Exemption in case of reduced circulation.
Section 254
SEC. 254. Exemption in case of reduced circulation. — When the outstanding circulation of any bank is reduced to an amount not exceeding five per centum of the chartered or declared capital existing at the time the same was issued, such circulation shall be free from taxation; and when any bank which has ceased to issue notes or circulation deposits with the Treasurer of the Philippines in lawful money, the amount of its outstanding circulation to be redeemed at par, under such regulations as the Secretary of Finance may prescribe, it shall be exempt from any tax upon said circulation.