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Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:

SECTION 1. Section fifteen hundred and thirty-six of Act Numbered Twenty-seven hundred and eleven,  as amended by Act  Numbered Twenty-eight hundred and thirty-five, is hereby further amended to read as follows:

"SEC. 1536. Conditions and rate of taxation.—Every transmission by virtue of inheritance, devise, bequest,  gift mortis causa  or  advance in anticipation of inheritance, devise, or bequest of real property located in the Philippine Islands and real rights in  such  property; of  any franchise which must be exercised in the Philippine Islands; of any shares,  obligations, or  bonds issued  by any corporation or sociedad anonima organized  or constituted in the Philippine Islands in accordance  with its laws; of any  shares or rights in any  partnership, business or industry  established in the Philippine Islands or of any personal property located  in  the Philippine Islands shall be subject  to the following tax:

(a)  When the surviving spouse, a legitimate, recognized natural or  adopted child or legitimate descendant of any of them is  the beneficiary, there shall be collected upon the share which corresponds to  each beneficiary in the  inventoried property a tax according to following schedule:

"One per centum upon the first ten thousand pesos; two per centum upon the amount by which such share exceeds ten thousand  pesos and does not  exceed thirty thousand pesos; three per  centum upon  the amount by which such share exceeds thirty thousand  pesos and does not  exceed sixty thousand pesos;  four  per centum  upon the amount by which such share exceeds sixty thousand pesos and  does not exceed one hundred thousand pesos; five per  centum upon the amount by which such share exceeds one hundred thousand pesos and does not exceed one hundred and  fifty thousand pesos; six per centum upon the amount by which such  share exceeds one hundred and fifty thousand pesos and  does not exceed two hundred and fifty thousand pesos; seven per  centum upon the amount by which such share exceeds two  hundred  and fifty thousand pesos and  does not exceed four hundred thousand pesos; eight per centum upon the amount by which such share exceeds four hundred thousand pesos and does not exceed  six hundred thousand pesos; nine per centum upon the amount by which  such share exceeds six hundred  thousand pesos and does not exceed one million pesos; ten per centum upon the amount by  which  such share exceeds one million pesos and  does not exceed one million five hundred thousand pesos; eleven per centum upon the  amount by which such share exceeds one million five hundred thousand pesos and does  not exceed two million five hundred thousand pesos; twelve per centum upon the amount by which such share exceeds two  million five hundred  thousand pesos  and  does not exceed  four million pesos; thirteen per  centum upon the amount by which such share exceeds four million pesos and does not exceed  six million pesos; fourteen  per  centum upon the amount by which such share exceeds six million pesos and does  not exceed ten million  pesos; and fifteen per centum upon the amount by which  such share exceeds ten  million pesos and does not exceed fifteen million pesos; and  sixteen per  centum upon the  amount by which such  share exceeds fifteen  million pesos.

"(b)  When either  of the legitimate parents of the deceased,  a ligitimate brother  or a sister of the same, the father or mother who  had recognized him as a  natural child or any descendant not included in the next preceding paragraph, is the beneficiary there shall be collected the same tax fixed in the paragraph next preceding  with an increase of one hundred per centum.

"(c)  When other relatives not included  in the two  next preceding subsections are  beneficiaries there shall be  collected the tax fixed in subsection  (a)  with an increase of two  hundred  per  centum.

"(d)  When strangers are  beneficiaries  there  shall be collected the tax fixed in subsection (a)  with an increase of three hundred per centum, stranger being  deemed, for the purposes of this  tax, those relatives by consanguinity of the seventh or more  remote degree in the collateral  line, and all relatives by affinity with the exception of the spouse: Provided, That in cases of property which by the will of the testator should be divided among the poor,  without the designation of any  particular persons,  or which should be disposed of for masses and pious  works for the benefit of his soul  there shall be collected  the tax at the rate fixed in this paragraph upon the total amount of said property.

"In case the property is  transmitted to the heirs subject to the usufructuary interest, use or habitation or  annuity of a  third person, the tax shall be based  on the  value of the inventoried property less  that of the usufruct, use or habitation or annuity determined as hereinafter provided."

SEC. 2. Section fifteen hundred and forty-two of the same Act,  as amended, is  hereby further amended to  read as follows:

"SEC. 1542. Determination of value  of usufructs, annuities,  and real property.—In order to determine  the value of the right of usufruct, use or  habitation, as  well as that of annuity, there shall be taken into account the probable life of the beneficiary in accordance with the American Tropical Experience Table, calculated  at eight  per  centum annual interest.  For the  purpose of determining the value of real  property, the assessed value as shown by the  tax  rolls shall be taken as  the minimum.

"In order to determine  the  tax  which should be paid by the beneficiary of  a  legacy  of education  referred to in article eight  hundred and  seventy-nine of the  Civil Code, when the legacy  consists of profits, interests or dividends derived from any property, the legatee  should be considered as a  usufructuary until he becomes of legal age.

"In  case a legacy  of usufruct is made in  favor  of a juridical person, the  legatee  shall pay  seventy-five  per centum of the tax and the remaining  twenty-five  per centum  shall be paid by the owner of the naked  title of the property."

SEC. 3. Section fifteen  hundred and forty-four of the same Act, as amended, is hereby further amended to  read. as follows:

"SEC. 1544. When tax to be paid.—The tax  fixed in this article shall be paid:

" (a)  In the second and third cases of the next preceding section, before entrance into possession of the  property.

"(b)  In other cases, within the six months subsequent to the death of the predecessor; but if judicial testamentary or intestate  proceedings  shall be  instituted prior  to  the expiration of said period, the payment shall be made by the executor  or administrator  before delivering to each beneficiary his share.

"If the tax is  not paid within the time herein before prescribed, interest at the  rate of twelve per centum per  annum shall  be added  as part of the tax;  and to the tax and interest due and unpaid within ten days after the date of notice and demand  thereof  by the  Collector, there shall be further added a surcharge of twenty-five  per centum.

"A certified copy of all letters testamentary or of administration  shall be  furnished  the Collector of Internal Revenue by the Clerk of  Court within thirty  days after their issuance."

SEC. 4. Section fifteen  hundred  and forty-seven  of  the same  Act is hereby amended to read as follows:

 "SEC. 1547. Duties of certain officers and debtors.—Registers of deeds shall not register in the registry of property any  document transferring  real property or real  rights therein or any  chattel mortgage, by  way of gifts  mortis causa, legacy  or inheritance, unless the payment of the tax fixed in this article and actually due thereon shall be  shown.

And they shall immediately notify the Collector of Internal Revenue or the  corresponding provincial treasurer  of  the nonpayment of  the tax discovered  by them.  Any lawyer, notary public, or any government officer, who by reason of his official duties intervenes in the preparation or acknowledgment of documents regarding partition  or disposal  of donations mortis causa, legacy or  inheritance,  shall have the duty  of furnishing the Collector  of  Internal Revenue or the provincial treasurer of the province,  where he may have  his  principal office,  with copies of such  document and  any  information  whatsoever  which  may facilitate the collection  of the aforementioned tax.  Neither shall  a debtor of a deceased pay  his debts to the heirs, legatees, executors, or judicial administrators of his creditor, unless the payment of the tax fixed in this article shall be shown; but he may pay the executor or judicial administrator without said requirement if the credit is included in the inventory of the estate of the deceased."

SEC. 5. This Act shall take effect on its approval.

Approved,  March  9, 1922.