Please inform Mr. Eckstein that these certificates are not subject to taxation, no matter in what form they are executed. They are required in a legal proceeding and are exempt from taxation. Respectfully, yours, Mr. M. W. SUTTON, G. W. WILSON, Commissioner. Collector Internal Revenue, Leavenworth, Kans. CHARTER PARTIES. (21419.) Stamp tax-Charter party. The copy or duplicate of a foreign-made charter party, chartering a vessel to load at a port within the United States, which is the original evidence in this country of the vessel's charter and the evidence accepted by all concerned, is subject to taxation. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., July 21, 1899. SIR: Your attention is called to the fact that under date of July 12, 1899, this office advised Mr. H. A. Rucker, collector of internal revenue, Atlanta, Ga., that the so-called copy or duplicate of a foreignmade charter party, chartering a vessel to load at a port within the United States, which is the original evidence in this country of the vessel's charter, and the evidence accepted by the master and all concerned, should be stamped under the act of June 13, 1899. It appears that three, and often more, copies are made of original charter parties. Of these copies, one goes to the master of the vessel, another to the charterer or consignee of the vessel, and one or more to representatives of charterer or consignee for use at port or ports where outward cargo is discharged. As to which one of these copies should be stamped, you are advised that as the master's copy is the original evidence in this country, and the evidence accepted by the master and all concerned of the vessel's charter, it is the copy which preferably should be stamped. If, however, the master's copy is not obtainable, any other copy may be stamped, the revenue law being complied with when any one copy is stamped. It is suggested that you endeavor to bring this matter to the attention of masters of vessels clearing from your port. Respectfully, yours, G. W. WILSON, Commissioner. COLLECTOR OF CUSTOMS, Savannah, Ga. (21754.) Stamp tax-Charter party. The tax under the head of charter party is based on the net registered tonnage. and not on the gross registered tonnage. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., November 9, 1899. SIR: This office is in receipt of your letter of November 1, 1899, in which you ask to be informed whether, under the paragraph of Schedule A beginning with the words "Charter party," the tax is imposed on the basis of the gross tonnage or on the net tonnage. You state that the revenue agent of your division has been computing tax against charterers of vessels on the basis of the gross tonnage, and you submit one of a series of letters bearing on this point, received by you from Bennett, Walsh & Co., 18 Broadway, New York, N. Y. The paragraph of Schedule A referring to charter parties is as follows: Charter party: Contract or agreement for the charter of any ship, or vessel, or steamer, or any letter, memorandum, or other writing between the captain, master, or owner, or person acting as agent of any ship, or vessel, or steamer, and any other person or persons, for or relating to the charter of such ship, or vessel, or steamer, or any renewal or transfer thereof, if the registered tonnage of such ship, or vessel, or steamer does not exceed three hundred tons, three dollars. Exceeding three hundred tons and not exceeding six hundred tons, five dollars. Exceeding six hundred tons, ten dollars. You are advised that under the act of August 5, 1882, the net tonnage of a ship shall be considered the register tonnage, and although the customs regulations require both the gross and the net tonnage to be registered, this office holds that the word registered as used in the paragraph of Schedule A herein referred to should be construed as referring to the register or net tonnage, which alone represents the carrying or earning capacity of a vessel, and the tax imposed under the head of charter party should, therefore, be based on the net tonnage. Respectfully, yours, ROBT. WILLIAMS, Jr., Acting Commissioner. Mr. C. H. TREAT, Collector Second District, New York, N. Y. CHECKS, DRAFTS, NOTES, ETC. (See also DECISIONS 20785, p. 54; 20788, p. 36; 20949, p. 89; 20952, p. 95; 21471, p. 209; 21780, p. 212.) (20648.) Stamp tax-Checks and orders. Checks and orders for the payment of money (inland and foreign) defined and tax designated.-Letters of advice used by foreign money brokers, when taxable. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., January 30, 1899. SIR: This office is in receipt of your letter under date of January 19, 1899, in which you refer to the paragraph under Schedule A relating to the tax imposed on bank checks, drafts, bills of exchange, both inland and foreign, orders for the payment of money, etc., and ask the following questions in regard to the same: 1. Is a check properly defined "an order for the payment of money on demand out of the current funds standing to the credit of the drawer, irrespective of the location of the payor," and subject to a stamp tax of 2 cents each? Answer. A check may be defined as a draft or order upon a bank or banking house purporting to be drawn upon a deposit of funds for the payment at all events, of a certain sum of money to a certain person therein named, or to him or his order, or to the bearer, and payable instantly on demand. A check must be drawn upon a bank or banker, and requires but a 2-cent stamp affixed thereto under the act of June 13, 1898, irrespective of whether the bank or banker on which the check is drawn is located in the United States or in a foreign country. 2. Is the order for the payment of money (inland) taxable at the rate of 2 cents per $100, or fractional part thereof, distinguished from a check only by the element of time? Answer. An order for the payment of money may be defined as an order upon any person or persons for the payment of a certain sum of money to a certain person therein named, or to him or to his order, or to the bearer. It may or it may not be payable on demand, and may or may not be drawn upon a deposit of funds. If payable at sight or on demand, but a 2-cent stamp is required, but if payable otherwise than at sight or on demand within the United States, stamps at the rate of 2 cents per $100, or fraction thereof, must be affixed. An order for the payment of money is distinguished from a check by the fact that a check must be drawn on a bank or banker and against a deposit of funds, while an order need not be so drawn. 3. Is the order for the payment of money taxable at the rate of 4 cents per $100 or fractional part thereof predicated on its being based on a letter of advice, or upon the fact that it is payable abroad? If the latter, how shall discrimination be made between a check payable abroad and an order referred to in ruling 74, Circular 503, revised? Answer. An order for the payment of money which is taxable at the rate of 4 cents per $100 or fractional part thereof is predicated upon the fact that it is payable abroad. The difference between an order for the payment of money payable abroad and a check payable abroad is the same as is explained in the preceding section. 4. When a certificate of capital stock of a corporation is in the name of a trustee, and upon his death is issued to his successor in trust, is the transfer taxable? Answer. When a certificate of stock of a corporation stands in the name of a trustee and is upon his death transferred to his successor in trust, no liability to the stamp tax is incurred. 5. In case of a letter of advice to a foreign correspondent for a lump sum covering several money orders, payable to A, B, C, etc., should stamps be affixed at the rate of 4 cents per $100 on the basis of the total amount, or upon each order treated separately? Answer. In case of a letter of advice to a foreign correspondent for a lump sum covering several orders, payable to A, B, C, etc., stamps at the rate of 4 per cent per $100 or fractional part thereof should be affixed on the basis of the total amount named in the letter of advice. This ruling is based upon a case where no bill of exchange or order for the payment of money accompanies the letter of advice. If, however, a bill of exchange or order for the payment of money accompanies the letter of advice, it is these instruments that are taxable, and not the letter of advice. Respectfully, yours, N. B. SCOTT, Commissioner. Mr. F. E. COYNE, Collector Internal Revenue, Chicago, Ill. (20874.) Stamp tax-Orders for payment of money. Orders for the payment of money contained in acceptance of drafts require but one stamp of 2 cents, whether the drafts are at sight or on time. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, SIR: Referring to the conversation with you yesterday, on your personal visit to this office, relative to the tax on acceptance of drafts considered as orders for the payment of money, I have to advise you that the present ruling of this office is contained in Circular 503, revised, No. 57, and is as follows: Sight drafts, drawn upon or issued by any bank, trust company, or any person or persons, companies or corporations, require a stamp, and, if the acceptance of the draft is accompanied by an order to the bank to pay the same, and to charge to the account of the drawee, this accompanying order requires, in addition, a 2-cent stamp as "an order for the payment of money;" and, if a time draft, the accompanying order must be stamped at the rate of 2 cents per $100. This ruling will now be modified so that a time draft which has an order accompanying the acceptance for its payment at a particular bank will require only a 2-cent stamp in addition to the stamp already placed thereon, and not 2 cents per $100. In other words, there will hereafter be no distinction between the acceptance of time drafts and those payable at sight in this respect. Respectfully, yours, Mr. CHARLES H. TREAT, G. W. WILSON, Commissioner. Collector Second District, New York, N. Y. (20947.) Stamp tax-Bills of exchange. Bills of exchange or orders for payment of money drawn abroad, but payable in the United States at sight or on demand, require only a 2-cent stamp on each instrument.—Reversal of ruling published as Treasury decision 20881 in this respect. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., March 31, 1899. SIR: Referring to your letters of March 23 and 24, 1899, I have to advise you that the ruling of this office in construing section 11, act of June 13, 1898, relative to the tax on bills of exchange and orders for the payment of money drawn abroad, but payable in this country, as made February 1, 1899, is hereby modified as follows: When any bill of exchange or order for the payment of money, drawn in a foreign country, but payable in this country otherwise than at sight or on demand, is presented for acceptance or payment, there must be affixed thereto before acceptance or payment a stamp equal to 2 cents for each $100, or fractional part thereof, or the same tax as is imposed on inland bills of exchange. When any bill of exchange or order for the payment of money, drawn in a foreign country, but payable in this country at sight or on demand, is presented for payment or acceptance, the stamp required to be affixed is 2 cents only for each such instrument so presented. Inland bills of exchange payable at sight or on demand are not specifically mentioned in the law, and, therefore, it is held that it was the intention of Congress to assimilate sight instruments drawn under section 11 with the other inland papers drawn at sight or on demand provided for in paragraph 3 of Schedule A. |