote fairness and
 Charges for coinage of money increase government revenue:
a) Progressive tax structure
2. Introduction of Land Tax b) Reduction of personal exemptions
 Replaced the Spanish-era Urbana tax c) Introduction of taxes on inherited estates and
 Applied to both urban and rural real estate gifts
d) Replacement of cumulative sales tax with
3. Internal Revenue Law of 1904 single turnover tax
 Introduced to address problems in tax e) Increase in taxes on specific goods (cigarettes,
collection forestry products, mining)
 Established 10 major sources of revenue: f) Taxation of dividends
a) License tax on firms dealing in alcoholic
beverages and tobacco 4. 1940: Introduction of resident tax
READINGS IN PHILIPPINE HISTORY
1st Semester / Semi – Finals/ BS Accountancy / AF – 7

B. Challenges and Issues  Rates varied depending on the crop and

harvest quality
1. Perceived inequality in tax burden distribution  Taxes could increase if the harvest was good,
2. Low taxation of agricultural sectors but rarely decreased for poor harvests
3. Lack of incentives for industrial investment 3. Residential Land Tax
4. Disproportionate tax burden on certain sectors
 No fixed rule; often arbitrary
III. World War II Period (1941-1945)  Stone wall additions could incur a tax of up to
50 pesos
1. Japanese military administration maintained the  Nipa or cogon houses paid only 1 peso for an
Commonwealth-era tax collection system area of 10 phats (about 60 feet)
2. Foreign trade declined, affecting tax revenue Other Taxes
3. Main sources of taxation:
 Amusements 1. Plant Taxes
 Manufacturers
 Professions Separate taxes for palay, maize, mongo, and garlic
 Business licenses No set limit; authorities could determine the amount
4. Additional government income from:
 Sales of National Sweepstakes 2. Sugar Tax
 Sales of government bonds
5. Japanese military government issued military notes  Mentioned indirectly through discussion of
to cover war costs sugar sales

Taxation Practices and Issues

This resource provides an overview of the evolution of
the Philippine taxation system during the American 1. Contract System
colonial period and the Commonwealth era,  Tax contracts were written for 4-year periods
highlighting key changes, challenges, and  Taxes often increased annually, despite the
developments in fiscal policy. contract
III. Taxation b) Evolution of Taxation and
Taxation during Spanish Philippines 2. Lack of Transparency
 No proper receipts issued for tax payments
Introduction  Receipts, when given, did not state the amount
paid
This resource explores the complex system of taxation  Some receipts were signed, others were not
implemented in the Philippines during the Spanish
colonial period, based on information from a letter 3. Arbitrary Increases
written by Mariano Herbosa to José Rizal. The letter
 Officials could raise taxes based on perceived
provides valuable insights into the challenges faced by
harvest quality
Filipinos under this taxation system and highlights
 No standardized system for determining tax
some of the injustices and inequalities that existed.
rates
Types of Taxes
4. Impact on Farmers
Land Taxes
 Multiple taxes on different crops grown on the
1. Irrigated Rice Land Tax same land
 Even land without water was taxed at 50  Locust infestations damaged crops, yet taxes
cabanas of palay remained
 Land with six cabanas of seed paid a tax in cash Social and Economic Impact
2. Dry Land Tax 1. Widening Wealth Gap
 Applied to land planted with sugar cane,  The tax system appeared to favor the wealthy
maize, and other crops and local elites
READINGS IN PHILIPPINE HISTORY
1st Semester / Semi – Finals/ BS Accountancy / AF – 7

 Poorer residents faced a heavier tax burden

2. Changing Attitudes

 People began to lose their fear of tax

authorities
 Bargaining over taxes became more common

3. Economic Hardship
 Sugar sales declined, affecting farmers'
income
 Locust infestations further damaged crop
yields

Corruption and Mismanagement

1. Locust Control Program

 Government provided funds for locust

catchers
 Workers were underpaid, receiving less than
promised
2. Lack of Accountability

 No proper documentation of tax payments

 Arbitrary tax assessments and increases
Conclusion

The taxation system in Spanish colonial Philippines, as

described by Mariano Herbosa, was complex, often
arbitrary, and placed a significant burden on the
Filipino population. The system lacked transparency,
was prone to corruption, and contributed to economic
hardships for many residents. This resource provides
valuable insights into the daily challenges faced by
Filipinos under colonial rule and helps to contextualize
the broader socio-economic conditions of the time.