OCR Text |
Show AFFIXING REVENUE STAMPS j In response to inquiries as to the affixing and cancellation of revenue stamps on the issue of certificates of stock, and the transfer of certificates, James H. Anderson, collector of internal in-ternal revenue, makes the following statement, which is of special interest inter-est to officers of corporations and stockholders or subscribers or buyers buy-ers of stock therein: : (a) In the case of the issue of shares of stock, whether on organization organi-zation or reorganization, the stamps representing the tax shall be affixed to the stock books and! not to the certificates cer-tificates issued. Illustration: For issue to the original ori-ginal subscriber or purchaser, the stamp representing 5c tax on each $100 par value or fraction thereof, shall be affixed to the stock book, preferably upon the stub to the certificates cer-tificates issued. Where there ia no actual issue of certificates, and the subscription is evidenced only by the articles of incorporation, the company's com-pany's office copy of the articles of incorporation becomes the stockboott, and the required amount of stamps la to be affixed thereto, opposite the name of the subscriber. In such case, all stock subscribed for is deemed to be issued1 to the subscriber as the original holder. (b) In the case of sale before certificate cer-tificate is issued, where the evidence of transfer is shown only by the books of the corporation, the stamps shall be placed on such books. Illustration: Where the stock has not been actually issued to the original origin-al subscriber, stamps for the 5c tax for original issue and the 2c tax for the transfer should be placed in the stock book. (c) In case the change of ownership owner-ship effected by transfer or deli very of certificates, i. e., where the name of the transferee, is inserted in the indorsement or power of attorney attor-ney on the back of the certificate, the stamp shall be affixed' to such certificate certi-ficate and' cancelled by the person making the sale. Illustration: On sale of endorsed certificate, the stamp is affixed to such certificate, this being retained by the company as evidence of payment pay-ment of the tax. In no case is the stamp affixed to the outgoing certificate. certi-ficate. (d) In case of agreement to sell, where the transfer is by delivery of the certificate assigned in blank. A stamp shall be affixed to the bill, memorandum, or agreement to sell, and cancelled by the seller. Illustration: This agreement to sell, so stamped', is preserved in the stock hook, as evidence of the payment pay-ment of tax. In no event shall the transfer agent ag-ent or corporation accept or transi-fer transi-fer any shares of stock or certificates, unless stamps for transfer are duly affixed and cancelled. |