Question & AnswerQ&A (Republic Act No. 7760)
Section 1 amends subsection (i) of section 6 of the Internal Revenue Law to set conditions under which alcohol intended for industrial use may be withdrawn free of tax, including denaturing requirements, bonds, records, and reporting to the Collector of Internal Revenue.
Section 19 introduces an ad valorem tax on the gross output of each mine equal to 1.5% of the actual market value, applicable from 1918 for mining concessions granted before April 11, 1899.
Section 22 provides that such persons are liable for the tax plus a fine between 200 to 2,000 pesos or imprisonment up to 6 months or both. It also includes forfeiture of spirits, apparatus, property, and land connected to the illegal business.
Persons engaged exclusively in retail sales of domestic food products in public markets, retail dealers in tuba and similar liquors, and retail leaf tobacco dealers are exempt from the 1% percentage tax on merchants' gross sales.
Cigars are taxed at six pesos per thousand, while cigarettes weighing not more than two kilograms per thousand are taxed at one peso and twenty centavos per thousand, and those weighing more than two kilograms at two pesos per thousand.
Section 17 imposes specific taxes on motor spirits and oils ranging from one and one-half to four centavos per liter and a one peso per metric ton tax on coal and coke. Manufacturers and wholesale dealers must report and pay taxes before disposal.
Section 20 requires them to conspicuously display signs showing their name or firm style, assessment number, and the words 'Registered distiller,' 'Rectifier of spirits,' or 'Wholesale liquor dealer.' Similar requirements apply to manufacturers or sellers of motor spirits and mineral oils.
Section 23 penalizes failure to make timely returns with fines up to 2,000 pesos or imprisonment up to one year, and false or fraudulent returns with fines up to 10,000 pesos or imprisonment up to two years, or both at the court's discretion.
Section 18 imposes taxes computed on superficial area: one peso per square meter per annum for signs on business buildings, two pesos for billboards or signs on non-business premises, with exceptions and conditions for signs announcing only business name and address.
Unlawful removal of mining products without paying the ad valorem tax is punishable by fines up to one thousand pesos or imprisonment up to six months, plus forfeiture of products. Recidivists face imprisonment up to two years and forfeiture of mining concessions and machinery.