Amendment to Regulations No. 26, as amended by Regulations Nos. 51, 60 and 77

September 8, 1938 DOF REGULATIONS NO. 106-38 SUBJECT : Amendment to Regulations No. 26, as amended by Regulations Nos. 51, 60 and 77 TO : All Internal Revenue Officers and Others Concerned SECTION 1. Section 204 of Regulations No. 26 (Revised Documentary Stamp Tax Regulations) is hereby amended to read as follows: "SEC. 204. Cancellation of documentary stamps. The cancellation of documentary stamps affixed to taxable documents should be accomplished by writing, stamping OR PERFORATING THE DATE OF THE CANCELLATION across the face of the stamp itself in SUCH MANNER THAT PART OF THE WRITING, IMPRESSION OR PERFORATION SHALL BE ON THE STAMP ITSELF and part on the paper to which it is attached. IN ADDITION TO STAMPING THE DATE OF CANCELLATION ACROSS THE FACE OF THE STAMP AS INDICATED ABOVE, A HOLE SUFFICIENTLY LARGE TO BE VISIBLE TO THE NAKED EYE SHOULD BE PUNCHED, CUT OR PERFORATED ON THE STAMP AND THE DOCUMENT EITHER BY THE USE OF A HAND PUNCH, SCISSORS, A KNIFE, OR A PERFORATING MACHINE. THE HOLE DOES NOT HAVE TO BE POUND ESPECIALLY IF A KNIFE OR SCISSORS ARE USED, IN WHICH CASE THE RESULTING HOLE MAY BE IN THE FORM OF A DIAMOND. IF A MACHINE WHICH PERFORATE THE WORD 'CANCELLED' IS USED, NO OTHER HOLE NEED BE MADE ON THE STAMP. IF A SIMILAR MACHINE PERFORATES THE DATE INSTEAD OF THE WORD 'CANCELLED', THE STAMPING OF THE DATE OF CANCELLATION AND THE PUNCHING OR CUTTING OF A HOLE IN EACH STAMP NEED NOT BE MADE. IF TWO OR MORE DOCUMENTARY STAMPS ARE AFFIXED TO A DOCUMENT, EACH STAMP MUST BE CANCELLED. No manner of cancelling documentary stamps other than that provided for in THIS section will be considered sufficient, and non-compliance with the provisions of this section would subject the offender to prosecution under section 2721 of the ADMINISTRATIVE Code. Both the persons issuing and the one accepting any document to which the law requires that documentary stamps be affixed are liable for failure to affix and cancel such stamps." SECTION 2. Effective Date. These regulations shall become effective upon promulgation in the Official Gazette. A. DE LAS ALAS Secretary of Finance Recommended by: A.L. YATCO Collector of Internal Revenue