72d CONGRESS . SESS. I. CH. 209 . JUNE 6, 1932 .
215 sufficient compliance with the above requirement. Such fiduciary Moose TAX shall make oath (1) that he has sufficient knowledge of the affairs Oath required . of the individual, estate, or trust for which the return is made, to enable him to make the return, and (2) that the return-is, to the best of his knowledge and belief true and correct . } LAW A FPLIc ABLE To'IDtCIARIES.-Any fiduciar the required to ap1bcecttorovisio s ma e a re turn under this title shall be subject to all
provisions of law which apply to individuals . SEC. 143. WITHHOLDING OF TAX AT SOURCE.
Withholding tax at (a) TAx-FREE COVENANT BONDS.-
soTax-tree covenant (1) RE QIIIR EMENT O F WITHHOLDING.-In any case wher e bond s, By corporations mortgage s, or de eds of t rust, or other s imilar ob ligation s of a agreeing to pay in- corporation contain a contract or provision by which the obligor t' .`' free from tax ' agrees to pay any portion of t he tax imposed b y this title upo n the obligee, or to reimburse the o bligee for any p ortion of the ta x, or to pay the int erest without de duction for any tax which the ob ligor may be required or permitted to pay thereon, or to retain there- from under any law of the United States, the obligor shall deduct and withhold a tax equal to 2 per centum of the interest upon Tax withheld . such bonds, mortgages, deeds of trust, or other obligations, whether such interest is payable annually or at shorter or longer periods, if payable to an individual, a partnership, or a foreign corporation not engaged in trade or business within the United States and not having any office or place of business therein : Provided, That if Proniaoe . the liability assumed by the obligor does not exceed 2 per centum Rates . of the interes t, then the dedu ction and withho lding shall be a t the following rates : (A) 8 per centum in the case ofa nonresident allen Fro
~i sident alien individu al, or o f any pa rtnershi p not en gaged in trade o r business within the United States and not having any office or place of business therein and composed in whole or in part of nonresident aliens, (B) 133/ 4 per centum in the case of such a foreign ratFtroons foreign corpo- corporation, and (C) 2 per centum in the case of other individuals Other individuals, and partnerships : Provided further, That if the owners of such etc . obligations are not known to the withholding agent the Commis- Unknown owners . sioner may authorize such deduction and withholding to be at the rate of 2 per centum, or, if the liability assumed by the obligor does not exceed 2 per centum of the interest, then at the rate of 8 per centum . (2) BEN EFIT OF CRED ITS AGAI NST NET INCOME .-Such deduction Exception on notice wi thh eld by and withholding shall not be required in the case of a citizen or individual . resi dent enti tled to r eceiv e suc h int eres t, if he f iles with the with- holding agent on or before February 1 a signed notice in writing claiming the benefit of the credits prov ided in section 2 5 (c) Q Post . Mtalien . (d) ; nor in the case of a nonresident alien individual if so Ante, p. 184 . provided for in regulations prescribed by the Commissioner under section 215 . (3) INCOME OF OBLIGOR AND OBLIGEE .-The obligor shall not be anaor tononobiigor allowed a deduction for the payment of the tax imposed by this title, or any other tax paid pursuant to the tax-free covenant clause, nor shall such tax be included in the gross income of the obligee.
of non, (b) NONRESIDENT ALIENS .-All persons, in whatever capacity reside r nt al iens pa yable acting, includin g lessees or mor tgagors of real or personal prope rty, a t so urc e . fiduciaries, employers, and all officers and employees of the United States, having the control, receipt, custody, disposal, or payment of interest (exc ept interest on deposits with pe rsons carrying on the banking business paid to persons not engaged in business in the United States an d not having an office or place of business there in),
