The ;?urpose cf 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, vihlcb hsd prevloualy bean exclwled In some Instances because of its form. However, in deter- lrin1n.g how this result isto be aacoepllshed we n;uct look to body 0r the uct itself.

By ita express language, Article 7084,as an;snilaA, sxoapta *3 ROZ . Tox 1. Beauchamp, Irarch 29, 1939, Page 3

ccuputlng the rreturlty

actual "detc Z issue" referred tc in the statute.

Bona fide reaewals cr extensions are no more ir: cmrlict wlth the express int?litlon of the L43gislatul-e find terrm or the Iict tban issuing 4eranQ notes rhicb the payee sufrers to run more than e year wlthout collection; issuing aotea 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 cancelled an6 new obligations aotually In each lostanae indu&enOe 1s at the ~111 of the l#S?md.

oro4oeor. berore the Althollgh thl* POillt ru not. 8peolti8ally

oourt in the Southern R+eltty Corporatlom aaw quote6 above, the aot was ummlaad iram the 8taMpoiat af it8 validltq end we think ruwnlng the aourt 1s .sound when pplle6 to the in6tuit 0880.

m~Wxte ynothor bada for azmpuf+f$ tu woul& be to : . that uoh Of Joor QUO8tlone mhOUl6 90 U’O of the O&ion Mgat.iV~.

ba aMwon ln 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 maturity date or at cloas oi,the corporate aooountlng year. Paper payable on dacand 18 due an4 aotlonablw isdiately afthout &uliaml. 6 Tu. Jur. p. 681, Sea. 96. Themrore, notam’: payable on asrnand rattare lee8 than a mar troa 64to 0r iuu8 ~*. oow rlthln the statutory uoeption. It was stated in Southam 'isalty Corporation v. l6&&& ., .:~..r .a (ccr t$h, 1933) 66 Ired. (3) 934s *The exoluslon or short-time loana, that le, thow ror l~sss than a year, is also not arbltraxy. Ii 6uoh .ara iotuelly repaid wlthln the Je8r, they have not bean ',:. oapltal employesl during the whole tai perlo& If roaeWi& thronghaut the year, they ay arve 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 unreqsonable pltioe t0 rix it.* in filth rerem3oe to your 8eoon1Y tmestlon, we a6bumie that each instance there la a bona iids renewal or ertenalon of the SO as to nifituro short 0r n year rrom tho aats ~0r~mnslril. paper 7084 makes no mention rsnauala or sxtanaloaa. ~rtiols '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 original *&at6 of lnsue*. ,On the other ha&, the posltlon lvay be taken that when the paper is extended renewed, it la in raat end erroot or the paper ana when a redssue