The herald., 1894-09-02


thor, that in cases where the salary or othc
compensation paid to any person in tie employ
exceed the rate Of $500 per sSnsr or abs
be by fees. or uncertain irregular in the
amount or III the tfNae during which the SAINT
snail nave accrued or bsen earned, such sal2-
ry OF ether compensation shall be included ~
estimating the annual gains, profits or income
OF the person to whom this same shall have
been paid, and shall include that portion Of
anr. income or salafy upon which tax has
pcsa been paid by the employer, where the en-
PHI r3ar rs required by law TO pay on the excess
ovAS $4,000; provided also, that in computing
the income OF any pcrscn, corporation, COM
pany or association, there shall not be included
tho amount received from any corporation,
company or association, as dividends upon the
stock OF such corporation, company or essocia-
ton, 4 the tax Of Z, per cent has been paid
upon its net profits by said corporation, com
pany OF association as required by this act.
Krst Report His Profits.
Sec. IS. That it shall be the duty of all per-
sons OF lawful age having an income of more
than $500 for the taxable year, computed on
the bnsis herein prescribed, to make and rem
der q list or return, on or before the day pro-
vided by law, in such form and manner as may
be directed by the commissios:ar OF internal
revenue. with the approval OF he secretary OF
the treasury, to the collector or q deputy coll
lector OF the district in which they reside, of
the amount OF their income, gains and profits
as aforesaid And all guardians and trustees,
executors, administrators. agents, receivers
ana ell persons or corporations acting in any
nduciary capacity, shall make and render
a deputy collector Of tic district in which
such per s acting in fduciary ca. ca.
amount of income, gains and proits of any
minor OF. person for whom fhsy act, but per-
sons having less than S2,5c0 income are not re-
CURED to make such report, and the collector
or deputy collector shall require every
list or return 70 bo, verified by the
S Seth Of an, armsion OF ts party rem n
any list or return il he has reason to believe
that the same Ia understated, and in case any
such person having q taxable income shall neg
lect or refuse TO make and render such list
and return or shall render wllfully false or
fraudulent list or return j shall be the duty Of
the collector or deputy o4lisctor to make such
list, according to the best Information he can
obtain. by the examination Of such person or
any other evidence and to add 90 per cent
as penalty to the amount Of the tax due on
such list in all cases OF willful neglect or re-
fusal to make and render a list or return, and
in all cases of o willfulIy false or fraudulent
list or return having been rendered to add 100
per cent as O penalty 10 the amount OF tax
ascertained to be due, the tax and tho add
collected in the manner provided for in other
cases of willfui neglect or refusal to render
list or return or Of rendering false or fraudu-
Provided, That any person or corporation in
his. her, or its own behalf, or as such fducihry,
she'll be permitted to declare. under oath or
affirmation, the form and manner of which
shall be prescribed by the commissioner of IN
ternal revenue, with the approval OF the secre-
tary of tho treasury, that he, she or his, her or
income of $4,000 Liable to be assessed accord
ing to the provisions of this act; or may de-
clare that hp. she or it, or his, her or it's ward
or beneficiary has been assessed and has paid
an income tax elsewhere in the same year. un-
der authority Of the ~United States, upon all
his, her or its Income, gains, or profits. and
upon all the income, gains or profits for which
he, she or IL Is liable as such fduciary, as pre-
scrbea by y and i the collector ,, Or deputy
declaration. suoh person ior Corporation shall
thereppon be exempt from income tax in the
turn Of any perEon or corporation. company or
association Shall have been increased by the
collector or deputy collector, such person or
permitted to PROVE the anacgnt of income liza
BILE to be assessed; but such proof shall not be
considered az conclusive OF tho facts, and 70
deductions claimed in such sses shall De made
or allowed. until approved by the collector or
deputy collector.
Any person or company, corporation or ssso-
deputy collector in such cases may appeal TO
the collector Of the district, and his decision
Of iteraSi p ressnue shall s anal Il dissoti
fed with the decision OF the collector such per-
son or corporation. company or association
the commissioner of internal revenue for his
decision, and may furnish the testimony. OF
witnesses TO prove any relevant facts, having
served notice to that effect upon the commits
sioner Of internal revenue, as herein prescribed.
Such notice shall state the time and place at
inoEy will be taken; the name, age, residence
and business Of the proposed witness, with the
questions to be propounded to the witness or q
brief statement Of the substanoe of the teyti-
nony he is expected to give. Provided, that
the government may at the same time and
place take testimony upon like notice to rebuff
the testimony or the WITNESSES examined by
the person taxed.
Tho notice shall be delivered or mailed to
the commissioner of internal revenue suff1-
Gent number of days prevfcns TO the day fixed
for taking the testimony to SHOW him after
its receipt at least five deys, exclusive OF the
period required for mail conluupication with
the place at which the. testiaony is TO pc TAX
en-, in which to give, should he so desire, in
struotioHs as to tho cross examination OF the
proposed witness.
Whenever practicable, the affidavit or depo-
sition shall be taken before collector or dep
uty collsctcr of internal revenue, in which case
or deputy collector OF the time fixed for taking
the deposition Of AFFIDAVIT.
Provided further, That no penalty shall be
assessed upon any person or corporation, COM
pany or association for such neglect or refusal
or for making OF rendering wilfully false or
Lien q s 70
scribed by The commissioner of internal rev.
| enue, SO as TO give the person charged an op-
Sec. 81. That every corporation, company or
association doing business for profit shall make
and render TO the collector Of its collection dis
| trict, on or before the first Monday of March
| in every year, beginning with the year 1895. a
| full retryn, verified by oath or affirmation, in
such form as the co3nssaissioner OF internal
| matters for the w hole oa1endar year last pre-
| ceding tho date of such retiirn
First-The gross profits OF such corporation.
| company Or 's,ssbclatfcn, from all kinds OF
| business OF every name nId nature.
Second-Tho expenses OF such corporation,
company or sAsoeiaiion, exclusive OF interest,
| annuitieS and dividends.
Ihird-Ihe bet protits Of such I corporation.
interest, annuitiss or dividends. ID; 10 n
Fourth-The amount paid on account of In
terest annuitias and dividends. stated sep
| arateiy.
Flfth-TEe amount paid in salaries of $4,000
SaS to fssa g5SR s psa sss,ss of
than $500 to each person employed, and the
| name and address Of each of such persons, and
| The amount paid to each.
Books to Be Inspected.
| Sec. 80. That it shall be the duty of every
corporation, company or association doing
| accurate books of account, upon which all its
| tranalcticEs shall be entered from day TO day,
| In regular order, and whenever 8 collector or
| deputy collector OF the district in which any
| corporation, company or association IS as
| sessable shall believe that true and correct
| return of the income Of such corporation
| company or association has not been made,
| he shall mako an affidavit OF such be-
| lief and of the grounds on which it is found
| I'd, and fle the same with the commissioner
of internal revenue. end If seid commissioner
| bearing upon notice given to all parties, con-
c.ude there ia good ground for such belief, he
shall Issue request In writing to such cnrpo-
ration, company or R6soriati01fto permit an In
| spection of the books OF sach corporation. COM
| pany or association TO be made; and II sue h
..frAtr arT