The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-05-05

Washington, May 4.-senator Vest to-
day offered an amendment to the in
come tax feature of the tariff bill, the
object being to relieve individual in
vestors in corporations and have the
profits of the corporation taxed.
Instead of compelling an individual
exhibit of books and papers, the as
SCISSOR may estimate the amount of in
come, and the person so assessed may
appear and prove that he has been as
sessed TOGO high, if such is the case.
The changes in detail are: Sections
10, sc and 81 stricken out and the fol-
lowing sections substituted therefor:
THAT there shall be levied and col
lected a tax of per cent. per annum
on the profits or income of ordinary
working. or operating expenses of all
banks, banking institutions, trust COM
panies, saving institutions, fire, marine,
life and other insurance companies,
railroads, canal, turnpike, canal navi-
cation, slack water, telephone, tele-
graph, electric light, gas, water, street
railway companies and ali other cor
porauons, companies or associations
States, no matter how created and or
ganized. The said tax shall be paid
on or before the first of July in each
year, and if the president or other chief
officer of any corporation, company or
association shall neglect or refuse to
file with the collector of internal rev.
enue district in which said corpora
ton, company or association shall be
located or engaged in business, a state
ment verified by his oath or affirma ton,
showing the amount, net profits or in
come received by said corpora ton,
/ company or association during the
whole calendar year preceding the date
of filing of said statement, as herein
after defined, the corporation, compa-
ny or association making default shall
forfeit as a penalty the sum of 1000
and 10 per cent. of the amount of taxes
| due for each month until the same is
paid, the payment of said penalty to be
enforced as provided in other cases of
neglect and refusal to pay penalties
and taxes under the revenue law.
Building Associations Exempt.
1.-THE profits or income of all cerpo-
rations, companies or associations Shall
include the amounts paid to the share
holders and bond holders or holders of
certificates of Indebtedness of any kind
or character, the account of any funds
used for construction, enlargement of
plant or any other expenditures or in
Vestment representing the net annual
prohts made or acquired by said cor
poration, company or association.
That nothing herein shall apply to
states, counties or municipalities, nor
TO corporations, companies or associa-
| tons, organized and conducted solely
/ for charity, religion or educationa pur-
poses, nor to the stocks, shares, funds
or securities held by any judiciary or
trustee for charitable, religious or ed
ucat1onal purposes, nor to such build
ling or loan associations as are organ
lied under the laws of any state or
territory, or of the District of Column
| bia, which makes loans to their share
holders to enable them to provide for
themselves homes
| The above is substituted for sections
! %, 80 and 81 of the tariff bill, in which
section SO is provided for levying 2 per
cent. tax on banking and like corpora
tons. Section so provided how the tax
on such institutions should be levied
and collected Section 81 provided for
the per cent. tax on the interests on
stocks, dividends or profits of railroad,
Telephone, gas and like corporations and
! provlded how it shall be collected.
WiIfuI False Statements.
Other amendments insert the word
| W1lfull y in providing a penalty for
/ instance.
section 90, where a penalty of per
! cent. is added for false statements This
! is, OF course, intended to prevent the in
f1iction OF penalties in case of uninten
tlonal false returns. It also denrtves
the revenue agent of he privilege of
examining the books or accounts of per
/ sons accused of making false returns
and restricts the examination IN the
person himself.
In many cases the amendments r,,+
corporations, companies and associa-
tons upon the same level as indi-
Ylduals, giving them the privilege of
/ proving the amount of income. where
the statement of income has been in
creased by the revenue agent. IT also
gives TO corporations companies and
associations the rights granted TO in
| d1v1dualS to appeal from the denI1tv
collector and from the collectors de-
cision to that of the commissioner of
the internal revenue. That relieves
them from the assessment of penalties
as 1T does individuals. except upon
! reasonable notice of the time and nIace
of the hearing. The salaries of stare.
county and municipal officials are re-
lieVed from the operations of the pro
posed tax law
The amendment providing for the
time limit of the operat ton of the act
made in sections 81 and so. saws the
lCNyl NIB VI TIE IdA snail Deg1n on June
l, 1898 and end on January l. 1900. An
important amendment is made to Sec
ton SO which is as follows:
Other Qualifications.
Provided, also, that in compiling the
income of any person, corporation.
company of association there shall nor
be included the amount received from
any company, corporation or associa-
ton as interests or dividends on the
bonds on stocks of such corporation.
company or association, if the tax of 3
per cent. has been paid on its net pro
fits by said corporation company or as
ISOLATION as required by this act"
The clause in paragraph SO recurring
estimates to be made upon the Shares
of persons in the gains or profits of
companies in levying the income tax is
stricken out
The intention of these amendments
is 20 prevent double taxation upon in
comes received from corporations.
Amendments are made to section S..
providing for returns of corporations
as to include companies and associa-
tons and place them upon the same
terms under the same law as cornora