TAXATION

What are the phases of land acquisition? Phase I This started immediately upon effectivity of the law and is programmed to be completed within four years (1988-1992) * rice and corn lands which are covered by PD 27; * idle or abandoned; * voluntarily offered; * foreclosed by government financial institutions (GFIs); * acquired by the Presidential Commission on Good Government (PCGG); and * owned by the Government Phase II This also started in 1988 and is programmed to be completed in four years (1988-1992). * all public agricultural lands which are to be opened for new development and resettlement; and * private agricultural lands with areas above 50 hectares in so far as the excess over 50 hectares is concerned Phase III-A This started on the fourth year and is programmed completed within three years (1992-1995) * private agricultural lands with areas from 24 to 50 hectares, in so far as the excess over the retention limit. Phase III-B This is programmed to start on the sixth year and to be completed within four years (1994-1998) * private agricultural lands with areas above the retention limit up to 24 hectares. Public lands and other lands owned by the government and government-owned or controlled corporations which are leased and operated by multinational corporations or associations were programmed for immediate acquisition and distribution right after the effectivity of the law for completion within three years (1988-1991).

What are the qualifications of an agrarian reform beneficiary? To be an agrarian reform beneficiary, one must: a. be landless; b. be at least 15 years old or head of the family at the time the property was transferred in the name of the Republic of the Philippines; and c. have the willingness, ability and aptitude to cultivate the land and make it as productive as possible. (Section 23, Republic Act No. 6657) Items (b) and (c) above are meant to ensure that the recipients of the land will judiciously use it and make it a productive agricultural land. 3.) Who are disqualified from becoming beneficiaries? a. Those who fail to meet the qualifications as provided for under Section 22 of RA 6657. b. Beneficiaries who have culpably sold, disposed or abandoned their lands. c. Beneficiaries whose lands have been foreclosed by the LBP or repossessed by the landowner (in the case of VLT/DPS) for non-payment of an aggregate of three annual amortizations. d. Beneficiaries who have converted their land to non-agricultural use without prior approval by DAR. What is the order of priority among the possible beneficiaries? Section 22 of RA 6657 provides that lands covered by CARP shall be distributed as much as possible to landless residents of the same barangay or, in the absence thereof, landless residents of the same municipality. The order of priority then starts with: a. Qualified children. The qualified children of the landowner are the first group entitled to be beneficiaries of the land. They are entitled to receive three hectares each. b. Tenants and Lessees. The next group is composed of the agricultural lessees and share tenants. These farmers are entitled to receive the area of their tillage but not to exceed three (3) hectares, he or she may be awarded an additional area representing the difference, subject to the availability of land. c. The order of priority then goes down as follows: * regular farmworkers; * seasonal farmworkers; * other farmworkers; * actual tillers or occupants of public lands; * collectives or cooperatives of the beneficiaries; and * others directly working on the land. Given such order of priority, must all farmers in a class be allocated three hectares each before anyone in the next class can be identified as also a beneficiary of the land? For example, all regular farmworkers must first be allocated three hectares before any seasonal farmworker can be identified? Strictly speaking, that would be a correct interpretation. The CARP, however, seeks to help as many farmers as possible and make them beneficiaries of the program. Thus, a more liberal interpretation is often better, provided the economic viability of the award is not sacrificed. In this regard, a series of mediation conferences among the possible beneficiaries may be conducted to allow the participatory determination of how many beneficiaries there ought to be and what each beneficiary will receive. Who has the privilege to decide on the retention area? All owners of private agricultural lands with a total area of more than five hectares, except those who have already been granted full retention (7 hectares) under PD 27.

RETENTION LIMIT
What is the retention right of landowners under the CARP? No less than the Constitution grants landowners the right to retain a portion of their lands covered by agrarian reform. Under the CARP, this retention right is limited to a maximum of five hectares per landowner. The only exceptions are as follows: a. Landowners whose lands have been covered by PD 27 are allowed to keep the area they originally retained there under. Thus, if a landowner retained seven hectares under OLT, he/she is allowed under CARP to keep the said area. b. Original homestead grantees or their direct compulsory heirs who still own the original homestead as of 15 June 1988 are allowed to retain the same areas as long as they continue to cultivate the same homestead. Thus, a landowner may, for example, continue to keep his/her 12hectare homestead.