Section 9
SEC. 9. (a) All assessments shall be made by the Collector of Internal Revenue and all persons shall be notified of the amount for which they are respectively liable on or before the first day of June of each successive year, and said amounts shall be paid on or before the fifteenth day of June, except in cases of refusal or neglect to make such return and in cases of erroneous, false, or fraudulent returns, in which cases the Collector of Internal Revenue shall, upon the discovery thereof, at any time within three years after said return is due, or has been made, make a return upon information obtained as provided for in this Law or by existing law, or require the necessary corrections, to be made, and the assessment made by the Collector of Internal Revenue thereon shall be paid by such person or persons immediately upon notification of the amount of such assessment; and to any sum or sums due and unpaid after the fifteenth day of June in any year, and for ten days after notice and demand thereof by the Collector, there shall be added the sum of five per centum on the amount of tax unpaid, and interest at the rate of one per centum per month upon said tax from the time the same became due, except from the estates of insane, deceased, or insolvent persons. (b) All persons, corporations, joint-stock companies, partnerships, joint accounts (cuentas en participation),' associations, insurance companies, and general co-partner-ships (compañias colectivas), in whatever capacity acting, including lessees or mortgagors of personal property, trustees acting in any trust capacity, executors, administrators, receivers, conservators, employers, and all officers and employees of the Government of the Philippine Islands having the control, receipt, custody, disposal, or payment of interests, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinate annual or periodical gains, profits, and income of any nonresident alien individual, other than income derived from dividends or net profits subject to the tax established in subsection (a) of section ten are hereby authorized and required to deduct and withhold from such annual or periodical gains, profits, and income such sum as will be sufficient to pay the normal tax thereon, and shall make return thereof on or before March first of each year, and, on or before the time fixed by law for the payment of the tax, shall pay the amount withheld to the officer of the Government of the Philippine Islands authorized to receive the same; and they are each hereby made personally liable for such tax, and they arc each hereby indemnified against every person, corporation, joint stock company, partnership, joint-account (cusnta en participacion), association, or insurance company, or demand whatsoever by reason of the payment of the said tax. (c) The normal tax herein before imposed shall also be deducted and withheld from fixed or determinable annual or periodical gains, profits, and income derived from interest upon bonds and mortgages, or deeds of trust or other similar obligations of corporations, joint-stock companies, partnerships, joint-accounts (cuentas on participacion), associations, and insurance companies if such bonds, mortgages, or other obligations contain a contract or provision by which the obligor agrees to pay any portion of the tax imposed by this Law upon the obligee or to reimburse the obligee for any portion of the tax or to pay the interest without deduction for any tax which the obligor may be required or permitted to pay thereon or to retain there from under any law of the Philippine Islands, whether payable annually or at shorter or longer periods and whether such interest is payable to a nonresident alien individual or to a citizen or resident of the Philippine Islands, subject to the provisions of the foregoing subdivision (b) of this section requiring the tax to be withheld at the source and deducted from annual income and returned and paid to the Government, unless the person entitled to receive such interest shall file with the withholding agent, on or before February first, a signed notice in writing claiming the benefit of an exemption under section seven of this Law. (d) All persons, corporations, joint-stock companies, partnerships, joint-accounts (cuentas en participacion), associations, or general co-partnerships (compañias colectivas) undertaking for profit or otherwise the collection of foreign payments of interest or dividends by means of coupons, checks, or bills of exchange shall obtain a license from the Collector of Internal Revenue, and shall be subject to such regulations enabling the Government to obtain the information required under this Law, as the Collector of Internal Revenue, with the approval of the Secretary of Finance, shall prescribe; and whoever knowingly undertakes to collect such payments as aforesaid without having obtained a license there for, or without complying" with such regulations, shall be deemed guilty of a misdemeanor and for each offense, be fined in a sum not exceeding ten thousand pesos, or imprisoned for a term not exceeding one year, or both, in the discretion of the court. (e) The tax herein imposed upon gains, profits, and incomes not falling under the foregoing and not returned and paid by virtue of the foregoing or as otherwise provided by law shall be assessed by personal return' under rules and regulations to be prescribed by the Collector of Internal Revenue and approved by the Secretary of Finance. The intent and purpose of this Law is that all gains, profits, and income of a taxable class, as denned by this Law, shall be charged and assessed with the corresponding tax, normal and additional, prescribed by this Law, and said tax shall be paid by the owner of such gains, profits and income, or the proper representative having the receipt, custody, control, or disposal of the same. For the purpose of this Law ownership of such gains, profits and income ; or liability to pay the tax shall be determined as of the year for which a return is required to be rendered. The provisions of this section, except subdivision (c), relating to the deduction and payment of the tax at the source of income shall only apply to the normal tax herein before imposed upon nonresident alien individuals.