ARTICLE X.-Ad valorem tax on output of mines.

SEC. 1534. Rate and basis of tax on mines.

SEC. 1535. Time and manner of collection.

ARTICLE XI.-Tax on inheritance, legacies and other acquisitions mortis causa.

SEC. 1536. Conditions and rates of taxation.

SEC. 1537. Payment of tax antecedent to the transfer of shares, bonds or rights.
SEC. 1538. Exemption in favor of surviving spouse and children.

SEC. 1539. Deductions to be made in determining net taxable amount.
SEC. 1540. Additions of gifts and advances.

SEC. 1541. Rule of taxation when beneficiaries belong to different classes.

SEC. 1542. Determination of value of usufructs, annuities, and real property. SEC. 1543. Exemption of certain acquisitions and transmissions.

SEC. 1544. When tax to be paid.

SEC. 1545. Beneficiary to be charged with tax on his corresponding portion. SEC. 1546. Payment before delivery by executor or administrator.

SEC. 1547. Payment of tax antecedent to registration of documents.

SEC. 1548. Restitution of tax upon satisfaction of outstanding obligation.

ARTICLE XII.—Administrative provisions relative to persons and establishments subject to privilege taxes.

SEC. 1549. Registration of name or style with provincial treasurer.

SEC. 1550. Sign to be exhibited by distiller or rectifier.

SEC. 1551. Sign to be exhibited by manufacturer of products of tobacco.
SEC. 1552. Exhibition of certificate of payment at place of business.

ARTICLE XIII.—Administrative provisions regulating business of persons dealing in articles subject to specific tax.

SEC. 1553. Extent of supervision over establishments producing taxable output. SEC. 1554. Records to be kept by manufacturers-Assessments based thereon. SEC. 1555. Premises subject to approval by collector.

SEC. 1556. Labels and form of packages prescribed by collector.

SEC. 1557. Removal of articles after payment of tax.

SEC. 1558. Storage of goods in internal-revenue bonded warehouse.
SEC. 1559. Proof of exportation--Exporter's bond.

SEC. 1560. Manufacturers' and importers' bonds.

SEC. 1561. Records to be kept by wholesale dealers.

SEC. 1562. Records to be kept by dealers in leaf tobacco.

SEC. 1563. Preservation of invoices and stamps.

SEC. 1564. Information to be given by manufacturers of distilling apparatus. SEC. 1565. Establishment of distillery warehouses.

SEC. 1566. Custody of distillery warehouse.

SEC. 1567. Limitation on quantity of spirits removed from warehouse.

SEC. 1568. Requirement incident to process of denaturing alcohol.

SEC. 1569. Recovery of alcohol for use in arts and industries.

SEC. 1570. Supervision over rectification and compounding of liquors.
SEC. 1571. Authority of officer in searching for taxable articles.

SEC. 1572. Detention of package containing taxable articles.
SEC. 1573. Inscription to be placed on skimmed milk.

ARTICLE XIV.-Administrative provisions relative to prohibited drugs.

SEC. 1574. Words and phrases defined.

SEC. 1575. Lawful possession and uses of prohibited drugs specified.

SEC. 1576. Importation of opium-Storage of same.

SEC. 1577. Record to be kept by pharmacists-Inspection of same.

ARTICLE XV.-Remedies in general.

SEC. 1578. Injunction not available to restrain collection of tax.

SEC. 1579. Recovery of tax paid under protest.

SEC. 1580. Action to contest forfeiture of chattel.

SEC. 1581. Form and nrode of proceeding in actions arising under internal revenue law.

SEC. 1582. Authority of collector to make compromises and to refund taxes.
SEC. 1583. Satisfaction of judgment recovered against treasurer or other officer.
SEC. 1584. Remedy for enforcement of statutory penal provisions.

SEC. 1585. Remedy for enforcement for forfeitures.

SEC. 1586. When property to be sold or destroyed.

SEC. 1587. Disposition of funds recovered in legal proceedings or obtained from forfeitures.

ARTICLE XVI.—Civil remedies for collection of taxes.

SEC. 1588. Nature and extent of tax lien.

SEC. 1589. Civil remedies for collection of delinquent taxes.

SEC. 1590. Distraint of personal property.

SEC. 1591. Mode of procedure and disposition of proceeds.

SEC. 1592. Release of distrained property upon payment prior to sale.

SEC. 1593. Report of sale to Bureau of Internal Revenue.

SEC. 1594. Purchase by Government at sale upon distraint.

SEC. 1595. Levy on real estate after exhaustion of personality.

SEC. 1596. Advertisement and sale.

SEC. 1597. Redemption by delinquent.

SEC. 1598. Final deed to purchaser.

SEC. 1599. Forfeiture to Government for want of bidder.

SEC. 1600. Resale of real estate taken for taxes.

SEC. 1601. Further distraint or levy.

PRELIMINARY ARTICLE.-TITLE OF CHAFTER.

SEC. 1420. Title of chapter.-This chapter shall be known as the Internal Revenue Law.

[2657-1575.]

ARTICLE I.-ORGANIZATION OF BUREAU.

SEC. 1421. Chief officials of Bureau of Internal Revenue.—The Bureau of Internal Revenue shall have one chief and one assistant chief to be known, respectively, as the collector of internal revenue and the deputy collector of internal revenue.

[2657-1576.]

SEC. 1422. City assessor and collector of Manila.-The collector of internal revenue shall be ex officio city assessor and collector of

Manila and as such shall collect all its municipal revenues, and shall perform in and for said city the duties imposed by this law on provincial treasurers generally.

[2657-1577.]

SEC. 1423. Powers and duties of bureau.-The powers and duties of the Bureau of Internal Revenue shall comprehend the collection of all internal-revenue taxes, fees, and charges, and the enforcement according to law of all forfeitures, penalties, and fines connected therewith. Said bureau shall also give effect to and administer the supervisory and police powers conferred by this chapter or other law or parts of laws within its jurisdiction.

[2657-1578.]

SEC. 1424. (As amended by act No. 2819; sec. 28, act No. 2833; and sec. 1, act No. 2835.) Specific provisions to be contained in regulations. The regulations of the Bureau of Internal Revenue shall, among other things, contain provisions specifying, prescribing, or defining

(a) The time and manner in which provincial treasurers shall canvass their provinces for the purpose of discovering persons and property liable to internal-revenue taxes, and the manner in which their lists and records of taxable persons and taxable objects shall be made and kept.

(b) The forms of labels, brands, or marks to be required on goods subject to a specific tax and the manner in which the labeling, branding, or marking shall be effected.

(c) The conditions under which and the manner in which goods intended for export, which if not exported would be subject to a specific tax, shall be labeled, branded, or marked.

(d) The conditions to be observed by revenue officers, provincial fiscals, and other officials respecting the institution and conduct of legal actions and proceedings.

(e) The manner in which persons authorized to have and keep prohibited drugs shall keep their records relating to the same.

(f) The conditions under which opium may be imported, the manner of its storage and removal for use, as well as the manner in which the same shall be marked or labeled prior to removal.

(g) The conditions under which prohibited drugs may be transferred from the possession of persons authorized to have and keep the same to the possession of other persons similarly authorized.

(h) The conditions under which goods intended for storage in bonded warehouses shall be conveyed thither, their manner of storage, and the method of keeping the entries and records in connection. therewith; also the books to be kept by storekeepers and the reports

to be made by them in connection with their supervision of such houses.

(2) The conditions under which alcohol intended for use in the arts and industries may be removed and dealt in, the character and quantity of the denaturing material to be used, the manner in which the process of denaturing shall be effected, the bonds to be given, the books and records to be kept, the entries to be made therein, the reports to be made to the collector of internal revenue, and the signs to be displayed in the business or by the person for whom such denaturing is done or by whom such alcohol is dealt in.

(j) The manner in which revenue shall be collected and paid, the instrument, document, or object to which revenue stamps shall be affixed, the mode of cancellation of the same, the manner in which the proper books, records, invoices, and other papers shall be kept and entries therein made by the person subject to the tax, as well as the manner in which licenses and stamps shall be gathered up and returned after serving their purpose.

(k) (Repealed by sec. 1 of act 2819.)

(7) The conditions to be observed by revenue officers, provincial fiscals, and other officials respecting the enforcement of Article XI imposing a tax on inheritances, legacies, and other acquisitions mortis causa and such other rules and prohibition which the collector of internal revenue may consider suitable for the enforcement of the said Article XI.

(m) The manner in which income-tax returns, information, and reports shall be prepared and reported and the tax collected and paid, as well as the conditions under which evidence of payment shall be furnished the taxpayer, and the preparation and publication of income-tax statistics.

[2657-1579.]

SEC. 1425. Forms, certificates, and appliances supplied by the collector of internal revenue.-It shall be the duty of the collector of internal revenue, among other things, to prescribe, provide, and distribute to the proper officials the requisite licenses, cedula forms, internal-revenue stamps, and labels or tags used in sealing weights and measures, and all other forms, certificates, bonds, records, invoice books, instruments, appliances and apparatus used in administering the laws under the jurisdiction of the bureau.

[2657-1580.]

SEC. 1426. Agents and deputies for collection of internal revenue.— · For the collection of the internal revenue on imported articles the insular collector of customs and his subordinates are constituted agents of the collector of internal revenue; and the provincial treas

urers, their deputies, and employees shall be his deputies for the collection of other internal revenue and the enforcement of all laws within the jurisdiction of the bureau.

For economy or effectiveness in the collection of the cedula tax, the collector of internal revenue may authorize the provincial treasurer of any province to appoint, for the first four months of the year only, special deputies to collect such tax, at a rate of compensation not greater than ten centavos for each tax collected and certificate issued.

The treasurer of the Department of Mindanao and Sulu may appoint such special deputies as he may deem necessary for the collection and execution of the payment of the cedula tax in each province of the department, and pay to the persons so appointed, including persons otherwise compensated by the Government, a commission of not to exceed 10 per centum on the money collected by each, which commission shall be stated in his appointment. [2657-1581.]

SEC. 1427. Expenses of collection to be borne by provinces.-The expenses incurred by the provincial and municipal authorities in collecting taxes and in enforcing the laws under the jurisdiction of the Bureau of Internal Revenue, including expenses incurred in appearing in the courts in internal-revenue cases, shall be borne by the respective provinces; but the city of Manila shall be liable only for such expenses as are incident to the collection of internal-revenue and other taxes in and for that city, and for such expenses the Insular Government shall be reimbursed.

[2657-1582.]

SEC. 1428. Internal-revenue inspection districts. With the approval of the department head, the collector of internal revenue shall divide the Philippine Islands into such number of inspection districts as may from time to time be required for administrative purposes. Each of these districts shall be in charge of an internalrevenue agent.

[2657-1583.]

SEC. 1429. Duties of internal-revenue agents.-It shall be the duty of every internal-revenue agent to see that all laws and regulations relative to the collection of internal-revenue taxes are faithfully executed and complied with, to aid in the prevention, detection, and punishment of any frauds or delinquencies in connection therewith, and to examine into the efficiency of all officers and employees of the Bureau of Internal Revenue. He shall report in writing to the collector of internal revenue any neglect of duty, incompetency, delinquency, or malfeasance in office of any internal-revenue officer of which he may obtain knowledge, with a statement of all the facts in each case and any evidence sustaining the same. He may, by