Page:United States Statutes at Large Volume 68A.djvu/644

 604

INTERNAL REVENUE CODE OF 1954

(c) EFFACEMENT OF STAMPS AND BRANDS ON EMPTIED PACKAGES.—

Every person who empties or draws off, or causes to be emptied or drawn off, any distilled spirits from a cask or package bearing any mark, brand, or stamp, required by law, shall, at the time of emptying such cask or package, efface and obliterate said mark, stamp, or brand. (d) CROSS R E F E R E N C E S. — (1) For authority of the Secretary or his delegate to prescribe regulations relating to the stamping of packages of distilled spirits, see section 5194 (g). (2) For general authority of the Secretary or his delegate to prescribe regulations relating to the establishment and alteration of stamps, marks, and brands, see section 6801. (3) For provisions relating to stamping of distilled spirits removed from warehouses, see section 5250. SEC. 5011. ABATEMENT, REMISSION, REFUND AND ALLOWANCE FOR LOSS OR DESTRUCTION OF DISTILLED SPIRITS. (a) DISTILLED SPIRITS LOST OR DESTROYED IN B O N D. — (1) E X T E N T OF LOSS ALLOWANCE.—No tax shall be collected in

respect of distilled spirits lost or destroyed while in bond, except that such tax shall be collected— (A) THE F T. — I n the case of loss by theft, unless the Secretary or his delegate finds that the theft occurred without connivance, collusion, fraud, or negligence on the part of the distiller, warehouseman, owner, consignor, consignee, bailee, or carrier, or the employees of any of them; and (B) VOLUNTARY DESTRUCTION.—In the case of voluntary destruction, unless such destruction is carried out under subsection (b). (2) P R O O F OF LOSS.—In any case in which spirits are lost or destroyed, whether by theft or otherwise, the Secretary or his delegate may require the distiller or warehouseman or other person responsible for the tax to file a claim for relief from the tax and submit proof as to the cause of such loss. In every case where it appears that the loss was by theft, the burden shall be upon the distiller or warehouseman or other person responsible for the tax to establish to the satisfaction of the Secretary or his delegate that such loss did not occur as the result of connivance, collusion, fraud, or negligence on the part of the distiller, warehouseman, owner, consignor, consignee, bailee, or carrier, or the employees of any of them. (3) R E F U N D OF T A X. — I Q any case where the tax would not be collectible by virtue of subsection (a)(1), but such tax has been paid, the Secretary or his delegate shall refund such tax. No tax shall be remitted or refunded under this subsection where the loss occurred after the tax was determined (as provided in section 5006 (a)), and the spirits withdrawn from bond. (4) INSURANCE COVERAGE.^—The abatement or refund of taxes provided for by subsections (a)(1) and (3) in the case of loss of distilled spirits by theft shall only be allowed to the extent that the claimant is not indemnified against or recompensed for such loss. (b) VOLUNTARY DESTRUCTION.—The distiller, warehouseman, or other person responsible for the tax imposed by this chapter with respect to any distilled spirits in bond may voluntarily destroy such § 5010(c)

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