Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-08-14
Canadian Bank Notes Are Subject
to Tax of Ten Per Cent.
UNDER HEAD OF PROMlSSORY NOTES.
Rules That Canadian Bank Notes or
Note of Any Person, Firm, Corpora.
alton, Association or Company
When Used to Pay Debts Are Sub.
ject to the Tax.

Canadian bank notes or the notes OF
any person, firm, corporation, associa-
ton or company, whether foreign or
domestic, are used in the payment OF
debts, they are taxable under the pro-
visions of the war revenue act at ten
per cent. This is the gist of a ruling
recently made by G. w. Wilson, com.
missioner of internal revenue and dis
tributed among the revenue collec-
tors of the United States by means of
the bulletin OF decisions issued by the
treasury department. S. l.. Vest, dep
uty internal revenue collector for this
district, is in receipt of the bulletin
containing the decision in the form OF
a letter to a Port Angeles, Wash,
banker, which, together with the facts
on which it is based, are as follows:
The Decision.
Sir: Your letter of the 18th instant
has been received, relating to the liza
bility of your bank for the tax OF
10 per cent on Canadian bank notes
paid out by it.
Whenever Canadian bank notes, or
the notes of any person, firm, corpora
ton, association, or company, whether
tional banking association), are pass
ed from hand to hand anywhere in the
United States in payment of debts or
in the purchase of goods, it is held
that they are used for circulation in
the United States, and that any bank
receiving these notes so used and pay
ing them out again in the United
States is required to pay the tax of
10 per cent on the amount of the notes
thus paid out Tor "sold') in view Of
the provisions of section 20 of the act
of February s, 1875, Us Stat, Bill
This question has been fully
considered and settled by this Of
fee, as you will see by re-
ferring to the rulings in Volume
XXXIV, Internal Revenue Record, on
pages SO. 81, II, SO, "a, and 1O1, which
will be shown you at the Office of the
collector of internal revenue in your
district. The printed slips or circu-
lar letters in print" which you state
were exhibited to you by Revenue
Agent Towne, as copies of decisions
made here, were no doubt exact copies
of these rulings.
| The revenue agent in his report sets
| forth the sworn return made by you
as president and manager of the Bank
of Clallan county, showing that, as far
as you can determine, said bank has
paid to the agent of the Northern Pa
cific Express Company at Port Ange.
les, Wash, since June 80, 1898, $1,65O,
and to various other persons in Port
Angeles, Wash, in the same period,
500, all in Canadian bank notes, and
| that the said bank has not previously
made return of the amount of Cana
dian notes thus paid out, nor paid the
tax upon same as required by law
The tax of 10 per cent thereon
| ($175) has, therefore, been assessed
| against your bank, these notes having
as it is understood, been used for cir
culation in the community in lieu of
the money or currency of the United
States, and having, after such use,
been received on deposit in your bank
as reported by the revenue agent and
thereafter paid out. These being the
facts, your bank, under the construc.
ton given by this Office to the statute
(the correctness of which | find NO
room to doubt, must be required to
pay the tax.
! Upon payment of this assessment
you will then be at liberty under the
law to test the question by suit if
upon further consideration, you find it
advisable to do So after claim for re-
funding shall have been made by you
and rejected by this office (sec. 1926
Rev. Stat) Respectfully,
G. w. Wilson, Commissioner.