OCR Text |
Show Sale of Stock Certificates Is Hit by War Revenue Tax Complete Instructions Received; Statement Under Un-der Oath Required of All Persons Making Transfers; Rate Is Two Cents for Each $100.00. COMPLETE instruction coucerning the application of the war revenue rev-enue tax on sales and transfers of stock certificates and similar securities have been received by Colonel W. H. Chapman, collector of internal revenue in Salt Lake. Every person, partnership, corporation corpora-tion or exchange engaged in whole or in part in the sale, transfer or delivery of stock is required to file a statement under oath with the collector of internal revenue immediately, and on July 1 annually hereafter, setting forth the name of: such person, partnership, association asso-ciation or corporation, together with the names of officers and the character of- the business to ,be conducted. Associations Asso-ciations and corporations must file a copy of their constitutions, charters, bylaws, by-laws, rules and regulations and amendments amend-ments thereto. In the case of shares or certificates of stock, the tax is to be based on the total face value of the shares, at the rate of 2 cents for each $100 or fraction frac-tion thereof. Where shares have no par value the tax at the same rate shall be paid on each $100 of market value. If the total market value is less than $100 the stock will be taxed at the rate of 2 cents on each share. No tax is imposed on stock deposited as collateral securit', nor on stock transferred trans-ferred from a customer to a broker for the purpose of sale, nor-upon the transfer trans-fer of stock to a customer in completion of a sale, provided a certificate setting forth that the broker has no ownership in the stock accompanies the transfer. No tax is imposed on the transfer or delivery of stock to a clearing house or exchange, for the sole purpose of clearing clear-ing or adjusting accounts between members, mem-bers, nor on stock borrowed by one member from another under the rulings of the exchange. Must Keep Record. In ease a transfer is made by delivery de-livery of a certificate of stock assigned in blank, the stamp must be affixed to the bill, memorandum or agreement of sale. If the transfer is shown only by the books of the company, the stamp must be placed on the books. In all other cases the stamp must be affixed to the certificate itself or on the memorandum memo-randum or agreement of sale. War stamps must be cancelled by the person affixing them writing or stamping stamp-ing his initials, in ink. on the stamp, or by cutting; or cancelling the stamps with machine or punch affixing the initials and date, so as to deface the stamps and render them unfit for reuse. In addition, stamps to the value of 10 cents or more shall have three parallel incisions made by some sharp instrument instru-ment lengthwise. All persons engaged in the business of buying; selling or transfer of shares of stuck, whether at private or public sale, and whether or not members of an exchange, are required to keep a record showing the date of transaction, names of buyer and seller, name of broker, name and character of the stock, whether wheth-er listed or not, whether or not the stock was cleared through an exchange, ex-change, face or par value of stock, whether borrowed or loaned, whether "matched,'' "on order," " pass out" or "scratched sale," amount of tax-paid, tax-paid, number of certificates or memorandum memo-randum and origin of the order, whether wheth-er foreign or domestic. On the fifteenth day of each month, oi at a time which may be designated by the commissioner of internal revenue, rev-enue, all persons engaged wholly or in part in buying, selling or transferring stock are required to file a true return, under oath, of all transactions for the preceding month, giving a complete history of each transaction. Such returns re-turns are to be made on forms furnished fur-nished upon application bv the internal revenue collector. On the fifteenth of each month, or at any time designated by the commissioner, all exchanges must file a return, under oath, for the . receding month, covering all facts concerning con-cerning transactions. Forms for this return will be furnished. ftules for Exchanges. All exchanges must require their members to make full disclosure and report on each business day of all non-cleared non-cleared and non-clearable transactions of the preceding day in shares of stocks hat are listed or permitted to be dealt in by members (except as to units less than the number of shares constituting board lots), and shall require that all such shares of stock shall pay the tax on each and every transfer thereof that is not made through the exchange or other agency. To that end no settlements settle-ments or differences or other dealings as between members shall be permitted that will interfere with the payment of the tax on such transactions. Appropriate Ap-propriate rules and by-laws must be enacted bv exchanges to enforce these regulations. ' The war revenue law also provides for the imposition of a stamp tax on sales of products or merchandise on exchanges for future delivery. Every person engaged in whole or in part in making contracts for the sale and delivery of any product or merchandise mer-chandise at or on any exchange for riture delivery, or engaged in the business busi-ness of accepting or procuring the transmission of orders for such contracts con-tracts of sale, to be executed on any exchanges, is subject to the war tax. No tax is imposed on cash sales for immediate or prompt delivery, and the term "immediate or prompt, delivery shall mean delivery at once or within twenty days of the date of the sale or agreement. War tax stamps must be purchased from the internal revenue collector and requisitions for the same must be made in writing, in ink, on a prescribed form, giving tne date, number and denomination denomina-tion of the stamps applied for, and the naino and address of the purchaser must be signed by the person receiving them. |