Regulations No. 56 Relating to the Collection of Tax On Motion Picture Films ...
Regulations No. 56 Relating to the Collection of Tax On Motion Picture Films ...
United States Office of Internal Revenue
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— ^All persons whose business it is, as principals, whether it is their sole or principal business or not, to grant to others the right to use films for exhibition, are liable to the tax. If leases, contracts, or agreements whereby the right to the use of films is conveyed are entered into by one person acting for and in the name of another, the principal is liable to the tax. One exe- cuting such leases, contracts, or agreements in his own name will be regarded as a principal and as liable to ...the tax, unless the contrary is shown. • Owners. — One who, being the owner of a film or of any interest therein, himself exhibits such film for profit, is also subject to tax. Lessees. — ^As to transfer of liability from lessors to kssees, by the ^statute imder certain circumstances, see article 7. As to transfer of burden of tax by agreement, see article 8, (5) Digitized by VjOOQIC MEASURE OF TAX. Art. 4. Lessors. — ^The provision of the statute allowing the owner who exhibits a j&lm to measure the tax by the fair rental value has no application to lessors.
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