The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-12-14

8. Interest on other notes, bonds and Securi-
ties.
8. Profits from sales of real es ate.
10. From rents
H. Profits from all other sources, TO be emu.
merated.
The operating expenses shall include:
l. Interest paid or accrued within the year
on Donoed or other Indebtedness OF such cor
poration.
2 Loss actually sustained during the year.
when must be separately stated and fully de-
scribed as to Cause, date and amount.
8. All taxes ctually paid.
4 Salaries and pay of officers and employees
actually paid during the wear.
D. Rents and necessary repairs.
q. All other necessary expenses. which must
be itemized aud fully explained in the return.
The net profits shall include
/. All amounts paid to stockholders or share
holders.
2. The amount of undivided profits on hand
or carried 10 surplus or any other fund.
D. Amount OF net profits used for construc-
non, enlargement Or Improvement OF plant.
f. All other expenditures or investments
from the net profits.
Corporations are required to keep accur-
ale books of accounts. and may be request
ed to allow collectors 10 inspect the same
III sOiiAOallOu Ul Tie Ltguiues Ii tLle
annual return is not fled with the collector
in tile time required by law the corporation
making default shall forfeit penalty of
$1,000 and per cent q mouth on the tax
due until paid.
Certain specified corporations for char
liable and like purposes and savings
banks, mutual insurance companies and
building and loan associations are exempt
from the income tax. In such cases it is
held by the department that the intention
of the exemption is to extend benefits to
the small depositors and benefciaries of
such mutual savings Institutions, and that
corporations such as those who spec
ulate In the shares. stocks or funds are not
benetclaries Of the exemption.
Collectors are required TO examine the
articles OF Incorporation and business
methods Of corporations claiming eXemp-
ton and which are not IN the class specifi-
cally exempt to cause return TO be made
for taxation, as in the case of other cor
poraIions.
The tax due from salaries or officers and
from the lay Of employees of the United
States Will be deduc ed from the first eX-
cess payment over $4,000 by paymasers
and discussing officers in paying the same,
and Will be paid over 10 the collectors of
he several districts wherein such dis
bursting officers reside or make payments
1t is provided that no part of the salary,
fees or emOluments of any State, county
or municipal officer is subject to income
lax and no return thereon shall be made
OF the salary or fees of such officers. Sal
aries received by Government officials in
1894 shall be included in the first annual
return, 20 be made on or before the first
Monday 10 March, 1895.
Appeals from The tax and the method
thereof are allowed and prescribed in all
cases where the person charged with the
lax is dissatisfied with the decision of
deputy collector CT collector. La the first
instance the appeal is TO the collector and
II dissatisi d with his decision the ap-
pellant may have the entire cause with all
the parers and evidence relating thereto
referred to the Commissioner of internal
Revenue for his decision. Severe penalties
are imposed on all officers and other per-
sons who make known in any manner
any TACT or any particulars contain ed in
or relating to any return of any taxpayer,
or any fact as 10 the source or amount of
the income of any such persons.
Collectors are strictly directed by the
regulations TO rigidly enforce this pro-
vision, and as all original returns are for
warded to aha fled in the Office of the
Commissioner of Internal Revenue, the op-
portunity for exposure of the facts pro-
tec.ed by this provision will be greatly re-
duced.
The tax incomes for the year 1894 will be
due and payable on or befora the fret dav
of July next, and if not paid at that time
the penalties Will attach for non-payment.
The collection of the tax when delinquent
will be enforced in the same manner as in
cases of enforcement and collections of
other taxes under the internal revenue
laws of the United States.