AN ACT TO PROVIDE REVENUE FOR THE SUPPORT OF THE INSULAR, PROVINCIAL, AND MUNICIPAL GOVERNMENTS, BY INTERNAL TAXATION.

• Number: Act No. 1189
• Sections: 153

Preamble

By authority of the United States, be it enacted by the Philippine Commission, that:

GENERAL PROVISIONS AND OFFICERS OF INTERNAL REVENUE.

SOURCES OF REVENUE.

ASSESSMENTS AND COLLECTIONS.

LICENSES.

DISTILLED SPIRITS.

FERMENTED LIQUORS.

MANUFACTURER TOBACCO AND SNUFF.

CIGARS AND CIGARETTES.

TAX ON MATCHES.

BANKS AND BANKERS.

STAMP TAXES ON SPECIFIED OBJECTS.

POLL OR CEDULA PERSONAL TAX.

TAXATION OF INSURANCE COMPANIES.

TAX ON FOREST PRODUCTS.

TAX ON VALID PERFECTED MINING CONCESSIONS GRANTED PRIOR TO APRIL ELEVENTH, EIGHTEEN HUNDRED AND NINETY-NINE.

TAX ON BUSINESS, MANUFACTURE, AND OCCUPATION.

DISTRIBUTION OF TAXES AND REPEAL OF EXISTING PROVISIONS.

Section 1

SECTION 1. The short title of this Act shall be "The Internal Revenue Law of Nineteen hundred and four.

Section 2

SEC. 2. There shall be established a Bureau of Internal Revenue, the chief officer of which Bureau shall be known as the Collector of Internal Revenue. The shall be appointed by the Civil Governor, with the advice and consent of the Philippine Commission, and shall receive a salary at the rate of eight thousand pesos per annum.

The Bureau of Internal Revenue shall belong to the Department of Finance and Justice.

Section 3

SEC. 3. The Collector of Internal Revenue under the direction of the Secretary of Finance and Justice, shall have general super-intendence of the assessment and collection of all taxes and excises imposed by this Act or by any Act amendatory thereof, and shall perform such other duties as may be required by law.

Section 4

SEC. 4. The Collector of Internal Revenue shall from time to time and as often as lie deems necessary and not less than once each year, make and submit to the Secretary of Finance and Justice, for transmission to the Philippine Commission, a report of all the proceedings of the Bureau of Internal Revenue and collections and disbursements therein, specifying the source of each item of revenue and the classes of disbursements, will such recommendations as he may see fit to make, and likewise an estimate of the ' expenses of collecting the internal revenue for each province. The expenses of maintaining the office of the Collector of Internal Revenue, including all subordinates and employees of that office, shall be an insular expense to be borne by the Insular Government. But all expenses incurred by provincial treasurers, in pursuance of duties imposed upon them by this Act, shall lie borne by the-several provincial treasuries.

Section 5

SEC. 5. The Collector of Internal Revenue shall prepare and distribute regulations, directions, and instructions. not in conflict with the provisions of this Act, pertaining to the assessment and collection of internal revenue, and shall provide the necessary forms, instruments, and implements for the purposes aforesaid, and shall distribute, in the manner in this Act provided, adhesive stamps and dies for expressing and denoting the several stamp taxes, or in the case of ad valorem taxes the amount thereof; such regulations, directions, and instructions may be general or local in character and when approved by the Secretary of Finance and Justice shall have the force and effect of law, until revoked or amended.

Section 6

SEC. 6. The necessary adhesive stamps for the payment of taxes in this Act provided and the necessary blank cedulas shall he printed under the direction of the Treasurer of the Philippine Islands in such designs, denominations, and amounts as the Collector of Internal Revenue shall designate, and shall remain in the custody of the Treasurer of the Philippine Islands and he shall be responsible for them until disposed of as in this Act provided. The Collector of Internal Revenue shall make requisition from time to time upon the Treasurer for such number of blank cedulas and such number and denomination of stamps as may be required, and shall distribute them to provincial treasurers or other collectors of internal revenue as the law requires. The Insular Treasurer and the Collector of Internal Revenue shall each make monthly reports to the Auditor of the number of blank cedillas and stamps received and issued during the preceding month and the number on hand at the close of the month.

Section 7

SEC. 7. The Collector of Internal Revenue before entering upon the duties of his office shall execute a bond to the Insular Government in the sum of sixty thousand pesos, with sufficient surety or sureties, to be approved by and filed with the Insular Treasurer " conditioned for the faithful performance of the duties of his office and the due accounting for all stamps, cedulas, moneys, and other property that shall come into his possession by virtue thereof. The ', Insular Treasurer may, from time to time, require that the bond shall be increased or decreased, according as the exigencies of the service require.

Section 8

SEC. 8. Each provincial treasurer shall transmit to the Insular Treasurer on or before the fifth day of each calendar month all money collected by him during the preceding month on account of internal revenues, except as otherwise specifically provided in this Act. No money so collected, and by this Act properly belonging to the Insular Treasury, shall be retained by any provincial treasurer for the payment of salaries and expenses of his office nor for any other purpose.

Section 9

SEC. 9. The bond of each provincial treasurer executed by him, as provided for in the Provincial Government Act and its amendments, shall stand as security that he shall faithfully perform the duties of his office as a collector of internal revenue according to law and shall justly and faithfully account for and hand over all public moneys which may come into his possession as such collector.

Section 10

SEC. 10. The stamps for the payment of internal-revenue taxes issued to any provincial treasurer shall be charged to his account at the full face value thereof, and every provincial treasurer shall make a monthly return to the Collector of Internal Revenue of all stamps sold by him and account for the amount of taxes collected; and even provincial treasurer shall be credited with the full value of taxes collected and remitted by him. The returns herein required oil provincial treasurers shall be upon such forms as the Collector of Internal Revenue may prescribe.

Section 11

SEC. 11. The Collector of Internal Revenue, with the consent of the Secretary of Finance and Justice, whenever in his judgment the good of the service so requires, may employ such number of competent persons as may be necessary to act as inspectors and revenue agents at an annual salary not exceeding four thousand ' pesos each, and he may at his discretion assign any such inspector or revenue agent to duty under the direction oil any officer of internal revenue or to such other special duty as he may deem necessary, and he may at any time assign any employee in the Bureau of Internal Revenue to perform the duties of inspector or revenue agent.

Section 12

SEC. 12. Every such inspector or revenue agent shall, under the direction of the Collector of Internal Revenue, see that all laws and regulations relative to the collection of internal-revenue taxes are faithfully executed and complied with and shall aid in the prevention, detection, and punishment of any frauds thereto, and shall examine as to the efficiency of all officers of internal revenue. Ho shall report in writing to the Collector of Internal Revenue any neglect of duty, incompetency, delinquency, or malfeasance in office of any internal-revenue officer of which he may obtain knowledge, with a statement of all the facts in each case and any evidence sustaining the same. He may, by notice in writing, suspend from duty any gauger or storekeeper. In case of the suspension of any gauger or storekeeper he shall immediately notify the provincial treasurer of the proper province and the Collector of Internal Revenue and within three days hereafter report his action and his reasons therefor in writing to 11 if Collector of Internal Revenue. Should he discover any neglect of duty, incompetency, delinquency, or malfeasance in office of any provincial treasurer in the performance of his duty as a collector of internal revenue, he shall immediately report the facts to the Collector of Internal Revenue and to the Insular Treasurer in writing; and the Collector of Internal Revenue immediately upon receipt of such report shall take all necessary steps to protect, the revenue and shall transmit such report to the Secretary of .Finance and Justice. All necessary traveling expenses which revenue agents and inspectors incur in the public service shall be paid monthly from Insular funds.

Section 13

SEC. 13. There shall be appointed by the Collector of Internal Revenue, with the consent of the Secretary of .Finance and Justice, such number of internal-revenue storekeepers as may be necessary, who shall, each receive such compensation, not to exceed ten pesos per day, as he shall determine with the approval of the Secretary of Finance and Justice.

Section 14

SEC. 14. Every storekeeper shall take an oath faithfully to perform the duties of his office and shall give a bond to the Insular Government with sufficient surety or sureties. to be approved by the Insular Treasurer, for the faithful discharge of his duties, in such form and for such amount as the Insular Treasurer may

prescribe. Storekeepers shall be assigned, by the Collector of Internal Revenue to such bonded or manufacturer's warehouse established by law as he ma}" deem expedient, and any storekeeper may be transferred by the Collector of Infernal Revenue from one warehouse to another.

Section 15

SEC. 15. The Collector of Internal Revenue, with the consent of the Secretary of Finance and Justice, may appoint as many internal-revenue gaugers as he deems necessary for the service, who shall each take oath faithfully to perform his duties and shall give bond to the Insular Government for the faithful discharge of the duties assigned to him by law or regulations, which bond shall have sufficient surety or sureties and shall be approved by and filed with the Insular Treasure, who shall fix the amount thereof. The duties of every such gauger shall be performed under the supervision of the provincial treasurer of the province to which he may be assigned, or of a collector of customs in charge of: exports and imports in any port of entry to which he may be assigned.

Section 16

SEC. 16. Gaugers shall be entitled to receive such fees, to be determined by the quantity gauged, as mav be proscribed by the Collector of Internal Revenue by general order; and said fees together with their actual and necessary traveling expenses shall be paid monthly from Insular funds.

Section 17

SEC. 17. Every internal-revenue officer whose payment, charges, salary, or compensation is composed wholly or in part of fees, allowances, or rewards from whatever source derived, shall be required to render to the Collector of Internal Revenue under regulations to be approved by the Secretary of Finance and Justice, a statement under oath setting forth the entire amount of such fees, emoluments, or rewards of whatever nature or from whatever source received during the time for which said statement is rendered, and any false statement knowingly and willfully rendered shall be deemed willful perjury and punished in the manner prescribed by law for the crime of perjury; and any neglect or omission to render such statement shall be punished by a fine in a sum of not more than one thousand pesos."

Section 18

SEC. 18. The Collector of Internal Revenue may, with the consent of-the Secretary of Finance and Justice, impose the duties of storekeeper and gauger upon one officer where the amount of spirits or other article produced at the distillery or other manufactory is not sufficient, in his judgment, to warrant the employment of two officers to perform the separate duties of storekeeper and gauger. The compensation for said storekeeper and gauger shall be that of storekeeper only.

Section 19

SEC. 19. It shall be the duty of every provincial treasurer, in case he finds sufficient evidence of a violation of the provisions of this Act, such that a criminal prosecution or proceeding for forfeiture ought to be instituted, to report within ten days to the fiscal of the province a statement of all the facts and circumstances of the case within his knowledge, together with the name of the offender and the names of the witnesses. It shall likewise be the duty of every revenue agent or inspector to make such report to the provincial fiscal in cases of the character named in this section that may come to his knowledge in the performance of his duties; the revenue agent, inspector, or provincial treasurer, as the case may be, shall, at the time of making such report to the fiscal, forward a duplicate thereof to the Collector of Internal Revenue. It shall be the duty of the fiscal in such case to institute and conduct the prosecution, should the facts warrant the same.

Section 20

SEC. 20. Every provincial treasurer and his authorized deputies and every inspector and revenue agent is authorized to summon witnesses, administer oaths, and to take evidence touching any part of the administration of the law with which he is charged or where such oaths or evidence are authorized by law to be taken. In pursuance of the provisions of this section the officer taking the testimony may issue a subpoena and enforce the attendance of witnesses in the manner provided in Chapter XVI of Act Numbered One hundred and ninety.

Section 21

SEC. 21. Any officer of internal revenue may be specially authorized by the Collector of internal Revenue to seize any property which may be by law subject to seizure, but such special authority must be limited in respect to the time, place, kind, and class of property as the Collector of Internal Revenue may specify.

Section 22

SEC. 22. Any officer of internal revenue who divulges to any person or makes known in any other manner than may be provided. by law any information derived by him in the performance of his official duties, the trade secrets, operation, style of work, or apparatus of any manufacturer or producer visited by him in the discharge of his official duties shall be lined in a sum not more than two thousand pesos and be imprisoned for a term not less than one nor more than five years.

Section 23

SEC. 23. Any internal-revenue officer who is or shall become interested, directly or indirectly, in the manufacture, sale, export, or import of tobacco, snuff, or cigars, or in the distilling, sale, import, export, rectification, or redistillation of distilled spirits, or in the manufacture, export, import, or sale of fermented liquors, shall be lined in a sum not less than one thousand pesos nor more than ten thousand pesos, at the discretion of the court.

Section 24

SEC. 24. Every officer, employee, or agent appointed and acting under the authority of this Act—

First. Who is guilty of any extortion or willful oppression under color of law; or,

Second. Who knowingly demands other or greater sums than are authorized by law, or receives any fees, compensation, or reward except as by law prescribed for the performance of any duty; or,

Third. Who willfully neglects to give receipts for any sums collected in the performance of his duties, except for sums received for cedulas or stamps sold,, or to perform any of the duties enjoined on him by law; or,

Fourth. Who conspires or colludes with any other person to', defraud the revenues; or,

Fifth. Who willfully makes opportunity for any person to defraud the revenues; or,

Sixth. Who does or omits to do any act with intent to enable any other person to defraud the revenues; or.

Seventh. Who negligently or designedly permits the violation. of the law by any other person; or.

Eighth. Who makes or signs any false entries in any book, or makes or signs any false certificate in any case where he is required to make entry, certificate, or return; or,

Ninth. Who, having knowledge or information of the violation of any provision of this Act by any person, or of a fraud committed by any person on the revenues, fails to report in writing such knowledge or information to his next superior officer and to the Collector of Internal Revenue; or.

Tenth. Who demands or accepts, or attempts to collect, directly or indirectly, as payment, gift, or otherwise, any sum of money or other thing of value for the compromise, adjustment, or settlement of any charge or complaint for any violation or alleged violation of law, except; as expressly authorized by law, shall be fined in a sum not less than four hundred pesos nor more than ten thousand pesos, or be imprisoned for a term not less than six months nor more than five years, or be punished by both line and imprisonment, in the discretion of the court. One-half of any fine so imposed shall be for the use of the Insular Government and the other half for the use of the informer, who shall be ascertained and stated in the judgment of the court.

a Provincial treasurers and their deputies and employees shall be deemed to be officers or agents acting under the authority of this Act

Section 25

SEC. 25. The following sources of revenue shall be included in the internal revenue for the Philippine Islands, and the taxes imposed shall be collected by the Collector of Internal Revenue through the provincial treasurers of the several provinces or their authorized deputies, or as otherwise provided, by law, and the revenue obtained therefrom shall be devoted to the support of the several provinces and of the Insular and municipal governments in the manner in this Act provided:

Certain license tax.

Tax on distilled spirits.

Tax on fermented liquors.

Tax on manufactured tobacco and snuff.

Tax on cigars and cigarettes.

Tax on matches.

Tax on banks and bankers.

Stamp taxes on specified objects.

Poll or cedula personal tax.

Tax on insurance companies.

Tax on forestry products.

Tax on valid perfected mining concessions granted prior to April eleventh, eighteen hundred and ninety-nine.

Tax on business, manufacture, and occupation.

Section 26

SEC. 26. Every provincial treasurer shall from time to time t proceed himself, or cause his deputies to proceed, through every part. of his province and inquire after and concerning all persons therein who are liable to pay a license tax and all persons owning or having the care and management of any object liable to pay any tax, and shall make a list of such persons and shall enumerate . said objects in the manner and at the time provided herein or prescribed in regulations by the Collector of Internal Revenue.

Section 27

SEC. 27. All taxes required by this Act to be paid upon the manufacture or sale of distilled spirits, rectified or manufactured liquor, imitations of wines, fermented liquors, manufactured tobacco and snuff, cigars, cigarettes, and matches, and upon the execution of bonds, debentures, certificates of stock and indebtedness, or other documents, instruments, or papers, certificates, receipts, contracts, insurance bonds, tickets, and other written instruments of every kind which are subject to tax, and upon all acts, pursuits, and trades subject to the taxes herein imposed, except the poll taxes, shall be paid by the affixture of internal-revenue stamps to be purchased, attached, and canceled in the manner hereinafter provided.

Section 28

SEC 28. The payment of all taxes imposed by this Act on articles manufactured and removed from the place of production or manufacture or bonded warehouse, for sale or consumption in the Philippine Islands, shall be made at the time of such removal by Hie affixture of stamps to manufacturers' official invoice sheets and in the following manner:

At the time of the initial assessment of all manufactures, assessment rolls shall be compiled in duplicate by each provincial treasurer, one copy of which he shall keep in his office subject to inspection and the other copy he shall transmit to the Collector of Internal Revenue for file in the Bureau of Internal Revenue. The different kinds of manufacturers shall be listed separately on said rolls, and each separate list shall be numbered consecutively in the chronological order in which the manufacturers contained therein are assessed or engage in such manufacturing business after the time of the initial assessment. No two manufacturers in the; same provincial district and of the same kind of articles shall he given the same assessment number.

The Collector of Internal Revenue shall cause to be prepared a sufficient number of manufacturers' invoice books, each containing fifty invoice sheets, and a sufficient number of manufacturers' register books, and shall from time to time supply provincial treasurers with such number of sets of said books as may be required in each locality by manufacturers of distilled spirits, cigars, and oilier articles subject to the taxes imposed by this Act. Whenever any manufacturer shall have qualified himself as such by executing bond, registering his factory, and shall have complied with all the other requirements for engaging in such business as arc prescribed in this Act, the provincial treasurer within whose district the manufactory is situated, or other internal-revenue officer whom said treasurer or the Collector of Internal Revenue shall assign to such duty, shall deliver to said manufacturer a set of bodes consisting of one register book and one invoice book, on each page of which shall be stamped the assessment number of said manufacturer and the paragraph number or name of the articles to be manufactured at said maim factory; and each leaf in said books shall be authenticated by the stamp or seal of the Collector of Internal Revenue, and said books and the invoice sheet removed therefrom and the invoice stubs attached thereto as provided for herein shall be official or public records or documents within the meaning of the lav and shall be so recognized by any tribunal before which they may be produced in evidence.

There shall in addition be a fly leaf in each register and invoice book on which shall be entered at the time of delivery to each manufacturer the assessment number and date of delivery of the books, the name of the owner of the manufactory and of the manager thereof, and a certificate signed by the owner or manager, attested by the provincial treasurer or oilier internal-revenue officer delivering the books, to the effect that all of the provisions of the law and regulations governing the operations of his manufactory, the use of said register and invoice hooks, the affixing of stamps to invoices, and the manner of the shipment of goods from the manufactory, have been fully explained to such manufacturer or manager, that he fully understands ihe same and knows the penalties and punishments imposed for the disregard, thereof, and promising strict compliance therewith. Said books shall be prepared and printed at the expense of the Insular Government. Both the invoice and register book shall be kept on the manufactory premises and shall at all hours of day and night be open to the inspection of any internal-revenue officer. The invoice sheets shall be numbered consecutively from one to fifty in the first book delivered to each manufacturer, fifty-one to one hundred in the second book, and so on indefinitely for all subsequent invoice books required by each manufacturer.

Each invoice shall contain a full description of all taxable articles removed from any manufactory, date and hour of removal, name and residence of consignee, and a certificate to be signed by the owner or manager of the manufactory as to the truth and completeness of all entries made on such invoice sheet; on the outside edge of each invoice sheet there shall be a detachable notification' stub stamped with the assessment and invoice numbers to correspond with the invoice proper, and there shall be an inside stub to each invoice sheet from which the invoice shall be detachable and which shall be stamped with the same set of assessment and invoice numbers as are contained on the corresponding invoice and outside stub; between the invoice proper and the inside stub there shall be ruled two vertical lines forming a column of the width of an internal-revenue stamp and running from the top to the bottom of the sheet, and along the center of said column there shall be a dotted or broken line; both of the stubs shall have thereon forms for the entry in brief of all the data contained in the invoice proper and for the signature of the owner or manager of the manufactory; and all such invoice sheets and their corresponding stubs shall be substantially the same in form as the sample invoice sheet appearing at the end of this article, and on the back of the outside or notification stub there shall be a form for the entry of the denominative value and serial number of each stamp sold thereon, and on the back of the invoice' proper there shall be printed a tariff of the rates of taxes imposed, on the various articles by this Act and a brief of all the provisions of law of interest to manufacturers whose wares may be subject to said taxes.

Before any owner or manager of a manufactory shall remove, any article from the manufactory premises or from any bonded warehouse provided in this Act he shall brand or otherwise mark in a permanent manner on each package to be removed his assessment number and the number of the next blank invoice sheet in his book, and shall make proper entry in all of the blank spaces in the next blank invoice in his book and in the stubs corresponding thereto; in the notification stub he shall fill in the proper number each of the stamps of the highest denominative values which can be utilized in the payment of the tax on the articles to be removed, shall sign said stub, detach it from the invoice proper, and send it to the provincial treasurer or his deputy within the province in which the manufactory is located, and shall affix stamps of the proper value securely and without lapping in the vertical column between the invoice proper and the inside stub, shall cancel each stamp by writing or stamping the date across each end thereof and next to the serial number thereon, and in such manner that part of the writing or stamping shall be on the stamp and part on the invoice or stub; be shall then enter in his register bonk on the "credit" side thereof and in the proper columns a full description of said goods, to include the day and hour of removal, invoice number, and contents of each package in both gauge and proof liters or in other count or measurement or quantity, as the case may be, the total value of stamps affixed to the invoice and where purchased, name of consignee and residence, and shall sign his name to said entry; he shall then remove the invoice proper from the stab by cutting along the dotted line through the stamps in such manner as to leave half of each stamp on the stub in the book, there to remain as a permanent record, and the other half of each stamp attached to the invoice proper, which shall at once be delivered to the carrier of the goods, or attached to the bill of lading when the goods go by rail or by boat: Provided. That goods may be removed from a manufactory without first paving the tax to such bonded warehouses, not exceeding one in each province, as may be authorized by the Collector of Internal Revenue, and the tax thereon shall be paid only when such goods are removed from said bonded warehouses. The Collector of Internal .Revenue is authorized to issue such rules and regulations and to exact such bond as in his discretion may be necessary to secure the collection of the tax.

At the time of the delivery of each such stamped invoice to a carrier it shall be the duty of the manufacturer to inform such carrier that he is under legal obligation to retain such invoice in his possession continuously, along with the goods, until they arc delivered to the consignee, and that it then becomes his duty to deliver said invoice, along with the goods, to said consignee, and that through failure so to do such carrier renders himself liable to fine, punishment, and forfeiture, as hereinafter provided: Provided, That in case a manufacturer shall remove his goods from the place of manufacture to a sales warehouse of his own he shall comply with all the requirements above stated except that which pertains to the delivery to the carrier or the attaching to the bill of lading of the proper invoice, but in this case the invoice shall accompany the goods and shall be at once delivered to the custodian of the warehouse.

At the time of the original assessment of each and every manufactory there shall be entered on the "debit" side of each register book, as the first item therein and in the proper columns, a description of all stocks of goods subject to the tax on hand on the date of said assessment, and each package of said stock shall at the time of said initial assessment be given a serial number beginning with number one and each, number preceded by a zero, and said serial numbers shall as aforesaid be entered in the register book with the other description of said packages and their contents: and each manufacturer shall, from day to day, or on such days as his manufactory is in operation, enter in said register book on the "debit" side and in the proper columns thereof the day and number of hours, worked, the serial number of each package produced and description: of its contents and a statement of the denominative value and serial number of each stamp purchased on each day and where purchased; and each manufacture shall at the time of any removal of goods make the proper entries on the '"credit'" side of said register book in the manner provided in a previous paragraph of this section, and shall sign his name opposite each entry made, whether on the "debit" or ''credit'' side as aforesaid in said register book, and shall at the foot of each page certify to the truth and completeness of all entries made thereon. And each manufacturer shall promptly at the end of each month and not later than the fifth day of the next succeeding month make and transmit to the provincial treasurer of the district within which his manufactory is situate, a true and exact transcript of all entries made on both the “credit" and "debit" sides of his register book during the month last past, and shall strike a balance in said register book and on said transcript sheets showing the number of packages and their contents remaining on hand, if any, and said balance of stock shall be carried over as the first entry for the next succeeding month on the "debit" side of said register book. Each manufacturer shall at the font of each transcript sheet certify to the truth and correctness of all of the entries thereon and as being exact copies of the original entries contained in his register book. The "debit" and "credit'" pages of manufacturers' register books shall be substantially the same in form as the samples appearing at the end of this article, and the transcript forms provided for above shall be identical in form with said "debit" and "credit" pages and shall be supplied by the Collector of Internal Revenue to manufacturers through the respective provincial treasurers.

Provincial treasurers and their deputies shall make entry in the proper columns in their monthly itemized statement of stamps sold, the manufacturer's name and assessment number and the denominative value and serial number of each stamp and date and hour of sale.

Goods removed from manufactories in the Philippine Islands for export to foreign countries, and which by provisions contained in this Act are exempted from the payment of the internal-revenue taxes imposed herein, shall nevertheless be entered as are all other goods on the invoice sheets, the stubs, and in the register books; but such invoice sheets need not have internal-revenue stamps affixed thereto, but in lieu thereof the manufacturer shall write plainly across the face of the invoice proper and on both stubs and note in his register book the words "For export;" the notification stub shall be signed by the manufacturer with the stamp list unfilled, the inside stub shall be left attached to the book, and the invoice proper shall be sent along with the goods attached to the export bond provided for in this article, and the proper assessment and invoice numbers shall be branded or otherwise permanently marked on such goods removed for export in the same manner as though said goods were intended for domestic consumption, and in addition on each package of such goods shall be' plainly branded or otherwise permanently marked the words "For export."

In cases where the manufactory and warehouse are located outside the provincial capital strict compliance with the provisions herein relating to the use of invoice books, notification stubs on invoices and register books may be waived by the Collector of Internal Revenue in his discretion and upon the recommendation of a provincial treasurer or other revenue officer; but in all such j cases of exception to the general rule the Collector of Internal Revenue shall prescribe special rules and instructions to govern each ease, and the manufacturer interested shall give bond in such sum as the Collector of Internal Revenue shall prescribe conditioned for the faithful compliance with such special rules and instructions.

Section 29

SEC. 29. The payment of all license taxes imposed by this Act for the sale of articles or on occupations shall be made by the affixture of internal-revenue stamps to license forms in the following manner:

The Collector of Internal

Revenue shall cause to be prepared and shall furnish through the

respective provincial treasurers to all dealers in articles, or other

persons whose occupations are subject to the license taxes imposed in

this Act, a sufficient number of license forms, each of which shall

be divided by a vertical and a horizontal line into four equal

squares or spaces; across the face of each license form shall be

printed or lithographed the figures denoting the calendar year for

which it is issued, and in the upper left-hand division the words

"January, February, March;" in the upper right-hand

division the words "April, May, June;" in the lower

left-hand division the words "July, August, September;" and

in the lower right-hand division the words "October, November.

December;" attached to each license there shall be four

requisition coupons, one marked for each quarter.

The provincial treasurer or other internal-revenue officer at the time of delivery of the license forms to the dealer or other person liable to pay the tax shall fill in the taxpayer's name, residence, and assessment number and annual tax, and shall date and sign his name and official title on said form and fill in the amount and denominative value of each stamp required in each of said four coupons in payment of the quarter's tax; or said assessment number and amount of quarter's tax may be printed or stamped in before issue from the Bureau of Internal Revenue. It shall be the duty of each license taxpayer promptly on the first day of each quarter to separate from his license the corresponding requisition coupon and transmit the same with the necessary purchase money to the provincial treasurer or his deputy within whose district he carries on his business or occupation, to secure the necessary stamps and affix the same in the proper division in his license form. All licenses shall be posted conspicuously in the taxpayer's place of business and no requisition coupon shall be detached therefrom until the tax for the quarter which it represents becomes due, and shall then only be detached for immediate transmission to the provincial treasurer or his deputy: Provided, That nothing herein contained shall be construed as prohibiting a dealer or other person from detaching two or more requisition coupons at the same time from his license form if done for the purpose of paying in advance two or more quarters of his license tax.

All requisition coupons so received by provincial treasurers shall be retained by them, the serial numbers and denominative values of the stamps sold indorsed thereon, proper entry made thereof in the itemized monthly sale of stamps, and such coupons shall be transmitted by the provincial treasurer at the end of each month to the. Collector of Internal Revenue. And all such license forms and their corresponding coupons shall be substantially the same in form as the sample license form appearing at the end of this article.

Section 30

SEC. 30. Wholesale dealers shall keep a record of all purchases and sales of articles subject to the payment of a license tax by virtue of the provisions of this Act, and shall, whenever so required by any internal-revenue officer, furnish a, statement of each and every sale they may have made to any wholesale, or retail dealer, and The name and residence of said wholesale or retail dealer; and all dealers shall carefully preserve and deliver or transmit to any internal-revenue officer, whenever so required, all invoices received by them from manufacturers, together with the fractional parts of stamps affixed thereto; and no dealer shall receive any article from a manufacturer unless the packages are each and every one of them properly branded or otherwise permanently marked, as required by this Act, and unless accompanied by an invoice properly made out, as required by the provisions of this section, with . stamps affixed sufficient in amount for the full payment of the tax imposed by this Act on such articles.

Section 31

SEC. 31. All dealers licenses with tin' stamps attached thereto at the end of the calendar year for which they were issued, all manufacturers' invoices with the fractional part of the stamps attached, and all exhausted manufacturers' invoice books containing the stamped stubs, shall be gathered up by the internal-revenue officers or otherwise transmitted in such manner and at such times as the Collector of Internal Revenue shall by regulation provide, and shall be permanently filed in the Bureau of Internal Revenue.

Section 32

SEC. 32. All license or other taxes imposed by this Act on a percentage basis of assessment shall be paid in such manner as the Collector of Internal Revenue, with the approval of the Secretary of Finance and Justice, may by regulation prescribe. All documentary taxes shall be paid' by the affixture and cancellation of stamps to documents the execution, registration, or certification of which is taxed by this Act.

Section 33

SEC. 33. Any manufacturer and any dealer or other person subject to an occupation tax as provided herein, and anv carrier who willfully disregards any of the provisions of this Act with intent to defraud the insular revenues, or who willfully assists in, cooperates with, or conceals any such disregard on the part of another of any of the provisions of this Act with intent to defraud, shall, if the fraud is actually perpetrated. he punished in such manner and suffer such penalties, fines, and forfeitures as are else-where in this Act provided in such cases of fraud; and if no actual fraud is consummated, any person attempting its perpetration shall be fined in a sum not less than one hundred pesos nor more than two hundred pesos, in the discretion of the court; and any such person who, with no apparent malicious intent, but through willful and inexcusable carelessness fails to comply with any of the provisions of this Act and thus makes opportunity for others to commit fraud, or by such conduct hampers the expeditious enforcement of the law, or who with fraudulent intent is guilty of petty frauds or minor delinquencies, and who has not been a previous offender, may be fined administratively by the Collector of Internal Revenue, with the approval of the Secretary of Finance and Justice, in a sum not less than twenty pesos nor more than one hundred pesos: and payment of such fine, administratively imposed, may he enforced by proper action in court if not, paid upon demand.

Section 34

SEC. 34. Every manufacturer of any of the articles made subject to the taxes imposed under Articles V to IX, inclusive, of this Act shall at the time of the original assessment, and all such manufacturers who may engage in such enterprises subsequent to the taking effect of this Act, shall, at the time of engaging in such enterprises, file with the treasurer of the province in which the manufactory is situated a bond, with surety or sureties to be approved by the provincial treasurer, in an amount equal, as nearly as can be estimated, to twenty per centum of the amount of taxes to be paid during an average year by such manufacturer on the output of his manufactory under the provisions of this Act. Every such bond shall be conditioned for the faithful compliance with all the provisions of this Act and with the regulations issued in accordance therewith and for the complete payment of all taxes lawfully accruing on the out put of such manufactory and of all fines and penalties imposed in accordance with the provisions of this Act: Provided, That in no event shall any such bond be required in an amount exceeding one hundred thousand pesos or less than two hundred pesos.

Section 35

SEC. 35. All distilled spirits, manufactured or fermented liquors, Imitation of wines, snuff, and manufactured or partially manufactured tobacco, cigars, cigarettes, and matches manufactured or partially manufactured in the Philippine Islands before the time of the taking effect of this Act for sale or consumption in the Philippine Islands, and which shall severally still be in the hands of the manufacturers thereof at the time of the taking effect of this Act, shall lie liable to the same taxes as are imposed herein on similar articles manufactured or partially manufactured after the time of the taking effect of this Act. The taxes on all such articles aforesaid in the possession of manufacturers at the time of the taking effect of this Act shall be paid in the same manner and "under the same regulations as are imposed and prescribed for the payment of taxes on similar articles manufactured or partially manufactured after the time of the taking effect of this Act.

Section 36

SEC. 36. All taxes imposed under this Act. on distilled, rectified, or manufactured spirits, fermented liquors, matches, cigars, cigarettes, or manufactured or partially manufactured tobacco, manufactured in the Philippine Islands for domestic sale or consumption, shall be paid at the time of the removal of such articles from the manufactory, or other bonded warehouse.

No tax imposed under this Act on any of the articles enumerated in this section shall be collected on any portion of such articles as may be removed for the purpose of their exportation and which shall be actually so exported aboard some ocean-going ship and which shall not be relanded in the Philippine Islands.

The Collector of Internal Revenue shall issue all such rules and regulations as may be necessary to carry into effect the provisions of this section, and for such purpose shall require that such marks or labels shall be placed on the packages containing such goods, that such bonds shall be given by the owners of such articles, and that such bills of lading, certificates, and other evidence shall be furnished by the owners of such articles as may lie necessary to establish the fact that the said articles have, after removal from the manufactory or other bonded warehouse, been actually exported, and that no portion thereof has been sold or delivered for domestic consumption within the Philippine Islands. And upon the presentation of satisfactory proof as aforesaid, it shall lie the duty of the Collector of Internal Revenue to cancel the bond or bonds furnished by the owners of such articles conditioned on faithful compliance with the provisions of this section.

Section 37

SEC. 37. All persons required to make returns or lists of objects charged with an internal-revenue tax shall state their valuation in Philippine currency, and all sums of money named in this Act shall be deemed to be in Philippine currency.

Section 38

SEC. 38. Any officer of internal revenue may, in the discharge of his official duties, enter any building or place where any articles or objects subject to tax arc made, produced, or kept, so far as it may be necessary for the purpose of examining said articles or objects; and any owner of such place or person having the agency or superintendency of same who refuses to admit such officer or to suffer him to examine such object? or articles, and any person who shall forcibly obstruct any officer of internal revenue, or who shall attempt or endeavor so to do. shall for every such offense the fined in a sum not. more than two thousand pesos or be imprisoned for not exceeding two years, or be punished by both fine and imprisonment, in the discretion of the court.

Section 39

SEC. 39. Every tax shall constitute a lien in favor of the Insular Government superior to all other charges or liens from the time it becomes due until paid by every such person from whom such tax shall be due upon all the property and rights to property used in the business in relation to which the tax assessed. The word "person" whenever used in this Act shall include firms, associations, and corporations.

Section 40

SEC. 40. In the case of neglect or refusal to pay any taxes and penalties when due under the provision of this Act. the provincial treasurer may levy upon all property belonging to such person on which the said lien exists for the nonpayment and also for such further sums as shall be sufficient for the costs of such levy. The remedy by distraint and levy shall not be exclusive of the remedy by action in court, but shall he cumulative thereto.

Section 41

SEC. 41. When distraint is made is aforesaid, the officer charged with the collection shall make or cause to he made an account of the goods, effects, or credits distrained, a copy of which, signed by the officer making such distraint, shall be left with the owner or person in possession, of all such good, credits, or effects, at his dwelling or place of business, with some person of suitable age and discretion, with a note of the sum demanded and the time and place of sale; and the said officer shall forthwith cause a notification to be exhibited in not less than two public places in the municipality where the distraint is made, specifying the time and place of sale and the articles distrained. The time of sale shall not be less than ten days after notice to the owner or possessor of the property as above specified and the publication or posting of such notice. One place for the posting of such notice shall be at the office of the president of the municipality in which the property is distrained. At the time and place fixed in such notice the said officer shall sell the goods, chattels, credits, or effect so distrained, at public auction, to the highest bidder for cash : Provided That if prior to the sale payment is made to the proper officer charged with the collection of the tax, penalties, fees, and oilier charges, the goods, chattels, credits, or effects so distrained shall be restored to the owner.

Section 42

SEC. 42. When property is seized upon distraint and sold, the proceeds of the sale shall, after deducting the expenses of the sale, be appropriated to the payment of the tax and penalties due. Any excess of the proceeds of the sale above payment of the expenses thereof and the tax and penalties due shall he returned to the owner of the property sold : Provided That nothing contained herein shall be construed as authorizing ihe return of any spirits, tobacco products, or other articles liable |() forfeiture or illegally removed from any manufactory or bonded warehouse, or any part of the proceeds thereof when sold.

Section 43

SEC. 43. When any property advertised for sale under distraint as aforesaid is of a kind subject to the tax and the tax has not a 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 e value of the articles offered for sale, the provincial treasurer may purchase the same in behalf of the Insular Government for the amount of taxes, penalties, and costs due thereon.

Property so purchased may be resold by the provincial treasurer under such regulations as may be prescribed by the Collector of Internal Revenue, and a distinct account of all expenses incurred in such sale shall he transmitted to the Collector of Internal Revenue, and the proceeds shall be paid into the Insular Treasury after defraying all lawful charges and expenses in connection with the custody and sale of the property: Provided. That when, any abandoned, condemned, or forfeited articles offered for sale by the provincial treasurer do not bring a price equal to the tax due and payable thereon, shall not be sold for consumption in the 'Philippine Islands; and upon application made to the Collector of internal Revenue he is authorized to order the destruction of such articles by the officer in whose custody and control the same may be at the time; and the Collector of Internal Revenue shall prescribe the necessary regulations for carrying into effect the provisions of this section and for making due record of the fact of such destruction.

Section 44

SEC. 44. In all cases of sales as aforesaid the certificate of sale shall be conclusive evidence of the right of the officer to make such sale and shall transfer to the purchaser all the rights and privileges of such delinquent in and to the property sold as completely as if transferred or assigned by the person whose property was distrained and sold.

Section 45

SEC. 45. When goods, chattels, or effects sufficient to pay the tax imposed upon any person are not found, the provincial treasurer or his deputy is authorized to collect the same by seizing and holding real estate in the manner prescribed for the seizure and sale of real estate for delinquent taxes in the Municipal Code and the amendments thereto.

Section 46

SEC. 46. Whenever any property, personal or real, seized and sold by virtue of the foregoing provisions is not sufficient to satisfy the claim of the Government for which the distraint or seizure is made. the provincial treasurer shall thereafter, and as often as may be necessary, proceed to seize and sell in like manner any other property liable to seizure belonging to the person against whom such claim exists, until the amount due. with all expenses, is fully paid.

Section 47

SEC. 47. The Collector of Internal Revenue shall by general regulations determine the fees and charges to he allowed in all cases of distraint, and other seizures and shall have power to determine whether any expense incurred in making any distraint or seizure was necessary.

Section 48

SEC. 48. The Collector of Internal Revenue shall have charge of all real estate which has been or shall he assigned, set off. or conveyed by purchase or otherwise to the Insular Government in payment of debts or taxes, penalties, or costs arising under the provisions of this Act. and. with the approval of the Secretary of Finance, and Justice, may at public auction. and at not less than twenty days" notice, sell and dispose of such real estate, and shall thereupon deposit the proceeds of such sales in the Insular Treasury and render account thereof to the Insular Auditor.

Section 49

SEC 49. The gross amount of all taxes received or collected under this Act shall he paid, except as otherwise provided in this Act. by the officer collecting the same into the Insular Treasury without any abatement or deduction on account of salary, compensation, or claims of any description, and a certificate of such payment, stating the name of the depositor and the specific account.' on which the deposit was made, signed by the Insular Treasurer, shall lie transmitted monthly to the Collector of Internal Revenue. All such funds collected within one calendar month shall be transmitted to the Insular Treasurer within the first live days of the succeeding month: Provided. That in the ease of provinces in which the distance from the Insular Treasury of the officers receiving or collecting such revenues is such as to make compliance with the provisions of this section impracticable, the Insular Treasurer may extend the time for making such payments, as aforesaid, not exceeding in any case a period of one month.