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73d CONGRESS . SESS . II. CH. 674. JUNE 19, 1934 . transferee shall be liable for any additional tax found due or penalty Expe nses allo wed . with respect to such transfer . The Commissioner shall abate or refund, in accordance with regulations issued hereunder, such por- tion of any tax hereunder as he finds to be attributable to profits (1) realized in the course of the transferor's regular buainess of furnish- ing silver bullion for industrial, professional, or artistic use and (a) not resulting from a change in the market price of silver bullion, or (b) offset by contemporaneous losses incurred in transactions in inter ests in silve r bulli on dete rmined , in ac cordanc e with such r egula- Los ses attributahle tions, to have been specifically related hedging transactions ; or (2) to market changes . offset by contemporaneous losses attributable to changes in the mar- ket price of silver bullion and incurred in transactions in silver foreign exch ange determin ed, in accord ance with such regulations, to have been hedged specifically by the interest in silver bullion Provi sions of gener al tran sfer red . The provisions of this subdivision shall extend to all application . transfers in the United States of any interest in silver bullion, and to all such transfers outside the United States if either party thereto is a resident of the United States or is a citizen of the United States who has bee n a resi dent the reof wit hin thre e mo nths bef ore the date of the transfer or if such silver bullion or interest therein is situated in the United States ; and shall extend to transfers to the United States Government (the tax in such cases to be payable by the trans- feror), but shall not extend to transfers of silver bullion by deposit or delivery at a United States mint under proclamation by the President or in compliance with any Executive order issued pursuant to section 7 of the diver Purchase Act of 1934 . The tax under this subdivision on transfers enumerated in subdivision 4 shall be in Transfer tax to be ad- addition to the tax under such subdivision . This subdivision shall ditional ; payment, etc . apply (1) wi th respect to all transfer s of any inter est in silver bullion after the enactment of the Silver Purchase Act of 1934, and (2) with respect to all transfers of any interest in silver bullion on or after May 15, 1934, and prior to the enactment of the Silver Pur- chase Act of 1934, except that in such cases it shall be paid by the transferor in such manner and at such time as the Commissioner, with the approval of the Secretary of the Treasury, may by regula- tions prescribe, and the requirement of a memorandum of such trans- fer shall not apply. "As used in this subdivision- Terms construed .
" The term `cost' means the cost of the interest in silver bullion "Cost ." to the transferor, except that (a) in case of silver bullion produced from materials containing s ilver which h as not previou sly entered into industrial, commercial, or monetary use, the cost to a trans- feror who is the producer shall be deemed to be the market price at the time of production determined in accordance with regulations issued hereunder ; (b) in the case of an interest in silver bullion acquired by the transferor otherwise than for valuable consideration, the cost shall be deemed to be the cost thereof to the last previous transferor by whom it was acquired for a valuable consideration ; and (c) in the case of any interest in silver bullion acquired by the transferor (after April 15, 1934) in a wash sale, the cost shall be deemed to be the cost to him of the interest transferred by him in such wash sale, but with proper adjustment, in accordance with regu- lations under this subdivis ion, when suc h interests ar e in silver bullion for de livery at dif ferent times . "Transfer ." "The term i transfer' means a sale, agreement of sale, agreement to sell, memorandum of sale or delivery of, or transfer, whether made by assignment in blank or by any delivery, or by any paper or agreement or memorandum or any other evidence of transfer or sale ; or means to make a transfer as so defined .
