Page 96 - Fruits from a Poisonous Tree

80 Fruit from a Poisonous Tree

was done to deceive the people. Those who volunteered, in fact, deceived
themselves just as we do today.

Philippine Trust #1

By conquest of Spain, the United States acquired the territory of the
Philippine Islands, Guam, and Puerto Rico as war reparations. The Philippine
Commission passed the Philippine Customs Administrative Act during the
period from September 1, 1900, to August 31, 1902. The Act was for the
regulation of trade with foreign countries and designed to generate revenue
in the form of duties, excises and imposts. The Act created the federal
government’s first trust fund titled Trust fund #1, Philippine special fund or
customs duties, (31 USC § 1321).
The Act was administered under the general supervision and control of
the Secretary of Finance and Justice.

Philippine Trust #2

Bureau of Internal Revenue

The Philippine Commission passed another act known as the Internal
Revenue Law of 1904. This Act created the Bureau of Internal Revenue
and the federal government’s second trust fund called Trust fund #2, the
Philippine special fund (internal revenue) and the IRS were born. [31 USC
§1321]. Article I, Section 2.
“There shall be established a Bureau of Internal Revenue, the chief
officer of which Bureau shall be known as the Collector of Internal Revenue.
He shall be appointed by the Civil Governor, with the advice and consent
of the Philippine Commission, and shall receive a salary at the rate of eight
thousand pesos per annum. The Bureau of Internal Revenue shall belong to
the Department of Finance and Justice.”
Section 3 states, “The Collector of Internal Revenue, under the direction
of the Secretary of Finance and Justice, shall have general superintendence of
the assessment and collection of all taxes and excises imposed by this Act or
by any Act amendatory thereof, and shall perform such other duties as may
be required by law.”