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SEVENTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative M
House Bill No, 454.1.
EXPLANATORY NOTE

This bill was originally introduced as House Bill No. 3854 during the 15" Congress
where it was approved by the Committee on Agrarian Reform and substituted with House Bill
No, 6093. It was subsequently approved on 2" reading, approved on 3" reading and was
transmitted to the Senate where it was not acted upon

Agrarian Reform has affected the rights of countless landowners whose lands were
taken some thirty-eight (38) years ago with the advent of Presidential Decree 27

After the lapse of the 15 year payment period provided by PD 27, countless original
landowners and their descendants still await full payment of just compensation, The years
passed brought about many changes and amendments in the laws and orders relative to land
valuation and payment procedures which have affected and made it more difficult to collect the
just compensation due the landowners.

The payment of just compensation has also been delayed because of administrative
matters, documentation requirements as well as valuation issues that plague the government
agencies involved

To make matters worse for these landowners, the payments as just compensation that
they are to receive are still charged estate taxes, which at times exceed the amount of
compensation offered for their properties. Many of these landowners already pass away without
receiving just compensation leaving their descendants the tasks of awaiting payment only to
discover that they still have to pay estate taxes.

While the transfer of agricultural property taken by the government for land reform
purposes is already exempted from the payment of capital gains taxes, there is likewise a
compelling necessity to exempt the same form estate taxes should the original landowner die
without being paid just compensation.

In view of the foregoing, approval of this bill is earnestly sought.

sonmad ves JR.



SEVENTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B, Rodriguez, Jr.

House Bill No. 4541

AN ACT

EXEMPTING FROM ESTATE TAX THE UNPAID BALANCE OF JUST COMPENSATION DUE
THE DECEDENT OWNER _ OR HIS/HER LEGAL HEIRS OR SUCCESSORS IN INTEREST
OF AGRICULTURAL LAND ACQUIRED BY THE GOVERNMENT UNDER PRESIDENTIAL
DECREE NO. 27, EXECUTIVE ORDER NO. 228, EXECUTIVE ORDER NO. 229, REPUBLIC
ACT NO. 6657 AND REPUBLIC ACT NO. 9700 (COMPREHENSIVE AGRARIAN REFORM
PROGRAM), AMENDING FOR THE PURPOSE SECTION 87 OF THE NATIONAL INTERNAL
REVENUE CODE OF 1997, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled.

SECTION 1. Section 87 of the National Internal Revenue Code of 1997, as amended, is
hereby further amended to read as follows:
"SEC. 87. Exemption of Certain Acquisitions and Transmissions. — The following
shall not be taxed:
A) XX xX
“(B) x x x
“(C) x xX x: [and]
“(D) x x xf]; AND
“(E) THE UNPAID BALANCE OF JUST COMPENSATION DUE THE
DECEDENT OWNER OR HIS/HER LEGAL HEIRS OR SUCCESSORS IN INTEREST
OF AGRICULTURAL LAND ACQUIRED BY THE GOVERNMENT BY VIRTUE OF
PRESIDENTIAL DECREE NO. 27, EXECUTIVE ORDER NO. 228,
EXECUTIVE ORDER NO. 229, REPUBLIC ACT NO. 6657 AND REPUBLIC ACT
NO. 9700 (COMPREHENSIVE AGRARIAN REFORM PROGRAM).”

SEC. 2. This Act shall take effect fifteen (15) days after its publication in at least two (2)
newspapers of general circulation

Approved,