Collection of the Special Tax on the Annual Sugar Production of Sugar Centrals Imposed by Republic Act No. 632

October 31, 1951 REVENUE REGULATIONS NO. V-18 SUBJECT : Collection of the Special Tax on the Annual Sugar Production of Sugar Centrals Imposed by Republic Act No. 632 TO : All Internal Revenue Officers and Others Concerned Pursuant to section 15 of Republic Act No. 632 and Executive Order No. 478 dated October 25, 1951, the following regulations relative to the collection of the special tax on the annual sugar production of sugar centrals are hereby promulgated for the information and guidance of all concerned. These regulations shall be known as Revenue Regulations No. V-18. SECTION 1. Authority to Collect the Special Tax on the Annual Sugar Production of Sugar Centrals. Republic Act No. 632 which imposes a special tax on the annual sugar production of sugar centrals does not specify the person or entity empowered to collect the tax. Executive Order No. 478 issued on October 25, 1951, vests in the Collector of Internal Revenue the power to collect the tax under rules and regulations to be promulgated by the Secretary of Finance. SECTION 2. Rate and Basis of the Tax. The special tax imposed by section 15 of Republic Act No. 632 is ten centavos (P.10) per picul of sugar manufactured by sugar centrals. This tax shall be levied and collected on all sugar manufactured by sugar centrals, whether the sugar is intended for reserve, domestic consumption, or for export. SECTION 3. Persons Liable to the Tax. Republic Act No. 632 provides that the tax "shall be borne by the sugar cane planters and the sugar centrals in the proportion of their corresponding milling share." Sugar cane planters shall be liable to the tax on their share of the sugar milled by sugar centrals and the latter shall be subject to the tax only on their share. For instance, if a sugar central manufactured 100,000 piculs of sugar during a given crop year and under the milling contract the share of the planters is 60% while that of the sugar central is 40%, each planter shall pay P10 per picul of sugar received by him as his share of such sugar, while the central shall pay the tax on its share of 40% of 100,000 piculs, or 40,000 piculs. DETACa SECTION 4. Annual Statement of Sugar Production to be Filed. Within thirty days after the end of each crop year, beginning the crop year 1951-1952, each sugar central shall submit a statement containing the name and address of the central; names and addresses of sugar cane planters affiliated with it; the total quantity in piculs of the sugar manufactured by it during the preceding crop year; the share of the central and of the planters; the amount of the tax paid by each and the numbers and dates of the official receipts issued therefor; and such other information as may be required by the Collector of Internal Revenue for the proper enforcement of section 15 of Republic Act No. 632 and of these regulations. SECTION 5. Time of Payment. The tax imposed by section 15 of Republic Act No. 632 shall be paid before the removal of sugar from the mill or mill warehouse. If at the end of a crop year there still remains in the mill or mill warehouse a part of the sugar manufactured during that crop year, the tax due thereon shall be paid not later than July 31 of the succeeding crop year, irrespective of whether or not such sugar is removed from the sugar mill or mill warehouse. The issuance of quedans or warehouse receipts covering sugar stored in the sugar mill or mill warehouse shall be deemed a removal of such sugar within the meaning of this section, and the tax due thereon shall be due and payable before such quedans or warehouse receipts are actually issued. No quedans or warehouse receipts in respect of sugar manufactured by sugar centrals shall be issued unless proof of payment of the tax is shown. The term "crop year" as used in these regulations means the period from July 1 to June 30 of the following year. SECTION 6. Tax Lien. The tax on the annual sugar production of sugar centrals shall constitute a lien on the quedans or warehouse receipts covering sugar stored in the sugar mill or mill warehouse. SECTION 7. Accounting and Remittance of Collections. The tax on the annual sugar production of sugar centrals shall be paid by the persons liable thereto to the city or deputy provincial treasurer where the sugar central is located. Collections shall be made under official receipts and taken up in accounts payable. Deputy provincial treasurers shall forward to the provincial treasurers concerned within five days after the close of the month during which collections were made a statement showing the names of the taxpayers, the numbers of the official receipts issued and the dates thereof, and the amount of the tax collected. The statement shall be accompanied by a remittance of the proceeds. Provincial treasurers shall in turn transmit within 10 days to the Collector of Internal Revenue the statements required herein together with all collections made under section 15 of Republic Act No. 632. City treasurers shall within ten days submit direct to the Collector of Internal Revenue similar statements together with their collections. Upon receipt of the remittance from the city or provincial treasurers, the Collector of Internal Revenue shall in turn remit the same to the Philippine Sugar Institute. SECTION 8. Effectivity. Section 15 of Republic Act No. 632 provides that the tax imposed therein shall be collected for a period of five years beginning the crop year 1951-1952. Collection of the tax shall be made on sugar manufactured by sugar centrals up to and including the crop year 1955-1956. These regulations shall take effect on November 15, 1951. aDSIHc SIXTO B. ORTIZ Acting Secretary of Finance Recommended by: S. DAVID Collector of Internal Revenue