Internal Revenue Law Amendments 1905 Philippines

Wholesale dealer status for resellers

Section 1 amends paragraph eight of Section 68 of Act No. 1189 by adding that a person who sells or offers to sell foreign or domestic distilled spirits or wines or fermented liquors for resale is deemed a wholesale liquor dealer (or a wholesale dealer in fermented liquors, as the case may be).
This “wholesale” treatment applies irrespective of the quantities of distilled spirits, wines, or fermented liquors sold at one time.
The amended rule covers sales or offers to sell made for himself or on commission.
The classification is triggered by purpose of resale to other persons.

Peddlers of tobacco and liquor—license tax rates

Section 1 amends paragraph twelve of Section 68 of Act No. 1189 to set license tax amounts for peddlers of manufactured tobacco or distilled, manufactured, or fermented liquors, or both based on the mode of travel.
When traveling with more than two horses, mules, or other animals, the peddler pays PHP 80.
When traveling by boat, or with two horses, mules, or other animals, the peddler pays PHP 40.
When traveling with one horse, mule, or other animal, the peddler pays PHP 24.
When traveling on foot or by public conveyance, the peddler pays PHP 16.
The amended paragraph further provides that any person who sells or offers to sell and deliver specified goods (manufactured tobacco, snuff, cigars, cigarettes, or distilled, manufactured, or fermented liquors) while traveling from place to place in the town or country for himself or on commission is regarded as a peddler and subject to the license tax in this paragraph.
Each such peddler must have in possession the license at all times and must produce it on demand of any internal-revenue officer.

Distilled spirits tax—rates, measurement, and timing

Section 1 amends Section 74 of Act No. 1189 to impose a tax on distilled spirits and manufactured liquors manufactured in the Philippine Islands for domestic sale or consumption.
The tax rate is 20 centavos on each liter of proof spirits until January 1, 1906.
After January 1, 1906, the tax rate becomes 25 centavos on each liter of proof spirits.
The tax is paid by distillery owners or persons having possession of the spirits before removal from the distillery or bonded warehouse.
The tax is collected on the whole number of proof liters, with proportional increase for any strength greater than proof.
Fractional liter rules apply: a fractional part amounting to a half liter or over in a cask or package is taxed as one liter, while a fractional part less than half a liter is exempt from the tax.
A proviso states that any package of spirits with total contents less than a liter is taxed as one liter.

Liquor manufacturers’ obligations treated like distillers

Section 1 amends Section 87 of Act No. 1189 so that persons engaged in the concoction or manufacture of liquors are subject to requirements applicable to distillers.
Such persons must comply with requirements on registration of their establishments and the execution of bonds.
They must also follow regulations covering the manner of conducting business and inspection.
They must comply with rules on marking and numbering of casks and receptacles and packages, removal of spirits, payment of taxes, and returns and reports of operations.
They are subject to penalties, punishments, and forfeitures for noncompliance that the Act imposes for distillers.

Removal for rectification without prepayment

Section 1 amends Section 88 of Act No. 1189 to allow removal of certain distilled spirits for rectification without prepayment of the tax imposed in Section 74.
This removal exception applies to distilled spirits containing amyl or other higher alcohols (fusel oil), aldehyde, or methyl alcohol (wood alcohol).
The spirits may be removed to another distillery or to a rectifying establishment for rectification.
In these cases, the distiller removing the spirits and the rectifier receiving them must file with the Collector of Internal Revenue a joint bond.
The bond must be in a form and amount the Collector may require, with approval of the Secretary of Finance and Justice.
The joint bond must be conditioned for the future payment by the rectifier of the Section 74 tax on each proof liter of such rectified spirits removed for domestic sale or consumption.

Tax dates and installment-related changes

Section 1 amends Section 107 of Act No. 1189 by changing “first day of July, nineteen hundred and five” to “first day of January, nineteen hundred and six.”
Section 1 amends Section 112 of Act No. 1189 so that the taxes under the preceding section cover the first six months immediately preceding January 1 and July 1, respectively.
Under Section 112 (as amended), such taxes become due and payable on February 1 and August 1, respectively.

Documentary stamp tax—specific adjustments and exemptions

Section 1 amends paragraph six of Section 116 of Act No. 1189 to impose a documentary-stamp charge of twenty centavos on each certificate of damage or other specified certificates/documents, including certificates issued by port captains, marine surveyors or similar persons, and certificates issued by notaries public, plus certain other certificates or documents required by law, rules, regulations, or issued to give information or establish proof of fact.
Section 1 amends paragraph seven of Section 116 by removing the phrase “whether for services rendered, rent, or interest paid, or money received, by virtue of any contract or agreements” (as reflected in the amendment’s instruction).
Section 1 adds a proviso to paragraph eight of Section 116 stating that a receipt given by one employee to another employee or by an employee to the proprietor of a public or private warehouse for storage of the firm’s own goods/wares/merchandise is not deemed to be a warehouse receipt.
Section 1 amends paragraph nine of Section 116 to set the charge for each set of bills of lading or receipts (except charter party) for goods to be exported from a port in the Philippine Islands to a foreign port at twenty centavos.
A proviso in paragraph nine of Section 116 exempts bills of lading issued for shipments worth five pesos or less from documentary-stamp taxes.
Section 1 amends paragraph thirteen of Section 116 by changing “nine thousand pesos” to “three thousand pesos.”
Section 1 amends Section 118 by continuing existing remedies for enforcement of stamp taxes due prior to January 1, nineteen hundred and five until collected, and requiring enforcement by the authorities authorized prior to the passage of the Act.
Section 1 amends Section 118 by exempting from documentary-stamp taxes specified papers and documents, including:
- Certificates of oaths administered to any Government official in official capacity, and acknowledgments by Government officials in official duties;
- Written appearances in court by Government officials in official capacity;
- Certificates of administration of oaths to any person regarding authenticity of a paper required to be filed in court by any person or party;
- Papers and documents filed in courts for military, naval, Insular, provincial, or municipal governments (civil or criminal);
- Affidavits of poor persons to prove poverty;
- Statements and compulsory information required by military, naval, insular, provincial, or municipal government rules and regulations exclusively for statistical purposes and wholly for use of the bureau where filed, and not for use or benefit of the filer;
- Certified copies and certificates placed on documents/instruments for military, naval, insular, provincial, or municipal governments made at the instance and for sole use of another branch of those governments;
- Certificates of assessed value of lands furnished by provincial or municipal treasurers for land title registration, whenever assessed value does not exceed one hundred dollars in United States money.
Section 1 amends Section 121 to continue remedies for enforcement of cedula taxes due prior to January 1, nineteen hundred and five until collected, enforced by the authorities authorized prior to the passage of the Act.
Section 1 adds a proviso to Section 121 allowing a provincial board to exempt, in its discretion, persons or classes of persons from enforcement of cedula taxes due prior to January 1, nineteen hundred and five, when wise and prudent for peace and contentment; any such action must be in the form of a resolution duly recorded.

Imprisonment labor for convictions

Section 1 amends Section 122 by requiring that persons convicted must labor for the period of imprisonment on public works, for the province or municipality, in the manner directed by the provincial board.

Changes to language and insurance-related periods

Section 1 amends Section 125 by erasing “or she” between “whenever he” and the clause beginning with “(a).”
Section 1 amends Section 126 by changing “April” to “July” and changing “four months” to “six months.”
Section 1 further amends Section 126 by inserting, immediately after “by the company” and before the second proviso, the words “or for other reasons returned to the persons insured.”

Industrial tax—transitory continuation

Section 1 amends Section 138 by continuing remedies for enforcement of industrial taxes due prior to January 1, nineteen hundred and five until collected, notwithstanding anything in the Act to the contrary, and requiring enforcement by authorities authorized prior to the passage of the Act.

Licensing taxes—expanded categories

Section 1 amends Section 143 by adding that, in addition to a common carrier, every livery-stable keeper must pay a tax.
Section 1 amends paragraph two of Section 144 by requiring that every merchandise broker or corredor pays PHP 80, and by providing that any person, firm, or company whose occupation is to bring about sales of merchandise for other persons, or to bring proposed buyers and sellers together for compensation, is regarded as a merchandise broker or corredor.
Section 1 amends paragraph five of Section 144 with a proviso allowing any municipal council to provide by ordinance that any cockpit maintained in the municipality pays a higher license tax than otherwise provided, and requiring collection and disposition of the additional license tax in the same manner as provided for receipts from license tax on cockpits.
Section 1 amends paragraph eight of Section 144 by adding that every procurador judicial or agente do negocios must pay PHP 40.
Section 1 amends paragraph eleven of Section 144 with a proviso allowing any provincial board to reduce the per diem tax on race tracks to an amount not less than PHP 20, and clarifies that this proviso does not apply to the city of Manila.
Section 1 amends paragraph (j) of Section 17 of Act Numbered One hundred and eighty-three (incorporating the city of Manila) to authorize issuing licenses that fix license fees and prescribe the time and manner of revoking licenses for enumerated occupations and businesses, including hawkers, peddlers, hucksters, and a long list of listed trades and venues such as auctioneers, plumbers, barbers, embalmers, collecting agencies, mercantile agencies, shipping and intelligence offices, private detective agencies, advertising agents, tattooers, fortune tellers, jugglers, acrobats, hotels, clubs, restaurants, cafes, lodging houses, boarding houses, livery stables, boarding stables, laundries, cleaning and dyeing establishments, establishments for storage of highly combustible or explosive materials, public warehouses, dance balls, circus and other similar parades, public vehicles, race tracks, horse races, bowling alleys, shooting galleries, slot machines, and merry-go-rounds.
Section 1 further amends Section 146 by adding that insurance companies and banks taxed under Articles X and XIII of the Act are not taxable under the Industrial Tax Law for the period from August 1, nineteen hundred and four, to January 1, nineteen hundred and five.

Authority, policy, and repeals

The amendments are made by Philippine Commission authority under an enactment framed “By authority of the United States.”
Act No. 1338 contains no declared policy statement in its operative provisions.
Act No. 1338 amends specific sections and paragraphs of Act No. 1189 and provides targeted transitory rules for enforcement and collection of taxes and remedies for prior periods.