Regulatory Functions and Security Bonds
- Collector authorized to issue regulations, forms, adhesive stamps, and dies.
- Stamps and blank cedulas printed under Treasurer’s direction.
- Collector must secure a bond of 60,000 pesos for faithful performance.
- Provincial treasurers remit collected revenue monthly; their bonds cover faithful accounting.
- Monthly reports by Treasurer and Collector on stamps and cedulas.
Inspectors, Revenue Agents, Storekeepers, and Gaugers
- Collector may appoint inspectors, agents, storekeepers, and gaugers under specified conditions.
- Inspectors and agents enforce compliance, prevent fraud, and report malfeasance.
- Storekeepers maintain warehouse security and records; gaugers assess quantities.
- Officers required to render sworn statements of fees received; false statements penalized.
- Duties and compensations delineated; some positions may be combined depending on production.
Enforcement Powers and Penalties for Revenue Officers
- Officers empowered to summon witnesses, administer oaths, seize property with proper authorization.
- Disclosure of confidential information by officers prohibited with fines and imprisonment.
- Conflict of interest for revenue officers in regulated businesses strictly penalized.
- Offenses such as extortion, neglect, collusion, false entries, and bribery by revenue officers fined and subject to imprisonment.
Sources of Internal Revenue
- Revenue sources include license taxes, excise taxes on distilled spirits, fermented liquors, tobacco products, cigars, cigarettes, matches, banks, stamp taxes, poll tax (cedula), insurance, forestry products, mining concessions, and business occupations.
Tax Assessment and Collection Procedures
- Provincial treasurers conduct tax liable person inquiries and compile assessment lists.
- Taxes on manufactured goods collected by affixing internal-revenue stamps.
- Manufacturers register and maintain invoice and register books authenticated by stamps.
- Detailed bookkeeping and monthly returns required for manufacturers and provincial treasurers.
- Goods for export exempted from internal revenue taxes with special marking and record-keeping.
- License taxes paid quarterly via stamped license forms; licenses displayed prominently.
Record Keeping and Reporting
- Dealers must maintain transaction records and provide invoices to revenue officers.
- Exhausted stamped licenses, invoices, and related documents filed permanently.
- Recording and documentary taxes paid via stamp affixture.
- Manufacturers required to file bonds conditioned on tax compliance.
Penalties for Tax Evasion and Fraud
- Willful disregard of tax requirements and fraudulent acts punishable by fines, forfeiture, imprisonment.
- Second offenses of illegal removal of taxed goods treated as criminal offenses leading to forfeiture of property and imprisonment.
- Use or possession of counterfeit stamps and other fraudulent instruments heavily penalized.
Licensing Provisions
- Mandatory license payment for specified businesses and trades, with registration requirements.
- Single license tax applied to partnerships in one place; multiple licenses required for multiple locations or pursuits.
- License fees vary by trade including distillers, dealers, manufacturers, peddlers, and various businesses.
- Nonpayment results in fines or imprisonment; licenses do not exempt from local taxes or regulation.
Taxation on Distilled Spirits
- Distilled spirits defined and taxed at twenty centavos per proof liter upon removal from distillery.
- Requirements for distillery warehouses, marking, storage, and reporting detailed.
- Provisions regulating still manufacture and rectification process.
- Additional taxes on flavored distilled spirits and spirits with harmful alcohol content.
- Procedures for seizure and forfeiture of illicit spirits stipulated.
Taxation on Fermented Liquors
- Four centavos tax per liter on fermented liquors except domestic varieties like tuba, bassi, and tapuy.
- Permits for removal to bonded warehouses without immediate tax payment.
- Sour or damaged fermented liquors may be moved to manufacturing sites tax-free upon permit.
- Ownership of untaxed fermented liquors subject to seizure and forfeiture.
Tobacco and Snuff Manufacturers
- Registration and reporting obligations prior to manufacturing.
- Manufacturing premises to display identifying signage.
- Tax imposed on various tobacco products with package labeling requirements.
- Inventory reports and penalties for false statements.
- Identification requirements for peddlers.
Cigars and Cigarettes Taxes
- Mandatory signage and packaging regulations for manufacturers.
- Tiered tax rates based on wholesale price and quantity for cigars and cigarettes.
- Exemptions for handmade products exclusively for personal use.
Tax on Matches
- Tax imposed on matches based on quantity and package size.
- Tax collected on imported matches accounted as internal revenue.
Banks and Bankers Taxes
- Taxation on deposits, capital employed, and circulation of banks.
- Exemptions for savings and provident institutions under conditions.
- Returns required semiannually; penalties imposed for noncompliance.
Stamp Taxes on Various Instruments
- Levies on bonds, stock certificates, bank checks, insurance policies, receipts, bills of lading, and other specified documents.
- Detailed rates vary by instrument type and value.
- Exemptions for government instruments and certain cooperative entities.
- Validity of documents contingent on proper stamp affixture.
Poll or Cedula Tax
- Mandatory annual tax on males aged 18-60 except certain exempt groups.
- Certificate of registration sold at standard rates with late payment surcharges.
- Enforcement through property seizure or prosecution.
- Certificates serve as identification for legal and civil purposes.
Taxation of Insurance Companies
- One percent tax on gross premiums collected in the Philippines.
- Definition includes various risks and guarantees.
- Cooperative mutual societies exempt.
- Annual reporting requirement; assessments made in case of noncompliance.
Tax on Forestry Products
- Taxes on timber, firewood, gums, resins, and other forest products categorized by species and region.
- Allocation of tax rates based on classification into four timber groups and geographic classification.
- Cooperation between forestry and internal-revenue officials mandated.
Tax on Mining Concessions
- Annual tax on mining claims and ad valorem tax on gross output.
- Joint assessment of market values by Internal Revenue and Public Lands officials.
- Failure to pay tax or illegal product removal results in forfeiture of claims and products.
Tax on Business, Manufacture, and Occupation
- One-third of one percent tax on gross sales of various goods excluding specific exemptions.
- Business definitions clarified for merchants and manufacturers.
- Annual tax and quarterly payment schedules specified.
- Detailed occupation license taxes for professions including brokers, dealers, theaters, pawnbrokers, and professional practitioners outlined.
- Penalties for late payment and false reporting.
Distribution and Repeal of Taxes
- Repeal of previous internal revenue laws and substitution of this Act’s provisions.
- Allocation of revenue proceeds between insular, provincial, and municipal governments defined.
- Special provisions for Manila and city-specific adjustments.
- Enforcement mechanisms and interim regulatory authority granted until proper forms ready.
- Effective date August 1, 1904.
This comprehensive outline covers the key provisions, scope, definitions, procedures, penalties, and legal concepts enshrined in the Act No. 1189 of July 2, 1904.