ARTICLE
I
GENERAL PROVISIONS AND OFFICERS
OF INTERNAL REVENUE
Section 1. The short title of this Act shall be "The
Internal Revenue Law of Nineteen hundred and four."
Sec. 2. There shall be established a Bureau of
Internal Revenue, the chief officer of which Bureau shall be known as
the Collector of Internal Revenue. He shall be appointed by the Civil
Governor, with the advice and consent of the Philippine Commission, and
shall receive a salary at the rate of eight thousand pesos per annum.
The Bureau of Internal Revenue shall belong to the Department of
Finance and Justice.
Sec. 3. The Collector of Internal Revenue, under
the direction of the Secretary of Finance and Justice, shall have
general superintendence of the assessment and collection of all taxes
and excises imposed by this Act or by any Act amendatory thereof, and
shall perform such other duties as may be required by law.
Sec. 4. The Collector of Internal Revenue shall
from time to time as often as he deems necessary, and not less than
once each year, make and submit to the Secretary of Finance and
Justice, for transmission to the Philippine Commission, a report of all
the proceedings of the Bureau of Internal Revenue and collections and
disbursements therein, specifying the source of each item of revenue
and the classes of disbursements, with such recommendations as he may
see fit to make, and likewise an estimate of the expenses of collecting
the internal revenue for each province. The expenses of maintaining the
office of the Collector of Internal Revenue, including all subordinates
and employees of that office, shall be an insular expense to be borne
by the Insular Government. But all expenses incurred by provincial
treasurers, in pursuance of duties imposed upon them by this Act, shall
be borne by the several provincial treasuries.
Sec. 5. The Collector of Internal Revenue shall
prepare and distribute regulations, directions, and instructions, not
in conflict with the provisions of this Act, pertaining to the
assessment and collection of internal revenue, and shall provide the
necessary forms, instruments, and implements for the purposes
aforesaid, and shall distribute, in the manner in this Act provided,
adhesive stamps and dies for expressing and denoting the several stamp
taxes, or in the case of ad valorem taxes the amount thereof; such
regulations, directions, and instructions may be general or local in
character and when approved by the Secretary of Finance and Justice
shall have the force and effect of law, until revoked or amended.
Sec. 6. The necessary adhesive stamps for the
payment of taxes in this Act provided and the necessary blank cedulas
shall be printed under the direction of the Treasurer of the Philippine
Islands in such designs, denominations, and amounts as the Collector of
Internal Revenue shall designate, and shall remain in the custody of
the Treasurer of the Philippine Islands and he shall be responsible for
them until disposed of as in this Act provided. The Collector of
Internal Revenue shall make requisition from time to time upon the
Treasurer for such number of blank cedulas and such number and
denomination of stamps as may be required, and shall distribute them to
provincial treasurers or other collectors of internal revenue as the
law requires. The Insular Treasurer and the Collector of Internal
Revenue shall each make monthly reports to the Auditor of the number of
blank cedulas and stamps received and issued during the preceding month
and the number on hand at the close of the month.
Sec. 7. The Collector of Internal Revenue before
entering upon the duties of his office shall execute a bond to the
Insular Government in the sum of sixty thousand pesos, with sufficient
surety or sureties, to be approved by and filed with the Insular
Treasurer conditioned for faithful performance of the duties of his
office and the due accounting for all stamps, cedulas, moneys, and
other property that shall come into his possession by virtue thereof.
The Insular Treasurer may, from time to time, require that the bond
shall be increased or decreased, according as the exigencies of the
service require.
Sec. 8. Each provincial treasurer shall transmit
to the Insular Treasurer on or before the fifth day of each calendar
month all money collected by him during the preceding month on account
of internal revenues, except as otherwise specifically provided in this
Act. No money so collected, and by this Act properly belonging to the
Insular Treasury, shall be retained by any provincial treasurer for the
payment of salaries and expenses of his office nor for any other
purpose.
Sec. 9. The bond of each provincial treasurer
executed by him, as provided for in the Provincial Government Act and
its amendments, shall stand as security that he shall faithfully
perform the duties of his office as a collector of internal revenue
according to law and shall justly and faithfully account for and hand
over all public moneys which may come into his possession as such
collector.
Sec. 10. The stamps for the payment of
internal-revenue taxes issued to any provincial treasurer shall be
charged to his account at the full face value thereof, and every
provincial treasurer shall make a monthly return to the Collector of
Internal Revenue of all stamps sold by him and account for the amount
of taxes collected; and every provincial treasurer shall be credited
with the full value of taxes collected and remitted by him. The returns
herein required of provincial treasurers shall be upon such forms as
the Collector of Internal Revenue may prescribe.
Sec. 11. The Collector of Internal Revenue, with
the consent of the Secretary of Finance and Justice, whenever in his
judgment the good of the service so requires, may employ such number of
competent persons as may be necessary to act as inspectors and revenue
agents at an annual salary not exceeding four thousand pesos each, and
he may at his discretion assign any such inspector or revenue agent to
duty under the direction of any officer of internal revenue or to such
other special duty as he may deem necessary, and he may at any time
assign any employee in the Bureau of Internal Revenue to perform the
duties of inspector or revenue agent.
Sec. 12. Every such inspector or revenue agent
shall, under the direction of the Collector of Internal Revenue, see
that all laws and regulations relative to the collection of
internal-revenue taxes are faithfully executed and complied with and
shall aid in the prevention, detection, and punishment of any frauds
thereto, and shall examine as to the efficiency of all officers of
internal revenue. He shall report in writing to the Collector of
Internal Revenue any neglect of duty, incompetency, delinquency, or
malfeasance in office of any internal-revenue officer of which he may
obtain knowledge, with a statement of all the facts in each case and
any evidence sustaining the same. He may, by notice in writing, suspend
from duty any gauger or storekeeper. In case of the suspension of any
gauger or storekeeper he shall immediately notify the provincial
treasurer of the proper province and the Collector of Internal Revenue
and within three days thereafter report his action and his reasons
therefor in writing to the Collector of Internal Revenue. Should he
discover any neglect of duty, incompetency, delinquency, or malfeasance
in office of any provincial treasurer in the performance of his duty as
a collector of internal revenue, he shall immediately report the facts
to the Collector of Internal Revenue and to the Insular Treasurer in
writing; and the Collector of Internal Revenue immediately upon receipt
of such report shall take all necessary steps to protect the revenue
and shall transmit such report to the Secretary of Finance and Justice.
All necessary traveling expenses which revenue agents and inspectors
incur in the public service shall be paid monthly from Insular funds.
Sec. 13. There shall be appointed by the Collector
of Internal Revenue, with the consent of the Secretary of Finance and
Justice, such number of internal-revenue storekeepers as may be
necessary, who shall each receive such compensation, not to exceed ten
pesos per day, as he shall determine with the approval of the Secretary
of Finance and Justice.
Sec. 14. Every storekeeper shall take an oath
faithfully to perform the duties of his office and shall give a bond to
the Insular Government with sufficient surety or sureties, to be
approved by the Insular Treasurer, for the faithful discharge of his
duties, in such form and for such amount as the Insular Treasurer may
prescribe. Storekeepers shall be assigned by the Collector of Internal
Revenue to such bonded or manufacturer's warehouse established by law
as he may deem expedient, and any storekeeper may be transferred by the
Collector of Internal Revenue from one warehouse to another.
Sec. 15. The Collector of Internal Revenue, with
the consent of the Secretary of Finance and Justice, may appoint as
many internal-revenue gaugers as he deems necessary for the service,
who shall each take oath faithfully to perform his duties and shall
give bond to the Insular Government for the faithful discharge of the
duties assigned to him by law or regulations, which bond shall have
sufficient surety or sureties and shall be approved by and filed with
the Insular Treasurer, who shall fix the amount thereof. The duties of
every such gauger shall be performed under the supervision of the
provincial treasurer of the province to which he may be assigned, or of
a collector of customs in charge of export and imports in any port of
entry to which he may be assigned.
Sec. 16. Gaugers shall be entitled to receive such
fees, to be determined by the quantity gauged, as may be prescribed by
the Collector of Internal Revenue by general order; and said fees
together with their actual and necessary traveling expenses shall be
paid monthly from Insular funds.
Sec. 17. Every internal-revenue officer whose
payment, charges, salary, or compensation is composed wholly or in part
of fees, allowances, or rewards from whatever source derived, shall be
required to render to the Collector of Internal Revenue under
regulations to be approved by the Secretary of Finance and Justice, a
statement under oath setting forth the entire amount of such fees,
emoluments, or rewards of whatever nature or from whatever source
received during the time for which said statement is rendered, and any
false statement knowingly and wilfully rendered shall be deemed willful
perjury and punished in the manner prescribed by law for the crime of
perjury; and any neglect or omission to render such statement shall be
punished by a fine in a sum of not more than one thousand pesos.
Sec. 18. The Collector of Internal Revenue may,
with the consent of the Secretary of Finance and Justice, impose the
duties of storekeeper and gauger upon one officer where the amount of
spirits or other article produced at the distillery or other
manufactory is not sufficient, in his judgment, to warrant the
employment of two officers to perform the separate duties of
storekeeper and gauger. The compensation for said storekeeper and
gauger shall be that of storekeeper only.
Sec. 19. It shall be the duty of every provincial
treasurer, in case he finds sufficient evidence of a violation of the
provisions of this Act, such that a criminal prosecution or proceedings
for forfeiture ought to be instituted, to report within ten days to the
fiscal of the province a statement of all the facts and circumstances
of the case within his knowledge, together with the name of the
offender and the names of the witnesses. It shall likewise be the duty
of every revenue agent or inspector to make such report to the
provincial fiscal in cases of the character named in this section that
may come to his knowledge in the performance of his duties; the revenue
agent, inspector, or provincial treasurer, as the case may be, shall,
at the time of making such report to the fiscal, forward a duplicate
thereof to the Collector of Internal Revenue. It shall be the duty of
the fiscal in such case to institute and conduct the prosecution,
should the facts warrant the same.
Sec. 20. Every provincial treasurer and his
authorized deputies and every inspector and revenue agent is authorized
to summon witnesses, administer oaths, and to take evidence touching
any part of the administration of the law with which he is charged or
where such oaths or evidence are authorized by law to be taken. In
pursuance of the provisions of this section the officer taking the
testimony may issue a subpoena and enforce the attendance of witnesses
in the manner provided in Chapter XVI of Act Numbered One hundred and
ninety.
Sec. 21. Any officer of internal revenue may be
specially authorized by the Collector of Internal Revenue to seize any
property which may be by law subject to seizure, but such special
authority must be limited in respect to the time, place, kind, and
class of property as the Collector of Internal Revenue may specify.
Sec. 22. Any officer of internal revenue who
divulges to any person or makes known in any other manner than may be
provided by law any information derived by him in the performance of
his official duties, the trade secrets, operations, style or work, or
apparatus of any manufacturer or producer visited by him in the
discharge of his official duties shall be fined in a sum not more than
two thousand pesos and be imprisoned for a term not less than one nor
more than five years.
Sec. 23. Any internal-revenue officer who is or
shall become interested, directly or indirectly, in the manufacture,
sale, export, or import of tobacco, snuff, or cigars, or in the
distilling, sale, import, export, rectification or redistillation of
distilled spirits, or in the manufacture, export, import, or sale of
fermented liquors, shall be fined in a sum not less than one thousand
pesos nor more than ten thousand pesos, at the discretion of the court.
Sec. 24. Every officer, employee, or agent
appointed and acting under the authority of this Act —
First. Who is guilty of any extortion or willful oppression under color
of law; or,
Second. Who knowingly demands other or greater sums than are authorized
by law, or receives any fees, compensation, or reward except as by law
prescribed for the performance of any duty; or,
Third. Who willfully neglects to give receipts for any sums collected
in the performance of his duties, except the sums received for cedulas
or stamps sold, or to perform any of the duties enjoined on him by law;
or,
Fourth. Who conspires or colludes with any other person to defraud the
revenues; or
Fifth. Who willfully makes opportunity for any person to defraud the
revenues; or,
Sixth. Who does or omits to do any act with intent to enable any other
person to defraud the revenues; or,
Seventh. Who negligently or designedly permits the violation of the law
by any other person; or
Eighth. Who makes or signs any false entries in any book, or makes or
signs any false certificate in any case where he is required to make
entry, certificate, or return; or,
Ninth. Who, having knowledge or information of the violation of any
provision of this Act by any person, or of a fraud committed by any
person on the revenues, fails to report in writing such knowledge or
information to his next superior officer and to the Collector of
Internal Revenue; or,
Tenth. Who demands or accepts, or attempts to collect, directly or
indirectly, as payment, gift, or otherwise, any sum of money or other
thing of value for the compromise, adjustment, or settlement of any
charge or complaint for any violation or alleged violation of law,
except as expressly authorized by law, shall be fined in a sum not less
than four hundred pesos nor more than ten thousand pesos, or be
imprisoned for a term not less than six months nor more than five
years, or be punished by both fine and imprisonment, in the discretion
of the court. One-half of any fine so imposed shall be for the use of
the Insular Government and the other half for the use of the informer,
who shall be ascertained and stated in the judgment of the court.
Provincial treasurers and their deputies and employees shall be deemed
to be officers or agents acting under the authority of this Act.
ARTICLE
II
SOURCES OF REVENUE
SECTION 25. The following sources of revenue shall be included in the internal
revenue for the Philippine Islands and the taxes imposed shall be
collected by the Collector of Internal Revenue through the provincial
treasurers of the several provinces or their authorized deputies, or as
otherwise provided by law, and the revenue obtained therefrom shall be
devoted to the support of the several provinces and of the Insular and
municipal governments in the manner in this Act provided:
1. Certain license tax.
2. Tax on distilled spirits.
3. Tax on fermented liquors.
4. Tax on manufactured tobacco and snuff.
5. Tax on cigars and cigarettes.
6. Tax on matches.
7. Tax on banks and bankers.
8. Stamp taxes on specified objects.
9. Poll or cedula personal tax.
10. Tax on insurance companies.
11. Tax on forestry products.
12. Tax on valid perfected mining concessions granted
prior to April eleventh, eighteen hundred and ninety-nine.
13. Tax on business, manufacture, and occupation.
ARTICLE
III
ASSESSMENTS AND COLLECTIONS
Sec. 26. Every provincial treasurer shall from
time to time proceed himself, or cause his deputies to proceed, through
every part of his province and inquire after and concerning all persons
therein who are liable to pay a license tax and all persons owning or
having the care and management of any object liable to pay any tax, and
shall make a list of such persons and shall enumerate said objects in
the manner and at the time provided herein or prescribed in regulations
by the Collector of Internal Revenue.
Sec. 27. All taxes required by this Act to be paid
upon the manufacture or sale of distilled spirits, rectified or
manufactured liquors, imitation of wines, fermented liquors,
manufactured tobacco and snuff, cigars, cigarettes, and matches, and
upon the execution of bonds, debentures, certificate of stock and
indebtedness, or other documents, instruments, or papers, certificates,
receipts, contracts, insurance bonds, tickets, and other written
instruments of every kind which are subject to tax, and upon all acts,
pursuits, and trades subject to the taxes herein imposed, except the
poll taxes, shall be paid by the affixture of internal-revenue stamps
to be purchased, attached, and cancelled in the manner hereinafter
provided.
Sec. 28. The payment of all taxes imposed by this
Act on articles manufactured and removed from the place of production
or manufacture or bonded warehouse, for sale or consumption in the
Philippine Islands, shall be made at the time of such removal by the
affixture of stamps to manufactures official invoice sheets and the
following manner:
(a) At the time of the initial assessment of all
manufactures, assessment rolls shall be compiled in duplicate by each
provincial treasurer, one copy of which he shall keep in his office
subject to inspection and the other copy he shall transmit to the
Collector of Internal Revenue for file in the Bureau of Internal
Revenue. The different kinds of manufacturers shall be listed
separately on said rolls, and each separate list shall be numbered
consecutively in the chronological order in which the manufactures
contained therein are assessed or engaged in such manufacturing
business after the time of the initial assessment. No two manufacturers
in the same provincial district and of the same kind of articles shall
be given the same assessment number.
(b) The Collector of Internal Revenue shall cause to
be prepared a sufficient number of manufacturers' invoice books, each
containing fifty invoice sheets, and a sufficient number of
manufacturers' register books, and shall from time to time supply
provincial treasurers with such number of sets of said books as may be
required in each locality by manufacturers of distilled spirits,
cigars, and other articles subject to the taxes imposed by this Act.
Whenever any manufacturer shall have qualified himself as such by
executing bond, registering his factory, and shall have complied with
all the other requirements for engaging in such business as are
prescribed in this Act, the provincial treasurer within whose district
the manufactory is situated, or other internal-revenue officer whom
said treasurer or the Collector of Internal Revenue shall assign to
such duty, shall deliver to said manufacturer a set of books consisting
of one register book and one invoice book, on each page of which shall
be stamped the assessment number of said manufacturer and the paragraph
number or name of the articles to be manufactured at said manufactory;
and each leaf in said books shall be authenticated by the stamp or seal
of the Collector of Internal Revenue, and said books and the invoice
sheets removed therefrom and the invoice stubs attached thereto as
provided for herein shall be official or public records or documents
within the meaning of the law and shall be so recognized by any
tribunal before which they may be produced in evidence.
(c) There shall in addition be a fly leaf in each
register and invoice book in which shall be entered at the time of
delivery to each manufacturer the assessment number and date of
delivery of books, the name of the owner of the manufactory and of the
manager thereof, and a certificate signed by the owner or manager,
attested by the provincial treasurer or other internal-revenue officer
delivering the books, to the effect that all of the provisions of the
law and regulations governing the operation of his manufactory, the use
of said register and invoice books, the affixing of stamps to invoices,
and the manner of the shipment of goods from the manufactory, have been
fully explained to such manufacturer or manager, that he fully
understands the same and knows the penalties and punishments imposed
for the disregard thereof, and promising strict compliance therewith.
Said books shall be prepared and printed at the expense of the Insular
Government. Both the invoice and register book shall be kept on the
manufactory premises and shall at all hours of day and night be open to
inspection of any internal-revenue officer. The invoice sheets shall be
numbered consecutively from one to fifty in the first book delivered to
each manufacturer, fifty-one to one hundred in the second book and so
on indefinitely for all subsequent invoice books require by each
manufacturer.
(d) Each invoice shall contain a full description of
all taxable articles removed from any manufactory, date and hour of
removal, name and residence of consignee, and a certificate to be
signed by the owner as manager of the manufactory as to the truth and
completeness of all entries made on such invoice sheet; on the outside
edge of each invoice sheet there shall be a detachable notification
stub stamped with the assessment and invoice numbers to correspond with
the invoice proper, and there shall be an inside stub to each invoice
sheet which shall be detachable and which shall be stamped with the
same set of assessment and invoice numbers as are contained on the
corresponding invoice and outside stub; between the invoice proper and
the inside stub there shall be ruled two vertical lines forming a
column of the width of an internal-revenue stamp and running from the
top to the bottom of the sheet, and along the center of said column
there shall be a dotted or broken line; both of the stubs shall have
thereon forms for the entry in brief of all the data contained in the
invoice proper and for the signature of the owner or manager of the
manufactory; and all such invoice sheets and their corresponding stubs
shall be substantially the same in form as the sample invoice sheet
appearing at the end of the article, and on the back of the outside or
notification stub there shall be a form for the entry of the
denominative value and serial number of each stamp sold thereon, and on
the back of the invoice proper there shall be printed a tariff of the
rates of taxes imposed on the various articles by this Act and a brief
of all the provisions of law of interest to manufacturers whose wares
may be subject to said taxes.
(e) Before any owner or manager of a manufactory
shall remove any article from the manufactory premises or from any
bonded warehouse provided in this Act he shall brand or otherwise mark
in a permanent manner on each package to be removed his assessment
number and the number of the next blank invoice sheet in his book, and
shall make proper entry in all of the blank spaces in the next blank
invoice in his book and in the stubs corresponding thereto; in the
notification stub he shall fill in the proper number each of the stamps
of the highest denominative values which can be utilized in the payment
of the tax on the articles to be removed, shall sign said stub, detach
it from the invoice proper, and send it to the provincial treasurer or
his deputy within the province in which the manufactory is located, and
shall affix stamps of the proper value securely and without lapping in
the vertical column between the invoice proper and the inside stub,
shall cancel each stamp by writing or stamping the date across each end
thereof and next to the serial number thereon, and in such manner that
part of the writing or stamping shall be on the stamp and part on the
invoice or stub; he shall then enter in his register book on the
"credit" side thereof and in the proper columns a full description of
said goods to include the day and hour of removal, invoice number, and
contents of each package in both gauge and proof liters or in other
count or measurement or quantity, as the case may be, the total value
of stamps affixed to the invoice and where purchased, name of consignee
and residence, and shall sign his name to said entry; he shall then
remove the invoice proper from the stub by cutting along the dotted
line through the stamps in such manner as to leave half of each stamp
on the stub in the book there to remain as a permanent record, and the
other half of each stamp attached to the invoice proper, which shall at
once be delivered to the carrier of the goods, or attached to the bill
of lading when the goods go by rail or by boat: Provided, That goods
may be removed from a manufactory without first paying the tax to such
bonded warehouses, not exceeding one in each province, as may be
authorized by the Collector of Internal Revenue, and the tax thereon
shall be paid only when such goods are removed from said bonded
warehouses. The Collector of Internal Revenue is authorized to issue
such rules and regulations and to exact such bond as in his discretion
may be necessary to secure the collection of the tax.
(f) At the time of the delivery of each of such
stamped invoice to a carrier it shall be the duty of the manufacturer
to inform such carrier that he is under legal obligation to retain such
invoice in his possession continuously, along with the goods, until
they are delivered to the consignee, and that it then becomes his duty
to deliver said invoice, along with the goods, to said consignee, and
that through failure so to do such carrier renders himself liable to
fine, punishment, and forfeiture, as hereinafter provided: Provided,
That in case a manufacturer shall remove his goods from the place of
manufacture to a sales warehouse of his own he shall comply with all
the requirements above stated except that which pertains to the
delivery to the carrier or the attaching to the bill of lading of the
proper invoice, but in this case the invoice shall accompany the goods
and shall be at once delivered to the custodian of the warehouse.
(g) At the time of the original assessment of each
and every manufactory there shall be entered on the "debit" side of
each register book, as the first item therein and in the proper
columns, a description of all stocks of goods subject to the tax on
hand on the date of said assessment, and each package of said stock
shall at the time of said initial assessment be given a serial number
beginning with number one and each number preceded by a zero, and said
serial number shall as aforesaid be entered in the register book with
the other description of said packages and their contents; and each
manufacturer shall, from day to day, or on such days as his manufactory
is in operation, enter in said register book on the "debit" side and in
the proper columns thereof the day and number of hours worked, the
serial number of each package produced and description of its contents
and a statement of the denominative value and serial number of each
stamp purchased on each day and where purchased; and each manufacturer
shall at the time of any removal of goods make the proper entries on
the "credit" side of said register book in the manner provided in a
previous paragraph of this section, and shall sign his name opposite
each entry made, whether on the "debit" or "credit" side as aforesaid
in said register book, and shall at the foot of each page certify to
the truth and completeness of all entries made thereon. And each
manufacturer shall promptly at the end of each month and not later than
the fifth day of the next succeeding month make and transmit to the
provincial treasurer of the district within which his manufactory is
situate, a true and exact transcript of all entries made on both the
"credit" and "debit" sides of his register book during the month last
past, and shall strike a balance in said register book and on said
transcript sheets showing the number of packages and their contents
remaining on hand, if any, and said balance of stock shall be carried
over as the first entry for the next succeeding month on the "debit"
side of said register book. Each manufacturer shall at the foot of each
transcript sheet certify to the truth and correctness of all of the
entries thereon and as being exact copies of the original entries
contained in his register book. The "debit" and "credit" pages of
manufacturers' register books shall be substantially the same in form
as the samples appearing at the end of this article and the transcript
forms provided for above shall be identical in form with said "debit"
and "credit" pages and shall be supplied by the Collector of Internal
Revenue to manufacturers through the respective provincial treasurers.
(h) Provincial treasurers and their deputies shall
make entry in the proper columns in their monthly itemized statement of
stamps sold, the manufacturer's name and assessment number and the
denominative value and serial number of each stamp and date and hour of
sale.
(i) Goods removed from manufactories in the
Philippine Islands for export to foreign countries, and in which by
provisions contained in this Act are exempted from the payment of the
internal-revenue taxes imposed herein, shall nevertheless be entered as
are all other goods on the invoice sheets, the stubs, and in the
register books; but such invoice sheets need not have internal-revenue
stamps affixed thereto, but in lieu thereof the manufacturer shall
write plainly across the face of the invoice proper and on both stubs
and note in his register book the words "For export;" the notification
stub shall be signed by the manufacturer with the stamp list unfilled,
the inside stub shall be left attached to the book, and the invoice
proper shall be sent along with the goods attached to the export bond
provided for in this article, and the proper assessment and invoice
number shall be branded or otherwise permanently marked on such goods
removed for export in the same manner as though said goods were
intended for domestic consumption, and in addition on each package of
such goods shall be plainly branded or otherwise permanently marked the
word "For export."
(j) In cases where the manufactory and warehouse are
located outside the provincial capital strict compliance with the
provisions herein relating to the use of invoice books, notification
stubs on invoices and register books may be waived by the Collector of
Internal Revenue in his discretion and upon the recommendation of a
provincial treasurer or other revenue officer; but in all such cases of
exception to the general rule the Collector of Internal Revenue shall
prescribe special rules and instructions to govern each case, and the
manufacturer interested shall give bond in such sum as the Collector of
Internal Revenue shall prescribe conditioned for the faithful
compliance with such special rules and instructions.
Sec. 29. The payment of all license taxes imposed
by this Act for the sale of articles or on occupations shall be made by
the affixture of internal-revenue stamps to license forms in the
following manner:
(a) The Collector of Internal Revenue shall cause to
be prepared and shall furnish through the respective provincial
treasurers to all dealers in articles, or other persons whose
occupations are subject to the license taxes imposed in this Act, a
sufficient number of license forms, each of which shall be divided by a
vertical and a horizontal line into four equal squares or spaces;
across the face of each license form shall be printed or lithographed
the figures denoting the calendar year for which it is issued, and in
the upper left-hand division the words "January, February, March;" in
the upper right-hand division the words "April, May June;" in the lower
left-hand division the words "July, August, September;" and in the
lower right-hand division the words "October, November, December;"
attached to each license there shall be four requisition coupons, one
marked for each quarter.
(b) The provincial treasurer or other
internal-revenue officer at the time of delivery of the license forms
to the dealer or other person liable to pay the tax shall fill in the
taxpayer's name, residence, and assessment number and annual tax, and
shall date and sign his name and official title on said form and fill
in the amount and denominative value, of each stamp required in each of
said four coupons in payment of the quarter's tax; or said assessment
number and amount of quarter's tax may be printed or stamped in before
issue from the Bureau of Internal Revenue. It shall be the duty of each
license taxpayer promptly on the first day of each quarter to separate
from his license the corresponding requisition coupon and transmit the
same with necessary purchase money to the provincial treasurer or his
deputy within whose district he carries on his business or occupation,
to secure the necessary stamps and affix the same in the proper
division in his license form. All licenses shall be posted
conspicuously in the taxpayer's place of business and no requisition
coupon shall be detached therefrom until the tax for the quarter which
it represents becomes due, and shall then only be detached for
immediate transmission to the provincial treasurer or his deputy:
Provided, That nothing herein contained shall be construed as
prohibiting a dealer or other person from detaching two or more
requisition coupons at the same time from his license form if done for
the purpose of paying in advance two or more quarters of his license
tax.
(c) All requisition coupons so received by provincial
treasurers shall be retained by them, the serial numbers and
denominative values of the stamps sold indorsed thereon, proper entry
made thereof in the itemized monthly sale of stamps, and such coupons
shall be transmitted by the provincial treasurer at the end of each
month to the Collector of Internal Revenue. And all such license forms
and their corresponding coupons shall be substantially the same in form
as the sample license form appearing at the end of this article.
Sec. 30. Wholesale dealers shall keep a record of
all purchases and sales of articles subject to the payment of a license
tax by virtue of the provisions of this Act, and shall, whenever so
required by any internal-revenue officer, furnish a statement of each
and every sale they may have made to any wholesale or retail dealer,
and the name and residence of said wholesale or retail dealer; and all
dealers shall carefully preserve and deliver or transmit to any
internal-revenue officer, whenever so required, all invoices received
by them from manufacturers, together with the fractional parts of
stamps affixed thereto; and no dealer shall receive any article from a
manufacturer unless the packages are each and every one of them
properly branded or otherwise permanently marked, as required by this
Act, and unless accompanied by an invoice properly made out, as
required by the provisions of this section, with stamps affixed
sufficient in amount for the full payment of the tax imposed by this
Act on such articles.
Sec. 31. All dealers' licenses with the stamps
attached thereto at the end of the calendar year for which they were
issued, all manufacturers' invoices with the fractional part of the
stamps attached, and all exhausted manufacturer's invoice books
containing the stamped stubs, shall be gathered up by the
internal-revenue officers or otherwise transmitted in such manner and
at such times as the Collector of Internal Revenue shall by regulation
provide, and shall be permanently filed in the Bureau of Internal
Revenue.
Sec. 32. All license or other taxes imposed by
this Act on a percentage basis of assessment shall be paid in such
manner as the Collector of Internal Revenue, with the approval of the
Secretary of Finance and Justice, may by regulation prescribe. All
documentary taxes shall be paid by the affixture and cancellation of
stamps to documents the execution, registration, or certification of
which is taxed by this Act.
Sec. 33. Any manufacturer and any dealer or other
person subject to an occupation tax as provided herein, and any carrier
who wilfully disregards any of the provisions of this Act with intent
to defraud the Insular revenues, or who wilfully assists in, cooperates
with, or conceals any such disregard on the part of another of any of
the provisions of this Act with intent to defraud, shall, if the fraud
is actually perpetrated, be punished in such manner and suffer such
penalties, fines, and forfeitures as are elsewhere in this Act provided
in such cases of fraud; and if no actual fraud is consummated, any
person attempting its perpetration shall be fined in a sum not less
than one hundred pesos nor more than two hundred pesos, in the
discretion of the court; and any such person who, with no apparent
malicious intent, but through willful and inexcusable carelessness
fails to comply with any of the provisions of this Act and thus makes
opportunity for others to commit fraud, or by such conduct hampers the
expeditious enforcement of the law, or who with fraudulent intent is
guilty of petty frauds or minor delinquencies, and who has not been a
previous offender, may be fined administratively by the Collector of
Internal Revenue, with the approval of the Secretary of Finance and
Justice, in a sum not less than twenty pesos nor more than one hundred
pesos; and payment of such fine, administratively imposed, may be
enforced by proper action in court if not paid upon demand.
Sec. 34. Every manufacturer of any of the articles
made subject to the taxes imposed under Articles V to IX, inclusive, of
this Act shall at the time of the original assessment, and all such
manufacturers who may engage in such enterprises subsequent to the
taking effect of this Act, shall, at the time of engaging in such
enterprises, file with the treasurer of the province in which the
manufactory is situated a bond, with surety or sureties to be approved
by the provincial treasurer, in an amount equal, as nearly as can be
estimated, to twenty per centum of the amount of taxes to be paid
during an average year by such manufacturer on the output of his
manufactory under the provisions of this Act. Every such bond shall be
conditioned for the faithful compliance with all the provisions of this
Act and with the regulations issued in accordance therewith and for the
complete payment of all taxes lawfully accruing on the output of such
manufactory and of all fines and penalties imposed in accordance with
the provisions of this Act: Provided, That in no event shall any such
bond be required in an amount exceeding one hundred thousand pesos or
less than two hundred pesos.
Sec. 35. All distilled spirits, manufactured or
fermented liquors, imitations of wines, snuff, and manufactured or
partially manufactured tobacco, cigars, cigarettes, and matches
manufactured or partially manufactured in the Philippine Islands before
the time of the taking effect on this Act for sale or consumption in
the Philippine Islands, and which shall severally still be in the hands
of the manufacturers thereof at the time of the taking effect of this
Act, shall be liable to the same taxes as are imposed herein on similar
articles manufactured or partially manufactured after the time of the
taking effect of this Act. The taxes on all such articles aforesaid in
the possession of manufacturers at the time of the taking effect of
this Act shall be paid in the same manner and under the same
regulations as are imposed and prescribed for the payment of taxes on
similar articles manufactured or partially manufactured after the time
of the taking effect of this Act.
Sec. 36. All taxes imposed under this Act on
distilled, rectified, or manufactured spirits, fermented liquors,
matches, cigars, cigarettes, or manufactured or partially manufactured
tobacco, manufactured in the Philippine Islands for domestic sale or
consumption, shall be paid at the time of the removal of such articles
from the manufactory, or other bonded warehouse.
No tax imposed under this Act on any of the articles enumerated in this
section shall be collected on any portion of such articles as may be
removed for the purpose of their exportation and which shall be
actually so exported aboard some ocean-going ship and which shall not
be relanded in the Philippine Islands.
The Collector of Internal Revenue shall issue all such rules and
regulations as may be necessary to carry into effect the provisions of
this section, and for such purpose shall require that such marks or
labels shall be placed on the packages containing such goods, that such
bonds shall be given by the owners of such articles, and that such
bills of lading, certificates, and other evidence shall be furnished by
the owners of such articles as may be necessary to establish the fact
that the said articles have, after removal from the manufactory or
other bonded warehouse, been actually exported, and that no portion
thereof has been sold or delivered for domestic consumption within the
Philippine Islands. And upon the presentation of satisfactory proof as
aforesaid, it shall be the duty of the Collector of Internal Revenue to
cancel the bond or bonds furnished by the owners of such articles
conditioned on faithful compliance with the provisions of this section.
Sec. 37. All persons required to make returns or
lists of objects charged with an internal-revenue tax shall state their
valuation in Philippine currency, and all sums of money named in this
Act shall be deemed to be in Philippine currency.
Sec. 38. Any officer of internal revenue may, in
the discharge of his official duties, enter any building or place where
any articles or objects subject to tax are made, produced, or kept, so
far as it may be necessary for the purpose of examining said articles
or objects; and any owner of such place or person having the agency or
superintendency of same who refuses to admit such officer or to suffer
him to examine such objects or articles, and any person who shall
forcibly obstruct any officer of internal revenue, or who shall attempt
or endeavor so to do, shall for every such offense be fined in a sum
not more than two thousand pesos or be imprisoned for not exceeding two
years, or be punished by both fine and imprisonment, in the discretion
of the court.
Sec. 39. Every tax shall constitute a lien in
favor of the Insular Government superior to all other charges or liens
from the time it becomes due until paid by every such person from whom
such tax shall be due upon all the property and rights to property used
in the business in relation to which the tax is assessed. The word
"person" whenever used in this Act shall include firms, associations,
and corporations.
Sec. 40. In the case of neglect or refusal to pay
any taxes and penalties when due under the provisions of this Act, the
provincial treasurer may levy upon all property belonging to such
person on which the lien exists for the nonpayment and also for such
further sums as shall be sufficient for the costs of such levy. The
remedy by distraint and levy shall not be exclusive of the remedy by
action in court, but shall be cumulative thereto.
Sec. 41. When distraint is made as aforesaid, the
officer charged with the collection shall make or cause to be made an
account of the goods, effects, or credits distrained, a copy of which,
signed by the officer making such distraint, shall be left with the
owner or person in possession of all such goods, credits, or effects,
at his dwelling or place of business, with some person of suitable age
and discretion, with a note of the sum demanded and the time and place
of sale; and the said officer shall forthwith cause a notification to
be exhibited in not less than two public places in the municipality
where the distraint is made, specifying the time and place of sale and
the articles distrained. The time of sale shall not be less than ten
days after notice to the owner or possessor of the property as above
specified and the publication or posting of such notice. One place for
the posting of such notice shall be at the office of the president of
the municipality in which the property is distrained. At the time and
place fixed in such notice the said officer shall sell the goods,
chattels, credits, or effects so distrained, at public auction, to the
highest bidder for cash: Provided, That if prior to the sale payment is
made to the proper officer charged with the collection of the tax,
penalties, fees, and other charges, the goods, chattels, credits, or
effects so distrained shall be restored to the owner.
Sec. 42. When property is seized upon distraint
and sold, the proceeds of the sale shall, after deducting the expenses
of the sale, be appropriated to the payment of the tax and penalties
due. Any excess of the proceeds of the sale above payment of the
expenses thereof and the tax and penalties due shall be returned to the
owner of the property sold: Provided, That nothing contained herein
shall be construed as authorizing the return of any spirits, tobacco
products, or other articles liable to forfeiture or illegally removed
from any manufactory or bonded warehouse, or any part of the proceeds
thereof when sold.
Sec. 43. When any property advertised for sale
under distraint as aforesaid is of a kind subject to the tax and the
tax has not been paid, and the amount bid for such property is not
equal to the amount of the tax or is very much less than the actual
market value of the articles offered for sale, the provincial treasurer
may purchase the same in behalf of the Insular Government for the
amount of taxes, penalties, and costs due thereon.
Property so purchased may be resold by the provincial treasurer under
such regulations as may be prescribed by the Collector of Internal
Revenue, and a distinct account of all expenses incurred in such sale
shall be transmitted to the Collector of Internal Revenue, and the
proceeds shall be paid into the Insular Treasury after defraying all
lawful charges and expenses in connection with the custody and sale of
the property: Provided, That when any abandoned, condemned, or
forfeited articles offered for sale by the provincial treasurer do not
bring a price equal to the tax due and payable thereon, such goods
shall not be sold for consumption in the Philippine Islands; and upon
application made to the Collector of Internal Revenue he is authorized
to order the destruction of such articles by the officer in whose
custody and control the same may be at the time; and the Collector of
Internal Revenue shall prescribe the necessary regulations for carrying
into effect the provisions of this section and for making due record of
the fact of such destruction.
Sec. 44. In all cases of sales as aforesaid the
certificate of sale shall be conclusive evidence of the right of the
officer to make such sale and shall transfer to the purchaser all the
rights and privileges of such delinquent in and to the property sold as
completely as if transferred or assigned by the person whose property
was distrained and sold.
Sec. 45. When goods, chattels, or effects
sufficient to pay the tax imposed upon any person are not found, the
provincial treasurer or his deputy is authorized to collect the same by
seizing and holding real estate in the manner prescribed for the
seizure and sale of real estate for delinquent taxes in the Municipal
Code and the amendments thereto.
Sec. 46. Whenever any property, personal or real,
seized and sold by virtue of the foregoing provisions is not sufficient
to satisfy the claim of the Government for which the distraint or
seizure is made, the provincial treasurer shall thereafter, and as
often as may be necessary, proceed to seize and sell in like manner any
other property liable to seizure belonging to the person against whom
such claim exists, until the amount due, with all expenses, is fully
paid.
Sec. 47. The Collector of Internal Revenue shall
by general regulations determine the fees and charges to be allowed in
all cases of distraint and other seizures and shall have power to
determine whether any expense incurred in making any distraint or
seizure was necessary.
Sec. 48. The Collector of Internal Revenue shall
have charge of all real estate which has been or shall be assigned, set
off, or conveyed by purchase or otherwise to the Insular Government in
payment of debts or taxes, penalties, or costs arising under the
provisions of this Act, and, with the approval of the Secretary of
Finance and Justice, may at public auction, and at not less than twenty
days' notice, sell and dispose of such real estate, and shall thereupon
deposit the proceeds of such sales in the Insular Treasury and render
account thereof to the Insular Auditor.
Sec. 49. The gross amount of all taxes received or
collected under this Act shall be paid, except as otherwise provided in
this Act, by the officer collecting the same into the Insular Treasury
without abatement or deduction on account of salary, compensation, or
claims of any description, and a certificate of such payment, stating
the name of the depositor and the specific account on which the deposit
was made, signed by the Insular Treasurer, shall be transmitted monthly
to the Collector of Internal Revenue. All such funds collected within
one calendar month shall be transmitted to the Insular Treasurer within
the first five days of the succeeding month: Provided, That in the case
of provinces in which the distance from the Insular Treasury of the
officers receiving or collecting such revenues is such as to make
compliance with the provisions of this section impracticable, the
Insular Treasurer may extend the time for making such payments, as
aforesaid, not exceeding in any case a period of one month.
Sec. 50. All suits to enforce the forfeiture of
property which may be declared forfeited under the provisions of this
Act or for the recovery of any sums which may be forfeited by law shall
be brought in the name of the Government of the Philippine Islands and
conducted by the provincial fiscal or the Attorney-General; but no suit
for the recovery of taxes of any fines, penalties, or forfeitures shall
be commenced unless the Collector of Internal Revenue authorizes and
sanctions the proceedings, and he shall prescribe such regulations for
the observance of revenue officers, provincial fiscals, and other
officials respecting suits arising under this Act in which the
Government of the Philippine Islands is a party as may be deemed
necessary for the just responsibility of such officers and the prompt
collection of all revenues and debts due and accruing under this Act;
and all judgments and moneys recovered and received for taxes, costs,
forfeitures, and penalties shall be paid to the provincial treasurer or
his authorized deputies as the taxes themselves are required to be paid.
Sec. 51. The Collector of Internal Revenue is
authorized, subject to such regulations as may be prescribed by the
Secretary of Finance and Justice, on appeal made to him to remit,
remise, and pay back taxes erroneously or illegally received, or
penalties imposed without authority, and all taxes that appear to be
unjustly assessed or excessive in amount or in any manner wrongfully
collected; also to repay to any provincial treasurer or his deputy the
full amount of such sums of money as may be recovered against him in
any court for any internal-revenue taxes collected by him, with the
costs and expenses of the suit; also to reimburse amounts paid for all
damages and costs recovered against any revenue officer in any suit
brought against him by reason of anything done in good faith in the
performance of his official duty: Provided, That such damages and costs
shall not be refunded unless the Collector of Internal Revenue shall
have been notified of the pending action against the officer and shall
have had ample opportunity to make defense against the same through the
office of the Attorney-General, and the Collector of Internal Revenue
shall be satisfied that the recovery against the officer was not by
reason of any undue negligence on his part or willful oppression.
Sec. 52. No suit shall be maintained in any court
for the recovery of any internal-revenue tax alleged to be excessive or
collected without authority or of any sum alleged to be excessive or in
any manner wrongfully collected, unless protest against such tax was
made at the time of the payment thereof or within ten days thereafter
nor until appeal shall have been duly made to the Collector of Internal
Revenue and his decision has been had thereon: Provided, That if such
decision is delayed six months from the date of appeal then the suit
may be brought without first having the decision of the Collector of
Internal Revenue: And provided further, That no suit shall be
maintained in any court for such recovery unless the same is brought
within two years next after the cause of action accrued: And provided
further, That no courts shall have authority to grant an injunction
restraining the collection of any taxes imposed by virtue of the
provisions of this Act, but the remedy of the taxpayer who claims that
he is unjustly assessed or taxed shall be by payment under protest of
the sum claimed, from him by the Collector of Internal Revenue and by
action to recover back the sum claimed to have been illegally collected.
Sec. 53. The Collector of Internal Revenue, with
the approval of the Secretary of Finance and Justice, may compromise
any civil or other case arising under the provisions of this Act
instead of commencing or prosecuting suit thereon, and, with the
consent of the Secretary of Finance and Justice, he may compromise such
case if action has been begun thereon.
Sec. 54. Whenever authority is given in this Act
for the imposition of any fine or forfeiture administratively, any
person aggrieved by the imposition of such fine or forfeiture may
appeal therefrom to the proper Court of First Instance, and that court
shall have jurisdiction, after due hearing, to confirm the imposition
of the fine or forfeiture or to reverse or modify the order in such
respect as the law shall require and to enforce its judgment by proper
process. Judgments of the Court of First Instance in such cases shall
be certified to the Collector of Internal Revenue. Such appeal shall be
taken within ten days after notice of the imposition of the fine or
forfeiture.
Sec. 55. Any person who makes, sells, or uses any
false or counterfeit stamp or cedula, or any die for printing or making
stamps or cedulas, which is in imitation of or purports to be a lawful
stamp, cedula, or die of the kind required by the provisions of this
Act, or who erases the cancellation marks on any stamp or cedula
previously used, or who alters the written or printed figures or
letters or cancellation marks of any stamp or cedula previously used,
or who has in his possession any such false, counterfeit, restored, or
altered stamp, die, or cedula for the purpose of use or reuse of the
same in the payment of any tax imposed in this Act or in securing any
exemption or privilege conferred by the provisions of this Act, or who
procures the commission of any of such offenses by another, shall for
each such offense be fined in a sum not less than two thousand pesos
nor more than ten thousand pesos, and be imprisoned for a term not less
than one year nor more than five years, at the discretion of the court.
Sec. 56. Any manufacturer, owner, or person in
charge of any article made subject to the taxes imposed under Articles
V to IX, inclusive, of this Act who removes or allows or procures the
removal of any such articles for domestic sale or consumption from
their place of manufacture or bonded warehouse wherein they have been
legally deposited upon which the taxes imposed by this Act have not
been paid in full prior to or at the time of such removal, and in the
manner provided herein, shall for the first offense be punished by the
forfeiture of all such articles is illegally removed and sum equal to
twice the taxes thereon, or, if such goods can not be seized, he shall
forfeit an amount equal to the value of the goods and twice the taxes
thereon; and every person wilfully aiding or abetting in the removal of
such articles, and every other person who knowingly conceals any such
articles after their illegal removal, shall forfeit for every such
offense a sum equal to twice the amount of taxes due and unpaid on any
such articles so illegally removed. And every such manufacturer shall,
before he is allowed to resume business, file with the provincial
treasurer a bond in double the amount of his original bond, with
sufficient surety or sureties satisfactory to the Collector of Internal
Revenue, and under the same conditions as his original bond.
Sec. 57. In case of the commission of a second
offense of the character described in the next preceding section by any
of the persons therein named, the person committing the same shall be
deemed to be guilty of a criminal offense and on conviction thereof
shall be punished by imprisonment for not less than one month nor more
than five years, and, if it be proven that the offense was committed by
the owner or the manufacturer or by his connivance, all such articles
illegally removed, the manufactory and the ground upon which it stands,
and all machinery, stock of goods, and other personal property which it
contains, shall be declared by the judgment of the court as forfeited
to the Insular Government and shall be disposed of and the proceeds
accounted for in the manner elsewhere prescribed in this Act.
Sec. 58. Any person who wilfully fails to affix a
stamp or stamps to any document at the time and in the manner required
by Article XI of this Act shall be punished by a fine in the sum of two
hundred pesos, and the document to which the stamp or stamps should
have been affixed shall be void until rendered valid by the affixture
of the proper stamp or stamps thereto.
ARTICLE
IV
LICENSES
Sec. 59. No person shall, after January first,
nineteen hundred and five, engage in or carry on any business
hereinafter mentioned until he has paid a license tax therefor in the
manner hereinafter provided. The existing license laws are continued in
force until January first, nineteen hundred and five.
Sec. 60. Every person engaged in any business or
trade on which a license tax is imposed by law shall register with the
provincial treasurer his name or style, place of residence, trade, or
business, and the place where such trade or business is carried on. In
case of a firm or company the names and residences of the various
persons constituting the same shall also be registered.
Sec. 61. Any number of persons doing business in
copartnership in any one place shall be required to pay but one license
tax.
Sec. 62. The payment of the license tax imposed
shall not exempt any merchant or manufacturer also doing the same or
another business in any other place from the payment of an additional
license tax.
Sec. 63. Whenever more than one pursuit or
occupation hereinafter described are carried on in the same place by
the same person at the same time, the tax shall be paid for each
pursuit or occupation according to the rates severally prescribed.
Sec. 64. All license taxes shall become due on the
first day of January in each year or on commencing any trade or
business on which a tax is imposed. In the former case the tax shall be
reckoned for one year, in the latter case it shall be reckoned
proportionately from the first day of the quarter in which the
liability for the license tax commenced to the first day of January
following: Provided, That yearly license taxes may be paid in quarterly
installments on the first day of January, April, July, and October: And
provided further, That no license payment for a fraction of a year
shall be for less than the sum required for three months.
Sec. 65. When any person who has paid the license
tax for any trade or business dies, his wife or children, executor,
administrator, or other legal representative may occupy the house or
premises and in like manner carry on for the residue of the term for
which the tax is paid the same trade or business as the deceased before
carried on in the same house and upon the same premises, without the
payment of any additional tax; and when any person who has paid his
license tax removes from the house or premises for which any trade or
business was taxed to any other place he may carry on the trade or
business specified in the provincial treasurer's register at the place
to which he moves without the payment of an additional tax: Provided,
That all cases of death, change, or removal as aforesaid, with the name
of the successor to any person deceased or of the person making such
change or removal, shall be registered with the provincial treasurer
under regulations to be prescribed by the Collector of Internal
Revenue.
Sec. 66. Any person who carries on the business of
a distiller, rectifier, wholesale liquor dealer, retail liquor dealer,
manufacturer of tobacco, snuff, cigars, or cigarettes, or dealer in
manufactured tobacco, without having paid the license tax therefor as
required by law, shall, besides being liable for the payment of the
tax, for every such offense be fined in a sum not less than two hundred
pesos nor more than two thousand pesos or be imprisoned for a term not
more than six months, in the discretion of the court.
And any person who carries on any other business for which a license
tax is imposed by law without having paid the license tax therefor as
required by law shall, besides being liable to the payment of the tax,
be fined in a sum not more than one thousand pesos or be imprisoned for
a term not more than six months or be punished by both fine and
imprisonment, at the discretion of the court.
Sec. 67. The payment of any tax imposed by this
Act for carrying on any trade or business shall not be held to exempt
any person from any tax, penalty, or punishment provided by law or
ordinance in places where such business is prohibited or regulated by
municipal law, nor shall the payment of any such tax be held to
prohibit any municipality from placing a license tax upon the same
trade or business for local or other purposes where the imposition of
such tax for local or other purposes is now authorized by law and is
not prohibited by the provisions of this Act.
Sec. 68. Annual license taxes shall be levied and
collected as follows:
1. Every brewer shall pay two hundred pesos. Every
person who manufactures fermented liquors of any description for sale
or delivery to others, except small manufacturers of tuba, bassi, or
tapuy, or like domestic fermented liquors, shall be deemed a brewer.
2. Every distiller of spirits shall pay two hundred
pesos. Every person who by original and continuous distillation from
mash, wort, wash, sap, or sirup through continuous closed vessels and
pipes until the manufacture thereof is complete, distills spirituous
liquors, shall be deemed a distiller of spirits: Provided, That
distillers of spirits whose daily output does not exceed four
hectoliters shall pay the sum of forty-eight pesos.
3. Every rectifier of distilled spirits shall pay two
hundred pesos. Every person who rectifies, purifies, or refines
distilled spirits or wines by any process other than by original and
continuous distillation from mash, wort, wash, sap, or sirup through
continuous closed vessels and pipes until the manufacture thereof is
complete; and every wholesale or retail liquor dealer who has in his
possession any still or mash tub, or who keeps any other apparatus for
the purpose of distilling spirits or in any manner refining distilled
spirits; and every person who without rectifying, purifying, or
refining distilled spirits shall, by mixing such spirits, wine, or,
other liquor with any materials except water, manufacture any spurious
imitation or compound liquors for sale under the name of whisky,
brandy, gin, rum, cane spirits, wine spirits, cordials, wine bitters,
anisado, or any other name, shall be regarded as a rectifier and as
being engaged in the business of rectifying.
4. Every retail dealer in liquors shall pay
forty-eight pesos. Every person who for himself or on commission sells
or offers for sale foreign or domestic distilled spirits or wine in
quantities of two decaliters or less at any one time shall be regarded
as a retail dealer in liquors, except as next hereinafter provided.
5. Every retail "vino" dealer shall pay eight pesos.
Every person who for himself or on commission sells or offers for sale
the domestic distilled spirit called "vino" or like domestic distilled
spirit in quantities of two decaliters or less at any one time shall be
regarded as a retail, vino" dealer.
6. Every wholesale liquor dealer shall pay two
hundred pesos. Every person who for himself or on commission sells or
offers for sale foreign or domestic distilled spirits or wines in
larger quantities than two decaliters at any one time shall be regarded
as a wholesale liquor dealer: Provided, That no distiller or rectifier
who has paid the license tax imposed in this section and given the
required bond and who sells only distilled spirits of his own
production in the original packages at the place of manufacture shall
be required to pay the license tax imposed in this paragraph on account
of such sales.
7. Every retail dealer in fermented liquors shall pay
forty pesos. Every person who for himself or on commission sells or
offers for sale foreign or domestic fermented liquors in quantities of
two decaliters or less at any one time shall be regarded as a retail
dealer in fermented liquors, and the payment of a license tax as a
wholesale or retail liquor dealer or the payment of any other license
tax shall not relieve any person who sells fermented liquors from the
payment of the license tax imposed in this paragraph: Provided, That
dealers in tuba, bassi, tapuy, or like domestic fermented liquors shall
be excepted from this requirement.
8. Every wholesale dealer in fermented liquors shall
pay sixty pesos. Every person who for himself or on commission sells or
offers for sale foreign or domestic fermented liquors in larger
quantities than two decaliters at any one time shall be regarded as a
wholesale dealer in fermented liquors: Provided, That no brewer who has
given the required bond and paid the license tax imposed in paragraph
one of this section and who sells only fermented liquors of his own
production in the original packages at the place of manufacture shall
be required to pay the license tax imposed in this paragraph on account
of such sales.
9. Every dealer in manufactured tobacco shall pay
eight pesos. Every person whose business it is for himself or on
commission to sell or offer for sale manufactured tobacco, snuff,
cigars, or cigarettes shall be regarded as a dealer in manufactured
tobacco, and the payment of a tax as a wholesale or retail liquor
dealer or the payment of any other license tax shall not relieve any
person who sells manufactured tobacco, snuff, cigars, or cigarettes
from the payment of this tax: Provided, That no manufacturer of
tobacco, snuff, cigars, or cigarettes who has given the required bond
and paid the license tax or taxes, as the case may be, imposed in
paragraphs ten and eleven of this section and who sells only
manufactured tobacco or cigars of his own production in the original
packages at the place of manufacture, shall be required to pay the
license tax imposed in this paragraph on account of such sales.
10. Every manufacturer of tobacco shall pay twenty
pesos. Every person whose business it is to manufacture tobacco or
snuff, or who employs others to manufacture tobacco or snuff, whether
such manufacture be by cutting, pressing, grinding, or rubbing any raw
or leaf tobacco, or otherwise preparing raw or leaf tobacco or
manufactured or partially manufactured tobacco and snuff, or putting up
for consumption scraps, refuse, or stems of tobacco resulting from any
process of handling tobacco, or by working or preparing leaf tobacco,
tobacco stems, scraps, clippings, or waste by sifting, twisting,
screening, or by any other process, shall be regarded as a manufacturer
of tobacco.
11. Every manufacturer of cigars shall pay twenty
pesos. Every person whose business it is to make or manufacture cigars
or cigarettes for sale or who employs others to make or manufacture
cigars or cigarettes for sale shall be regarded as a manufacturer of
cigars: Provided, That every person who is employed to make for others,
either for pay, upon commission, or shares, or otherwise, from material
furnished by others shall be regarded as a cigar maker and not as a
manufacturer of cigars, and every cigar maker shall cause his or her
name and residence to be registered, without previous demand, with the
provincial treasurer of the province within which the cigar maker shall
be employed; and any manufacturer of cigars employing any cigar maker
who shall have neglected or refused to make such registration shall be
fined ten pesos for each day that any cigar maker who neglects or
refuses to register shall be employed by him: And provided further,
That persons who manufacture cigars or cigarettes in their own homes
for delivery to larger manufacturers and not for sale shall pay no
license or other tax imposed in this Act, and that persons who
manufacture cigar or cigarettes in their own homes exclusively for sale
on the premises shall pay an annual license tax of eight pesos for such
manufacture and shall, under special regulations issued by the
Collector of Internal Revenue, also pay the tax imposed in Article VIII
of this Act on all such cigars so manufactured and removed for domestic
sale or consumption: And provided further, That the taxes imposed in
Article VIII of this Act on cigars and cigarettes delivered as provided
herein by cigar makers to the larger manufacturers shall be paid by the
manufacturer receiving such cigars in the same manner and amount as the
taxes are paid on cigars and cigarettes made on the manufactory
premises.
12. Every peddler of manufactured tobacco or
distilled, manufactured, or fermented liquors when traveling with more
than two horses, mules, or other animals shall pay eighty pesos; when
traveling with two horses, mules, or other animals shall pay forty
pesos; when traveling with one horse, mule, or other animal shall pay
twenty-four pesos; when traveling on foot or by public conveyance shall
pay sixteen pesos. Every person, who for himself or on commission,
sells or offers to sell and deliver manufactured tobacco, snuff,
cigars, cigarettes, or distilled, manufactured, or fermented liquors,
traveling from place to place in the town or country, shall be regarded
as a peddler and subject to the license tax imposed in this paragraph.
Every such peddler shall at all times have in his possession such
license, which he shall produce upon the demand of any internal-revenue
officer.
Sec. 69. The payment of a license tax by any
manufacturer of distilled spirits, manufactured liquors or wines,
fermented liquors, cigars, cigarettes, snuff, or other manufactured
tobacco shall not authorize the sale by any such manufacturer of his
products at the place of manufacture at retail, nor in any manner
except in the original packages.
Sec. 70. Nothing in this article shall be
construed to impose a license tax on apothecaries or pharmacists as to
wines or spirituous liquors which they use exclusively in the
preparation or compounding of medicines.
ARTICLE
V
DISTILLED SPIRITS
Sec. 71. "Distilled spirits, spirits of alcohol,
and alcoholic spirits," within the intent of this Act, include all
substances known as ethyl alcohol, hydrated oxide of ethyl, or spirits
of wine, which are commonly produced by the fermentation of grain,
starch, molasses, or sugar, or of some sirup or sap, including all
dilutions or mixtures, and the tax shall attach to this substance as
soon as it is in existence as such, and whether it be subsequently
separated as pure or impure spirits or be immediately or at any
subsequent time transferred into any other substances either in process
of original production or by any subsequent process.
Sec. 72. Proof spirits shall be held to be that
alcoholic liquor which contains one-half its volume of alcohol of a
specific gravity of seven thousand nine hundred and thirty-nine
ten-thousandths at sixty degrees Fahrenheit of temperature.
Sec. 73. In all measurements of spirits a "liter"
shall be held to be a liter of proof spirits, according to the standard
prescribed in the preceding section; and the term "wine" or "gauge
liter" where used shall be held to indicate a liter of volume capacity
regardless of proof.
Sec. 74. There shall be levied and collected on
all distilled spirits manufactured in the Philippine Islands for
domestic sale or consumption a tax of twenty centavos on each liter of
proof spirits to be paid by the distillery owners or persons having
possession thereof before removal from the distillery or bonded
warehouse. The tax on such spirits shall be collected on the whole
number of gauge liters when below proof, and shall be increased in
proportion for any greater strength than the strength of proof spirit
as defined in this article, and any fractional part of a liter
amounting to a half liter or over in a cask or package shall be taxed
as a liter and any fractional part of a liter less than half a liter in
a cask or package shall be exempt from the tax: Provided, That any
package of spirits the total contents of which are less than a liter
shall be taxed as one liter.
Sec. 75. Every person who manufactures any still,
boiler, or other vessel to be used for the purpose of distilling,
shall, before the same is removed from the place of manufacture, notify
in writing the provincial treasurer of the province in which the still,
boiler, or other vessel is to be used or set up, by whom it is to be
used, its capacity, and the time when the same is to be removed from
its place of manufacture; and no such still, boiler, or other vessel
shall be set up without the permit in writing of said provincial
treasurer for that purpose.
Sec. 76. Every distiller, when so required by the
Collector of Internal Revenue, shall provide at his own expense a
warehouse, to be situated on and to constitute a part of his distillery
premises and to be used only for the storage of distilled spirits of
his own manufacture until the tax thereon shall have been paid; but no
dwelling house shall be used for such purpose, except by special permit
from the Collector of Internal Revenue or from the provincial
treasurer, and no door, window, or other opening shall be permitted in
the walls of such warehouse leading into the distillery or into any
other room or building; and no such warehouse, when approved by the
Collector of Internal Revenue, on the report of the provincial
treasurer or other officer, is hereby declared to be a bonded
warehouse, to be known as a distillery warehouse, and shall be under
the direction and control of the treasurer of the province; and
whenever the Collector of Internal Revenue shall so direct said
distillery warehouse shall be in the custody of an internal-revenue
storekeeper designated to that duty.
Sec. 77. Every distillery warehouse shall be in
the joint custody of the storekeeper, if one is assigned thereto, and
of the proprietor thereof. It shall be kept securely locked, and shall
at no time be unlocked or opened or remain opened unless in the
presence of such storekeeper or other person who may be designated to
act for him as provided by law.
Sec. 78. Every person engaged in distilling or
rectifying spirits, and every wholesale liquor dealer, shall keep
conspicuously on the outside of his place of business a sign
exhibiting, in plain, large letters, the name and firm of the
distiller, rectifier, or wholesale dealer, with the words "Registered
distiller," "Rectifier of spirits," or "Wholesale liquor dealer," as
the case may be.
Sec. 79. All distilled spirits shall be drawn from
the receiving cistern into vessels of not less capacity than fifteen
liters, and shall thereupon be gauged, proved, and marked by marking
the package containing such spirits, in a manner to be prescribed by
the Collector of Internal Revenue, the quantity in wine or gauge liters
and in proof liters contained in each cask, which shall be immediately
removed into the distillery warehouse.
Sec. 80. No distilled spirits on which the tax has
been paid shall be stored or allowed to remain in any distillery, or
distillery or other bonded warehouse, under penalty of the forfeiture
to the Insular Government of all spirits so found.
Sec. 81. All distilled spirits found in the
distillery warehouse in any cask or package containing fifteen liters
or more without having thereon each mark required therefor by law,
shall be forfeited to the Insular Government.
Sec. 82. No gauger shall employ any owner, agent,
or superintendent of any distillery or distillery warehouse, or any
person in the service of such owner, agent, or superintendent, or any
rectifier or wholesale liquor dealer, or any person in the service of
such rectifier or wholesale dealer, to use his brands or discharge any
of the duties imposed upon him by law.
Sec. 83. Every distiller or owner of distilled
spirits removed as aforesaid to the distillery warehouse shall, on the
first day of each month or within four days thereafter, enter the same
for deposit in said warehouse under such regulations as the Collector
of Internal Revenue may prescribe. Such entry shall be in triplicate
and shall contain the name of the person making the entry, the
designation of the warehouse where the deposit is made, and the date
thereof, and shall be in the following form:
"Entry for deposit in distillery warehouse. Entry of distilled spirits
deposited by ______________, in distillery warehouse _____________ in
the Province of _____________, Island of ____________, on the
_______________ day of ____________, A.D. 19 _____."
Each entry shall specify the kind of spirits, the whole number of
casks, the marks and serial numbers thereon, the number of gauge liters
and proof liters, and the amount of the tax on the spirits contained in
such packages, which entry shall be signed by the distiller or the
owner of the same. One copy of said entry shall be retained in the
office of the treasurer of the province, one copy shall be sent to the
storekeeper in charge of the warehouse to be retained and filed in the
warehouse, and one copy shall be sent to the Collector of Internal
Revenue to be filed in his office. The taxes upon the liquors covered
by such entry shall be paid within three years from the date of the
entry.
Sec. 84. It shall be lawful for any revenue
officer to detain any package containing or supposed to contain
distilled spirits when he has good reason to believe that the tax
imposed by law has not been paid or that the same is being removed in
violation of law, and every such cask or package shall be held by such
officer in a safe place until it shall be determined whether the
property so detained is liable by law to be proceeded against for
forfeiture; but such summary detention shall not continue in any case
longer than seven days without process of law or intervention of the
officer to whom such detention is to be reported.
Sec. 85. Every storekeeper shall keep a warehouse
book, which shall at all times be open to the examination of any
revenue officer, and shall enter therein an account of all articles
deposited in the warehouse to which he is assigned, indicating in every
case the date of deposit, by whom manufactured or produced, the number
and description of the package and its contents, the quantities
therein, the marks and serial numbers thereon, by whom gauged,
inspected, or weighed, and if distilled spirits the number of gauge
liters and proof liters; before delivering any articles from the
warehouse such storekeeper shall enter in said book the date of the
sale of the stamps by the provincial treasurer for payment of the tax
on such articles, the number and description of the packages, the marks
and serial numbers thereon, the date of delivery, to whom delivered and
for what purpose, which purpose shall be specified in the permit or
order for delivery, and in case of delivery of any distilled spirits
the number of gauge liters and proof liters shall also be stated, and
such further particulars shall be recorded in such warehouse book as
may be prescribed by the Collector of Internal Revenue or found
necessary for the identification of the packages and to insure the
correct delivery thereof and prompt accountability therefor; and every
storekeeper shall furnish daily to the treasurer of the province a
return of all articles received in and delivered from the warehouse
during the day preceding that on which the return is made, and shall
mail at the same time a copy thereof to the Collector of Internal
Revenue, and shall on the first Monday of every month make a report in
duplicate of the number of packages of all articles, with the
respective description thereof as above provided, which remain in the
warehouse at the date of his last report, of all articles received
therein and delivered therefrom during the preceding month, and of all
articles remaining therein at the end of said month. He shall deliver
one copy of such report to the provincial treasurer having control over
the warehouse, to be recorded and filed in his office, and transmit one
copy to the Collector of Internal Revenue to be recorded and filed in
his office.
Sec. 86. Every storekeeper assigned to any
distillery warehouse, in addition to the duties required of him as
storekeeper in charge of the warehouse, shall keep in a book to be
provided for that purpose, in the manner prescribed by the Collector of
Internal Revenue, a daily account of all the meal and vegetable
products or other substances brought into said distillery or on said
premises to be used for the purpose of producing spirits and from whom
produced and when delivered to said distillery, the kind and quality of
all fuel and from whom purchased, of all repairs made on said
distillery and by whom and when made, the name and residence of each
person employed in or about the distillery, of all materials put into
the mash tub or otherwise used for the production of spirits, of the
time when any fermenting tub is emptied of any ripe mash or beer,
recording the same by the number painted on said tub, and of all
spirits drawn off from the receiving cistern and the time when the same
were drawn off.
Sec. 87. On all distilled spirits which may be
changed in form either before or after rectification by the addition of
coloring matter, except as hereinafter provided, flavoring extracts, or
other kinds of liquor of other ingredients except water, and where the
same is intended for human consumption, there shall be levied and
collected on each liter of the finished product manufactured in the
Philippine Islands for domestic sale or consumption, a tax of ten
centavos, and this tax shall be distinct from and in addition to the
tax per proof liter imposed by this Act on all distilled spirits used
in the compounding of all such concocted or manufactured liquors.
Persons engaged in the concoction or manufacture of liquors as defined
in this section shall be subject to all the requirements in this Act
contained relating to distillers in regard to the registration of their
establishments and the execution of bonds, and shall be subject to all
of the regulations as to the manner of conducting their business and of
the inspection thereof, the marking and numbering of all the casks and
receptacles and packages, removal of spirits, payment of taxes, returns
and reports of operations as are provided in this Act for the control
of the operations of distillers and prevention of frauds on their part,
and shall be subject to all the provisions of this Act imposing
penalties, punishments, and forfeitures for non-compliance with the
law.
Sec. 88. On all distilled spirits containing amyl
or other higher alcohols (fusel oil), aldehyde, or methyl alcohol (wood
alcohol) in the proportion of four or more parts in one thousand, which
may be removed from distillery for domestic sale or consumption
exclusively for manufacturing or industrial purposes, and not intended
for use as beverages, there shall be levied and collected a tax of ten
centavos on each liter of proof spirits; and on all such spirits as may
be removed from the place of their manufacture to some other distillery
or to some rectifying establishment for the purpose of their
rectification, and to reduce the amyl alcohol or other poisonous
substances to four or less parts in one thousand, there shall be levied
and collected, when rectified and the poisonous substances removed as
aforesaid, an additional tax of ten centavos on each proof liter of
such rectified spirits removed for domestic sale or consumption as
beverages.
It shall be the duty of every internal-revenue officer to report to the
Collector of Internal Revenue all cases where distilled spirits
suspected to contain the poisonous substances aforesaid, in the
proportion of four or more parts in one thousand, are removed from the
place of their manufacture for domestic sale or consumption as
beverages, and such revenue officer shall send with his report a sample
of such suspected spirits. If, from an analysis made at the Bureau of
Government Laboratories, it shall appear that any such spirits actually
contain any of the aforesaid poisonous substances in the proportion of
four or more parts in one thousand, it shall be the duty of the
Collector of Internal Revenue to direct that all spirits distilled at
the distillery in which the spirits so analyzed were produced shall
promptly at the time of their production be colored by the addition
thereto of methylene blue or other coloring matter approved by the
Collector of Internal Revenue in the proportion of not less than one
part of coloring matter to five thousand of spirits; and thereafter all
such spirits found on the manufactory premises uncolored, and all such
spirits colored or uncolored removed from the manufactory for domestic
sale or consumption as beverages, shall be seized and forfeited to the
Insular Government, and every person guilty of such illegal removal or
sale of such spirits shall be punished in the manner elsewhere provided
in this Act for similar offenses.
The Collector of Internal Revenue shall notify the Commissioner of
Public Health of all cases where spirits containing such poisonous
substances are produced or seized because of their illegal removal for
domestic sale or consumption as beverages.
Sec. 89. When any judgment or forfeiture in any
case of seizure is recovered against any distillery used or fit for use
in the production of distilled spirits because no bond has been given,
or against any distillery used or fit for use in the production of
spirits having a registered producing capacity of less than six hundred
liters per day, for any violation of law of any nature, every still,
doubler, worm tub, mash, tub, and fermenting tub therein may be so
destroyed as to prevent the use of the same of any part thereof for the
purpose of distilling, or sold as in the case of other forfeited
property, in the discretion of the Collector of Internal Revenue.
Sec. 90. Whenever seizure is made of any distilled
spirits found elsewhere than in a distillery warehouse or other
warehouse for distilled spirits authorized by law, or found in any
store or in any place of business of a rectifier, or of a wholesale
liquor dealer, or other place, or in transit therefrom or thereto,
which have not been received into or sent out therefrom in conformity
to law and in regard to which any entry required by law to be made in
the books of the owner of such spirits, or of a storekeeper, wholesale
dealer, or rectifier has not been made in the time and in the manner
required, or in respect to which the owner having possession, control,
or charge of such spirits has omitted to do any act required to be
done, or has done or committed any prohibited act in regard to such
spirits, the burden of proof shall fall upon the claimant of such
spirits to show that no fraud has been committed, and that all the
requirements of law in relation to the payment of the taxes thereon
have, been complied with.
ARTICLE
VI
FERMENTED LIQUORS
Sec. 91. On all beer, lager beer, ale, porter, and
other fermented liquor by whatever name called, except tuba, bassi, and
tapuy, which may be brewed or manufactured in the Philippine Islands
for domestic sale or consumption, there shall be levied and collected a
tax of four centavos on each liter, which shall be paid by the owner,
agent, or superintendent of the brewery or premises on which such
fermented liquors are manufactured.
Sec. 92. Any brewer may remove or transport or
cause to be removed or transported from his brewery or other place of
manufacture to a bonded warehouse, used by him exclusively for the
storage or sale in bulk of fermented liquor of his own manufacture any
quantities of such fermented liquors not less than one thousand liters
at one removal, without paying the tax thereon at the time of removal
from the place of manufacture, under a permit which shall upon
application be granted by the treasurer of the province in which such
liquor is manufactured and under such regulations as the Collector of
Internal Revenue may prescribe, and thereafter the manufacturer of such
fermented liquor shall pay the tax in the same manner and under the
same penalty and liability as when paid at the brewery, as provided in
this Act, and such permits shall be affixed to every package so
removed, and shall be cancelled or destroyed in such manner as the
Collector of Internal Revenue may prescribe.
Sec. 93. When any fermented liquor has become sour
or otherwise damaged so as to be unfit for use as such, brewers may
sell and remove the same without the payment of the tax thereon to any
place where such liquor is to be used for manufacturing purposes, in
casks or other packages, unlike those ordinarily used for fermented
liquors, containing each not less than one hundred and twenty-five
liters and having a note of their contents marked thereon; but such
removal shall be made only after a special permit has been secured from
the provincial treasurer and in accordance with such regulations as may
be prescribed by the Collector of Internal Revenue.
Sec. 94. The ownership or possession by any person
of any fermented liquor, or its sale or removal from the brewery or
warehouse or other place where it is made, upon which the tax imposed
by this Act has not been paid, shall render such liquor liable to
seizure and forfeiture wherever found; but this provision shall not be
applicable to fermented liquors removed under permit in the manner
provided in this article.
ARTICLE
VII
MANUFACTURED TOBACCO AND SNUFF
Sec. 95. Every person before commencing or before
continuing the manufacture of tobacco and snuff shall furnish without
previous demand therefor to the treasurer of the province where the
manufacture is to be carried on a statement in duplicate setting forth
the place, and if in a city the street and number of the street, where
the manufacture is to be carried on; the number of cutting machines,
presses, snuff mills, or other machines; the name, kind, and quantity
of the articles manufactured or proposed to be manufactured, and, when
the same are manufactured by him as agent for any other person or to be
sold and delivered to any other person under special contract, the name
and destination and business or occupation of the person for whom said
articles are to be manufactured or to whom they are to be delivered.
Sec. 96. Every manufacturer of tobacco and snuff
shall place and keep on the outside of the building wherein his
business is carried on, so that it can be distinctly seen, a sign
giving his full name, business, and assessment number.
Sec. 97. It shall be the duty of every farmer or
planter producing leaf tobacco and every dealer in leaf tobacco or any
material used in the manufacture of tobacco or snuff, on demand of any
internal-revenue officer, to render a true and complete statement of
the quantity and amount of such leaf tobacco or other material sold or
delivered to any person named in such demand; and in case of refusal or
neglect to render such statement or if there is cause to believe such
statement to be incorrect or fraudulent, the provincial treasurer or
other revenue officer shall make an examination of such persons, books,
and papers as may be necessary to determine the facts in the case; and
any such dealer in leaf tobacco or other material who refuses to render
a statement, or who renders a false or incomplete statement, shall for
each offense be fined in a sum not exceeding four hundred pesos.
Sec. 98. All manufactured tobacco and snuff shall
be put up and prepared by the manufacturer for sale or removal for sale
or consumption only in such packages as the Collector of Internal
Revenue shall by general regulations prescribe: Provided, That fine-cut
shorts, the refuse of fine-cut chewing tobacco, refuse, scraps,
cuttings, clippings, and sweepings of tobacco may be sold in bulk as
raw material by one manufacturer directly to another manufacturer
without the payment of the tax thereon.
Sec. 99. Every manufacturer of tobacco and snuff
shall print or securely affix on each package containing tobacco or
snuff manufactured by or for him a label on which shall be printed the
proprietor's name or manufacturer's name, the assessment number of the
manufactory, the province and island in which it is situated.
Sec. 100. The Collector of Internal Revenue may in
any case allow snuff and smoking tobacco manufactured before the taking
effect of this Act and which has not been packed in the prescribed
packages to be labeled and sold in the original packages.
Sec. 101. On all tobacco and snuff manufactured or
partially manufactured in the Philippine Islands and sold or removed
for domestic consumption or sale there shall be levied and collected
the following taxes:
On snuff manufactured of tobacco, or of any substitute for tobacco,
ground, dry damp, pickled, scented, or otherwise, of all descriptions,
when prepared for use, a tax of thirty-two centavos on each kilogram;
and snuff flour shall be taxed as snuff and shall be put up in packages
and labeled and the tax paid thereon in the same manner as snuff. a
On all chewing and smoking tobacco, fine-cut Cavendish, plug or twist,
cut or granulated, of every description; and on all tobacco twisted by
hand or reduced into a condition to be consumed in any manner other
than by the ordinary mode of drying and curing; and on all tobacco
prepared or partially prepared for sale or consumption, even if
prepared without the use of any machine or instrument and without being
pressed or sweetened; and on all fine-cut shorts and refuse, scraps,
clippings, cuttings, and sweepings of tobacco a tax of forty-eight
centavos on each kilogram.
Sec. 102. Every dealer in manufactured tobacco who
has on hand more than ten kilograms of such tobacco, and every dealer
in snuff who has on hand more than five kilograms of snuff on the date
of the taking effect of his Act, whether manufactured in the Philippine
Islands or imported prior to that date, shall make and deposit with the
treasurer of the province on the first day of each month a true and
complete inventory of any such tobacco and snuff, respectively, then
remaining on hand. The provincial treasurer shall make and transmit to
the Collector of Internal Revenue an abstract of the several
inventories so filed in his office.
Sec. 103. Every peddler of tobacco, snuff, or
cigars traveling with a wagon shall affix or keep on the same in a
conspicuous place a sign giving his full name, business, province, and
assessment number.
ARTICLE
VIII
Sec. 104. Every cigar or cigarette manufacturer
shall place and keep on the outside of the building within which his
business is carried on, and so that it can be distinctly seen, a sign,
with letters thereon giving his full name, business, and assessment
number.
Sec. 105. All cigars and cigarettes shall be
packed only in such boxes or packages as the Collector of Internal
Revenue shall by general regulations prescribe.
Sec. 106. Every manufacturer of cigars or
cigarettes shall securely affix, by pasting on every box or package
containing cigars or cigarettes manufactured by or for him, a label on
which shall be printed, together with the proprietor's or
manufacturer's name, the assessment number of the manufactory and the
province and island in which it is situated.
Sec. 107. On all cigars and cigarettes,
manufactured in the Philippine Island for domestic sale or consumption,
there shall be levied and collected the following taxes, to be paid by
the manufacturer thereof:
On cigars of all descriptions made of tobacco, or of any substitute
therefor, two pesos on each thousand where the manufacturer's wholesale
price is twenty pesos per thousand or less; four pesos on each thousand
where the manufacturer's wholesale price is fifty pesos per thousand or
more than twenty pesos per thousand; six pesos on each thousand where
the manufacturer's wholesale price exceeds fifty pesos per thousand.
On all cigarettes made of tobacco, or of any substitute therefor,
weighing not more than two kilograms per thousand, sixty-seven centavos
per thousand: Provided, That after the first day of July, nineteen
hundred and five, there shall be levied and collected on each thousand
of such cigarettes, one peso per thousand.
On all cigarettes made of tobacco, or of any substitute therefor,
weighing more than two kilograms per thousand, two pesos on each
thousand: Provided, That the taxes imposed in this section shall not
accrue nor be collected on handmade cigars or cigarettes prepared by
the actual consumer thereof exclusively for his own individual
consumption and not for sale, barter, or gift to other consumers.
ARTICLE
IX
TAX ON MATCHES
Sec. 108. On all matches, whether safety, sulphur,
or friction matches or fuses, of whatever material made or by whatever
name known, which are manufactured or partially manufactured in the
Philippine Islands, or which are imported from other countries for
domestic sale or consumption, there shall be levied and collected a tax
of forty centavos on each gross of boxes containing not more than one
hundred and twenty sticks to the box; and there shall be levied and
collected on each gross of boxes containing over one hundred and twenty
sticks to the box a proportionate additional tax.
Sec. 109. The taxes imposed in this article on
matches imported from other countries for domestic sale or consumption
in the Philippine Islands shall be collected, and the proceeds thereof
accounted for, by such customs employee or employees as may be
designated in the various ports by the Collector of Customs and under
such rules and regulations as may be prescribed by the Collector of
Internal Revenue. The proceeds of such taxes shall be accounted for as
internal revenue and not as customs receipts.
ARTICLE
X
BANKS AND BANKERS
Sec. 110. Every incorporated or other bank, and
every person, association, or company having a place of business where
credits are opened by the deposit or collection of money or currency
subject to be paid or remitted upon draft, check, order, or where money
is advanced or loaned on stock, bonds, bullion, bills of exchange, or
promissory notes are received for discount or for sale, shall be
regarded as a bank or banker.
Sec. 111. There shall be levied, collected, and
paid as hereinafter provided:
First. A tax of one-eighteenth of one per centum each month upon the
average amount of deposits of money, subject to payment by check or
draft, or represented by certificates of deposit or otherwise, whether
payable on demand or at some future day, made with any person, bank,
association, company, or corporation engaged in the business of banking.
Second. A tax of one-twenty-fourth of one per centum each month upon
the capital employed by any bank, association, company, corporation, or
by any person engaged in the business of banking: Provided, That the
words "capital employed" shall not include money borrowed or received
from time to time in the usual course of business from any person not a
partner of or interested in said bank, association, or firm: And
provided further, That no tax shall be imposed upon the capital
employed by any bank, association, company, corporation, or any person
engaged in the business of banking whose sole business is loaning money
on real-estate security: And provided further, That the amount of
capital used by a bank within the Philippine Islands when such bank is
a branch of a bank incorporated under laws of the United States or a
foreign country, shall, for the purposes of assessment under this
article, be determined in the following manner: The total amount of the
capital of the bank shall be ascertained, and, likewise, the total
amount of the earnings of the bank accruing during the preceding six
months, and also the total amount of the earnings accruing from the
bank's business conducted in the Philippine Islands; and such a
proportion of the total capital of the bank shall be deemed to have
been employed in the Philippine Islands as the earnings in the
Philippine Islands bear to the total earnings of the bank.
Third. A tax of one-twelfth of one per centum each month upon the
average amount of circulation issued by any bank, association,
corporation, company, or person engaged in the business of banking,
including as circulation all notes and other obligations calculated or
intended to circulate or to be used as money, but not including that in
the vault of the bank or redeemed and on deposit for said bank; and an
additional tax of one per centum each month upon the average amount of
such circulation issued as aforesaid beyond the amount of the paid-in
capital of any such bank, association, corporation, or person:
Provided, That the additional tax of one per centum each month upon the
average amount of such circulation issued beyond the amount of paid-in
capital of any such bank, association, or person shall not be imposed
prior to January first, nineteen hundred and five.
Fourth. The deposits in associations or companies known as provident
institutions, savings banks, savings funds, or savings institutions,
having no capital stock and which do no other business than receiving
deposits to be loaned or invested for the sole benefit of the parties
making such deposits and without profit or compensation to the
association or company, shall be exempt from this tax on so much of
their deposits as such institutions have invested in securities
satisfactory to the Insular Treasurer, and on all deposits, not
exceeding four thousand pesos, made in the name of any one person.
Sec. 112. The taxes provided in the preceding
section shall be for the six months immediately preceding the first day
of January and the first day of July, respectively, and shall be due
and payable on the first day of August and the first day of February,
respectively; but such taxes shall be calculated at the rate per month,
as provided in said section, so that the tax for six months shall not
be less than the aggregate would be if such taxes were collected
monthly. If any tax is not paid within fifteen days after the same is
due it shall become delinquent at once and there shall be added to such
tax a penalty of fifteen per centum of the tax, and the Collector of
Internal Revenue shall proceed to collect such tax and penalties by
distraint and in the manner prescribed in Article III of this Act.
Sec. 113. Whenever the outstanding circulation of
any bank, association, corporation, company, or person, is reduced to
an amount not exceeding five per centum of the chartered or declared
capital existing at the time the same was issued, said circulation
shall be free from taxation; and whenever any bank which has ceased to
issue notes for circulation deposits with the Insular Treasurer, in
lawful money, the amount of its outstanding circulation to be redeemed
at par, under such regulations as the Insular Treasurer may prescribe,
it shall be exempt from any tax upon said circulation.
Sec. 114. A true and complete return of the
monthly amount of circulation, of all deposits, and of all capital, as
aforesaid, for the previous six months, shall be made and rendered in
duplicate on the fifteenth day of July and on the fifteenth day of
January of each year by each one of such banks, associations,
corporations, companies, or persons, with a declaration annexed thereto
under the oath of such person or of the president, cashier, or manager
of such bank, association, corporation, or company, in such form and
manner as may be prescribed by the Collector of Internal Revenue, that
the same contains a true and faithful statement of the amounts subject
to taxes as aforesaid; and one copy of such return shall be transmitted
to the treasurer of the province in which such bank, association,
corporation, or company is situated, or in which such person has his
place of business, and one copy shall be transmitted to the Collector
of Internal Revenue.
Sec. 115. In default of the returns provided in
the preceding section the amount of the circulation, deposits, and
capital, as aforesaid, shall be estimated by the Collector of Internal
Revenue upon the best information which he can obtain; and for each
such refusal or neglect to make such return and payment any such bank,
association, corporation, company, or person so in default shall
forfeit and pay the sum of four thousand pesos.
ARTICLE
XI
STAMP TAXES ON SPECIFIED OBJECTS
Sec. 116. There shall be levied, collected, and
paid for and in respect to the several bonds, debentures, or
certificates of stock and of indebtedness, and other documents,
instruments, matters, and things mentioned and described in this
section, or for or in respect to the vellum, parchment, or paper upon
which such instruments, matters, or things or any of them shall be
written or printed by any person or persons who shall make, sign, or
issue the same, on and after January first, nineteen hundred and five,
the several taxes following:
First. (a) On all bonds, debentures, and certificates of indebtedness
issued by any association, company, or corporation, on each two hundred
pesos or fractional part thereof, of the face value of such document,
twenty centavos; (b) on every original issue, whether on organization
or on reorganization, of certificates of stock by any such association,
company, or corporation, on each two hundred pesos, or fractional part
thereof, of the face value of such certificates, twenty centavos; (c)
on all sales, or agreements to sell, or memoranda of sales, or
deliveries, or transfer of shares or certificates of stock in any
association, company, or corporation, or by any assignment in blank, or
by any delivery, or by any paper, or agreement, or memorandum, or other
evidence of transfer or sale, whether entitling the holder in any
manner to the benefit of such stock, or to secure the future payment of
money, or for the future transfer of any stock, on each two hundred
pesos, or fractional part thereof, of the face value of such sale, or
agreement, or memorandum of sale or transfer, four centavos; (d) on all
certificates of profits, or any certificate or memorandum showing
interest in the property or accumulations of any association, company,
or corporation, and on all transfers of such certificates or
memorandum, on each two hundred pesos, or fractional part thereof, of
the face value of such certificate or memorandum, two centavos.
In case of a sale where the evidence of transfer is shown only by the
books of the company the stamp shall be affixed to such books; and in
case the change of ownership is by transfer certificates the stamp
shall be affixed to the certificate; and in case of an agreement to
sell, or when the transfer is by delivery of the certificate assigned
in blank, there shall be made and delivered by the seller to the buyer
a bill or memorandum of such sale to which the stamp shall be affixed;
and every such bill or memorandum of sale, or agreement to sell, shall
show the date thereof, the name of the seller and of the purchaser, the
amount of the same, and matter or thing to which it refers.
Second. (a) On each bank check, draft, or certificate of deposit, not
drawing interest, or order for the payment of any sum of money drawn
upon or issued by any bank, trust company, or any person or persons,
companies, or corporations at sight or on demand, two centavos; (b) on
all bills of exchange (between points within the Philippine Islands),
drafts and certificates of deposit drawing interest, or order for the
payment of any sum of money otherwise than at sight or on demand, and
on all promissory notes, except bank notes issued for circulation, and
on each renewal of any such note, on each two hundred pesos or
fractional part thereof, of the face value of any such bill of
exchange, draft, certificate of deposit, or note, two centavos; (c) on
all foreign bills of exchange and letters of credit (including orders
by telegraph or otherwise, for the payment of money issued by express
or steamship companies or by any person or persons) drawn in but
payable out of the Philippine Islands, in a set of three or more
according to the custom of merchants and bankers, on each two hundred
pesos, or fractional part thereof, of the face value of any such bill
of exchange or letter of credit, four centavos; and when the amounts of
any such bills of exchange or letters of credit are expressed in terms
of foreign currency this tax shall be paid on the equivalent of such
amounts in money of the United States Government: Provided, That
checks, drafts, and all bills of exchange issued in payment of any
debt, obligations, or liability, or in fulfillment of any contract of
the Government of the United States, or the Insular Government, or of a
provincial or municipal government, shall be exempt from the payment of
this tax.
Third. (a) On all policies of insurance, or other instruments by
whatever name the same may be called, whereby any insurance shall be
made or renewed upon any life or lives, on each two hundred pesos or
fractional part thereof, of the amount insured by any such policy, ten
centavos; (b) on all policies of insurance or other instruments by
whatever name the same may be called, by which insurance shall be made
or renewed upon property of any description, including rents or
profits, against peril by sea or on inland waters, or by fire or
lightning, on each four pesos, or fractional part thereof, of the
amount of premium charged, two centavos; (c) on all policies of
insurance or bond or obligation of the nature of indemnity for loss,
damage, or liability made or renewed by any person, association,
company, or corporation transacting the business of accident, fidelity,
employer's liability, plate glass, steam boiler, burglar, elevator,
automatic sprinkler, or other branch of insurance (except life, marine,
inland, and fire insurance), and on all bonds, undertakings, or
recognizances conditioned for the performance of the duties of any
office or position, for the doing or not doing of anything therein
specified, and on all obligations guaranteeing the validity or legality
of any bonds or other obligations issued by any province, municipality,
or other public body or organization, and on all obligations
guaranteeing the title to any real estate, or guaranteeing any
mercantile, credits, which may be made or renewed by any such person,
association, company, or corporation, on each four pesos, or fractional
part thereof, of the premium charge, two centavos.
Fourth. On all policies of annuities, or other instrument by whatever
name the same shall be called, whereby an annuity may be made,
transferred, or redeemed, on each two hundred pesos, or fractional part
thereof, of the capital of the annuity, or should this be unknown, then
on each two hundred pesos or fractional part thereof, of thirty-three
and one-third times the annual income, ten centavos: Provided, That the
provisions of this paragraph shall not apply to any fraternal or
beneficiary society or order or farmer's purely local cooperative
company or association or employees' relief association operated on the
lodge system or local cooperation plan, organized and conducted solely
by the members thereof for the exclusive benefit of its members and not
for profit.
Fifth. On each bond for indemnifying any person or persons, firm, or
corporation who shall have become bound or engaged as surety for the
payment of any sum of money or for the due execution or performance of
the duties of any office or position or to account for money received
by virtue thereof, and on all other bonds of any description, except
such as may be required in legal proceedings, or which are not
otherwise provided for in this section, fifty centavos.
Sixth. (a) On each certificate of damage, or otherwise, and on every
other certificate or document issued by any captain of any port, marine
surveyor, or other person acting as such, twenty centavos; (b) on each
certificate issued by a notary public, twenty centavos; (c) on each
certificate of any description required by law and not otherwise
specified in this Act, twenty centavos.
Seventh. On each receipt or other memorandum for money paid, whether
for services rendered, rent, or interest paid, or money received by
virtue of any contract or agreement, when the amount paid exceeds
thirty pesos, four centavos: Provided, That the word "receipt" shall be
construed to include every ticket, check, or receipt for the price of
carriage issued by any railroad, steamboat company, or other common
carrier, except as hereinafter provided: And provided further, That
receipt given by insular provincial, or municipal employees for their
salaries or any part thereof shall be exempt: And provided further,
That receipts issued by any tax collector or any government employee,
whether in the employ of the Insular Government, of a province, or
municipality, for money paid on account of taxes, deposits, purchase or
sale of real estate or personal property, or for services rendered by
the Government and due or to be paid into a public treasury, shall be
exempt.
Eighth. On each warehouse receipt for any goods, merchandise, or
property of any kind held in storage in any public or private warehouse
or yard, twenty centavos.
Ninth. (a) On each copy of each set of bills of lading or receipts,
except charter party, for any goods, merchandise, or effects to be
exported from a port in the Philippine Islands to any foreign port, ten
centavos; (b) on each copy of every set of bills of lading or receipts,
except charter party, for any goods, merchandise, or effect shipped
from one port or place in the Philippine Islands to another port or
place in said Islands, two centavos.
It shall be the duty of every railroad or steamboat company, express
company, corporation, or person acting as a common carrier, to issue to
the shipper or consignor, or to his agent, or to the person from whom
any goods are accepted for transportation, a bill of lading, manifest,
or other evidence of the receipt and forwarding of any goods,
merchandise, or effects for each shipment received for carriage and
transportation, whether in bulk or in boxes, bales, packages, bundles,
or not so enclosed and included.
Tenth. (a) On each passage ticket or any receipt for money paid for
passage by any vessel other than on a vessel belonging to the Insular
Government or the Government of the United States from any port in the
Philippine Islands to a port in the United States or to any foreign
port, if said passage costs not more than sixty pesos, one peso; (b) on
each passage ticket as aforesaid costing more than sixty pesos and not
more than one hundred and twenty pesos, two pesos; (c) on each passage
ticket as aforesaid costing more than one hundred and twenty pesos,
three pesos.
Eleventh. (a) On each power of attorney or proxy for voting at any
election for officers of any incorporated company or association,
except railroad companies or associations organized for charitable or
literary purposes or to manage public cemeteries, twenty centavos; (b)
on each power of attorney to sell and convey real estate, or to rent
and lease the same, to receive or to collect the rent therefrom, to
sell or transfer any stocks, bonds, or securities or to collect any
dividends or interests therein, or to perform any and all other acts
not hereinbefore specified, twenty centavos: Provided, That no stamps
shall be required upon any papers necessary for use in the collections
of claims from, or by, the Insular Government, or from, or by, any
provincial or municipal government.
Twelfth. On each lease, agreement, memorandum, or contract for the
hire, use, or rent of any land or tenements, or portions thereof, (a)
if executed for a period of time not more than one year, twenty
centavos; (b) if executed for a period of time more than one year and
not more than three years, fifty centavos; (c) if executed for a period
of time more than three years, one peso.
Thirteenth. On every mortgage or pledge of lands, estate, or property,
real or personal, heritable or movable, whatsoever, where the same
shall be made as a security for the payment of any definite and certain
sum of money lent at the time or previously due and owing or forborne
to be paid being payable, and on any conveyance of land, estate, or
property whatsoever in trust, or to be sold or otherwise converted into
money, which shall be and intended only as security, either by express
stipulation or otherwise, when the amount for which the mortgage or
deed of trust is given is not less than one thousand pesos nor more
than three thousand pesos, fifty centavos, and on each three thousand
pesos or fractional part thereof, in excess of nine thousand pesos,
fifty centavos additional: Provided, That upon each and every
assignment or transfer of any mortgage, lease, or policy of insurance,
or the renewal or continuance of any agreement, contract, or charter by
altering or otherwise, a stamp tax shall be levied, collected, and paid
at the same rate as that imposed on the original instrument: And
provided further, That whenever any bond or note shall be secured by a
mortgage or deed of trust but one tax shall be collected upon such
papers and such tax shall be at the highest rate imposed in this
section on such mortgage or bond or note as the case may be.
Fourteenth. On all conveyances, deeds, instruments, or writings whereby
any lands, tenements, or other realty sold shall be granted, assigned,
transferred, or otherwise conveyed to the purchaser or purchasers, or
to any other person or persons designated by such purchaser or
purchasers, when the true consideration or value received for such
realty is more than two hundred pesos, but not more than one thousand
pesos, fifty centavos; and for each additional one thousand pesos or
fractional part thereof, of such consideration, fifty centavos:
Provided, That in sales of encumbered property the tax shall be
collected on the net amount of the consideration after deducting the
amount of the encumbrance: And provided further, That original
certificates under the Land Registration Act shall be exempt from the
payment of this tax.
The tax imposed in this paragraph shall be paid and assessed on the
complete and full amount of money or other valuable consideration
actually paid or delivered in exchange for such lands, tenements, or
other realty; and the Collector of Internal Revenue, provincial
treasurers, and other revenue officers, when there is good reason to
believe that a fraud has been perpetrated on the revenues through the
declaration of a fictitious consideration in any such conveyance, deed,
instrument, or writing, shall from the real-estate assessment rolls, or
from any other reliable source, assess the lands, tenements, or other
realty at their true market value and the tax on such conveyance, deed,
or instrument shall be assessed and collected on such true market value
of the realty conveyed; and any person who, with the intent to defraud
the revenue, places a fictitious valuation on any realty conveyed and
subject to the tax imposed in this paragraph, or any valuation which
shall be less than the actual amount of money or other valuable thing
received or delivered in payment for such realty, shall, in addition to
the payment of the tax assessed on the actual consideration received or
true market value of the realty conveyed, forfeit and pay the sum equal
to twice the amount of such tax.
Fifteenth. The fees prescribed in section one hundred and fourteen of
the Land Registration Act, and the amendments thereto, shall be paid in
the amounts and to the officials provided by said Act and its
amendments, and shall be accounted for as provided in said Act.
Sixteenth. On every charter party, contract, or agreement for the
charter of any ship, vessel, or steamer, or any letter or memorandum or
other writing between the captain, master, or owner, or other person
acting as agent of any ship, vessel, or steamer and any other person or
persons for or relating to the charter of any such ship, vessel, or
steamer, and on any renewal or transfer of such charter, contract,
agreement, letter, or memorandum, (a) if the registered gross tonnage
of the ship, vessel, or steamer is not more than three hundred tons,
six pesos; (b) if the registered gross tonnage is more than three
hundred tons but not more than six hundred tons, ten pesos; (c) if the
registered gross tonnage is more than six hundred tons, twenty pesos.
Seventeenth. The fees prescribed in sections two hundred and
eighty-four and three hundred and ninety-two of the Philippine Customs
Administrative Act and the amendments thereto shall be paid in the
amounts, in the manner, and to the officials provided by the Customs
Administrative Act, and shall be accounted for as customs collections,
as provided in the Customs Administrative Act.
Eighteenth. The fees and taxes prescribed in Act Numbered Six hundred
and twenty-four, entitled "An Act prescribing regulations governing the
location and manner of recording mining claims, and the amount of work
necessary to hold possession of a mining claim, under the provisions of
the Act of Congress approved July first, nineteen hundred and two,
entitled 'An Act temporarily to provide for the administration of the
affairs of civil government in the Philippine Islands, and for other
purposes,'" as amended, shall be paid in the amounts and to the
officials provided by said Act, and shall be accounted for as provided
in said Act.
Sec. 117. The acceptor or acceptors of any bill of
exchange or order for the payment of any sum of money drawn or
purporting to be drawn in any foreign country but payable in the
Philippine Islands, shall, before paying or accepting the same, place
thereupon a stamp in payment of the tax upon such document in the same
manner as is required in this Act for the stamping of inland bills of
exchange or promissory notes, and no bill of exchange shall be paid nor
negotiated until such stamp shall have been affixed thereto.
Sec. 118. After the taking effect of this Act no
instrument, paper, or documents required by law to be stamped and which
has been signed or issued without being duly stamped, nor any copy of
such instrument, paper, or document, shall be recorded nor shall it nor
any record or transfer thereof be admitted or used as evidence in any
Insular Court until a legal stamp or stamps denoting the amount of the
tax shall have been affixed thereto as prescribed by law: Provided,
That on all bonds, debentures, certificates of stock, or certificates
of indebtedness issued in any foreign country there shall be paid the
same tax as is required by law on similar instruments when issued,
sold, or transferred in the Philippine Islands; and the party to whom
any such bond, debenture, or certificate is issued or by whom it is
transferred or sold shall, before selling or transferring the same,
affix the stamp or stamps in payment of the tax thereon: And provided
further, That the existing stamp taxes shall be continued in force
until January first, nineteen hundred and five.
Sec. 119. All bonds, debentures, or certificates
of indebtedness issued by the Insular Government or by any provincial
or municipal government shall be exempt from the payment of the stamp
taxes required by this Act.
ARTICLE
XII
POLL OR CEDULA PERSONAL TAX
Sec. 120. Every male inhabitant of the Philippine
Islands over eighteen years of age and under sixty years of age, except
members of the non-Christian tribes, unless otherwise provided by law,
soldiers and sailors of the United States Army and Navy, civilian
employees of the military branch of the United States Government in the
Philippine Islands, consular and diplomatic representatives and
officials of foreign powers in the Philippine Islands, paupers, insane
persons, imbeciles, and persons serving a sentence of more than one
year in a public prison, shall pay a poll or cedula personal tax by
purchasing a certificate of registration as hereinafter provided:
Provided, That it shall be the duty of provincial treasurers to issue
certificates of registration to males eighteen years of age and under
or sixty years of age and over, to females of any age, and to all other
persons specifically exempted, who may request such certificates and
pay the price imposed in the next succeeding section.
Sec. 121. Certificates of registration shall be
sold by all provincial treasurers, or their authorized deputies, on and
after the first Monday in January, nineteen hundred and five, and prior
to the last Saturday in April in each year thereafter, at the uniform
price of one peso, and on and after the last Saturday in April until
the first Monday in January, next following, at the uniform price of
two pesos. This tax shall be deemed to be delinquent after the last
Saturday in April: Provided, That persons not resident in the
Philippine Islands prior to the last Saturday in April, of any year,
but who enter and reside in the Islands after that time, shall pay only
one peso for a certificate of registration upon application made within
twenty days after their arrival in the Islands: And provided further,
That the existing laws relating to the cedula tax are continued in
force until January first, nineteen hundred and five.
Sec. 122. Any person liable to the tax imposed
herein who has not purchased a certificate of registration and who is
delinquent in such purchase, who shall, on demand of the provincial
treasurer, wilfully refuse to purchase such certificate, shall be
subject to the collection of the tax by either of the two following
methods: First, the provincial treasurer may enforce the collection of
the tax by the seizure of any personal property of the taxpayer and the
sale of the same in accordance with the provisions for the sale of
personal property in the collection of taxes under the Municipal Code,
and no exemption shall be allowed in favor of a person liable to pay
such tax; second, the provincial treasurer may, in his discretion,
enforce the collection of the tax and the penalty, after the same shall
remain delinquent for fifteen days, by causing the delinquent to be
prosecuted before the president of the municipality in which the
delinquent shall reside, for such delinquency, and upon conviction the
person so delinquent shall be sentenced to imprisonment for ten days,
and such imprisonment shall be deemed a satisfaction of the tax and
penalty and entitle the person so convicted, at the expiration of his
imprisonment, to the certificate as though the tax and penalty had been
paid in money.
Sec. 123. Any person who uses, attempts to use, or
has in his possession with intent to defraud the revenue, deceive the
courts, or mislead any revenue officer or other person, any certificate
of registration issued to any other person, shall be fined in the sum
of two hundred pesos.
Sec. 124. Whenever it becomes necessary in any
province to employ special deputies to sell certificates of
registration and when it is shown to the satisfaction of the Collector
of Internal Revenue that such certificates can not be sold by the
provincial treasurer, or his deputies, of any province without serious
detriment to the other work of his office or unnecessary expense to the
Government, the Collector of Internal Revenue may, with the consent of
the Secretary of Finance and Justice, authorize such provincial
treasurer to appoint special deputies for the sale of certificates of
registration during the first four months of the year, and every such
special deputy shall be paid at the rate not exceeding ten centavos for
each certificate sold by him, and no such special deputy shall be
employed for a period exceeding one hundred and twenty days: Provided,
That this provision is made for the purpose of economy, and if it shall
appear to the satisfaction of the Collector of Internal Revenue and the
Secretary of Finance and Justice that these certificates can be sold
with less expense in some other manner such special deputies shall not
be appointed.
Sec. 125. The certificate of registration provided
for in this article may be used for purposes of identification,
admitted in evidence, and used for all the purposes to which the
"cedulas personales" were put under the Spanish laws. Any person
required by law to possess a certificate of registration who does not
possess one for the proper year shall not be allowed to vote in any
election for public officers in the Philippine Islands. The
certificates of registration shall be presented by the holder thereof
whenever he or she (a) appears in any court in any capacity whatever,
(b) transacts any business with any public office or officer, (c) pays
any taxes or receives money from any public funds, (d) acknowledges any
document before a notary public, (e) assumes any public office whether
by appointment or by election, (f) receives any license, certificate,
or permit from any public authority. No contract, deed, or other
document acknowledged before a notary public shall be valid or be
recognized by any court unless the notary shall have certified thereon
that the certificates of registration of all of the parties thereto
have been presented to him and shall have entered in such certificate
the number, place of issue, and date of each such certificate.
ARTICLE
XIII
TAXATION OF INSURANCE COMPANIES
Sec. 126. There shall be levied and collected on
every insurance company or agency thereof doing business in the
Philippine Islands a tax equal to one per centum of the total premiums
or other considerations received and collected in the Philippine
Islands after the taking effect of this Act during each calendar year
and whether said premiums were paid in money, notes, credits, or any
substitutes for money; and every company or agency shall, on or before
the first day of April in each year, pay to the treasurer of the
province in which the place of business is situate the tax due for the
calendar year last preceding: Provided, That insurance companies need
not include in the total premiums collected, and upon which the tax is
to be levied, any premiums returned to the parties insured within four
months of the payment thereof on account of the rejection of the risk
by the company: And provided further, That upon all reinsurance by a
company which has already effected the insurance and paid the tax, the
tax upon such reinsurance shall be one-half of one per centum of the
premium instead of one per centum.
Sec. 127. For the purposes of this Act the term
"insurance company" shall be taken to include any person, partnership,
association, or corporation insuring persons or their successors
against loss or damage by sea or on inland waters, by fire or
lightning, by storm or wind, by flood or drouth, by death, by accident
of any kind, by any criminal act, by error or flaw in title or deed, by
act or omission of employee or employer, explosions of any kind, by
breakage of machinery, or against loss or damage arising in any other
manner; also any person, partnership, association, or corporation whose
business it is to guarantee the fidelity of the incumbent of any office
or position of trust in the public service, or in private relations, or
to guarantee the legality of bonds or other obligations, titles, or
credits: Provided, That the provisions of this article shall not apply
to any purely cooperative insurance company or association carried on
by the members thereof with money collected solely from the members and
solely for their own protection and not conducted for private profit.
Sec. 128. Every insurance company as aforesaid
liable to the payment of a tax under this article shall, on or before
the first day of April in each year, render a statement in writing, in
such form as the Collector of Internal Revenue shall prescribe,
containing an account of the conditions of its business during the
calendar year last preceding, the entire amount of all premiums and
other considerations received during such year, whether in money,
notes, credits, or other substitutes for money, and containing further
such information as the Collector of Internal Revenue may require.
Sec. 129. In case of the failure of any insurance
company subject to the tax imposed in this article to render a
statement as required, the Collector of Internal Revenue shall assess
any such insurance company for the amount of premiums he believes it to
have received and shall levy and collect the tax thereon; and in all
other cases he shall levy and collect the tax on the basis of the
premiums reported.
ARTICLE
XIV
TAX ON FOREST PRODUCTS
Sec. 130. From and after January first, nineteen
hundred and five, there shall be paid on any timber, firewood for
commercial use, gums, resins, and other forest products cut or gathered
from all public forests and forest reserves in the Philippine Islands,
the respective taxes imposed on such products in this article. The
payments of all such taxes shall be made in the manner prescribed in
Article III of this Act and in accordance with such special rules and
regulations as the Collector of Internal Revenue, under the authority
of the Secretary of Finance and Justice, may prescribe.
The demarcation, protection, management, reproduction, occupancy, and
use of all public forests and forest reserves shall be in accordance
with the provisions of the Forest Act and of all laws and regulations
now in force or which may hereafter be enacted or prescribed. The Chief
of the Bureau of Forestry shall, under the authority of the Secretary
of the Interior, prescribe all necessary regulations governing the use
of all public forests and forest reserves and shall be charged through
his subordinates with the enforcement of the laws and regulations
regarding the demarcation, protection, management, and reproduction of
all public forests and forest reserves and of their use or occupancy by
any person, firm, association, or corporation; and all forestry
inspectors, rangers, and other officials of the Bureau of Forestry
shall in addition be charged with the classification and appraisal of
all forest products cut, gathered, or removed from the public forests
and forest reserves and shall cooperate with the internal-revenue
officials in securing the full payment of the internal-revenue taxes
imposed on such products and with the enforcement of the provisions of
this article.
Sec. 131. For the purposes of this Act the various
provinces in the Philippine Islands are divided into two classes:
Class A shall include the Provinces of Abra, Bataan, Batangas, Benguet,
Bulacan, Capiz, Cavite, Cebu, Ilocos Norte, Ilocos Sur, Iloilo, La
Laguna, Nueva Ecija, Pampanga, Pangasinan, Rizal, Romblon, Sorsogon,
Tarlac, Union, and Zambales.
Class B shall include the Provinces of Albay, Ambos Camarines, Antique,
Bohol, Cagayan, Isabela, Lepanto-Bontoc, Leyte, Masbate, Mindoro,
Misamis, Moro, Negros Occidental, Negros Oriental, Nueva Vizcaya,
Paragua, Samar, Surigao, and Tayabas.
For the purposes of this Act the various native trees are divided into
four groups:
The first group shall include acle, baticulin, betis, camagon, ebony,
ipil, lanete, mancono, molave, narra, tindalo, and yacal.
The second group shall include alupag, aranga, banaba, bansalaguin,
banuyo, batitinan, bolongeta, calamansanay, calantas, dungon, guijo,
macaasin, malacadios, mangachapuy, palo maria, supa, teak, and
tucan-calao.
The third group shall include agoho, amuguis, anubing, apitong, batino,
bitanhol, calumpit, catmon, cupang, dalinsi, dita, dungonlate,
malacmalac, malapapaya, malasantol, mayapis, nato, palosapis, panao,
sacat, santol, tamayuan, and tanguile.
The fourth group shall include anahao, anam, apuit, bacao, balacat,
balinhasay, batete, bayoc, bonga, bulao, lauan, malaanonang, malabalac,
malabonga, mangasinoro, manicnic, pagatpat, and pagsainguin.
Sec. 132. On each cubic meter of timber which may
be cut in any public forest or forest reserve in any of the provinces
of the Philippine Islands for domestic sale or consumption, or for
export, there shall be paid, within thirty days from the date of the
receipt by the owner or his agent of the order of payment of the
Government charge on the same, into the Insular Treasury, as provided
by existing law, the following sums:
1. On all timber included in the first group cut in
any province included in Class A, five pesos; when cut in any province
included in Class B, two pesos and fifty centavos.
2. On all timber included in the second group cut in
any province included in Class A, three pesos; when cut in any province
included in Class B, one peso and fifty centavos.
3. On all timber included in the third group cut in
any province included in Class A, one peso and fifty centavos; when cut
in any province included in Class B, one peso.
4. On all timber included in the fourth group and on
all non-enumerated timber cut in any province included in Class A, one
peso; when cut in any province included in Class B, fifty centavos:
Provided, That when timber cut in provinces included in Class A has
been selected for felling by duly authorized forest officials, the
rates on such timbers shall be only such as are fixed in this section
on timber cut in provinces included in Class B: And provided further,
That the taxes imposed in this section on ebony and camagon shall be
charged on said timbers when presented for measurement and appraisal
with the sapwood still attached, and the number of cubic meters in each
piece of timber so measured shall include the sapwood attached to the
same; and when ebony or camagon timber from which the sapwood has been
stripped is presented for measurement and appraisal, there shall be
assessed and collected the following sums:
5. On each cubic meter of ebony cut in any province
included in Class A, thirteen pesos and fifty centavos; when cut in any
province included in Class B, six pesos. On each cubic meter of camagon
cut in any province included in Class B, four pesos and fifty centavos.
The volume of all round timber shall be ascertained by multiplying the
area of the small end by the length of the log. The volume of all
squared timber shall be ascertained by multiplying the average cross
section by the length, to which twenty-five per centum shall be added
for loss in squaring. The volume of all sawn timber shall be
ascertained by multiplying the average cross section by the length, to
which fifteen per centum shall be added for loss in sawing.
All timber included in the preceding section in the third and fourth
groups and all nonenumerated timber cut in any province, known in the
market under the name of "raja," and which shall not exceed one and
one-half meters in length and fifteen centimeters in diameter, shall be
classed as firewood, and the following taxes shall be collected thereon:
6. On all firewood consisting of "rajas" from sixty
centimeters to one and one-half meters in length, and from seven
centimeters to fifteen centimeters in diameter, one peso for each one
thousand "rajas".
7. On all firewood consisting of pieces of timber
less than sixty centimeters in length and less than seven centimeters
in diameter, ten centavos per cubic meter: Provided, That whenever in
the opinion of the Chief of the Bureau of Forestry the preservation and
use of the public forests and forest reserves shall render necessary
the removal of the tops of fallen timber, said tops when removed in
accordance with the regulations prescribed by the Chief of the Bureau
of Forestry, shall be exempted from the payment of any tax imposed in
this section on timber or firewood or other forest products.
8. On all gums and resins and other forest products
gathered or removed from any province there shall be paid on the actual
market value thereof ten per centum.
The Collector of Internal Revenue and the Chief of the Bureau of
Forestry shall, upon the passage of this Act and from time to time
thereafter, make a joint assessment of the actual market value of the
various products on which taxes are imposed in this section; said
assessments shall be made from the most reliable data available and
shall be published in the Official Gazette for the information of
taxpayers.
Sec. 133. All the provisions of the Forest Act not
inconsistent with the provisions of this article are hereby preserved
in full force and effect.
ARTICLE
XV
TAX ON VALID PERFECTED MINING
CONCESSIONS GRANTED PRIOR TO APRIL ELEVENTH, EIGHTEEN HUNDRED AND
NINETY-NINE
Sec. 134. On all valid perfected mining
concessions granted prior to April eleventh, eighteen hundred and
ninety-nine, there shall be levied and collected on and after January
first, nineteen hundred and five, the following taxes:
1. (a) On each claim containing an area of sixty
thousand square meters, an annual tax of one hundred pesos; (b) and at
the same rate proportionately on each claim containing an area in
excess of, or less than, sixty thousand square meters.
2. On the gross output of each mine an ad valorem tax
equal to three per centum of the actual market value of such output.
Sec. 135. All license taxes shall be paid
annually, in advance, and all ad valorem taxes on the value of the
output of the mines shall be assessed and paid before the removal of
any such products from the locality where they are stored after being
mined, and for the purpose of establishing a uniform basis for the
assessment of this tax the Collector of Internal Revenue and the Chief
of the Bureau of Public Lands shall, ,upon the passage of this Act and
from time to time thereafter, make a joint assessment of the actual
market value of the various products of the mines in the Philippine
Islands subject to the taxes imposed herein; such assessment shall be
made from the most reliable data available and shall be published in
the Official Gazette for the information of taxpayers.
Sec. 136. The officials of the Bureau of Public
Lands and of the Mining Bureau shall cooperate with the
internal-revenue officials for the purpose of securing a complete
assessment and payment of the taxes imposed in this article.
Sec. 137. Any concessionaire, his agent, assignee,
or representative, who fails to pay the license tax imposed by this Act
or who removes any products of his mine from the locality where they
are stored at the mine without previous payment of the ad valorem tax
imposed in this article on such products shall forfeit his concession
to the mining right and all of the products illegally removed.
ARTICLE
XVI
TAX ON BUSINESS, MANUFACTURE,
AND OCCUPATION
Sec. 138. During the calendar year beginning
January first, nineteen hundred and five, and during each succeeding
year, there shall be levied and collected on the various business and
manufacturing enterprises and on the occupation engaged in or conducted
in the Philippine Islands the various taxes in the amounts specifically
set forth and enumerated in the succeeding sections of this article:
Provided, That except as in this Act otherwise specially provided
nothing in this Act contained shall be deemed to be a repeal of Act
Numbered Eighty-two, the Municipal Code, and the amendments thereto,
and Act Numbered One hundred and eighty-three, entitled "An Act to
incorporate the city of Manila," and the amendments thereto, or of any
taxation provisions therein contained: And provided further, That the
laws now in force providing for the collection of the industrial taxes
shall continue in force until January first, nineteen hundred and five.
Sec. 139. Except as hereinafter specifically
exempted, there shall be paid by each merchant and manufacturer a tax
at the rate of one-third of one per centum on the gross value in money
of all goods, wares, and merchandise sold, bartered, or exchanged for
domestic consumption in the Philippine Islands, and this tax shall be
paid whether such commodities consist of raw material or manufactured
or partially manufactured products, and whether of domestic production
or imported. This tax shall be assessed on the actual selling price at
which every such merchant or manufacturer disposes of his commodities,
and shall be paid at the end of each quarter in the sum lawfully due on
the gross amount in money of the sales made by every such merchant or
manufacturer during each such quarter. And each such merchant or
manufacturer shall, on the first day of January, nineteen hundred and
five, or on the date thereafter on which any such merchant or
manufacturer engages in any such mercantile or manufacturing pursuit,
pay a tax of two pesos.
Sec. 140. Every person who on his own account, or
on commission for another, is engaged in the sale, barter, or exchange
of foreign or domestic goods, wares, or merchandise of any and all
kinds for domestic consumption, and whether such goods, wares, or
merchandise consist of raw materials or of manufactured or partially
manufactured products, shall be considered as a merchant within the
meaning of this article.
Sec. 141. Every person who by physical or chemical
process alters the exterior texture or form or inner substance of any
raw material or manufactured or partially manufactured product in such
manner as to prepare it for special use or uses to which it could not
have been put in its original condition, or who by any such process
alters the quality of any such raw material or manufactured or
partially manufactured product so as to reduce it to marketable shape
or prepare it for any of the uses of industry, or who by any such
process combines any such raw material or manufactured or partially
manufactured products with other materials or products of the same or
of different kinds and in such manner that the finished product of such
process of manufacture can be put to a special use or uses to which
such raw material or manufactured or partially manufactured products in
their original condition could not have been put, and who in addition
alters such raw material or manufactured or partially manufactured
products, or combines the same to produce such finished products for
the purpose of their sale or distribution to others and not for his own
use or consumption, shall be considered as a manufacturer within the
meaning of this article. Persons, associations, or corporations engaged
in the manufacture and sale of electric light, power, or heat, or in
conducting telephone or telegraph lines or exchanges, or in the
building or repair of ships or boats, or in conducting dockyards, shall
also be regarded as manufacturers within the meaning of this article.
Sec. 142. The following persons shall be exempted
from the payment of the taxes imposed in section one hundred and
thirty-nine.
(a) Agriculturists, on all products of their own
production sold by them.
(b) Exporters, on the raw material and manufactured
or partially manufactured products actually exported by them.
(c) Manufacturers and merchants engaged exclusively
in the manufacture or sale of distilled, rectified, or manufactured
spirits or liquors, fermented liquors, cigars, cigarettes, and other
tobacco products, or matches. Merchants engaged in the sale of any or
all of the articles enumerated in this paragraph and also in the sale
of other commodities shall pay the tax imposed in this article only on
the gross sales of such other commodities and not on any of the
articles enumerated in this paragraph.
(d) Stores belonging to any branch of the Insular
Government or of the Government of the United States, and sold or
issued exclusively to soldiers or sailors of the United States Army or
Navy, or to civilian employees, or issued for the exclusive use in any
hospital, sanitarium, or charitable institution conducted by the
Government or by private persons, and not conducted for private profit
or gain.
(e) Manufacturing plants conducted by the Government
of the United States, the Insular Government, or local governments, the
products from which are for general sale, use, or distribution, or for
the exclusive use of such governments.
(f) Carpenters, brick masons, tinsmiths, joiners,
plumbers, and other mechanics and artisans, and all other persons who
work by contract, by the piece, or by the day for others and who have
no shop and keep no stock for sale or distribution of articles
manufactured by them.
(g) Persons whose manufactures consist solely in
harvesting and getting into proper condition for their own use or for
sale the products of the lands owned or occupied by them, such as the
cutting and drying of copra and threshing of rice.
(h) Butchers and bakers and all persons engaged in
market places in the sale exclusively of fruits, vegetables, game,
poultry, fish, and similar domestic products at retail.
(i) Peddlers and small booth keepers the gross value
of whose annual sales does not exceed five hundred pesos.
Sec. 143. Every person, association, or
corporation engaged in business as a common carrier shall pay a tax
equal in amount to one per centum of the gross receipts from such
business, and such tax shall be paid at the end of each quarter and
shall be assessed and collected, as far as may be practicable, in the
same manner as the taxes imposed in this article on merchants and
manufacturers are assessed and collected. And each such person,
association, or corporation so engaged in business as a common carrier
shall, on the first day of January, nineteen hundred and five, or on
the date thereafter on which any such common carrier engages in such
business, pay a tax of two pesos: Provided, That any person,
association, or corporation which under the terms of its charter or
franchise is obligated to the payment of a specific tax to the
exclusion of all other taxes shall be exempted from the payment of the
tax imposed in this section on common carriers: And provided further,
That owners of carabaos, carts, wagons, carromatas, and similar
vehicles, or of cascoes or similar small craft, whose annual gross
receipts from the business done do not exceed the sum of two thousand
pesos, shall not be deemed common carriers within the intent of this
section: And provided further, That the tax imposed by this section
shall not be levied or collected upon any common carrier taxable under
the provisions of Acts Numbered Two hundred and thirty and Three
hundred and fifty-five, or the amendments thereto.
Sec. 144. Annual occupation license taxes shall be
paid in the amounts hereinafter specified, in advance, in quarterly or
annual payments at the option of each person, association, or
corporation subject thereto:
1. Every stockbroker shall pay eighty pesos. Every
person, firm, or company whose business it is, for themselves or
others, to negotiate purchases or sales of stocks, bonds, exchange,
bullion, coined money, bank notes, promissory notes, or other
securities shall be regarded as a stockbroker.
2. Every real-estate broker shall pay eighty pesos.
Every person, firm, or company whose business it is for themselves or
others to negotiate purchases or sales of lands, buildings, or interest
therein, or to negotiate loans secured by lands, buildings, or interest
therein, or to rent real estate for others or to collect rents thereon,
shall be regarded as a real-estate broker.
3. Every custom-house broker shall pay eighty pesos.
Every person, firm, or company whose occupation it is, as the agent of
others, to arrange entries or other custom-house papers, or transact
business at any port of entry relative to the importation or
exportation of goods, wares, or merchandise, shall be regarded as a
custom-house broker.
4. Every pawnbroker shall pay two hundred pesos.
Every person, firm, or company whose business or occupation it is to
take or receive by way of pledge or pawn, any goods, wares, or
merchandise or any kind of personal property whatever, except
agricultural products, as security for the repayment of money loaned
thereon, shall be regarded as a pawnbroker.
No banker who is taxed upon his capital and deposits by virtue of other
provisions of this Act shall be subject to pay the taxes imposed in
this article upon stockbrokers, real-estate brokers, or pawnbrokers.
5. Every proprietor of a theater, museum, cockpit, or
concert hall shall pay two hundred pesos. Every edifice used for the
purpose of operatic and dramatic or other representations, plays, or
performances for admission to which entrance money is received, not
including halls rented or used occasionally for concerts or theatrical
representations, shall be regarded as a theater: Provided, That
whenever any such edifice is under lease on the taking effect of this
Act the tax shall be paid by the lessee, unless otherwise stipulated by
the parties to said lease.
6. Every proprietor of a circus shall pay two hundred
pesos. Every building, tent, or area where feats of horsemanship and
acrobatic sports are exhibited shall be regarded as a circus: Provided,
That but one license tax shall be exacted after the taking effect of
this Act from the same proprietor for the same circus, although
exhibitions are given in more than one province: And provided further,
That traveling circuses and theater companies performing in streets and
squares or in buildings not intended for amusement purposes, shall be
exempt from the payment of the tax imposed in this paragraph.
7. Every proprietor of a billiard room shall pay ten
pesos for each table. Every building or place where games of billiards
or pool are played, and that are open to the public with or without
charge, shall be regarded as a billiard room.
8. Every lawyer, registered medical practitioner,
civil, mechanical or mining engineer, land surveyor, or architect shall
pay fifty pesos: Provided, That every dental surgeon shall pay forty
pesos: And provided further, That an undergraduate in medicine
(cirujano ministrante) shall pay ten pesos only.
9. Every chiropodist, manicurist, photographer,
lithographer, engraver, and professional appraiser or connoisseur of
tobacco and other domestic or foreign products shall pay forty pesos.
10. Every veterinarian, farrier, and proprietor of a
shop where bicycles or vehicles of any and all kinds are repaired shall
pay twenty pesos: Provided, That officials and employees of the Insular
Government, or of the provincial or municipal governments, or persons
in the military, naval, or civil service of the United States, and
whose entire professional services are devoted exclusively to such
governments or under their direction, shall be exempted from the
payment of the taxes imposed in this paragraph and in the two
immediately preceding paragraphs: And provided further, That the
exemption herein conferred shall extend also to such persons as may
devote their entire professional services, with or without pay, to any
religious, eleemosynary, educational, or charitable institution,
hospital, sanitarium, or similar institution conducted entirely or in
part by the Insular, provincial, or municipal governments, or entirely
or in part by private individuals, and not conducted for private gain
or profit.
11. Every owner of a race track shall pay, for each
day on which races are run on such track, sixty pesos. Every person who
owns, leases, or controls a track where horses are entered and races
are run as a public exhibition, whether money is bet or not on the
result of such races, shall be regarded as the owner of a race track.
Sec. 145. Every person subject to the payment of a
specific occupation license tax who is delinquent in the payment of
such tax for the period of ten days or more shall, in addition to the
payment of the tax due, be fined administratively in a sum equal to the
amount of his license tax for the period of one quarter; and any such
person who refuses or fails to pay such delinquent tax and fine when
required to do so, shall for each refusal or failure be fined
administratively in a sum equal to the amount of his license tax for
the period of one year.
Every merchant, manufacturer, or common carrier subject to the payment
of a percentage tax on the gross receipts from sales or services, who
fails or refuses to make a true and complete return of the amount of
such receipts or earnings or who fails to pay the full and entire
amount of taxes due on such receipts or earnings shall, in addition to
the payment of the tax due, for the first offense be fined
administratively in a sum equal to five times the amount of the tax due
and unpaid; and every such merchant, manufacturer, or common carrier
detected in the commission of a second similar offense shall be
punished by a fine not exceeding the amount of the tax due and unpaid
plus the sum of one thousand pesos, or by imprisonment for a term not
exceeding one year, or both, in the discretion of the court.
ARTICLE
XVII
DISTRIBUTION OF TAXES AND REPEAL
OF EXISTING PROVISIONS
Sec. 146. (a) All existing laws, ordinances,
orders, and regulations, whether enacted or made under the Spanish
regime or under the Military Government in the Philippine Islands or by
the Insular Government whereby taxes are imposed upon any of the
persons, objects, or occupations taxed under the provisions of this
Act, and all industrial taxes and stamp taxes imposed under the Spanish
regime and heretofore in force in these Islands, are hereby repealed
except as otherwise specially provided in this Act, and the taxes
imposed by this Act are substituted in lieu thereof.
(b) Paragraphs (j) and (k) of section seventeen of
Act Numbered One hundred and eighty-three, entitled "An Act to
incorporate the city of Manila," are hereby amended so as to read as
follows:
"(j) To issue licenses fixing the amount of the
license fee and prescribing the time and manner of issuing or revoking
same for the following: Hawkers, peddlers, hucksters, auctioneers,
plumbers, hotels, restaurants, cafes, lodging houses, public vehicles,
race tracks, horse races, and livery stables.
"(k) To make regulations for the conducting of the
business of the following: All the persons named in paragraph (j) of
this section, and also pawnbrokers, dealers in second-hand merchandise,
junk dealers, public ferries, billiard tables, theaters, theatrical
performances, circuses, and all other performances and places of
amusement, and the keeping, preparation, and sale of meat, poultry,
fish, butter, cheese, lard, vegetables, bread, and other provisions."
(c) Nothing herein contained shall be deemed to
repeal any provisions of law requiring stamps or other taxes by virtue
of Acts Numbered Two hundred and thirty, Three hundred and fifty-five,
One thousand and forty-five, and Eleven hundred and forty-seven.
(d) Nothing herein contained shall be deemed to
repeal Act Numbered Fifty-nine, entitled "An Act regulating the sale of
intoxicating liquors within the city of Manila and its attached
barrios."
(e) That portion of paragraph (h) of section
forty-three of Act Numbered Eighty-two, called the Municipal Code,
which authorizes municipalities to exact licenses for billiard tables,
theatrical performances, circuses, and cockpits, is hereby repealed.
Sec. 147. Of the taxes assessed and collected by
virtue of the provisions of this Act the following shall inure to the
Insular Treasury and be devoted wholly to the purposes of the Insular
Government, except such portion thereof as is in this article set apart
for the use and benefit of the provincial and municipal governments:
First. All stamp taxes.
Second. All license taxes except licenses for the maintenance of
theaters, museums, cockpits, concert halls, pawnbrokers, circuses, and
billiard rooms.
Third. All taxes on the manufacture and sale of distilled spirits,
including taxes on the distillation and refining or rectifying thereof,
on the manufacture and sale of imitation wines and liquors.
Fourth. All taxes on fermented liquors and the manufacture and sale
thereof.
Fifth. All taxes on tobacco and snuff and the manufacture and sale
thereof.
Sixth. All taxes on cigars and cigarettes and the manufacture and sale
thereof.
Seventh. All taxes on the manufacture of matches.
Eighth. All taxes on banks and bankers.
Ninth. All taxes on insurance companies.
Tenth. All taxes on forestry products.
Eleventh. All taxes on valid perfected mining concessions granted prior
to April eleventh, eighteen hundred and ninety-nine.
Twelfth. All taxes on business, manufacture, and occupation.
Sec. 148. The proceeds of the following taxes
shall be for the exclusive benefit of the municipality wherein the same
are assessed and collected:
License taxes on theaters, museums, cockpits, and concert halls,
pawnbrokers, circuses, and billiard rooms.
Sec. 149. The proceeds of the poll or cedula tax
shall be one-half for the benefit of the provincial government and
one-half for the benefit of the municipal government wherein the same
are assessed and collected.
Sec. 150. Of the revenues accruing to the Insular
Treasury by virtue of the provisions of this Act, ten per centum shall
be set apart for the benefit of the provincial governments for general
provincial purposes, and fifteen per centum shall be set apart for the
municipal governments for general municipal purposes in accordance with
law. The amounts thus set aside shall be apportioned among the several
provinces and municipalities in proportion to their respective
populations as shown by the census of nineteen hundred and three and
shall be returned by settlement warrant to the provincial treasurers
and the city of Manila quarterly, after January first, nineteen hundred
and five, for disbursement and for payment to the proper
municipalities. Such return shall be made as soon after the close of
each quarter as the accounts of the collections for said quarter shall
have been settled and adjusted by the Auditor, and for this purpose a
permanent appropriation of the sums so required is hereby made:
Provided, That of the fifteen per centum of the revenues set apart by
this section for the benefit of the several municipal governments,
one-third thereof shall be utilized solely for the purposes of the
maintenance of free public primary schools in the respective
municipalities, including the payment of teachers, the building of
schoolhouses, and other expenditures appertaining to the maintenance of
the public schools. For the purposes of this Act the city of Manila
shall be deemed as a municipality and as a province, so that in the
apportionment to the several provinces and municipalities it shall
receive on a basis of twenty-five per centum.
Sec. 151. Wherever in this Act it is prescribed
that a duty shall be performed by the provincial treasurer and his
deputies, the duty so imposed on the provincial treasurer and his
deputies shall be performed in the city of Manila by the City Assessor
and Collector and his deputies: Provided, That the cost to the city of
Manila of collections under this Act, aside from the salary of the City
Assessor and Collector, shall be reimbursed to the city of Manila from
the Insular Treasury.
Sec. 152. Until the Collector of Internal Revenue
shall have the proper books, stamps, and forms ready for distribution,
the methods provided for the administration of this Act shall not be
required; and he is empowered to make such temporary regulations and
arrangements for the collection of the taxes imposed by this Act as
will not unduly embarrass or interrupt the business of the persons
affected thereby.
Sec. 153. This Act shall take effect on the first
day of August, nineteen hundred and four.
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