Professional Taxes: What are they for?

A professional tax, or occupation tax, is a tax charged on any one who is practicing a profession such as accountant, lawyer, doctor or engineer.  It is a tax which a professional must pay in order to be given the privilege to practice a professional service.

In the Philippines, the Local Government Code requires the payment of professional taxes on professions requiring government examination.  To elucidate, the Local Government Code states:

"SEC. 139.  Professional Tax.  

"a) The province may levy an annual professional tax on each person engaged in the exercise or practice of his profession requiring government examination as such amount and reasonable classification as the Sangguniang Panlalawigan may determine but shall in no case exceed Three hundred pesos (P300.00).

"(b) Every person legally authorized to practice his profession shall pay the professional tax to the province where he practices his profession or where he maintains his principal office in case he practices his profession in several places: Provided, however, That such person who has paid the corresponding professional tax

shall be entitled to practice his profession in any part of the Philippines without being subjected to any other national or local tax, license, or free for the practice of such profession."

By express provision, a professional may practice his profession anywhere in the Philippines provided he pays an annual tax not exceeding P300.  Payment of professional tax must be done annually on or before the 31st day of January.

Any professional who intends to pay his professional tax must present his latest Official Receipt and/or Government License ID before the local government accepts payment.

But technology seems to be evolving and I am amused that in some cities or municipalities, they allow photos of your Government IDs and/or Official Receipts for presentation.

I have stored in my Smart Phone a picture of my government ID and latest Official Receipt of payment of my Professional Tax. I have yet to test if these will be allowed when I try to pay my Professional Tax next year.

Philippine Tourism Laws

From Danny A. Cabulay:

Got scammed by a home-based online travel agent. Are there any legal remedies? Have you been victimized by the unscrupulous scalpers during heated matches of the UAAP? Is there a law that covers scalping in sporting events, concerts, and similar events? Has your security and safety been compromised while staying at a hotel or resort? What are your rights as a hotel guest? An accident occurred in the kitchen of the restaurant injuring several employees. What laws apply to this incident? It is important for tourism-related establishments to know all the laws that affect tourists and travelers so their managers and employees would abide by these laws and not violate them. Ignorance of the law excuses no one. Avoid stressful and expensive legal actions. Attend the Seminar on Philippine Tourism Laws on July 22-23, 2013 at the Century Park Hotel (8am-5pm) for an investment of Php. 10,000 (early bird rate of Php. 8,500 for payments made on or before July 15). Impressive line up of speakers and a comprehensive CD kit will be given to participants. Highly recommended for HR managers, general managers, operations managers, security managers, finance managers, and teachers/school administrators of HRM/Tourism/Culinary Arts programs.

 

Philippine Tourism Laws by Cabulay and Carpio

Election Law -- My experience in filing an Election Protest before the Board of Election Inspectors

It was the May 13, 2013 elections and I was the  lawyer assigned to a particular candidate in my community.    There was a specific precinct under my jurisdiction which really appeared to be disturbing because the Board of Election Inspectors (BEI) did not allow our designated poll watcher inside such precinct.  Being assertive of her rights, the designated poll watcher insisted that she be allowed inside the precinct since she has all the appointment papers by the Commission on Elections.  Despite presentation of the appointment papers by our poll watcher, the Chairman of the BEI  refused her inside the precinct.  Our next recourse was to file a protest before the Chairman of the BEI of such particular precinct.  I prepared the handwritten protest (since time is of the essence and since our logistics are not enough to computerize our written protest).  To my dismay, the Chairman of the BEI refused to accept the protest. 

Under the Omnibus Election Code of the Philippines, it is a basic right of a candidate running for public office to have a poll watcher for every precinct.  Likewise, it is also imperative under the Omnibus  Election Codeof the Philippines that the Board of Election Inspector enters into the minutes any protest that is filed under his jurisdiction and to issue the necessary resolution.

By his mere refusal to accept the protest from any candidate and to issue the corresponding resolution, was there a violation committed by the Board of Election Inspector?  The answer is YES.  Whenever a candidate is running for public office,  he should be given all the rights of guarding his votes and this includes the right to be allowed at least one watcher per precinct.  And if such right is violated, the recourse of the candidate is to file the corresponding protest before the Chairman of the BEI having jurisdiction over the same.  There is no gray area in this aspect as this is expressly provided under the Omnibus Election Code.

I am really surprised that there are teachers assigned as Board of Election Inspectors who do not know their responsibilities.  My mother (a public school teacher and a former BEI Chairman) would recall that whenever there are protests filed before her as Chairman of the BEI, she just accepts the protest, include such protest in the Minutes, and immediately issue the corresponding resolution.  My mother never felt insulted or hurt whenever protests would be filed before her.  She knew that it is her duty and obligation to provide all the benefits due to any candidate running for public office.

Whether you are a lawyer or a mere layman, you are still subjected to the principle that "Ignorance of the law excuses no one from compliance therewith."  This post is addressed to public school teachers who will be appointed as Board of Election Inspectors.  I implore you to be thorough in your responsibilities. 

Benchmarked Framework Towards Strengthening the Early Retirement Program for the Hotel Industry in the Philippines

After consideration of all the findings conducted for this study, the researcher recommends the following framework in order to strengthen the early retirement program for the hotel industry in the Philippines:

The brown spectrum represents an ideal best practice of the Management Initiated Early Retirement Program (MI-ERP) which offers a more liberal eligibility criteria; with very extensive support processes & continuous offering; with very generous and diverse benefits; and one which is very well managed and adequately funded.    

In implementing the best practice, the ideal logic is to reach all the four descriptive items linking to best practice to achieve the objective of accepting the early retirement plan by targeted employees.     However, it is possible that employers of the hotel industry may decide not to reach a best practice descriptive item and may resort only to commendable or industry norm descriptive item due to employees’ attitude.

On the other hand, the bright green spectrum represents a commendable MI-ERP offering moderately liberal eligibility criteria; with extensive support process & continuous offering; quite generous & diverse benefits; and one which is well managed and adequately funded.  

All the four descriptive items linked with commendable may not be the ideal practice in order to achieve acceptance of the early retirement plan by targeted employees.  However, in implementing practices linked with commendable, employers are close enough in achieving this objective of acceptance by targeted employees.  It is recommended that the hotel industry decides to upgrade their current practice.

The dark green spectrum defines the current (hotel industry) norm where the MI-ERP has limited eligibility criteria; with moderate support process & continuous offering; limited benefits; and where the retirement fund and plan is quite well managed and adequately funded. 

All the descriptive items linked with industry norm are the current practice of the hotel industry offering early retirement programs.  This means that the hotel industry has a long way to go in achieving the objective of acceptance of the early retirement program by targeted employees.  However, these should be considered as opportunities for the hotel industry to add greater value in the implementation of best practices of the early retirement program. 

Finally, the light blue spectrum represents the unpopular/poorly managed MI-ERP where the same has very limited eligibility criteria; with limited or no support process and period offering; offering basic benefits within the minimum requirements of the law; and one which is poorly managed and inadequately funded.

All the descriptive items linked with unpopular / poorly managed are based on the offering of retirement benefits as prescribed by law.  This means that employers merely rely on the mandate of Republic Act No. 7641 and Republic Act 4917 which provides for the mandated payment of retirement benefits.  There are no mechanisms in implementing practices of the MI-ERP.  There are no mechanisms for retirement fund investments, and funds are only released once an employee reaches the compulsory retirement age as prescribed by law.        

In case hotels will put up a management-initiated early retirement program (MI-ERP), the framework  will be useful in positioning correctly their Early Retirement Programs (ERPs).

Analysis of the framework  indicates a chance of higher probability of availment of targeted employees whenever a company applies a higher spectrum.   

In other words, the higher the company reaches for a particular spectrum, the higher the probability of availment by the targeted employees necessary for streamlining the organization, maintaining the high performers, and removing the low performers; the lower the spectrum, the lower the probability of availment.  

Benchmarked Framework Towards Strengthening the Early Retirement Program for the Hotel Industry in the Philippines by Carpio-Aldeguer