QuestionsQuestions (EXECUTIVE ORDER NO. 444)
It is based on the powers vested in the President “by virtue of the powers vested in me by law” and specifically the waiver of the “additional progressive tax … under Section 2 of Commonwealth Act No. 567,” as stated in the Executive Order.
The Executive Order waives the additional progressive tax payable by the Central Santos-Lopez Co., Inc. for the crop year 1949-1950.
Commonwealth Act No. 567, particularly Section 2.
Central Santos-Lopez Co., Inc. (a sugar central/sugar mill operator referenced in the preamble).
The sugar central was heavily indebted, operated on borrowed capital used for rehabilitation; its assigned sugar allotment was not fully covered due to conditions beyond its control; and for 1949-1950 it produced only 39% of its total quota allotment.
Because, considering the cited circumstances (heavy indebtedness, rehabilitation using borrowed capital, incomplete allotment coverage due to factors beyond its control, and only 39% quota production), imposing the progressive tax for the crop year 1949-1950 would be oppressive and confiscatory.
It uses a hardship constitutional/tax-equity framing—imposition would be “oppressive and confiscatory”—based on the specific operational and production shortfalls and financial condition of the taxpayer.
Only the “additional progressive tax” is waived. The Order specifies waiver of “the additional progressive tax to be paid … under Section 2 of Commonwealth Act No. 567.”
It states the central is operating on borrowed capital which has been utilized for rehabilitation purposes.
It explains that the total sugar allotment for the district assigned to the central was not fully covered due to circumstances beyond its control, leading to production of only 39% of the total quota allotment during 1949-1950.
It is a key factual justification for hardship: such limited production indicates that full tax burden would be unfair under the circumstances and supports the conclusion that tax imposition would be oppressive.
The President “waive[s] for the crop year 1949-1950 the additional progressive tax” payable by Central Santos-Lopez Co., Inc. under Section 2 of Commonwealth Act No. 567.
It indicates compliance with the formal requirements for issuance/signing of an Executive Order: it was signed by the President (Elpidio Quirino) and countersigned by the Acting Assistant Executive Secretary (Marciano Roque).
The preamble provides factual and policy rationale (indebtedness, rehabilitation, partial allotment coverage, 39% production, oppression/confiscation). The dispositive clause contains the binding rule: the waiver of the additional progressive tax for the crop year 1949-1950.
It implies a concern that the tax burden, under the taxpayer’s specific circumstances, would be so burdensome as to be effectively unjust or confiscatory, thus warranting executive relief.
June 5, 1951 is the date of issuance; however, the waiver applies to the crop year 1949-1950, which is the time period covered by the waiver.