**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN** 

iionoratleTom L. Asauaholnp :~.caratary **or :Xata**  AUStin, **Taxas** Duu,LUrt

**, be**  **oaken into**  **to bu**  **oomplite4**

**Artlole** 9034, RsvltmU Stnfateu lQQS, aa amen4eU kot6 1931, end Legisleture, 3. 441, Oh. ZQS, gea. 1, providsa that the Sranohlee tax of'corporntloes *b&U be baedd upon: t&et 

### prepwtdon OS the aatntan4%ngaapitrl outetundlrig

### ba48, rmkrraad 4obenti~o, other 

### tkan tbe~s* smtttrlng

### in has thana year SromQatu af iunua
. . .*

### The ;?urposecf tf,c: Legisleture 12 addlu~ notes, bends mid debentures utturinp !n less thn **Gne** yWr **from** date or **iSSue** uss tc neucure the tax oc solie basis so as to include the aatual pentauent capital **Or** the cor?oratlon,vihlcbhsd prevloualy bean exclwled In **some** Instancesbecause of its form. However, in deterlrin1n.g

**how** this result isto be aacoepllshedwe n;uctlook to the body **0r the**  uct itself.

By ita express language, **Article** 7084,as an;snilaA, sxoapta notes mmuing in loss than a raar **rrom** date or lsbue, the sob orikria 1s the Smturity date. Ho qualifioation 16 ma& for note8 whloh mey be outatendlng and -paId 

### after the **maturity** date or **at the**  cloas **oi,the** corporate aooountlng **year.**

Paper payable 

### on dacand18 due an4 aotlonablwisdiately **afthout** 

### &uliaml.6 **Tu.** 

### Jur.p. 681,Sea. 96. Themrore, **notam ’** **: payable**  

### on **asrnand rattare**  

### lee8 than 

### a mar troa 64to 0r iuu8 ~*. oow rlthlnthe statutory uoeption.



### Itwas statedin Southam 'isalty Corporation

v. l6&&& (ccrt$h, 1933) 66 Ired.(3)934s ., .:~..r .a
*The exoluslon or short-time loana, that le, thow 

### ror l~sssthan 

### a year, is also not arbltraxy. Ii 6uoh 

### .ara iotuelly repaid wlthln the Je8r, they have not bean ',:. oapltal employeslduring the whole tai perlo& If roaeWi& thronghaut the 

### year, they ay larve to ptivlde workig' oapltal just a8 thou& origI5aI.4 

### ror 0 yeor, but in truth they are no penuanent oapltal, but the indul&egioe la at the 

### rlll of the orvditor end generally Rmw 

### by a high rate 0r interast. A 11~~ or slw+w s*~:;t~+~-', '(: proper to be made at some point, .Md one year, the ~period uhlob the tax is to oov6r. was not an unreqsonablepltioe t0 rix it.* filthrerem3oe to your 8eoon1Y tmestlon, we a6bumie that each instance there la a bona iids renewal or ertenalon of the paper SO as to nifituro short **0r** n year rrom tho aats ~0r~mnslril. **~rtiols 7084**  **makes no**  mention **0r** rsnauala or sxtanaloaa. in

'ho **vlers** lay **be** taken. Blrat, the original issue date may be taken as the *date of leaue* rcriarrea to In the statute, and lf extended so that the seoond period plus the original $erlod 1s &Ore than ona year, the final natority date w0uld be mora than one year rrom the original *&at6 of lnsue*. 

### ,Onthe other ha&, the posltlon lvaybe taken that when the paper is extended or renewed, it **la** in raat end erroot a redssue or the paper ana whenROZ. Tox 1. Beauchamp, Irarch 

### 29, 1939, Page 3
ccuputlng the rreturlty actual "detc Z issue" referred tc in the statute.

Bona fide reaewals cr extensionsare no more ir: cmrlict wlth the express int?litlon of the L43gislatul-e findterrm or the Iict tban issuing 4eranQ 

### notesrhicb the payee sufrers to run more than e year wlthout collection; issuingaotea Paturhg leas then a year rrcm date of issue but abloh are allowed to run for several yeara without renewal cr paymnt; notea), bonds azd debsotures which are oalled in end cancelledan6 new obligations aotually l#S?md. oro4oeor.

### In each lostanaethe 

### indu&enOe 1s at the 

### ~111 of the

**Althollgh thl** * **POillt ru**  **not. 8peolti8ally**  

### berorethe oourtin the SouthernR+eltty Corporatlom

aaw quote6above,the aotwas ummlaad iramthe 8taMpoiat af it8 **validltq** 

### endwe thinkthe 

### ruwnlng **0r** 

### the aourt1s .sound when

### l pplle6to the **in6tuit** 

### 0880. m~Wxte ynothorbada for azmpuf+f$the 

### tu woul&be to

. :
**90 U** **’ O**  **of the**  **O&ion** that 

### uoh **Of Joor**  **QUO8tlone mhOUl6**  **ba aMwon**  **ln the**  

### Mgat.iV~.