Law Summary

Purpose of the Act

This Act amends Section 7 of Republic Act No. 567, which previously modified Title VI of the National Internal Revenue Code as established under Commonwealth Act No. 466.

• Legal Context: The amendment is part of ongoing adjustments to the tax provisions in the National Internal Revenue Code.

Amendment to Section 7

The key provision of the amendment is the modification of Section 7 of Republic Act No. 567 regarding the implementation and duration of increased taxes.

• Concise Explanation: The amended Section 7 stipulates that the provisions of the Act will become effective upon its approval. However, the increased taxes instituted will remain in effect until June 30, 1957, unless Congress decides to extend this period.

• Key Definitions:

  • Increased Taxes: Refers to the higher tax rates introduced by this Act.

• Important Requirements:

  • The increased taxes will automatically revert to original rates after June 30, 1957, unless explicitly extended by Congressional action.

• Relevant Timeframes:

  • Effective Date: Immediately upon approval of the Act.
  • Termination of Increased Taxes: June 30, 1957.

Effectivity Clause

The Act explicitly states its effectivity upon approval.

• Bullet Points:
  • The Act is approved on June 14, 1955.
  • Immediate implementation following legislative approval.

Conclusion

This legislative amendment reflects Congress's authority to adjust tax rates and underscores the temporary nature of the increased taxes imposed under this Act.

Key Takeaways

• Immediate Effect: The Act takes effect upon approval, establishing a new tax regime.
• Temporary Measure: Increased taxes are set to expire on June 30, 1957, unless extended by Congress.
• Legislative Framework: The amendment is part of a series of changes to the National Internal Revenue Code, demonstrating ongoing legislative oversight in tax matters.