PRELIMINARY CHAPTER
Section 1. Short Title of this Act. — This Act may be
referred to as the Internal Revenue Law of Nineteen hundred and
fourteen.
CHAPTER I
THE BUREAU OF INTERNAL REVENUE
Sec. 2. Chief Officials of Bureau of Internal
Revenue. — The Bureau of Internal Revenue shall have one chief and one
assistant chief appointed by the Governor-General, with the advice and
consent of the Philippine Commission, and known respectively as
Collector of Internal Revenue and Deputy Collector of Internal Revenue.
Subject to the supervision of the Secretary of Finance and Justice, the
Collector of Internal Revenue shall have general authority in all
matters, and shall see to the enforcement of all laws and regulations,
embraced within the jurisdiction of the Bureau or relating to the
operation thereof.
Sec. 3. City Assessor and Collector of Manila. —
The Collector of Internal Revenue shall be ex officio city assessor and
collector of Manila and as such shall collect all its municipal
revenues and shall perform in and for said city the duties imposed by
this law on provincial treasurers generally.
Sec. 4. Powers and Duties of Bureau. — The powers
and duties of the Bureau of Internal Revenue shall comprehend the
collection of all taxes, fees, and charges specified in and allowable
under this Act, and the enforcement of all forfeitures, penalties, and
fines sanctioned by the same.
Said Bureau shall also give effect to and administer the supervisory
and police powers of this Act and enforce any other law or parts of
laws specifically placed under its jurisdiction.
Sec. 5. Regulations of the Bureau of Internal
Revenue. — The Collector of Internal Revenue shall have the power, and
it shall be his duty, to make regulations, not inconsistent with law,
necessary to carry this Act into full effect and to secure a harmonious
and efficient administration of his branch of the service. Such
regulations may be either general or local in application and shall
become effective as law when approved by the Department head and
published.
Sec. 6. Specific Provisions to be Contained in
Regulations. — The Regulations of the Bureau of Internal Revenue shall,
among other things, contain provisions specifying, prescribing, or
defining:
(a) The time and manner in which provincial
treasurers shall canvass their provinces for the purpose of discovering
persons and property liable to internal-revenue taxes, and the manner
in which their lists of taxable persons and taxable objects shall be
made and kept.
(b) The forms of labels, brands, or marks to be
required on goods subject to a specific tax and the manner in which the
labeling, branding, or marking shall be effected.
(c) The conditions under which and the manner in
which goods intended for export, which if not exported would be subject
to a specific tax, shall be labeled, branded, or marked.
(d) The conditions to be observed by revenue
officers, provincial fiscals, and other officials respecting the
institution and conduct of legal actions and proceedings.
(e) The manner in which persons authorized to have
and keep prohibited drugs shall keep their records relating to the same.
(f) The conditions under which opium may be imported,
the manner, of its storage and removal for use, as well as the manner
in which the same shall be marked or labeled prior to removal.
(g) The conditions under which prohibited drugs may
be transferred from the possession of persons authorized to have and
keep the same to the possession of other persons similarly authorized.
(h) The conditions under which goods intended for
storage in bonded warehouses shall be conveyed thither, their manner of
storage, and the method of keeping the entries and records in
connection therewith; also the books to be kept by storekeepers and the
reports to be made by them in connection with their supervision of such
houses.
(i) The conditions under which alcohol intended for
use in the arts and industries may be withdrawn free of tax, and dealt
in, the character and quantity of the denaturing material to be used,
the manner in which the process of denaturing shall be effected, the
bonds to be given, the books and records to be kept, the entries to be
made therein, the reports to be made to the Collector of Internal
Revenue, and the signs to be displayed in the business or by the person
for whom such denaturing is done or by whom such alcohol is dealt in.
(j) The manner in which revenue shall be collected
and paid, the instrument, document, or object to which revenue stamps
shall be affixed, the mode of cancellation of the same, the manner in
which the proper books, records, invoices, and other papers shall be
kept and entries therein made by the person subject to the tax, as well
as the manner in which licenses and stamps shall be gathered up and
returned after serving their purpose.
(k) Prohibitions relative to the size, style,
subject-matter, and location of signs, signboards, billboard, and other
forms of outdoor advertising, and the conditions precedent to securing
a license to erect or display such signs, signboards, and billboards.
Sec. 7. Power Collector of Internal Revenue to Fix
Bonds. — The Collector of Internal Revenue shall, consistently with the
law, prescribe the form and fix the amount of all bonds executed by
private parties to the Government under the laws pertaining to his
Bureau and shall pass on the sufficiency of the security and retain
possession of the bond.
Sec. 8. Forms, Certificates, and Appliances
Supplied by the Collector of Internal Revenue. — It shall be the duty
of the Collector of Internal Revenue, among other things, to prescribe,
provide, and distribute to the proper officials the requisite licenses,
cedula forms, internal revenue stamps, and labels or tags used in
sealing weights and measures, and all other forms, certificates, bonds,
records, invoice books, instruments, appliances and apparatus used in
administering the laws under the jurisdiction of the Bureau.
Sec. 9. Agents and Deputies for Collection of
Internal Revenue. — For the collection of the internal revenue on
imported articles the Insular Collector of Customs and his subordinates
are constituted agents of the Collector of Internal Revenue; and the
provincial treasurers, their deputies, and employees shall be his
deputies for the collection of other internal revenue and the
enforcement of all laws within the jurisdiction of the Bureau.
For economy or effectiveness in the collection of the cedula tax, the
Collector of Internal Revenue may authorize the provincial treasurer of
any province to appoint, for the first four months of the year only,
special deputies to collect such tax, at a rate of compensation not
greater than ten centavos for each tax collected and certificate
issued.
Sec. 10. Expenses of Collection to be Borne by
Provinces. — The expenses incurred by the provincial and municipal
authorities in collecting taxes and in enforcing the laws under the
jurisdiction of the Bureau of Internal Revenue, including expenses
incurred in appearing in the courts in internal-revenue cases, shall be
borne by the respective provinces; but the city of Manila shall be
liable only for such expenses as are incident to the collection of
internal-revenue and other taxes in and for that city, and for such
expenses the Insular Government shall be reimbursed.
Sec. 11. Internal-Revenue Inspection Districts. —
With the approval of the Department head, the Collector of Internal
Revenue shall divide the Philippine Islands into such number of
inspection districts as may from time to time be required for
administrative purposes. Each of these districts shall be in charge of
an internal-revenue agent.
Sec. 12. Duties of Internal-Revenue Agents. — It
shall be the duty of every internal-revenue agent to see that all laws
and regulations relative to the collection of internal revenue taxes
are faithfully executed and complied with, to aid in the prevention,
detection, and punishment of any frauds or delinquencies in connection
therewith, and to examine into the efficiency of all officers and
employees of the Bureau 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 storekeeper, and in such case he shall
immediately notify the Collector of Internal Revenue and within three
days thereafter report his action and his reasons therefor in writing
to said Collector.
Should any revenue agent discover any neglect, incompetency,
delinquency, or malfeasance 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 in
writing.
Sec. 13. Authority of Agent's Assistant. — An
agent's assistant in any district may, in the name of the
internal-revenue agent in charge of such district and under the control
of such officer as his principal, exercise any power or perform any act
which might be exercised or performed by such internal-revenue agent
himself.
Sec. 14. Assignment of Storekeeper to Warehouses.
— The Collector of Internal Revenue shall employ and assign to such
bonded warehouses and manufacturers' warehouses as he shall deem
expedient internal-revenue storekeepers.
Sec. 15. Assignment of Internal-Revenue Agents to
Special Duties. — Internal-revenue agents may be assigned to duty under
the direction of any officer of the Bureau of Internal Revenue and may
be assigned to special duties other than those of internal-revenue
agent proper.
Any officer or employee of the Bureau may be assigned to the duties of
revenue agent without change of his official character or salary.
Sec. 16. Reports of Violations of Law. — When a
provincial or deputy provincial treasurer or an internal-revenue agent
discovers evidence of the violation of any penal provisions of this Act
of such character that a criminal prosecution ought to be instituted,
he shall immediately report the facts to the fiscal of the province,
giving the name of the offender and the names of the witnesses, if
possible. A duplicate of such report shall be sent to the Collector of
Internal Revenue.
It shall also be the duty of officers and employees of the Bureau of
Internal Revenue to report to the Bureau of Forestry any violations of
the Forest Law within their knowledge. A duplicate of each such report
shall be furnished to the Collector of Internal Revenue.
Sec. 17. Authority of Internal-Revenue Officers to
Make Arrests and Seizures. — The Collector of Internal Revenue, the
Deputy Collector of Internal Revenue, internal-revenue agents, and
provincial treasurers and their deputies shall have authority to make
arrests and seizures for violations of this Act or of regulations
pursuant thereto. Any person so arrested shall be forthwith carried
before a magistrate there to be dealt with according to law.
Sec. 18. Power of Collector of Internal Revenue in
Making Assessments. — When a report required by this Act as a basis for
the assessment of any tax shall not be forthcoming within the time
fixed by law or regulation, or when there is reason to believe that any
such report is false, incomplete or erroneous, the Collector of
Internal Revenue shall assess the proper tax on the best evidence
obtainable.
Sec. 19. Authority of Officers to Administer Oaths
and Take Testimony. — The Collector of Internal Revenue, the Deputy
Collector of Internal Revenue, internal-revenue agents, and provincial
treasurers and their deputies may administer oaths, summon witnesses,
and take testimony in any official investigation conducted by them
touching any matter within the jurisdiction of the Bureau.
Sec. 20. Contents of Collector's Annual Report. —
The annual report of the Collector of Internal Revenue shall contain a
detailed statement of the collections and disbursements of the Bureau
with specifications of the sources of revenue and classes of
disbursements.
CHAPTER II
INTERNAL-REVENUE TAXES
ARTICLE I
SOURCES OF INTERNAL REVENUE
Sec. 21. Sources of Taxes. — The following taxes,
fees, and charges in the nature of tax are deemed to be
internal-revenue taxes:
(a) The cedula tax;
(b) The documentary tax;
(c) The privilege taxes on business and occupation;
(d) Specific taxes on manufactured products;
(e) Taxes on resources of banks, receipts of
insurance companies, and receipts of corporations paying a franchise
tax;
(f) Charges for forest products;
(g) Fees for testing and sealing weights and measures;
(h) Internal revenue, including the income tax,
collected in the Philippine Islands under laws enacted by the Congress
of the United States;
(i) Taxes on signs, signboards, and billboards.
ARTICLE II
CEDULA TAX
Sec. 22. Persons Liable to Cedula Tax. — An annual
internal-revenue cedula tax shall be paid by all male inhabitants of
the Philippine Islands over the age of eighteen and under sixty with
the following exceptions:
(a) Commissioned officers of the United States Army
or Navy;
(b) Enlisted soldiers, sailors, and marines of the
United States Army or Navy;
(c) Civilian employees of the military or naval
branches of the United States Government who have come to the
Philippine Islands under orders of the Government of the United States;
(d) Diplomatic and consular representatives and
officials of foreign powers;
(e) Paupers;
(f) Insane persons;
(g) Imbeciles;
(h) Persons serving a sentence of more than one year
in a public prison;
(i) Such inhabitants of Batanes, Mindoro, and Palawan
as are subject to the road tax;
(j) Members of non-Christian tribes, subject to the
qualification stated in the next section.
Sec. 23. Liability of Non-Christian People to
Cedula Tax. — Except in the Department of Mindanao and Sulu, members of
non-Christian tribes shall pay the cedula tax herein prescribed; unless
the provincial board, with the approval of the Secretary of the
Interior, shall by resolution exempt them, in which case copy of said
resolution shall be furnished the Collector of Internal Revenue.
Sec. 24. Amount of the Cedula Tax. — The cedula
tax shall be one peso; but in the city of Manila and in provinces
organized under the provincial Government Act it may, by resolution of
the respective municipal board or provincial board, for said city or
province, be increased to two pesos. Where such increase is effected it
shall remain in force until abrogated for one or more years by
resolution of the board, either with the express approval of the
Governor-General or upon the expiration of thirty days after the
receipt by him of such resolution, without his disapproval.
A copy of any resolution increasing or reducing the cedula tax in a
province shall be furnished by the provincial treasurer to the
Collector of Internal Revenue.
Sec. 25. Increase of Tax in Case of Delinquency. —
Upon delinquency the cedula tax to which any person is liable shall be
double.
Sec. 26. Time for Payment of Cedula Tax; When
Delinquency Occurs. — Liability for the cedula tax accrues on the first
of January of each year as regards persons then resident in the Islands
and liable to the tax; and if a person so liable fails to pay the tax
before the first of May he shall be delinquent. As regards those who
come to reside in the Islands prior to the first of July and those who
reach the age of eighteen or otherwise lose the benefit of exemption
prior to that date, liability shall attach upon the day of arrival or
upon the day exemption ceases, and if arriving or becoming liable on or
before the tenth of April they shall likewise be delinquent upon
failure to pay the tax before the first of May, but such persons,
arriving or becoming liable after the tenth of April, shall have twenty
days within which to pay the tax without becoming delinquent.
Persons who come to reside in the Islands or arrive at the age of
eighteen years on or after the first of July of any year or who cease
to belong to an exempt class on or after the same date shall not be
subject to the tax for such year.
When the public interest so require, the provincial board of any
province may, by resolution, with the approval of the Governor-General,
extend the time for the payment of the cedula tax without consequences
of delinquency for a period not exceeding three months in any year.
Sec. 27. Payment of Cedula Tax in Province Other
than that of Domicile. — A person temporarily absent from the province
of his domicile may pay the cedula tax in any province where he is
sojourning; but such payment in a province where the tax is one peso
shall not remove liability for the additional peso to which the
taxpayer may be subject in the province of his domicile.
Sec. 28. Presentation of Cedula Certificate upon
Certain Occasions. — When a person liable to the cedula tax offers
himself for registration as a qualified voter, acknowledges any
document before a notary public, takes the oath of office upon election
or appointment to any position in the Government service, receives any
license, certificate, or permit from any public authority, pays any
tax, receives any money from any public fund, or transacts other
official business, it shall be the duty of the officer or person with
whom such transaction is had or business done to require the exhibition
of the certificate showing the payment of the cedula tax by such
person. Such certificate shall be the one issued for the current year,
except during the month of January of each year and except also in the
case of the payment of the cedula tax at any time during the year, in
which cases the exhibition of the certificate for the previous year
shall suffice.
Sec. 29. Secondary Certificate in Lieu of Lost
Cedula Certificate. — When a cedula certificate is accidentally lost or
destroyed, a secondary certificate showing the number of the original
certificate and its date, together with the other information contained
therein, shall be supplied to the taxpayer upon affidavit showing such
loss or destruction. This secondary certificate may be used in lieu of
the original certificate for all purposes.
ARTICLE III
DOCUMENTARY STAMP TAX
Sec. 30. Stamp Tax upon Documents and Papers. —
Upon documents, instruments, and papers, and upon acceptances,
assignments, sales, and transfers of the obligation, right, or property
incident thereto documentary taxes for and in respect of the
transaction so had or accomplished shall be paid as hereinafter
prescribed, by the persons making, signing, issuing, accepting, or
transferring the same, and at the time such act is done or transaction
had:
(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 certificate, 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 transfer by assignment
in bank, or by 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 par value of such
stock, four centavos;
(d) On all bonds, debentures, certificates of stock,
or certificates of indebtedness issued in any foreign country there
shall be paid by the person here selling or transferring the same, such
tax as is required by law on similar instruments when issued, sold, or
transferred in the Philippine Islands;
(e) 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 memoranda, on each two hundred pesos,
or fractional part thereof, of the face value of such certificate or
memorandum, two centavos;
(f) 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;
(g) On all bills of exchange (between points within
the Philippine Islands), drafts, and certificates of deposit drawing
interest, or orders for the payment of any sum of money otherwise that
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;
(h) Upon any acceptance or payment upon acceptance of
any bill of exchange or order for the payment of money purporting to be
drawn in a foreign country but payable in the Philippine Islands, on
each two hundred pesos, or fractional part thereof, of the face value
of any such bill of exchange or order, or the Philippine equivalent of
such value, if expressed in foreign currency, two centavos;
(i) 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 customs 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, of the Philippine
equivalent of such face value, if expressed in foreign currency, four
centavos;
(j) 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;
(k) 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.
(l) On all policies of insurance or bonds or
obligations 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, company, or corporation, on
each four pesos, or fractional part thereof, of the premium charged,
two centavos;
(m) On all policies of annuities, or other
instruments 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 or relating to the charter of any
such ship, vessel, or steamer, and on any one-third times the annual
income, ten centavos;
(n) On each bond, for indemnifying any person, firm,
or corporation who shall 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 are otherwise provided
for herein, fifty centavos;
(o) On each certificate of damage, or otherwise, and
on every other certificate or document issued by any customs officer,
marine surveyor, or other person acting as such, and on each
certificate of any description required by law, or by rules or
regulations of a public office, or which is issued for the purpose of
giving information, or establishing proof of a fact, and not otherwise
specified herein, twenty centavos;
(p) On each warehouse receipt for property held in
storage in a public or private warehouse or yard for any other person
than the proprietor of such warehouse or yard himself or some employee
of his engaged in and about the same, twenty centavos;
(q) On each set of bills of lading or receipts
(except charter party) for any goods, merchandise, or effects of
greater value than five pesos, to be exported from a port in the
Philippine Islands to any foreign port, ten centavos;
(r) On each set of bills of lading or receipts
(except charter party) for goods, merchandise, or effects of greater
value than five pesos shipped from one port or place in the Philippine
Islands to another port or place in said Islands, four centavos;
(s) On each passage ticket or any receipt for money
paid for passage on 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.
1. If said passage costs not more than sixty pesos,
one peso;
2. If said passage costs more than sixty pesos and
not more than one hundred and twenty pesos, two pesos;
3. If said passage costs more than one hundred and
twenty pesos, three pesos;
(t) On each proxy for voting at any election for
officers of any incorporated company or association, except
associations or corporations for religious, charitable or literary
purposes or to manage public cemeteries, twenty centavos;
(u) On each power of attorney to perform any act
whatsoever, except acts connected with the collection of claims due
from or accruing to the Government of the United States, the Government
of the Philippine Islands, or the government of any province or
municipality, twenty centavos;
(v) On each lease, agreement, memorandum, or contract
for the hire, use, or rent of any lands or tenements, or portions
thereof:
1. If executed for not more than one year, twenty
centavos;
2. If executed for more than one year, and not more
than three years, fifty centavos;
3. If executed for a period of more than three years,
one peso;
(w) 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:
1. 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;
2. On each three thousand pesos, or fractional part
thereof, in excess of three thousand pesos, an additional tax of fifty
centavos;
(x) On all conveyances, deeds, instruments, or
writings, other than grants, patents, or original certificates of
adjudication issued by the Government, 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:
1. When the true consideration, or value received or
contracted to be paid for such realty, after making proper allowance
for any incumbrance, is more than two hundred pesos but not more than
two thousand pesos, fifty centavos;
2. For each additional one thousand pesos, or
fractional part thereof, of such true consideration or value, fifty
centavos.
When it appears that the amount of the documentary tax payable
hereunder has been reduced by an incorrect statement of the
consideration in any conveyance, deed, instrument, or writing subject
to such tax, the Collector of Internal Revenue, provincial treasurer,
or other revenue officer shall, from the assessment rolls or other
reliable source of information, assess the property at its true market
value and collect the proper tax thereon.
(y) 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 renewal or transfer of such charter,
contract, agreement, letter or memorandum:
1. If the registered gross tonnage of the ship,
vessel, or steamer is not more than three hundred tons, six pesos;
2. If the registered gross tonnage is more than three
hundred tons but not more than six hundred tons, ten pesos;
3. If the registered gross tonnage is more than six
hundred tons, twenty pesos;
(z) 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.
Sec. 31. Documents and Papers not Subject to Stamp
Tax. — The following instruments, documents and papers shall be exempt
from the documentary stamp tax:
(a) Bonds, debentures and certificates of
indebtedness issued by the Insular Government or any provincial or
municipal government.
(b) Checks, drafts, warrants, and bills of exchange
issued in payment of any debt, obligation, 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.
(c) Policies of insurance or annuities made or
granted by a fraternal or beneficiary society, order, association, or
cooperative company, operated on the lodge system or local cooperation
plan, and organized and conducted solely by the members thereof for the
exclusive benefit of its members and not for profit.
(d) Certificates of oaths administered to any
government official, in his official capacity, or of acknowledgment by
any government official in the performance of his official duties;
written appearances in any court by any government official, in his
official capacity; certificates of the administration of oaths to any
person as to the authenticity of any paper required to be filed in
court by any person or party thereto, whether the proceedings be civil
or criminal; papers and documents filed in courts for the military,
naval, Insular, provincial, or municipal governments, whether civil or
criminal; affidavits of poor persons for the purpose of proving
poverty; statements and other compulsory information required of
persons or corporations by rules and regulations of the military,
naval, Insular, provincial, or municipal governments exclusively for
statistical purposes and which are wholly for the use of the Bureau in
which the same are filed, and not at the instance of, or for the use or
benefit of, the person filing the same; certified copies and other
certificates placed upon documents, instruments, and papers for
military, naval, Insular, provincial, or municipal governments, made at
the instance and for the sole use of some other branch of the military,
naval, Insular, provincial, or municipal governments; and certificates
of the assessed value of lands, not exceeding two hundred pesos in
value assessed, furnished by provincial or municipal treasurers to
applicants for registration of title to land.
When any bond, note, or other obligation is secured by a mortgage,
pledge, deed of trust, or by the assignment or transfer of any
documentary security, one tax only shall be collected upon such papers,
such tax to be at the highest rate imposed on such mortgage, bond,
note, obligation or other document as the case may be.
Sec. 32. Payment of Documentary Stamp Tax;
Cancellation of Stamp. — Documentary taxes shall be paid by the
purchase and affixture of documentary stamps to the document or
instrument taxed or to such other paper as may be indicated by law as
the proper recipient of the stamp, and by the subsequent cancellation
of the same, such cancellation to be accomplished by writing or
stamping the date across the face of the stamp in such manner that part
of the writing or impression shall be on the stamp itself and part on
the paper to which it is attached.
When the evidence of a sale or transfer is shown only on the books of a
company the stamp shall be affixed to such books; and in case the
change of ownership is by transfer of 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 purchasers, the amount
of the sale, and matter or thing to which it refers.
Sec. 33. Effect of Failure to Stamp Taxable
Document. — An instrument, document, or paper which is required by law
to be stamped and which has been signed, issued, accepted, or
transferred without being duly stamped shall not be recorded, nor shall
it or any copy thereof or any record of transfer of the same be
admitted or used in evidence in any court until the requisite stamp or
stamps have been affixed thereto.
ARTICLE IV
PRIVILEGE TAXES
Sec. 34. Privilege Taxes on Business and
Occupation. — A privilege tax must be paid before any business or
occupation hereinafter specified can be lawfully begun or pursued. The
tax on business is payable for every separate or distinct establishment
or place where business subject to the tax is conducted; and one
occupation or line of business does not become exempt by being
conducted with some other occupation or business for which such tax has
been paid.
On some sorts of business the tax is in a fixed amount, while on other
sorts of business it is reckoned at a certain rate per cent on the
amount of business transacted. The occupation tax is in a fixed amount
in all cases.
The occupation tax must be paid by each individual engaged in a calling
subject thereto; the tax on a business, by the person, firm, or company
conducting the same.
Sec. 35. Legality of Business as Affected by
Payment of Tax. — The payment of a business or occupation tax shall not
exempt any person from any tax, penalty, or punishment provided by law
or ordinance in places where such business or occupation is prohibited
or regulated by municipal law, nor shall the payment of any such tax be
held to prohibit any municipality from placing a tax upon the same
business or occupation, for local purposes, where the imposition of
such tax is authorized by law.
Sec. 36. Time for Payment of Fixed Taxes. — The
yearly fixed taxes are due on the first of January of each year and, if
tendered in quarterly installments on or before the twentieth of
January, April, July, and October, or on or before the last day of said
months, in remote provinces, in the discretion of the Collector of
Internal Revenue, shall be received without penalty. But any person
first beginning a business or occupation must pay the tax before
engaging therein.
Sec. 37. Reckoning Tax for Business First Begun or
Abandoned during Year. — When an occupation or business subject to a
fixed tax is newly begun during any year the tax shall be reckoned from
the commencement of the current quarter, or in case of a business
subject to a monthly tax, from the first of the month; and when either
is at any time abandoned, the tax shall not be exacted for a longer
period than to the end of the quarter or month, as the case may be.
Sec. 38. Initiatory Tax upon Business. — Every
person engaging in a business on which the percentage tax is imposed
shall pay a fixed initiatory tax of two pesos, and if his receipts fall
below the minimum limit for the percentage tax the business may,
without further tax, be continued free of charge. But the amount of his
business must, in any case, be reported quarterly as required in the
next succeeding section.
Sec. 39. Payment of Percentage Taxes; Quarterly
Report of Earnings. — The percentage taxes on business shall be payable
at the end of each calendar quarter in the amount lawfully due on the
business transacted during each quarter; and it shall be the duty of
every person conducting a business subject to such tax, within the
first twenty days of the succeeding quarter, to make a true and
complete return of the amount of the receipts or earnings of his
business during the preceding quarter.
If the percentage tax on any business is not paid within twenty days
after the same becomes due the amount of the tax shall be increased by
twenty-five per cent, the increment to be a part of the tax.
Sec. 40. Percentage Tax on Merchants' Sale. — All
merchants not herein specifically exempted shall pay a tax of one-third
of one per cent on the gross value in money of the commodities, goods,
wares, and merchandise sold, bartered, or exchanged by them, such tax
to be based on the actual selling price or value at which the things in
question are disposed of, whether consisting of raw material or of
manufactured or partially manufactured products, and whether of
domestic or foreign origin.
Butchers, bakers, and persons engaged in public market places in the
sale of domestic food products at retail, and other small merchants
whose gross quarterly sales do not exceed one hundred and twenty-five
pesos are exempt from this tax.
"Merchant," as here used, means a person engaged in the sale, barter,
or exchange of personal property of whatever character. Except as
specially provided, the term includes manufacturers who sell articles
of their own production and commission merchants having establishments
of their own for the keeping and disposal of goods of which sales or
exchanges are effected, but does not include merchandise brokers.
Sec. 41. Sales not Subject to Merchants' Tax. — In
computing the tax above imposed transactions in the following
commodities shall be excluded:
(a) Merchandise actually exported by the vendor;
(b) Things, other than opium, subject to a specific
tax;
(c) Agricultural products when sold by the producer
or owner of the land where grown, whether in their original state or
not.
Sec. 42. Percentage Tax on Printers and
Publishers. — Printers and publishers shall pay a tax equivalent to
one-third of one per cent of their gross receipts; but persons engaged
in the publication or printing and publication of any newspaper,
magazine, review, or bulletin appearing at regular intervals and having
fixed prices for subscription and sale shall not be taxed on receipts
from sales of subscription to, or advertisements in such publication;
but this exemption shall not apply to any publication the principal
purpose of which is the publication of advertisements.
Sec. 43. Percentage Tax on Contractors,
Warehousemen, and Others. — Contractors, warehousemen, proprietors of
dockyards, and persons selling light, heat, or power, as well as
persons engaged in conducting telephone or telegraph lines, or
exchanges, and keepers of hotels and restaurants shall pay a tax
equivalent to one-third of one per cent of their gross receipts.
Sec. 44. Percentage Tax on Carriers and Keepers of
Stables and Garages. — Keepers of livery stables and garages,
transportation contractors, persons who transport passengers or freight
for hire, and common carriers by land or water, except owners of boats
taxed under the laws administered by the Bureau of Customs, shall pay a
tax equivalent to one per cent of their gross receipts when the same
exceed two hundred and fifty pesos a quarter.
Sec. 45. Amount of Tax on Business. — Fixed taxes
on business shall be collected as follows, the amount stated being for
the whole year, when not otherwise specified:
(a) Distillers of spirits, two hundred pesos;
(b) Brewers, two hundred pesos;
(c) Rectifiers of distilled spirits, two hundred
pesos;
(d) Manufacturers of tobacco, twenty pesos;
(e) Manufacturers of cigars, twenty pesos;
(f) Wholesale liquor dealers:
1. In the city of Manila, two hundred pesos;
2. In any other place, sixty pesos;
(g) Retail liquor dealers, forty-eight pesos;
(h) Retail vino dealers, eight pesos;
(i) Wholesale dealers in fermented liquors, sixty
pesos;
(j) Retail dealers in fermented liquors, forty pesos;
(k) Retail tuba dealers, ten pesos;
(l) Wholesale tobacco dealers, eight pesos;
(m) Retail tobacco dealers, eight pesos
(n) Wholesale peddlers of manufactured tobacco, or of
distilled, manufactured, or fermented liquor, or both, eighty pesos;
(o) Retail peddlers of manufactured tobacco, or of
distilled, manufactured, or fermented liquor, or both, sixteen pesos;
(p) Peddlers of merchandise traveling from place to
place, except peddlers of food stuffs and those whose stock in trade
amounts to less than fifty pesos in value, eight pesos, to be refunded
if thereafter they shall pay the merchants' tax for the quarter in a
sum in excess of eight pesos;
(q) Proprietors of cockpits, two hundred pesos;
(r) Proprietors of theaters, museums, and concert
halls:
1. In the city of Manila, two hundred pesos;
2. In any other place, one hundred pesos; or, in this
case, by the month, ten pesos;
(s) Proprietors of circuses giving exhibitions in one
or more places or provinces, two hundred pesos;
(t) Proprietors of billiard rooms, for each table,
ten pesos;
(u) Owners of race tracks, for each day on which
races are run on any track, sixty pesos;
(v) Pawnbrokers, four hundred pesos;
(w) Stockholders, eighty pesos;
(x) Money lenders, eighty pesos;
(y) Real estate brokers, eighty pesos;
(z) Merchandise brokers, or corredores, eighty pesos;
(aa) Proprietors of shops for the repair of bicycles
or vehicles of any kind, twenty pesos.
Sec. 46. Words and Phrases Defined. — In applying
the provisions of the preceding section words and phrases shall be
taken in the sense and extension indicated below:
"Distiller of spirits" comprises
all who distill spirituous liquors by original and continuous
distillation from mash, wort, wash, sap, or sirup through continuous
closed vessels and pipes until the manufacture thereof is complete.
"Brewer" comprises all persons who manufacture fermented liquors of any
description for sale or delivery to others, but not including
manufacturers of tuba, bassi, or tapuy, or similar domestic fermented
liquor whose daily production does not exceed two hundred gauge liters.
"Rectifier" comprises 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. 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
intoxicating beverage whatever, shall also be regarded as rectifier and
as being engaged in the business of rectifying.
"Manufacturer of tobacco" includes 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.
"Manufacturer of cigars" comprehends every person other than a cigar
maker 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.
"Cigar maker" applies to every maker of cigars or cigarettes, including
apprentices, employed by a licensed cigar factory to make cigars or
cigarettes from material supplied by his employer, whether working on
the premises or not.
"Wholesale liquor dealer" comprehends every person who for himself or
on commission sells or offers for sale wines or distilled spirits
(other than denatured alcohol) in larger quantities than two decaliters
at any one time, or who sells or offers the same for sale for the
purpose of resale irrespective of quantity.
"Retail liquor dealer" includes every person, except a retail vino
dealer, who for himself or no Commission sells or offers for sale wine
or distilled spirits (other than denatured alcohol) in quantities of
two decaliters or less at any one time and not for resale.
"Retail vino dealer" includes every person who for himself or on
commission sells or offers for sale only domestic distilled spirits in
quantities of two decaliters or less at any one time and not for resale.
"Wholesale dealer in fermented liquors" means anyone who for himself or
on commission sells or offers for sale fermented liquors in larger,
quantities than two decaliters at any one time or who sells or offers
for sale such fermented liquors (excluding tuba, bassi, tapuy, and
similar domestic fermented liquors) for the purpose of resale,
regardless of quantity.
"Retail dealer in fermented liquors" includes every person, except
retail tuba dealers, who for himself or on commission sells or offers
for sale fermented liquors in quantities of two decaliters or less at
any one time and not for resale.
"Retail tuba dealer" includes every person who for himself or on
commission sells or offers for sale tuba, bassi, or tapuy, or similar
domestic fermented liquor, in quantities of less than two decaliters at
any one time.
"Wholesale tobacco dealer" comprehends every person who for himself or
on commission sells or offers for sale, for the purpose of resale
cigars, cigarettes, or manufactured tobacco.
"Retail tobacco dealer" includes every person who for himself or on
commission sells or offers for sale to consumers cigars, cigarettes, or
manufactured tobacco.
"Peddler" means any person who either for himself or on commission
travels from place to place in town or country and sells his goods or
offers to sell and deliver the same.
Whether a peddler is a wholesale peddler or a retail peddler of a
particular commodity, shall be determined from the definitions of
wholesale dealer and retail dealer, as above given, in connection with
the particular commodity peddled.
"Theater" includes every edifice used for the purpose of operatic and
dramatic or other representations, plays, or performances, for
admission to which entrance money is received.
"Circus" includes every building, tent, or area where feats of
horsemanship or acrobatic sports are exhibited, but does not include
traveling circuses performing in streets and squares or in buildings
not intended for amusement purposes.
"Billiard room" includes every building or place, open to the public
where games of billiards or pool are placed, with or without charge.
"Proprietor" of a circus, theater, museum, cockpit, concert hall, or
billiard room means the person or persons having a proprietary interest
in the conducting thereof.
"Owner of a race track" comprises every person who owns, leases or
controls a track where horses are entered and races are run as a public
exhibition, whether or not money is bet on the result of such races.
"'Pawnbroker" includes all persons 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.
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 herein imposed
upon stockbrokers, real-estate brokers, or pawnbrokers.
"Stockbroker" includes all persons 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.
"Money lender" includes all persons who make a practice of lending
money for themselves or others at interest.
"Real estate broker" includes all persons 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.
"Merchandise broker," or "corredor," includes all persons, other than
commission merchants and salaried employees, whose occupation it is to
bring about sales of merchandise for other persons, or to bring
proposed buyers and sellers together, for a compensation.
Sec. 47. Increase of Tax on Cockpits. — A
municipal council may by ordinance in any year fix the tax for the
ensuing calendar year or years on any cockpit in any such municipality
at a larger amount than that stated above.
Written notice of such action shall be sent to the Collector of
Internal Revenue before the same shall become effective.
Sec. 48. Reduction of Tax on Race Tracks. — The
provincial board of any province may in any year reduce the per diem
tax on race tracks for the ensuing calendar year or years to any amount
not less than twenty pesos; but no such reduction shall be made for the
city of Manila.
Written notice of such action shall be sent to the Collector of
Internal Revenue before the same shall become effective.
Sec. 49. Privilege Secured by Payment of Tax. — A
person who has paid the tax as a manufacturer of distilled spirits,
manufactured liquors or wines, fermented liquors, cigars, cigarettes,
snuff, or other manufactured tobacco may, without further payment of
privilege tax, sell his products at wholesale and in the original
packages at the place of manufacture, but not otherwise.
A retail liquor dealer may without further payment of privilege tax
engage in business as a retail vino dealer; and a retail dealer in
fermented liquors may without further payment engage in business as a
retail tuba dealer.
Sec. 50. Continuation of Business of Deceased
Person. — When any individual paying a business tax dies and the same
business is continued by the person or persons interested in his estate
no additional payment shall be required for the residue of the term for
which the tax was paid.
Sec. 51. Removal of Business to Other Location. —
Any business for which the privilege tax has been paid may, subject to
the Regulations of the Bureau, be removed and continued in any other
place in the same municipality without the payment of additional tax
during the term for which the payment is made.
Sec. 52. Revocation of Privilege. — When a person
doing business either under the provisions of this Act or by virtue of
a license granted by a municipality as a retail liquor dealer, retail
vino dealer, dealer in fermented liquors, or as a peddler of tobacco or
liquor, is abusing his privilege or license to the injury of the public
morals or peace, or when a place where any such business is established
has been or is conducted in a disorderly or unlawful manner, or is a
nuisance, or is permitted to be used as a resort for disorderly
characters, criminals, or women of ill repute, the Collector of
Internal Revenue may, after due investigation, revoke such privilege or
license by summary order, subject to appeal to the Governor-General,
whose action on the appeal shall be final. Such revocation shall
operate to forfeit all sums which may have been paid for said license
and to prohibit the issuance to the person whose license is so revoked
of any other liquor license for a term which may be fixed in said order.
Sec. 53. Amount of Privilege Tax on Occupation. —
Privilege taxes on occupations shall be collected as follows, the
amount stated being the sum, due for the whole year:
(a) Customs and immigration brokers, eighty pesos;
(b) Lawyers, medical practitioners, land surveyors,
architects, public accountants and civil, electrical, mechanical, or
mining fifty pesos;
(c) Pharmacists and dental surgeons, forty pesos;
(d) Photographers, lithographers, engravers, and
professional appraisers or connoisseurs of tobacco and other domestic
or foreign products, forty pesos;
(e) Procuradores judiciales or agentes de negocios,
forty pesos;
(f) Veterinarians and farriers twenty pesos;
(g) Midwives and cirujanos ministrantes in medicine
or dentistry, ten pesos;
(h) Chiropodists, manicurists, tattooers, and
masseurs, twenty pesos.
"Medical practitioner" includes persons engaged in the practice of
medicine in other capacity than that of cirujano ministrante or midwife
solely, but excluding physicians or surgeons temporarily called in
consultation from another country.
"Agente de negocios" includes all persons who act as the agents of
others in the transaction of business with any public officer, and all
solicitors of insurance, as well as those who conduct collecting,
advertising, employment, or private detective agencies.
Sec. 54. Exemption of Persons Employed by
Government or Engaged in Work of Charity. — No occupation tax shall be
imposed upon persons in any branch of the service of the Government of
the United States or of the Government of the Philippine Islands whose
entire professional services are devoted exclusively to such government
or are applied under their direction, nor upon persons devoting their
entire professional services to any religious, educational or
charitable institution, or hospital, sanitarium, or to any similar
establishment not conducted for private gain.
ARTICLE V
SPECIFIC TAXES
Sec. 55. Articles Subject to Specific Tax. —
Specific internal-revenue taxes apply to things manufactured or
produced in the Philippine Islands for domestic sale or consumption and
to things imported from the United States or foreign countries, but not
to any thing produced or manufactured here which shall be removed for
exportation and is actually exported without returning to the Islands,
whether so exported in its original state or as an ingredient or part
of any manufactured article or product.
In case of importations the internal-revenue tax shall be in addition
to the customs duties, if any.
No specific tax shall be collected on any articles sold and delivered
directly to the United States Army or Navy for actual use or issue by
the Army or Navy, and any taxes which have been paid on articles so
sold and delivered for such use or issue shall be refunded upon such
sale and delivery or upon the passage of this Act.
Sec. 56. Payment of Specific Tax on Domestic
Products. — Specific taxes on domestic products shall be paid by the
manufacturer, producer, owner, or person having possession of the same;
and except as otherwise especially allowed such taxes shall be paid
immediately before removal from the place of production.
Sec. 57. Payment of Specific Tax on Imported
Articles. — Internal-revenue taxes on imported articles shall be paid
by the owner or importer to the customs officers, conformably with
regulations of the Bureau of Internal Revenue and before the release of
such articles from the customhouse.
Sec. 58. Specific Tax on Distilled Spirits. — Upon
distilled spirits there shall be collected, except as hereinafter
provided, specific taxes as follows:
(a) If produced from sap of the nipa, coconut, or
buri palm, or from the juice, sirup, or sugar of the cane, per proof
liter twenty-five centavos;
(b) If produced from any other material per proof
liter, seventy centavos;
This tax shall be proportionally increased for any strength of the
spirits taxed over proof spirits.
"Distilled spirits," as here used, includes all substances known as
ethyl alcohol, hydrated oxide of ethyl, or spirits of wine, which are
commonly produced by the fermentation and subsequent distillation 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 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.
"Proof spirits" is liquor containing one-half its volume of alcohol of
a specific gravity of seven thousand nine hundred and thirty-nine
ten-thousandths at fifteen degrees centigrade. A proof liter means a
liter of proof spirits.
Sec. 59. Mode of Computing Contents of Cask or
Package. — Every fractional part of a proof liter equal to or greater
than a half-liter in a cask or package containing more than one liter
shall be taxed as a liter, and any smaller fractional part shall be
exempt; but any package of spirits the total contents of which are less
than a proof liter shall be taxed as one liter.
Sec. 60. Tax on Preparations Containing Distilled
Spirits as Chief Ingredient. — Medicinal and toilet preparations,
flavoring extracts, and all other preparations, of which, excluding the
water, distilled spirits from the chief ingredient, shall be subject to
the same tax as such chief ingredient.
Upon permit from the Collector of Internal Revenue and subject to the
regulations of the Bureau, manufacturers of cigars may withdraw from
bond free of tax imported wine in specified quantities and grades for
use in the treatment of tobacco leaf to be used in the manufacture of
cigars; but such wine must first be suitably denatured.
Sec. 61. Exemption in Favor of Domestic Denatured
Alcohol. — Domestic alcohol of not less than one hundred and eighty
degrees proof (ninety per centum absolute alcohol) may, when denatured,
be withdrawn from a registered distillery or bonded warehouse without
the payment of the specific tax, for the purpose of being used for
fuel, light, or power, or fore use generally in the arts and industries.
Sec. 62. Removal of Spirits for Rectification. —
Spirits requiring rectification may be removed from the place of their
manufacture to some other establishment for the purpose of
rectification without the prepayment of the specific tax, provided the
distiller removing such spirits and the rectifier receiving them shall
file with the Collector of Internal Revenue their joint bond
conditioned for the future payment by the rectifier of the specific tax
that may be due on any finished product.
Sec. 63. Specific Tax on Wines. — On wines and
imitation wines there shall be collected, per liter of volume capacity
regardless of proof, the following taxes:
(a) Sparkling wines, one peso;
(b) Still wines containing fourteen per centum of
alcohol or less, eight centavos;
(c) Still wines containing more than fourteen per
centum of alcohol, fifteen centavos;
Imitation wines containing more than twenty-five per centum of alcohol
shall be taxed as distilled spirits.
Sec. 64. Specific Tax on Fermented Liquors. — On
beer, larger beer, ale, porter, and other fermented liquors (except
tuba, bassi, tapuy, and similar domestic fermented liquors) there shall
be collected, on each liter of volume capacity, four centavos.
Sec. 65. Removal of Fermented Liquors to Bonded
Warehouse. — 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 be granted by the Collector of
Internal Revenue; 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.
Such permits shall be affixed to every package so removed, and shall be
canceled or destroyed in such manner as the Collector of Internal
Revenue may prescribe.
Sec. 66. Removal of Damaged Liquors Free of Tax. —
When any fermented liquor has become sour or otherwise damaged so as to
be unfit for use as such, brewers may sell and, after securing a
special permit from the Collector of Internal Revenue and under the
regulations of the Bureau, 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 seventy-five liters and having a note of their contents
marked thereon.
Sec. 67. Specific Tax on Products of Tobacco. — On
manufactured products of tobacco, except cigars and cigarettes, but
including all other 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, there shall be collected, on each kilogram, forty-eight
centavos.
Sec. 68. Exemption of Products Intended for
Industrial Use. — Products of tobacco entirely unfit for chewing or
smoking may be removed free of tax for agricultural or industrial use,
under such conditions as may be prescribed in the regulations of the
Bureau; and fine-cut shorts, the refuse of fine-cut chewing tobacco may
be likewise sold in bulk as raw material by one manufacturer directly
to another, without the payment of the tax.
Sec. 69. Specific Tax on Cigars and Cigarettes. —
On cigars and cigarettes (except handmade cigars and cigarettes
prepared by the consumer for his own consumption and so used) there
shall be collected the following taxes:
(a) Cigars:
1. When the manufacturer's wholesale price, less the
amount of the tax, is twenty pesos per thousand or less, on each
thousand, two pesos;
2. When the manufacturer's wholesale price, less the
amount of the tax, is more than twenty pesos but not more than fifty
pesos per thousand, on each thousand, four pesos;
3. When the manufacturer's wholesale price, is less
the amount of the tax, exceeds fifty pesos per thousand, on each
thousand, six pesos;
(b) Cigarettes:
1. Weighing not more than two kilograms per thousand,
on each thousand, one peso;
2. Weighing more than two kilograms per thousand, on
each thousand, two pesos.
Sec. 70. Specific Tax on Matches. — On matches
there shall be collected:
(a) On each gross of boxes containing not more than
one hundred and twenty sticks to the box, forty centavos;
(b) On each gross of boxes containing over one
hundred and twenty sticks to the box, a proportionate additional tax.
Sec. 71. Specific Tax on Opium. — On opium there
shall be collected the following tax:
(a) Crude opium, per net kilo, five pesos;
(b) Prepared opium, per net kilo, fifteen pesos.
The tax on any medicinal preparation mentioned in the Pharmacopoeia or
National Formulary in which opium, morphine, or any alkaloid of opium
enters as an ingredient, shall be levied on the quantity of opium,
morphine, or alkaloid of opium contained therein, and not on the net
weight of the whole preparation. Other preparations containing opium
shall be taxed on the net weight of the whole.
Sec. 72. Tax on Skimmed Milk. — Upon all condensed
skimmed milk and upon all skimmed milk, in whatever form, from which
the cream has been removed entirely or in part, sold in the Philippine
Islands, there shall be collected, for each kilogram of the gross
weight of said milk and containers, twenty centavos.
ARTICLE VI
TAXES ON RESOURCES OF BANKS, RECEIPTS OF INSURANCE COMPANIES, AND
RECEIPTS OF CORPORATIONS PAYING FRANCHISE TAX
Sec. 73. Tax on Capital, Deposits, and Circulation
of Banks. — Subject to the exemptions herein made there shall be
collected from banks the following taxes on capital, deposits, and
circulation:
(a) Upon the capital employed by the bank, for each
month, one twenty-fourth of one per centum;
(b) 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,
for each month, one-eighteenth of one per centum;
(c) Upon the average amount of circulation issued by
the bank, including as circulation all notes and other obligations
calculated or intended to circulate or be used as money, but not
including such as may be retained in the vault of the bank or redeemed
and on deposit for said bank, for each month, one-twelfth of one per
centum;
(d) Upon the average amount of such circulation
issued as above, being beyond the amount of the paid-in capital of the
bank, for each month, and as an additional tax, one per centum.
"Bank" as herein used, includes 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, cheek, or order, or where
money is advanced or loaned on stocks, bonds, bullion, bills or
exchange, or promissory notes are received for discount or for sale.
"Capital employed" does 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 such bank; and no tax shall be imposed on
the capital employed by any person whose sole business is lending money
on real-estate security.
Sec. 74. Time for Payment of Tax; Increase of Tax
in Case of Delinquency. — These taxes shall be due at intervals of six
months, namely, on the first of January and July for the respective
preceding half year periods; and if any such tax remains unpaid for
four months thereafter, the amount of the tax shall be increased by
twenty-five per cent, the increment to be a part of the tax.
Sec. 75. Banker's Semiannual Report of Business
Done. — A report of the monthly amount of capital, deposits, and
circulation shall be rendered on or before the first of May and first
of November of each year by each bank subject to the tax above
prescribed, with a declaration annexed thereto under oath of the
president, cashier, manager, or proprietor to the effect that such,
report contains a true, faithful, and correct statement of the amounts
subject to tax as aforesaid for the period therein covered.
Sec. 76. Computing Resources of Bank Incorporated
Abroad. — 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 hereunder, 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 net earnings of the bank accruing during the
preceding six months, and also the total amount of the net 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 net earnings in
the Philippine Islands bear to the total net earnings of the bank.
Sec. 77. Exemption of Savings Institutions. — The
deposits in associations or companies known as provident institutions,
savings banks, savings fund, 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. 78. Exemption in Case of Reduced Circulation.
— When the outstanding circulation of any bank is reduced to an amount
not exceeding five per centum of the chartered or declared capital
existing at the time the same was issued, such circulation shall be
free from taxation; and when 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. 79. Tax on Insurance Premiums. — There shall
be collected from every person, company, or corporation (except purely
cooperative companies or associations) doing insurance business of any
sort in the Philippine Islands a tax of one per cent of the total
premiums collected during each calendar year, whether paid in money,
notes, credits, or any substitute for money, but premiums refunded
within six months after payment on account of rejection of risk or
returned for other reason to persons insured shall not be included in
the taxable receipts; nor shall any tax be paid upon reinsurance by a
company that has already paid the tax.
"Cooperative companies or associations" are such as are conducted by
the members thereof with money collected from among themselves and
solely for their own protection and not for profit.
Sec. 80. Time for Payment of Tax; Increase of Tax
in Case of Delinquency. — The tax on insurance companies shall be due
on the first of July in each year for the preceding calendar year, and
if the same remains unpaid for fifteen days thereafter the amount of
the tax shall be increased by twenty-five per centum, the increment to
be a part of the tax.
Sec. 81. Yearly Report from Insurance Company. —
Every company liable to the payment of the aforesaid tax 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, and such
additional information as the Collector may require.
Sec. 82. Tax on Corporate Franchises. — There
shall be collected in respect to all existing and future franchises,
upon the gross earnings or receipts from the business covered by the
law granting the franchise, such taxes, charges, and percentages as are
specified in the special charters of the corporations upon whom such
franchises are conferred, and for the purpose of facilitating the
assessment of this tax reports shall be made by the respective holders
of the franchises in such form and at such times as shall be required
by the regulations of the Bureau of Internal Revenue.
ARTICLE VII
CHARGES FOR FOREST PRODUCTS
Sec. 83. Division of Trees into Groups. — The
various native trees shall be divided in 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, dalinsi, dita, dungonlate, malacmalac,
malapapaya, malasantol, mayapis, nato, palosapis, panao, sacat, santol,
tamayuan and tanguile.
The fourth group shall include all varieties not included in any of the
other groups.
Sec. 84. Measuring of Forest Products and
Collection of Charges thereon. — The duties incident to the measuring
of forest products and the collection of the charges thereon shall be
discharged by the Bureau of Internal Revenue, under the regulations of
said Bureau.
Employees of the Bureau of Forestry may be deputized by the Collector
of Internal Revenue for the performance of duties incident to the
measuring and invoicing of forest products when the Director of
Forestry deems such course advisable for the protection of the forest
revenues and is willing to supply the services of such employees at the
expense of the Bureau of Forestry.
Sec. 85. Mode of Measuring Timber Other than
Firewood. — Timber other than firewood shall be measured and invoiced
in accordance with Act Numbered Eleven hundred and forty-eight, as
amended.
Sec. 86. Charges for Timber Cut in Public Forests.
— Except as otherwise specially provided, the following charges shall
be made for each cubic meter of timber cut in any public forest or
forest reserve in the Philippine Islands whether removed therefrom or
not:
(a) On timber in the first group not including ebony
and camagon stripped of sapwood, two pesos and fifty centavos;
(b) On ebony stripped of sapwood, six pesos;
(c) On camagon stripped of sapwood, four pesos and
fifty centavos;
(d) On timber in the second group, one peso and fifty
centavos;
(e) On timber in the third group, not including
firewood, one peso;
(f) On timber in the fourth group, not including
firewood, fifty centavos.
Sec. 87. Charges for Firewood Cut in Public
Forests. — For firewood cut in public forest reserves the following
charges shall be made:
For bacauan and tangal, per cubic meter, twenty centavos;
For other woods, per cubic meter, ten centavos.
On third or fourth group timber can be taken for firewood, and to come
under this head the pieces must not be more than one and one-half
meters in length nor more than fifteen centimeters in diameter.
Sec. 88. Charges Collectible for Wood Cut from
Unregistered Private Lands. — The charges above prescribed shall be
collected for all wood cut upon any land the title to which is not
registered with the Director of Forestry as required by the Forest Law;
and in the absence of such registration wood cut and removed from
alleged private lands shall be considered as cut and removed under
license from public forests or forest reserves, and shall be subject to
the law and regulations in such case applicable.
Sec. 89. Surcharge for Illegal Cutting and Removal
of Forest Products, or for Delinquency. — Where forest products are
unlawfully cut or gathered in any public forest without license or, if
under license, in violation of the terms thereof, the charges for such
products shall be doubled. If any such products be removed without
invoice, or upon removal be discharged without permit from boat, car,
cart, or other means of transportation, the charges shall be increased
by fifty per centum; and if, in any case, the proper charges upon
forest products be not paid within thirty days after the same shall be
due and payable, such charges shall be increased by fifty per centum.
Sec. 90. Charge for Timber Cut for Use on Mining
Claim. — When a license is granted by the Bureau of Forestry allowing a
miner or mining company to cut timber for the development of a mining
claim on land other than such as is covered by his claim the charges
for timber so cut shall be one-half the prices hereinabove fixed.
Sec. 91. Charges for Gums, Resins, and Other
Forest Products. — On gums, resins, rattan, and other products of the
forest gathered or removed from any public forest or forest reserve,
and not hereinabove provided for, there shall be paid on the market
value thereof, determined in the manner indicated below, a charge of
ten per centum.
The market value of the various forest products for which charges may
thus be made shall be determined from time to time by a joint
assessment of the Collector of Internal Revenue and Director of
Forestry, the same to be published for the information of the public in
the Official Gazette. Where the value of any forest product included in
this section is not determined and published in the manner specified,
such product may be taken free of charge.
Sec. 92. Charges for Stone and Earth Taken from
Forests. — For stone or earth taken from the public forests and forest
reserves such charges shall be made as may be fixed in particular cases
by the Director of Forestry, with the approval of the Secretary of the
Interior.
Sec. 93. No Charge for Products Lawfully Removed
Under Gratuitous License. — No charge shall be made on forest products
removed in conformity with the terms of a gratuitous license of the
Bureau of Forestry and in compliance with the law and the regulations
of such Bureau.
Sec. 94. Gratuitous Licensees Subject to
Regulations of Bureau of Internal Revenue. — Gratuitous licensees to
cut first-group timber under license from the Bureau of Forestry must
comply with the Regulations of the Bureau of Internal Revenue in regard
to the removal of such timber and shall submit on the proper forms full
invoices showing the amount cut by them.
Sec. 95. Time for Payment of Forest Charges. —
Except as herein below provided, the charges for forest products shall
be payable at the time of the removal of the same from the forest.
With the approval of the Collector of Internal Revenue, lumber may be
removed from a sawmill situated on a licensed cutting area upon the
giving of a bond conditioned for the monthly payment of the charges due
upon the output of such mill. He may also authorize the shipment of
forest products under auxiliary invoices without the prepayment of
charges, when the same are shipped by sea in steam or sailing vessels,
and the proper charges are secured by proper bonds.
ARTICLE VIII
FEES FOR TESTING AND SEALING WEIGHTS AND MEASURES
Sec. 96. Fees for Sealing Linear Metric Measures.
— Fees for sealing linear measures of the metric system shall be as
follows:
(a) Measures not over one and one half meters, ten
centavos;
(b) Measures not over one and one-half meters, twenty
centavos.
Sec. 97. Fees for Sealing English Linear Measures.
— Fees for sealing linear measures of the English system, allowable
only when such measures are to be used in measuring manufactured
lumber, shall be as follows:
(a) Measures not over one yard, ten centavos;
(b) Measures over one yard, twenty centavos.
Sec. 98. Fees for Sealing Metric Measures of
Capacity. — Fees for sealing metric measures of capacity shall be as
follows:
(a) For a measure not over ten liters, twenty
centavos;
(b) For a measure over ten liters, thirty centavos.
Sec. 99. Fees for Sealing Metric Instruments of
Weight. — Fees for sealing instruments for determining weight graduated
solely in the metric system shall be as follows:
(a) Those having a capacity of over three thousand
kilograms, three pesos;
(b) Those having a capacity of not over three
thousand but over three hundred kilograms, one peso and twenty centavos;
(c) Those having a capacity of not over three hundred
but more than thirty kilograms, sixty centavos;
(d) Those with capacity not greater than thirty
kilograms, thirty centavos.
For an apothecary balance or other balance of precision the charge
shall be doubled.
With each scale or balance a complete set of weights for use therewith
shall be sealed free of charge. For each extra weight the charge shall
be five centavos.
ARTICLE IX
TAX ON SIGNS, SIGNBOARDS, AND BILLBOARDS
Sec. 100. Tax on Signs, Signboards, and
Billboards. — No person shall display, maintain on his premises, or
erect any outdoor sign, signboard, or billboard in a place exposed to
public view until a license for each location therefor shall have been
secured from the Bureau of Internal Revenue, for which a fee of one
peso and fifty centavos shall be charged, and such person shall not
later than three days after such sign, signboard, or billboard has been
displayed or erected pay an annual tax thereon at the following rates,
which tax shall cover only the signs, signboards, or billboards
designated and displayed at the place specified in the license:
(a) Signs and signboards on buildings used for
business purposes, per square meter, two pesos and fifty centavos;
(b) Electric signs, billboards, and spaces used for
posting or displaying temporary signs; and all signs displayed on
premises not occupied by buildings, per square meter, four pesos.
No tax shall be collected under this section on signs or signboards
announcing exclusively the name of style, address, and nature of
business of a person when the sign or signboard appears on the premises
in which the business of such person is carried on; but such person
shall not be exempted from complying with all other requirements of
this Act with reference to signs, signboards, and billboards.
Any sign, signboard, or billboard which shall be displayed or erected
without a license having been issued therefor as herein required shall
be forfeited by the Government. No sign, signboard, or billboard shall
be erected or displayed on public lands or buildings. If after due
investigation the Collector of Internal Revenue shall decide that any
sign, signboard, or billboard displayed or exposed to public view is
offensive to the sight or is otherwise a nuisance, he may by summary
order direct the removal of such sign, signboard, or billboard, and if
same is not remove within ten days after he has issued such order he
may himself cause its removal, and the sign, signboard, or billboard
shall thereupon be forfeited to the Government, and the owner thereof
charged with the expenses of the removal so effected. When the sign,
signboard, or billboard ordered to be removed as herein provided shall
not comply with the provisions of the general regulations of the
Collector of Internal Revenue, no rebate or refund shall be allowed for
any portion of a year for which the taxes may have been paid.
Otherwise, the Collector of Internal Revenue may in his discretion make
a proportionate refund of the tax for the portion of the year remaining
for which the taxes were paid. An appeal may be had from the order of
the Collector of Internal Revenue to the Secretary of Finance and
Justice whose decision thereon shall be final.
Nothing in this section shall be construed to abridge the power of any
municipality or city to regulate advertising agencies or to suppress
outdoor advertising as a nuisance.
CHAPTER III
ADMINISTRATIVE PROVISIONS
ARTICLE I
PROVISIONS RELATIVE TO PERSONS AND ESTABLISHMENTS SUBJECT TO PRIVILEGE
TAXES
Sec. 101. Registration of Name or Style with
Provincial Treasurer. — Every person engaged in any business or
occupation on which a privilege tax is imposed by law shall register
with the provincial treasurer his name or style, place of
residence, business or occupation, and the place where such business or
occupation is carried on. In case of a firm the names and residences of
the various persons constituting the same shall also be registered.
Sec. 102. Sign to be Exhibited by Distiller or
Rectifier. — 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 letters not less
than six centimeters high, his name or firm style, with the words
"Registered distiller," "Rectifier of spirits," or "Wholesale liquor
dealer," as the case may be, and his assessment number.
Sec. 103. Sign to be Exhibited by Manufacturer of
Products of Tobacco. — Every manufacturer of cigars, cigarettes, or
tobacco, and every wholesale dealer in leaf tobacco or manufactured
products of tobacco 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 stating his full name, and business in letters not less than six
centimeters high, and also giving his assessment number in figures.
Sec. 104. Exhibition of Certificate of Payment at
Place of Business. — The certificate or receipt showing payment of tax
issued to a person engaged in a business or occupation subject to a
privilege tax shall be kept conspicuously exhibited in plain view in or
at the place where the business is conducted or occupation plied; and
in case of a peddler or other person not having a fixed place of
business shall be kept in the possession of the holder thereof, subject
to production upon the demand of any internal revenue officer.
ARTICLE II
PROVISIONS REGULATING BUSINESS OF PERSONS DEALING IN ARTICLES SUBJECT
TO SPECIFIC TAX
Sec. 105. Extent of Supervision over
Establishments Producing Taxable Output. — The Bureau of Internal
Revenue has authority to supervise establishments where articles
subject to a specific tax are made and to prescribe regulations as to
the mode in which the process of production shall be conducted in so
far as may be necessary to secure a sanitary output and to safeguard
the revenue.
Sec. 106. Records to be Kept by Manufacturers;
Assessments Based thereon. — The Collector of Internal Revenue is
authorized to prescribe, by regulation, the records which shall be kept
by manufacturers of articles subject to specific tax, and such records,
whether of raw materials received into the factory or of articles
produced therein shall be deemed public and official documents for all
purposes.
The records of raw materials kept by such manufacturers may be used as
a species of evidence by which to determine the amount of specific
taxes due from them and whenever the amount of raw materials received
into any factory exceeds the amount of manufactured or partially
manufactured products on hand and lawfully removed from the factory,
plus waste removed or destroyed, and a reasonable allowance for
unavoidable loss in manufacture, the Collector of Internal Revenue may
assess and collect the tax due on the products which should have been
produced from the excess.
Sec. 107. Premises Subject to Approval by
Collector. — No person shall engage in business as a manufacturer of
articles subject to a specific tax unless the premises upon which the
business is to be conducted shall have been approved by the Collector
of Internal Revenue.
Sec. 108. Labels and form of Packages Prescribed
by Collector. — All articles of domestic manufacture subject to a
specific tax and all leaf tobacco shall be put up and prepared by the
manufacturer or producer, when removed for sale or consumption, in such
packages only and bearing such marks or brands as shall be prescribed
in the Bureau Regulations; and goods of similar character imported into
the Islands shall likewise be packed and marked in such manner as may
be required.
Sec. 109. Removal of Articles After Payment of
Tax. — When the tax has been paid on articles or products subject to a
specific tax the same shall not thereafter be stored or permitted to
remain in the distillery, distillery warehouse, bonded warehouse, or
other factory or place where produced.
Sec. 110. Proof of Exportation; Exporter's Bond. —
Exporters of goods that would be subject to a specific tax if sold or
removed for consumption in the Philippine Islands shall submit proof of
exportation satisfactory to the Collector of Internal Revenue, and when
the same is deemed necessary, shall be required to give a bond prior to
the removal of the goods for shipment, conditioned for the exportation
of the same in good faith.
Sec. 111. Manufacturers' and Importers' Bonds. —
Manufacturers and importers of articles subject to a specific tax shall
give bond in an amount equal, as nearly as can be estimated, to twenty
per cent of the taxes payable by them during an average year. Such bond
shall be conditioned for the faithful compliance, during the time such
business is followed, with the law and regulations relating to such
business and for the payment of all taxes lawfully accruing in respect
to the goods manufactured or imported, as well as for the satisfaction
of all fines and penalties imposed by the Internal Revenue Law. No such
bond shall be required in an amount exceeding twenty-five thousand
pesos nor be received in a sum less than two hundred pesos.
Sec. 112. Records to be Kept by Wholesale Dealers.
— Wholesale dealers shall keep records of their purchases and sales or
deliveries of articles subject to a specific tax, in such form as shall
be prescribed in the Bureau Regulations. These records and the entire
stock of goods subject to tax shall be open at all times to the
inspection of internal-revenue officers.
Sec. 113. Records to be Kept by Dealers in Leaf
Tobacco. — Dealers in leaf tobacco shall keep records of the product
sold or delivered by them to other persons in such manner as may be
prescribed in the Regulations of the Bureau of Internal Revenue, such
records to be at all times open to the inspection of internal-revenue
officers.
Sec. 114. Preservation of Invoices and Stamps. —
All dealers whomsoever shall preserve all official invoices received by
them from manufacturers, together with the fractional parts of stamps
affixed thereto and upon demand shall deliver or transmit the same to
any internal-revenue officer.
Sec. 115. Information to be Given by Manufacturers
of Distilling Apparatus. — Manufacturers of stills, boilers, or other
vessels to be used for distilling shall, before any such apparatus or
utensil is removed from the place of manufacture, give written
information to the Collector of Internal Revenue as to the nature and
capacity of the same, the time when it is to be removed, and the place
for which it is destined, as well as the name of the person by whom it
is to be used; and such still, boiler, or vessel shall not be set up
without a permit in writing from the Collector of Internal Revenue.
Sec. 116. Establishment of Distillery Warehouses.
— 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
tax thereon shall have been paid; but no dwelling house shall be used
for such purpose. Such warehouse, when approved by the Collector of
Internal Revenue, is hereby declared to be a bonded warehouse, to be
known as a distillery warehouse.
Sec. 117. Custody of Distillery Warehouse. — 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 unlocked or open unless in the presence of such storekeeper or
other person who may be designated to act for him as provided by law.
Sec. 118. Limitation on Quantity of Spirits
Removed from Warehouse. — No distilled spirits shall be removed from
any distillery, distillery warehouse, or bonded warehouse in quantities
of less than fifteen gauge liters at any one time, except bottled
goods, which may be removed by the case of not less than twelve bottles.
Sec. 119. Requirements Incident to Process of
Denaturing Alcohol. — Where alcohol is withdrawn free of tax for use in
the arts and industries, the process of denaturing shall be effected
either on the distillery premises or in a bonded warehouse designated
by the Collector of Internal Revenue for denaturing purposes only. To
such warehouses alcohol may be transferred under bond and under
conditions prescribed in the Bureau Regulations.
Sec. 120. Recovery of Alcohol for Use in Arts and
Industries. — Manufacturers employing processes in which denatured
alcohol used in arts and industries is expressed or evaporated from the
articles manufactured may, under regulations to be prescribed by the
Bureau, be permitted to recover the alcohol so used and restore it
again to a condition suitable solely for use in manufacturing processes.
Sec. 121. Supervision Over Rectification and
Compounding of Liquors. — Persons engaged in the rectification or
compounding of liquors shall, as to the mode of conducting their
business and supervision over the same, be subject to all the
requirements of law applicable to distilleries, but if they make use of
spirits upon which the specific tax has been paid no further tax shall
be collected on any liquors produced exclusively therefrom.
Sec. 122. Authority of Officer in Searching for
Taxable Articles. — Any officer or agent of internal revenue may in the
discharge of his official duties enter any house, building, or place
where articles subject to an internal-revenue tax are produced or kept,
or are believed by him upon reasonable grounds to be produced or kept,
so far as may be necessary to examine or discover the same.
Sec. 123. Detention of Package Containing Taxable
Articles. — Any revenue officer may detain any package containing or
supposed to contain articles subject to a specific tax when he has good
reason to believe that the lawful tax has not been paid or that the
package has been or is being removed in violation of law, and every
such 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. 124. Inscription to be Placed on Skimmed
Milk. — All condensed skimmed milk and all milk, in whatever form, from
which the fatty part has been removed totally or in part, sold or put
on sale in the Philippine Islands, shall be clearly and legibly marked
on its immediate containers, and in all the languages in which such
containers are marked, with the words "this milk is not suitable for
nourishment for infants less than one year of age," or with other
equivalent words.
ARTICLE III
GENERAL PROVISIONS RELATIVE TO WEIGHTS AND MEASURES
Sec. 125. Standard Weights and Measures in
Philippine Islands. — The weights and measures to be used throughout
the Philippine Islands are those of the metric system, with the
following units:
(a) The unit of length is the standard meter, being
the one ten-millionth part of the distance from the equator to the pole;
(b) The unit of area is either the square meter or an
area of one hundred square meters known as the are;
(c) The unit of cubical contents or capacity is
either the cubic meter or the one-thousandth part thereof known as the
liter;
(d) The unit of weight is the gram;
The length of the standard meter shall be determined for the Philippine
Islands by the length at the temperature of zero degrees centigrade of
the fundamental standard measure Numbered Seventy-one, now preserved in
the Bureau of Science and certified to by the International Bureau of
Weights and Measures.
The weight of the standard gram shall be determined for the Philippine
Islands by the weight at Manila of one-millionth of a cubic meter, of
pure water at the temperature of four degrees centigrade, or the
one-thousandth part of the standard kilogram certified to by the
International Bureau of Weights and Measures, designated by the symbol
"L" and now preserved in the Bureau of Science.
Sec. 126. Weights and Measures of Metric System
Alone Legal; Exception in Case of Lumber. — Save in the purchase and
sale of manufactured lumber the use of other weights and measures than
those of the metric system shall not be legal, and said system, with
its recognized scales, shall be used in all contracts, deeds, and other
instruments publicly and officially attested, and in all official
documents; and subject to the same exception only weights and measures
of the metric system shall be officially sealed and licensed.
In the purchase and sale of manufactured lumber the English system of
measures may be employed; and in ordering commodities or articles from
abroad such weights and measures may be employed as are commonly used
in the country to which the order is sent or from which the goods are
shipped.
Sec. 127. Secondary Standards Preserved by
Provincial Treasurers; Testing of Same. — For use in the testing of
weights and measures in the provinces, provincial treasurers shall keep
full sets of secondary standards in the provincial buildings. The
Collector of Internal Revenue shall be responsible for the inspection
and proper testing of all provincial and municipal standards of weight
and measure.
Sec. 128. Comparison of Secondary and Fundamental
Standards. — The comparison of the secondary and fundamental standards
shall be made in the Bureau of Science at the instance of the Collector
of Internal Revenue. When found to be sufficiently accurate the
secondary standard shall be distinguished by a label, tag, or seal and
shall be accompanied by a certificate showing the amount of its
variation from the fundamental standard. If the variation is of
sufficient magnitude to impair the utility of the instrument, it shall
be destroyed in the Bureau of Science.
Sec. 129. Inspectors of Weights and Measures. —
Internal-revenue agents shall inspect and test balances or scales,
weights and measures, and report upon the condition thereof in the
territory assigned to them. It shall be their duty to collect evidence
of infringements of the law or of fraud in the use of weights and
measures or of neglect of duty on the part of any officer engaged in
sealing weights and measures. Evidence so collected by them shall be
presented forthwith to the Collector of Internal Revenue and also to
the proper prosecuting officer.
Sec. 130. Sealers of Weights and Measures. — The
sealing and licensing of weights and measures shall be the duty of the
provincial treasurers and their deputies, and for the purposes of this
law such officers shall be termed sealers of weights and measures.
Sec. 131. Destruction of Defective Instrument of
Weight or Measure. — Any defective instrument of weight or measure may
be destroyed by any inspector or sealer of weights and measures if its
defect is such that it cannot readily and securely be repaired.
Sec. 132. Testing of Instruments Used in
Government Work. — All measures and instruments for determining weight
used in the Government work or maintained for public use by any
province or municipality shall be tested and sealed free of charge.
Sec. 133. Form and Duration of License for Use of
Weights and Measures. — The receipt for the fee charged for the sealing
of weights and measures shall serve as a license to use such instrument
for one year from the date of sealing, unless deterioration or damage
occurs in that period which renders the weight or measure inaccurate.
Such receipt shall be preserved by the owner and shall be exhibited on
demand of any internal-revenue officer.
Sec. 134. Dealers' Permit to Keep Unsealed Weights
and Measures. — Upon obtaining written permission from the Collector of
Internal Revenue any dealer may keep instruments of weight and measure
in stock for sale without sealing, until sold or used.
ARTICLE IV
PROVISIONS RELATIVE TO PROHIBITED DRUGS
Sec. 135. Words and Phrases Defined. — "Prohibited
drug," as herein used, includes opium, cocaine, alpha, and beta
eucaine, their derivatives, and all preparations made from them.
"Opium" embraces every kind, class, and character of opium, whether
crude, prepared, ash, or refuse, and all narcotic preparations thereof
or therefrom, and all morphine or alkaloids of opium and all
preparations in which opium, morphine, or any, alkaloid of opium enters
as an ingredient, together with all opium leaves and wrappings of opium
leaves, whether such leaves or wrappings are prepared for use or not.
Sec. 136. Lawful Possession and Uses of Prohibited
Drugs Specified. — Prohibited drugs may be lawfully kept, used,
administered, and dealt in under the following conditions and by the
following persons only:
(a) Duly licensed and practicing physicians,
dentists, and veterinarians may prescribe and administer, or cause to
be administered, prohibited drugs as medicine or anaesthetic and may
receive and keep the same in their possession for such use;
(b) Government Bureaus or officers of the Government
duly designated in writing for such purpose by the Governor-General may
receive, keep, use, and dispose of such drugs in accordance with law,
and the same may be lawfully sold, transferred, or delivered to them;
(c) Pharmacists and second-class pharmacists may
receive, keep, and dispense prohibited drugs upon the prescription of a
duly licensed and practicing physician, dentist, or veterinarian, and
upon permit from the Collector of Internal Revenue may transfer and
deliver the same to other pharmacists and second-class pharmacists or
to any person or institution lawfully authorized to receive the same.
Sec. 137. Importation of Opium; Storage of Same. —
Opium shall be imported only by the Philippine Government through the
Bureau of Internal Revenue; and all imported opium, after the payment
of duties, taxes, and charges, shall be delivered by the customs
authorities to the Collector of Internal Revenue for storage in a place
to be approved by him. Except in case of fire or similar necessity,
opium so stored shall be removed only for delivery to a person
authorized to receive the same, and before removal from storage the
drug shall be marked or labeled in such manner as may be prescribed in
the Regulations of the Bureau.
A reasonable charge may be made for such storage, to be paid before the
opium is removed.
Sec. 138. Record to be Kept by Pharmacists;
Inspection of Same. — Physicians, dentists, veterinarians, pharmacists,
and second-class pharmacists shall keep true and correct records of all
prohibited drugs received and dispensed or transferred by them, in such
form and manner as may be prescribed in the Regulations of the Bureau
of Internal Revenue.
Such record and the stock of prohibited drugs on hand shall be subject
to inspection at all times by the duly authorized officers and agents
of the Bureau of Internal Revenue.
CHAPTER IV
REMEDIES
ARTICLE I
REMEDIES IN GENERAL
Sec. 139. Injunction not Available to Restrain
Collection of Tax. — No court shall have authority to grant an
injunction to restrain the collection of any internal-revenue tax.
Sec. 140. Recovery of Tax Paid Under Protest. —
When the validity of any tax is questioned, or its amount disputed, or
other question raised as to liability therefor, the person against whom
or against whose property the same is sought to be enforced shall pay
the tax under instant protest, or upon protest within ten days, and
shall thereupon request the decision of the Collector of Internal
Revenue. If the decision of the Collector of Internal Revenue is
adverse, or if no decision is made by him within six months from the
date when his decision was requested, the taxpayer may proceed, at any
time within two years after the payment of the tax, to bring an action
against the Collector of Internal Revenue for the recovery of the sum
alleged to have been illegally collected, the process to be served upon
him, upon the provincial treasurer, or upon the officer collecting the
tax.
Sec. 141. Action to Contest Forfeiture of Chattel.
— In case of the seizure of personal property under claim of forfeiture
the owner, desiring to contest the validity of the forfeiture, may at
any time before sale or destruction of the property bring an action
against the person seizing the property or having possession thereof to
recover the same, and upon giving proper bond may enjoin the sale; of
after the sale and within six months he may bring an action to recover
the net proceeds realized at the sale.
Sec. 142. Form and Mode of Proceeding in Actions
Arising Under Internal Revenue Law. — Civil actions and proceedings
instituted in behalf of the Government under the authority of this Act
or other law enforced by the Bureau of Internal Revenue shall be
brought in the name of the Government of the Philippine Islands and
shall be conducted by the provincial fiscal or the Attorney-General, or
by any person designated by the latter; but no civil action for the
recovery of taxes or the enforcement of any fine, penalty, or
forfeiture under any such law shall be begun without the approval of
the Collector of Internal Revenue.
Sec. 143. Authority of Collector to Make
Compromises and to Refund Taxes. — The Collector of Internal Revenue
may compromise any civil or other case arising under this Act or other
law within the jurisdiction of his Bureau, may refund taxes erroneously
or illegally received, or penalties imposed without authority, and may
remit before payment any tax that appears to be unjustly assessed or
excessive.
He shall refund the value of internal-revenue stamps when the same are
returned in good condition by the purchaser, and may in his discretion
redeem or exchange unused stamps that have been rendered unfit for use,
and may refund their value upon proof of destruction.
Sec. 144. Satisfaction of Judgment Recovered
Against Treasurer or Other Officer. — When an action is brought against
any revenue officer to recover damages by reason of any act done in the
performance of official duty, and the Collector of Internal Revenue is
notified of such action in time to make defense against the same,
through the Attorney-General, any judgment, damages, or costs recovered
in such action shall be satisfied by the Collector of Internal Revenue
upon approval of the Department head, or if the same be paid by the
person sued, shall be repaid or reimbursed to him.
No such judgment, damages, or costs shall be paid or reimbursed in
behalf of a person who has acted negligently or in bad faith, or with
willful oppression.
Sec. 145. Remedy for Enforcement of Statutory
Penal Provisions. — The remedy for enforcement of statutory penalties
of all sorts shall be by criminal or civil action, as the particular
situation may require.
Sec. 146. Remedy for enforcement of forfeitures. —
The forfeiture of chattels and removable fixtures of any sort shall be
enforced by the seizure and sale, or destruction, of the specific
forfeited property. The forfeiture of real property shall be enforced
by a judgment of condemnation and sale in a legal action or proceeding,
civil or criminal, as the case may require.
Sec. 147. Same: when to be Sold or Destroyed. —
Sales of forfeited chattels and removable fixtures shall be effected,
so far as practicable, in the same manner and under the same conditions
as to public notice and the time and manner of sale as are prescribed
for sales of personal property distrained for the nonpayment of taxes.
Prohibited drugs, opium apparatus, liquors, cigars, cigarettes, and
other manufactured products of tobacco, and all apparatus used in or
about the illicit production of such articles may, upon forfeiture, be
destroyed by order of the Collector of Internal Revenue, when the sale
of the same for consumption or used would be injurious to the public
health or prejudicial to the enforcement of the law.
Forfeited property shall not be destroyed until at least twenty days
after seizure.
Sec. 148. Disposition of Funds Recovered in Legal
Proceedings or Obtained from Forfeitures. — All judgment and moneys
recovered and received for taxes, costs, forfeitures, fines, and
penalties shall be paid to the Collector of Internal Revenue or his
authorized deputies as the taxes themselves are required to be paid,
and except as specially provided, shall be accounted for and dealt with
in the same way.
ARTICLE II
CIVIL REMEDIES FOR THE COLLECTION OF TAXES
Sec. 149. Nature and Extent of Tax Lien. — Every
internal-revenue tax on property or on any business or occupation and
every tax on resources and receipts, and any increment to any of them
incident to delinquency, shall constitute a lien superior to all other
charges or liens not only on the property itself upon which such tax
may be imposed but also upon the property used in the business or
occupation upon which the tax is imposed and upon all property rights
therein.
Sec. 150. Civil Remedies for Collection of
Delinquent Taxes. — The civil remedies for the collection of
internal-revenue taxes and any increment thereto resulting from
delinquency shall be (a) by distraint of personal property and upon
exhaustion thereof by levy upon real property and (b) by legal action.
Either of these remedies or both simultaneously may be pursued in the
discretion of the authorities charged with the collection of such
taxes; but the civil remedy for the collection of the cedula tax shall
be exclusively by distraint.
No exemption shall be allowed against the internal-revenue taxes in any
case.
Sec. 151. Distraint of Personal Property. — The
remedy by distraint shall proceed as follows: Upon the failure of the
person owing any delinquent tax or delinquent revenue to pay the same,
at the time required, the Collector of Internal Revenue or his deputy
may seize and distrain any personal property belonging to such person
or any property subject to the tax lien, in sufficient quantity to
satisfy the tax, or charge, together with any increment thereto
incident to delinquency, and the expenses of the distraint.
Sec. 152. Same, Mode of Procedure and Disposition
of Proceeds. — The officer levying the distraint shall make or cause to
be made an account of the goods or effects distrained, a copy of which
signed by himself shall be left either with the owner or person from
whose possession such goods or effects were taken, or at the dwelling
or place of business of such person and with some one of suitable age
and discretion, to which list shall be added a statement of the sum
demanded and note of 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 twenty 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 of said officer shall sell the goods, chattels, credits, or
effects, so distrained, at public auction, to the highest bidder for
cash.
Any residue over and above what is required to pay the entire claim,
including expenses, shall be returned to the owner of the property
sold. The expenses chargeable upon such seizure and sale shall embrace
only the actual expense of seizure and preservation of the property
pending the sale, and no charge shall be imposed for the services of
the local internal-revenue officer or his deputy.
Sec. 153. Release of Distrained Property Upon
Payment Prior to Sale. — If at any time prior to the consummation of
the sale all proper charges are paid to the officer conducting the
sale, the goods or effects distrained shall be restored to the owner.
Sec. 154. Report of Sale to Bureau of Internal
Revenue. — Within two days after the sale the officer making the same
shall make a report of his proceedings in writing to the Collector of
Internal Revenue and shall himself preserve a copy of such report as an
official record.
Sec. 155. Levy on Real Estate After Exhaustion of
Personalty. — When personal effects sufficient to satisfy the entire
claim are not found levy may be on real estate and the same may be
subjected to sale in conformity with the provisions of section
seventy-six to seventy-nine, inclusive, of Act Numbered One hundred and
eighty-three, as amended by Act Numbered Seventeen hundred and
ninety-three of the Philippine Commission, known as the Charter of the
city of Manila.
Sec. 156. Inhibition on Government Employees to
Buy at Sale. — Public officials and employees of all grades are
prohibited from buying real property at a tax sale.
Sec. 157. Further Distraint or Levy. — The remedy
by distraint of personal property and levy on realty may be repeated if
necessary until the full amount due, including all expenses, is
collected.
Sec. 158. Certificate of Sale as Evidence of
Right. — 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 him.
Sec. 159. Purchase by Government at Sale Upon
Distraint. — When property advertised for sale under distraint 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,
subject to the Registration of the Bureau of Internal Revenue, the net
proceeds being paid into the Insular Treasury and accounted for as
internal-revenue.
Sec. 160. Resale of Real Estate Taken for Taxes. —
The Collector of Internal Revenue shall have charge of any real estate
obtained by the Insular Government of the Philippine Islands in payment
of debts, taxes, penalties, or costs arising under the Internal Revenue
Law or in compromise or adjustment of any claim therefor; and said
Collector may upon the giving of not less than twenty days' notice sell
and dispose of the same, at public auction, or with the prior approval
of the Secretary of Finance and Justice may dispose of the same at
private sale. In either case the proceeds of the sale shall be
deposited in the Insular Treasury, and an account of the same shall be
rendered to the Insular Auditor.
CHAPTER V
PENAL PROVISIONS
ARTICLE I
OFFENSES COMMITTED BY OFFICERS OF THE LAW
Sec. 161. Statutory Offenses of Officers and
Employees. — Every officer, agent, or employee of the Bureau of
Internal Revenue acting under the authority of this Act who is guilty
of any delinquency herein below specified or who falls within any of
the classes herein below indicated shall be punished by a fine of not
less than four hundred nor more than ten thousand pesos or by
imprisonment for not less than six months nor more than five years, or
by both, in the discretion of the court:
(a) Those guilty of extortion or willful oppression
under color of law;
(b) Those who knowingly demand other or greater sums
than are authorized by law or receive any fees, compensation, or
reward, except as by law prescribed, for the performance of any duty;
(c) Those who willfully neglect to give receipts, as
by law required, for any sums collected in the performance of duty, or
who willfully neglect to perform any of the duties enjoined by law;
(d) Those who conspire or collude with another or
others to defraud the revenues or otherwise violate the law;
(e) Those who willfully make opportunity for any
person to defraud the revenues, or who do or omit to do any act with
intent to enable any other person to defraud the revenues;
(f) Those who negligently or designedly permit the
violation of the law by any other person;
(g) Those who make or sign any false entry or entries
in any book, or make or sign any false certificate or return in any
case where the law requires the making by them of such entry,
certificate, or return;
(h) Those who, having knowledge or information of a
violation of this Act or of any fraud committed on the revenues, fail
to report such knowledge or information to their superior officer, or
to report as otherwise required by law;
(i) Those who, without the authority of law, demand
or accept, or attempt to collect directly or indirectly, as payment 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.
Sec. 162. Reward of Informer. — In case of a
conviction under the preceding section one-half of any fine 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 named in the
judgment of the court.
Sec. 163. Unlawful Divulgence of Trade Secrets. —
Any officer or employee of the Bureau of Internal Revenue who divulges
to any person or makes known in any other manner than may be provided
by law, the secrets, operation, style of work, or apparatus of any
manufacturer or producer, or confidential information regarding the
business of any taxpayer, knowledge of which was acquired by him in the
discharge of his official duties shall be fined in a sum not more than
two thousand pesos or be imprisoned for a term of not less than six
months nor more than five years, or both.
Sec. 164. Unlawful Interest of Revenue Officer in
Business. — Any internal-revenue officer who is or shall become
interested, directly or indirectly, in the manufacture, sale, export,
or import of manufactured 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 four hundred
pesos nor more than ten thousand pesos, in the discretion of the court.
ARTICLE II
OFFENSES COMMITTED BY OTHER PERSONS
Sec. 165. Delinquency in Payment of Cedula Tax. —
A person liable to the cedula tax who remains delinquent in the payment
of the same for fifteen days and on demand of the provincial treasurer
fails to pay such tax by purchasing a cedula certificate at the
increased price due to delinquency shall be deemed to be guilty of a
misdemeanor; and the provincial treasurer may, in his discretion, cause
the delinquent to be prosecuted before the justice of the peace of the
municipality in which the delinquent shall be found, and upon
conviction the person so delinquent shall be sentenced to imprisonment
for ten days.
Persons so convicted shall be required to labor for the period of
imprisonment, either for the province or municipality, upon public
works in such manner as may be directed by the provincial board; and
upon the termination of such period of imprisonment or labor, a cedula
certificate shall be issued to the person so convicted as if the tax
had been paid in money.
In any prosecution for the nonpayment of the cedula tax, proof showing
that such tax was not paid in the municipality, township, or city where
the defendant resides shall be sufficient to convict in the absence of
proof on his part showing that the tax was paid in some other place or
province.
Sec. 166. Unlawful Use of Cedula Certificate. —
Any person who uses, attempts to use, or has in his possession with
intent to defraud the revenues, deceive the courts, or mislead any
revenue officer or other person, any cedula certificate issued to any
other person, shall be fined in a sum not exceeding two hundred pesos,
or be imprisoned in the discretion of the court for a term not
exceeding six months.
Sec. 167. Falsification or Counterfeiting of Stamp
or Cedula Certificate. — 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 previously used,
or who alters the written or printed figures or letters or cancellation
marks on any stamp previously used, or who has in his possession any
such false, counterfeit, restored, or altered stamp, die, or cedula for
the purpose of using the same in the payment of internal revenue or in
securing any exemption or privilege conferred by this Act, or who
procures the commission of any such offense by another, shall for each
offense be fined in a sum not less than two hundred pesos nor more than
five thousand pesos, and imprisoned for a term not less than two months
nor more than five years, in the discretion of the court.
Sec. 168. Failure to Affix and Cancel Documentary
Stamp. — Any person who fails to affix and cancel the requisite stamp
or stamps to any document at the time required shall be subject to a
fine of not more than two hundred pesos.
Sec. 169. Unlawful Pursuit of Business or
Occupation. — 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 any manufactured
product of tobacco, without having paid the privilege tax therefor as
required by law, shall, in addition to being liable for the payment of
such tax, be punished by a fine in a sum not less than two hundred
pesos nor more than two thousand pesos or by imprisonment for a term
not exceeding six months, or both, in the discretion of the court.
And any person who carries on any other business, or pursues any
calling for which a fixed privilege tax is imposed without paying such
tax as required by law shall in addition to being liable to the payment
of such tax, be punished by a fine in a sum not exceeding one thousand
pesos or by imprisonment for a term not exceeding six months, or both,
in the discretion of the court.
Sec. 170. Obstruction of Internal-Revenue Officer
in Inspection of Taxable Articles. — Any owner, agent, superintendent,
or other person in charge of a house, building, or place where articles
subject to an internal-revenue tax are produced or kept, who refuses to
admit any internal-revenue officer having authority to examine such
articles, or who shall forcibly obstruct or attempt to obstruct any
such officer or shall prevent him from making such examination, shall
be punished by a fine not exceeding two thousand pesos or by
imprisonment not exceeding two years, or both, in the discretion of the
court.
Sec. 171. Unlawful Use of Denatured Alcohol. — Any
person who, for the purpose of manufacturing any beverage, uses
denatured alcohol or alcohol withdrawn from bond for industrial uses,
or who, knowingly sells any beverage made in whole or in part from such
alcohol, or who uses such alcohol for the manufacture of liquid
medicinal preparations, or knowingly sells such preparations containing
as an ingredient non-taxpaid alcohol, shall on conviction be fined not
more than one thousand pesos or be imprisoned for not more than one
year, or both.
Any person who shall unlawfully recover or attempt to recover by
redistillation or other process any denatured alcohol or who knowingly
uses, sells, conceals, or otherwise disposes of alcohol so recovered or
redistilled shall be subject to the same penalty as above provided.
Sec. 172. Forfeiture of Goods Illegally Stored or
Removed. — All articles subject to a specific tax which are stored or
allowed to remain in a distillery, distillery warehouse, bonded
warehouse, or other place where made, after the tax thereon has been
paid shall be forfeited; and all such articles unlawfully removed from
any such place without the payment of the required tax shall likewise
be forfeited.
Sec. 173. Forfeiture of Property Used in
Unlicensed Business. — All chattels, machinery, and removable fixtures
of any sort used in the production of distilled spirits, cigars,
cigarettes, or other manufactured products of tobacco, when the
required tax has not been paid for such business, shall be forfeited.
Sec. 174. Unlawful Removal of Articles without
Payment of Tax. — Any manufacturer, owner, or person in charge of any
article subject to a specific tax who removes or allows or procures the
unlawful removal of any such article from the place of manufacture or
bonded warehouse upon which article the specific tax has not been paid
in the time and manner required, and every person who knowingly aids or
abets in the removal of such articles as aforesaid, or conceals the
same after illegal removal, shall for the first offense be punished by
a fine of not more than one thousand pesos or imprisonment not longer
than six months, or both.
Every manufacturer so offending, shall, before continuing or resuming
business, execute a bond in double the amount of his original bond and
containing the same conditions.
Sec. 175. Same; Punishment for Subsequent Offense.
— In case of reincidence the offender under the preceding section shall
be punished by imprisonment for not less than one month nor more than
two years; and if the offense be committed by the owner or the
manufacturer, or by his connivance, the factory and the ground upon
which it stands, including the machinery and apparatus used in and
about the business, shall be forfeited to the Government.
Sec. 176. Unlicensed Signs, Signboards or
Billboards. — Any person who shall erect, construct, maintain, display,
or expose a sign, signboard, or billboard without first procuring a
license therefor as prescribed in this Act shall be fined not exceeding
one hundred pesos or be imprisoned not exceeding one month, or both, in
the discretion of the court.
Sec. 177. Shipment of Liquor or Tobacco Under
False Name or Brand. — Any person who ships, transports, or removes
spirituous or fermented liquors, wines, or tobacco, under any other
than the proper name or brand known to the trade as designating the
kind and quality of the contents of the cask or package containing the
same, or causes such act to be done, shall be subject to a fine of five
hundred pesos, and in addition the article or articles so transported
or removed shall be forfeited.
Sec. 178. Procuring Unlawful Divulgence of Trade
Secrets. — Any person who causes or procures an officer or employee of
the Bureau of Internal Revenue to divulge any confidential information
regarding the business of any taxpayer knowledge of which was acquired
by him in the discharge of his official duties and which it is unlawful
for him to reveal, shall be fined in a sum of not more than two
thousand pesos or be imprisoned for a term of not less than six months
nor more than five years, or both.
Sec. 179. Fraudulent Practices Relative to Weights
and Measures. — Any person other than an official sealer of weights and
measures who places an official tag or seal upon any instrument of
weight or measure, or attaches it thereto, and any person who
fraudulently imitates any mark, stamp, brand, tag, or other
characteristic sign used to indicate that weights and measures have
been officially sealed; or who alters in any way the certificate given
by the sealer as an acknowledgment that the weights and measures
mentioned therein have been duly sealed, or who makes or knowingly
sells or uses any false or counterfeit stamp, tag, certificate, or
license, or any die for printing or making stamps, tags, certificates,
or licenses, which is an imitation of or purports to be a lawful stamp,
tag, certificate, or license of the kind required by the provisions of
this Act, or who alters the written or printed figures or letters on
any stamp, tag, certificate, or license used or issued or who has in
his possession any such false, counterfeit, restored or altered stamp,
tag, certificate, or license for the purpose of use or reuse of the
same in the payment of fees or charges imposed in this Act, or who
procures the commission of any such offense by another, shall for each
such offense be fined not less than two hundred pesos nor more than ten
thousand pesos and shall be imprisoned for not less than one month nor
more than five years, in the discretion of the court.
Sec. 180. Unlawful Possession or Use of Instrument
not Sealed within Twelve Months. — Any person making a practice or
buying or selling goods by weight or measure, or of furnishing services
the value of which is estimated by weight or measure, who has in his
possession without permit any scale, balance, weight, or measure which
has not been officially sealed within twelve months, and any person who
uses in any purchase or sale or in estimating the value of any service
furnished any such instrument that has not been officially sealed
within the same period shall be punished by a fine not exceeding five
hundred pesos or by imprisonment for not exceeding one year, or by
both, in the discretion of the court: Provided, That if such scale,
balance, weight, or measure so used has been officially sealed at some
previous time and the seal and tag officially affixed thereto remain
intact and in the same position and condition in which they were placed
by the official sealer, and the instrument is found not to have been
altered or rendered inaccurate but still to be sufficiently accurate to
warrant its being sealed without repairs or alteration such instrument
shall, if presented for sealing promptly on demand of any authorized
sealer or inspector of weights and measures, be sealed, and the owner,
possessor, or user of the same shall be subject to no penalty except a
surcharge equal to five times the regular fee fixed by law for the
sealing of an instrument of its class, this surcharge to be collected
and accounted for by the same official and in the same manner as the
regular fees for sealing such instruments.
Sec. 181. Alteration or Fraudulent Use of
Instrument of Weight and Measure. — Any person who with fraudulent
intent alters any scale or balance, weight, or measure after it is
officially sealed, or who knowingly uses any false scale or balance,
weight or measure, whether sealed or not, shall be punished by a fine
of not less than two hundred pesos nor more than four thousand pesos or
by imprisonment for not less than three months nor more than two years,
or by both such fine and imprisonment, in the discretion of the court.
Any person who fraudulently gives short weight or measure in the making
of a sale, or who fraudulently takes excessive weight or measure in the
making of a purchase, or who, assuming to determine truly the weight or
measure of any article bought or sold by weight or measure,
fraudulently misrepresents the weight or measure thereof, shall be
punished by a fine of not less than fifty pesos nor more than two
thousand pesos or by imprisonment for not less than three months nor
more than two years, or by both such fine and imprisonment, in the
discretion of the court; and any violation of this paragraph by an
employee having authority to determine weight or measure in sales or
purchases effected in behalf of his employer shall be prima facie
evidence of the guilt of such employer also.
Sec. 182. Payment of Informers. — Any person,
except an internal-revenue agent or officer or other public official
engaged in sealing or inspecting weights and measures who voluntarily
gives information leading to the arrest and conviction of anyone
violating the provisions in this Act relative to weights and measures
shall be rewarded in the sum of twenty pesos or in the sum of one
hundred pesos if the person convicted is a public officer or employee
concerned with the sealing or inspecting of weights and measures. The
informer shall be ascertained and stated in the judgment of the court
and the reward paid shall be a charge against the funds of the province
in which the arrest and conviction is had and the municipality
concerned, in the proportion in which the weights and measures fees
accrue to each, but to prevent delay in payment and province shall
initially pay the entire amount and subsequently secure reimbursement
of the municipality's share.
Sec. 183. Illegal Sale of Skimmed Milk; Penalty. —
Any person who sells or puts on sale in the Philippine Islands any
condensed skimmed milk or milk from which the fat has been removed
totally or in part, on which the tax imposed in section seventy-two of
this Act has not been fully paid, or which does not bear the legend
provided for in section one hundred and twenty-four hereof, shall, upon
conviction thereof, be punished by a fine of not exceeding six hundred
pesos, or by imprisonment not exceeding six months, or both.
Sec. 184. Failure to Keep Pharmacist's Record. — A
physician, dentist, veterinarian, pharmacists, or second-class
pharmacist who fails to keep a true and correct record of prohibited
drugs received and dispensed or transferred by him, as required by law
and prescribed in the Regulations of the Bureau of Internal Revenue, or
who fails to allow the immediate inspection of his entire stock of such
drugs upon the demand of any internal-revenue officer or agent shall be
punished by a fine of not less than fifty nor more than one thousand
pesos.
Sec. 185. Violation of Internal Revenue Law or
Regulation in General; Penalty. — A person who violates any provision
of this Act or any lawful regulation of the Bureau of Internal Revenue
may in conformity with the same, for which delinquency no specific
penalty is provided by law, shall be punished by a fine of not more
than three hundred pesos or by imprisonment for not more than six
months, or both, in the discretion of the court.
CHAPTER VI
FINAL PROVISIONS
Sec. 186. Legal Remedies as Affected by Present
Law. — Nothing herein contained shall affect existing civil remedies in
actions or proceedings already begun; but the civil remedies herein
provided shall be available for the collection of any industrial or
internal-revenue tax owing to the Government at the time this Act takes
effect, where no action or proceeding under prior laws shall be taken
pending.
Prosecution for criminal offenses heretofore committed shall be under
the law existing at the time of the commission of such offenses.
Sec. 187. Acts Repealed. — Act Numbered Eleven
hundred and eighty-nine and all Acts amendatory thereto (except
sections one hundred and forty-eight, one hundred and forty-nine, and
one hundred and fifty of said Act and their amendments), Act Numbered
Fifteen hundred and nineteen and all Acts amendatory thereto (except
section nineteen of said Act) and sections six to thirteen, inclusive,
of Act Numbered One thousand and forty-five, and all other laws and
parts of laws in conflict herewith are hereby repealed. No law or part
of law heretofore repealed by any provision thus abrogated shall be
deemed to be impliedly revived by the repeal herein effected.
Sec. 188. Date of Taking Effect of this Act. —
This Act shall be in effect on and after the first day of July,
nineteen hundred and fourteen.
Footnotes
1. Repealing 1045 (in part), 1189 (in part),
1278, 1338, 1370, 1417, 1471, 1519 (in part), 1570, 1571, 1787, 1843,
1861, 1897, 1899, 1936, 1940, 2015, 2117, 2126, 2211, 2227, 2251.
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