. 

I 

YXmiArrrom GENERAL 

OF~TEXAS 

A- 11. TrxM 

*- etoniAbl0 Ooor* 9. Ilhoppard 

acm#trolLU yf PUN10 Aooowto 

Auotin, To8ao 

mu WI ,oplnlon to* a-6766 

WI'(~) Io tho truofir oi avotia6 

truot oortlfloato a taxablo truol o tio w8 d* Ar t. lip Ii.., 8, & Ao to 

47bh Log., rd., lQ4l 

(Q) Io t~~Cra8of.r oi o-book oorbifLoatoo thuofor to 08d from truotooo 

a -No tranoaotlo8 wdu tho above 

oltod Aott 

Your kttor of JlirJ 16, 1041, oubito for our opihm t@ alaovo 1~ 

qulrloo a8d 18 oozmoeblaithoroml~h you attbh a bttor tra Mr. 0. t* Botia60, 

Attomq'oi Dallao,Turro,anda 00~ oftho ~loularv8My MO* l 6roo w8t 

a 8d~0tl8g tror tooriaOlvod0 tlflo aWo to oopy irom l a ld laot moatlowd lottrr 

a0 tollawo8 

nYoudl180totbloVotl~ Buot mro 0irtaU oharro of Bopub110 ~tional.Lifo IWw880. tim dopooltid-dthtruo$o.o 88Wd 18 th0 

agraont, gurfl8g l uoh tmotooo tho right to yoto ouoh otook. Agalnot l ald 

#to&, autlfloatoo aro ~oouod povldly for l igh* (80) ualtr *r 080 (1) 

l h a ro o f topubllo P tlo dl ufo a tookTholbpulwo.lLtlonal . Llfa InnyrJloo 

OaPprpr'o otook ha0 a par nluo of Ta Dollar0 (ho@) p0roha~~oo.thif~ 

l lghty (80) wita in *o Voti8g Trust would roproooat 980 oharo of atook. 

"Plow. i@vloo no houUbloloXV of&uoo 6lll lOb.6 l fY.etotho 

trawfw of thooo war* 

*To break dam tho ~uootloi furthor -would it not te proper to 

pqrtho$p w tlm prmluo eihe,kto&rapreoented~tb u&o l~'Wt 

tlm unit0 appur to bo 08ly a r0oolptt I 

"I will bo 6Ld to have yoi advloo aw~fulaor lf tho ta8 10 thuo 

l pplloatrlo totwofor at otook VOtl8g fruot OorMfl~ttiu raprroortlry otook 

mado ouholdr the dtato of ‘pmr, although tha tronoirh ot tho wlto uo mu30 

08thobooko oftho truot~odthi8~,8tati o f To 8@ , That loto l ay,am 

tm8obvo wdo v 8o8eooldrto to 808-ro81dO8t8 oubjoot to thr tranofor tax?" 

without eIO&$dB6bZWlr, u~oonr~,'t~+~L~trurtagrr~o~ 

a& the rotly tnwt oortifioato attaohod fo udrforrod to 18 tho abovo 
&8.Oeorg0 t.6hoppard - M 2 (O-6766) 

latter, bat moroly roforrlng to l mo ao tho baa10 of thlo opbnlon, l viffloo 

t0 l q th a t tlhWtdBc; r bUOtthOZ'0~ O~*tUtd Udfb OO~~fiO&OO ~0OU.d 

therounder l ro an aooordtiowiththe ordiiry dofititio8:+,aqaptatiO8of 

thooo toma* Tha followly gonoral dofidtlo8 of a %otiq truot@ lo quabid 

from16 Ammrlorn Juriqrudoaoo, 66Q8 

% mtru tru8t P*JI br WBphO8OlYO4 doflzwd a0 a tmot oroatod v u yreomod btWO8 a ou of UO rhookholdorr of a oo 

4 a group of l&Poal agroaato btwon iadlrl T us1 otookholdorr a8d a 0-08 

ration ad tho truotoo or 

trwtoo, wlwro~ it lo proddad that for a bm of y0ar0, or for a prlod ao* 

bin6Oti up 08 a OOF b aOYOi8 #lt Or W, til ti l @ OOOIiI ~t tomlmtod, OOSbro3. 

ovwr tho r%o& owned w nroh ~~oolrboldorr, l lbhor for aorbal8 purpoooo or for 

all, ahall bo lod6od 18 tpU tn\rtoo, olthor with orwlthout a roromtla tu 

tbo ownom, or porroao dorlgaatod Ipr thm, of tho powor to dlroah how ruoh 

aontrel r&l1 k turd* &da ouoh a6rommC tltlo to tho rtook ltorlf 

ururlly, thou& 8ot alwayr, 18 ~rm8forrOdto tho doporlQay upom tnut for 

tha purporoo ,~OlflOdr” 

kQ11y hju 58O%wb vublag trwb agroaon% aad votlq truot oorMfloabo lowed %hor~undrr, ~0 lid thr four followly brmrroblorr or oltrur 

tlom, tho tuabltlty of aoh wo mud dotomlno hOa’O18, 

(1) ZIU trrrrfw or ourrudor W tha rubmrlkr to t h8 votly 

tNti r6ZWm.b Of @OUtifiQtQ hid byt~'8Wp#'.IWti@ rhUO& Of itOOk 

ia the topubllo mt1oma Lla ZarUmroO oaupuly, to rrld trurt0or with the 

o~oomt that raid @took hall k ouoolbd aad 8OW otimk lrauod b$C& 

kpubllo lktloml Life Imouraoo Qolapupto raldtirwtoor, with fula m 

to rote raid rtokar tb rrld trurtoor or tb mrjorl$@ of thoa mq dol &lrabloro 

(8) Tb ll#m800 by aad dolirrrJr to rrld 8u~orilk~ to the 

bwt, by +ho dodw%od buH~oor, of tho dororlbod bturtoo oorblt~oatrr, 

%otti86 forbh that oroh l ubmrlbor kr truofwrod to raid irur$oo om 

rhuo of ato& of tho Ikprblio Llfb DMUWOO 6m for l aoh d&h* 

wlto of tho trurtooo’ qrooQo8t." 

(6) Tho ;alo, a6m&t to roll, dollwry o? Wuwfor of tho 

trurtoor oorbiflo&+ol or roM86 hurt oortlflo~too, 80& atwo dororlbd, 

from ow holdor to mothor* 

(4) The dolivor) .or ro4ollvorJl at tb tmnixirtlor of tho . . 

tmot by raid votlq Wurhor, or tar& m~ooo#~ora La bw9, Co *ho anon 

ad holdorr of tho beaoflolal 18boroti, a@ roporatod by rot186 truot 

OUtifiNtO8 08 tb b&O OfthO tFUOtOO0, Of tb rbr8W O? OOX'tifiOdOO 

of @took of un mDpuloL0 Irt1oluz Utr muram@ OcBgla~r 

WdOr flrir h&d ~iilOi#O# 6oVOm1BJ UpFO80 tNd0, 608OtUb 

ly, ad udrr thr d0010108# ##001~10~4 loVO~Yln( YOtir& tm,tr,m thlrk 

lb my bo rtatod that wdu tho firrt trawmtlom or rlturtloa dororlkd 

abovo, only tho m&d lr@l tit10 to t4o~arror or oortlfbdor parood to 

th d.ol@atod trurtQO0 uador thlr *oti86 +‘tUt rq?OW&, t h. qultabio 
HOXI. aO0. H. 8hOpprd - fig0 5 (04766) 

tit18 tud lmnefiolal imtoro& ud ouneVohip of ouoh ohm8 of wrtlfioatoo 

ranmlting with tho oukoriboro to the tnmt agromont and the truoferoro 

Of NOh OttoOk. 

The Yotl8g truot OeHAfloate or tru”tee8’ oortlfloato loouod oad 

dellarod under the oeoond dtuatloa or trawaotloa me8tlonod #boos, war 

merely tidontlaty of tIm roopmtltn 18tueoC rhloh the put108 to the 

trurt agnwaat had l8 bd to fb #to& of th0 C0m~~ that lo to l ay, 

tlyl legal tltlo raulwd dfh Un truotooo but th o k neflo or lel quitablo l 

title roaslnod dth the ouboorlbro or their $rwforoom, with tha right to 

rooolw dhldrdo Ln aooordoaoo with ruoh l~teroato~ 

lQh0 third trmOwtlo8 or oituatloa, oo&omplrting a traarfor apr 

ralo, &if% or othenioo of tho votbg truot outlfloater or truoteeo~ oer- 

+~lflocboo frcdn old holdor or war to m&her, 0801g8rblo upor h;M booko 

and reoordo of *ho truntero, nrulto in a trarofor of the l qultrble tit18 

or knof%oial rl&tr ad umorohlp of ruoh rhuwr or ooH~U’loai~oo of tho 

t,publlo ~tlooal IAfo Pouranoo Qompupr, nproooated w ouoh truotooo 1 

oor%lfloatoo; tit 806 +maafw ai tho legal tltlo t9 ouoh ohano oooura 

thore’by, boauoo 8mo rem188 with the wbl8g trwteoa. 

Tho fourbh tbrurOarblo8 or rltuatlao lo fb ooa~or@o of the flrrt, 

l 8d l f'frato th trmafor of bho logrl~l~lo te tho oharoo oroorblfloatoo 

02 tho Ropubllo lWlo8al Llfr mourmoo Omnpaqr bdc into the holdoro of 

tho lmrflold lxbo~8t, or their r8olg8oo8 or tru18hr888, thorew rrot186 ;:I thw b&h th0 10&J R 8d %O l qUitdO tiblO* 

ador thlo u&y& of the pomlblo tunblo tmnmotloao wdu 

th0 obtod @tOok %XUlfOr &O$, Wl81n6 &WthO YOtb6 tr UOt l & OQQt 

boforo UN, wo ooroludr tht the flrrb, third ud fou~h~~of~Ouo& tirnraotlcm or truroforo aro nabjo& to tho l xolro rbap tu ltiod therog, 

tmt tho rooond trunoaotla lo not tuablo thoroundor. 

ThiO 00801U8108 1; grouadod Up08 *ho l X~OO lo?ayQo of 0OOt108 

1 of tho HoaL Trmofor Aot, whloh qpoar8 drrlsned 60 roaoh jurb l uoh a 

rltnrrbloa a8 thlra Wo quob, rrPdrrllnlng the porbi80at porblonot 

%arr lo horoby &pored a8d lerlod a tu a8 hard&tar provldod oa all 

raloo, a&rommtI to 0011, or moawasda of oaloo, ad all dellvwnrioo or 

truwfero of rhuor. or oorblfloato8 of atrook. or oortiftoatorfor rlr&to 

to ntock, or orrblfiortor of domelt rwr0108be u 18toromt 18 or rip 

ro"wt1~ 8orblflorto0 amdO tW%. UW 

or forrim r8oooiatio~ -pay, or oo&tlo8. or artlfloator of & 

thlJI Iootloq 18 rrly dmootl 

t08'08t i& Uqr ~Oi888O-Q8bWtOd bytZ'UitO0 QT kRLOtOO8 ati0 &tar t& 

l f?ootlvw data hrrwf, wbathorwdo up08 or rhow8 bybho book8 of the 

a88ool~tlO8, oo;mpupl, 00rpO8'&‘iO~, Or tl'U8t00, OC 'Ip, av a8Oi@!QO8t 18 

bla& or 4 q dellvorJr of ay prporr or ogrowmt ot aomorudw or 

Otbrr nld0800 of l ale or trurfu or order for or agroaumt to bw, 

whothr lntemedlato or flml. ad wh&hor iavootlaitho holder rib6 tho 

Vta 

ae 'lolal 18torort la or logal tit10 to ouohotodr oc other carbiEtu ublo horoumdor, or wlth *ho pooooomio8 or uoe th oroof for my 
the future pqment of nomy or &a future truafer of aq 

08 eaoh hundnd doll-8 of fao8 nlue or f~aot.108 

. . .* (~dorlimla6 oun) 

Thrt it m@ tt,lO egi#la tiY i8te .d t0 tOX tr uOfU8 Of l h UOO 

or oort1florteo of @took toad w tru8toeo, lneludlslg t~8iiOOO of u Oxpre80 

votlq taunt, 10 further lndlatod by the faot that 18 oreatl86 orrtaln sop 

tiOn8 or exea@loaO fromthe abov0 quoted tax levy, u uoeptlo8 wao oonforr~d 

up08 l traaOferO of oO~~l~e8 fr c m l fiduolary or frown o8e 8dnee of auoh 

fiduoiaq to another, propidod the OOm oontl8ue to be held by l uob naulwo for 

t& ame purporo for vhiohthq would be held If re+alaod tgr l uoh iiduolaq.* 

Iq Oon~Oti08 withthin OrpreOo exOeptiOn imlting flduolarlrr or trWte80,. 

it ia oi@floant to nob that no exanptio8 10 oroaixd with refersnoo to trnuPer8 of sto& or rtoak oortifloate1 to or tgl auohtru8feOO or flduolarirr, but 

ruoh exQptlo8 oomro only tranoforo to tholr nomiaecm 

lb thoroforr mubnlt that a fmble framaatlon or wortuality 

ir oreated wder l&a 8took Trmafer Aot v either a “#ale, apeomet to l en, 

dellvery or tnnofer upo8the bob a d moor doof , l h a r em or~oWAfloatoo o f 

atook. or oert1floatoo for'rkhtr to stock. or oerblfloateo of dewoalt r~maeat6upportlry our 0088~rUO~i~ Of the tub of the #tafutO, m fi8d 

the parauaOiv0 authorltloo of 6h ootir of lart rororli of the 6tatO of I& York 

ooartruiag %ho 6took Trmofor Aot of that Btate (from rhlohro underotaad the 

T0n8 Ifot to k adopbod) ud oerbal8 deOl8lon8 of %ho lMmmdl~to Fedoml oourt~, 

lavolriag a8 Aot Of @8~?008 OUbOtQtilaly OiBIilU i8 thi8 re(Udo It ho boe8 

otatid that a mphraoo, provloio8 or rtatuk adopted frcm the laws of another 

data or oouatry will ordimri4 be 61-r the @me oo80truotlo8 la Toxao that lt 

had noolvmd 18 the $ariodiotilo8 frclD whloh it m8 borromd~ If lt had boo8 61~08 

a f&d old doflalto meti 4 th0 oourtr oftit jrulodlotlon, it muld bo 61-8 

thr OW meal86 18 Texaoo ThiO l”dO ?eOtO Up08 the ~OURQt108 that th txO&iOlaturr no anaro of the judloial lnferprmtatlm glvr la th0 jurlrdlotlo8 fran 

tiloh ths @tatut# ‘1118 t&a, Wd that 18 adopt186 ouoh OtatutO, it lntaded al00 

to aooopt ouoh oonOtruotlon.n SO Tax. Jura 2Q4-886. 

Thormfon,'re hold that the firot traaraotloa mentloaed above 

lo tuablo rondrr tho A&, booau80 it lnrolvod a truafer of the lo6al tltlo ta 

ihwoo or 6orblfloatoo of Took of the R~publlo l&tlo8al Ldfo Ymw~ao~ aQpaay 

to tb tX'u"t000 aumd 18 the YOtly tX’Wt YXUmt, oYo8.thoU5h the qtitabl0 

title or karfioi~ itiO?oWb raai8Od with the OUk~k~ Or tX%8do?ori~ 

Wllllom F. Eonbright & 00. Y. 6t8t0, 161 ?LY. hp. SIB Oliffo Qorp. Y. Bltod 

hteo, 106 Fed. (8d) 77a I 

V&i tho mw baa10 of roa8oaln(;, m hold that the fourth 

traaraotlom dooorlkd abme iIWO1VO8 a twcablo %mOfO?, belag menly the WIIvu88 oftho flrot rituation.~~~ Ohioago Wart Ilorfom Ibr* 00. Y. Otate,16Q 8. Y. 

6. 467, afflmod, 166 & 6, Q60* 
Hon. (560. & Shepprd - Rage 5 (O-3765) 

!I?158 interpretation, upon substantially identioal statutes, appears 

from the adm5nirtrat5ve ruling and regulations of the IL So Treasury Deprtment and of the states of Maassaohusetta and New York, holding the transfer of 

shares or oertlficates of rtook to and fram voting trustees to be taxable., 

see, iafra* 

Rb hold the third trnnraotion named atwe to involve a taxable tranafar, even though the legal title to the steak does not pass by the transfer of 

the voting trust oertifioate but remains with the trwtees, The statute olearly 

intends to make taxable the transfer of the mere beneficial interest or equitable 

title to stook, uvidenoed by a voting trust oert5?icateo This oonstruction is 

supported by oertain deaisions and by the rules and regulatiana of the taxing 

authorities above mentioned. holding the tnnofer of voting trust oertifioatas 

to be tuublo. United Stat& v. Baker, 115 Fed. (2d) 129gJU-t. 15 (7), (14) of 

Information Relatinr to the Stook Transfer TPX Law. (New York); Regulations 71 

U. S. Treas. Dept.,-kt. 34(b) and (o)~ 

.- - 0 

Booause such voting trust oertifioateo are desigaed to merely avidenoe 

the beneficial or equitable interests of the holders of such oertifioatea in the 

actual shar%s of certificates of stock of the Republio National LWe Ynsuranoe 

Company, the tax l ooruing upon the ttinsfer thereof will be computed on the basis 

of the ppr v:nlue of such stook, to the extent that smne is represented by the 

unite ooverad by said vuting trust oertificateso 

The fourth transaction involved in the instant facts, that is, the 

irsuanos and delivery of the voting turstees of voting trust oertifioates, io 

not a taxable transfer beoause name ir tantamount to an original lcrsue of 

ntook, ddoh haa been held not to be wbjeot to this tax measure, Ipr our 

Opinion No. D-3594, direoted to you* Ry the issuanoe of suob oertifloatoa by 

tha voting trus+ees, ao transfer of the legal or equitaue title to aharea or 

oortifioatea of rtook or interests therein oooura, but suoh rertlfioaterare 

merely ev5deatiary of the righta ore&ad Iy the voting trust l graamntt. 

Annwring your last question, you ara adoiaed that the three tramaotlono ortraaafers held to be taxable herein, will be govamod by the prinoipleo announoad in our opinion NDo O-3713 direotedto you0 Tran8fen by nonrerldento to non-resident8 of stook oertifiaater or voting truet oortifioates 

will be taxable if aa, one of the four taxable tranaaotlono or evnnto nomad in 

the otatuter and in raid opinion ooour8 or transpires in the State of Texas. 

Idora opoolfloally, if the trawler6 of the unit8 raprerated bthe voting 

truot oertifloatao 56sued in the inatwt oaoe are reoordrd upon the book8 and 

reoordr nocrdo required to bo kept @' the ro%incg trurtaea within the State of 

Texar, under the exprorr temr of the votiag trurt l gnmnant, or lf the tran~- 

for of tha a,haror or oerf5fioateo of atook of the Hepublio National L5fe 

Inouranoo Canpeny by or to said vuting trurtees, ir made up08 tha transfer 

bookr andanstrordo of said oo&pemy in Torah, then, under our opinion I& O-3713, 

a rtook tranrfer tax aoouzw, even though the agreement or oontraot involving 
_ 

Eon. woe H. Shepprd - Rgo 6 @-3766) 

tb al8 or trmsf8r of mob 8-8 or wtiag %rurt artifloatu, the 

a & ua l le or kaa8fer of 8uoh 8-n tx oo1-llfioato8, udtholr deliwrp, uoh and all drurp&rd iaitrukfr~ 

Trurtiag the for8goiag ratirfkotorily aalwr8 your laquirio8, 

war8 

Yourr-m~truly 

By /I/ Pat b &if, Jr0 

Pat k. hff, Jr. 

li8818t8d 

&PP?#VBD 8Ep 4, Is41 

/8/ Qrowr 60118XV 

?lRsT M6I6TAm 

ATTc6BiBrQxBRAL 

- . 

m8Ih$8@I