New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-28
THURSDAY,
MARCH 28, 1895.
ALIENS AND THE INCOME TAA
rx.coNMIssIoNER HARLAND DOES No'
AGREE WITH COLLECTOR CROSSE.
HE HOLDS THAT THE PRESENT LA" D'N'
TAX AMERICAN SECURITIES HELD ID

HE HOLDS THAT The
TAX AMERICAN SECURITIES HELD
voN.REsIDENTs ABROAD.
Tho ,e,,er sent by Internal Revenue o.aI IN
Edward Crosse TO the British 'ons - tho pro-
this city in regard to l!abihty OF an" orncement
visions OF the income tax, ana ,me a...rd Crev
" 40 House Of Commons by Sir EnMa W. must
IN the 'io - I-r,ted states securities ~ 49,.
under penalty send their income oonsderable
,or,oar Authorities has created conmis-
H'"e'' hora THOMAS Harland. eHOo ..,,h
eioner OF Internal Revenue does NO. the provi-
Mr. Crosse that aliens are suoJe sos not he
sions Of the tax, because the Id" 4, intended.
saws make 1t clear that such .aHae e,arson Con-
Ar Crosse sent a letter TO Mt "d.,oh "a In
AZ. .i -, england in this city, which 10 80
SIR beg to call your attention to the prreSuirins
of the United States Income mall be- levied collected
that 6aa ax Annually nj upon gains pSs a"S bust
from all p rSPery carried on in the United
ness 'rT Sv nersons residing without rne TO be
states and psns sn failure ii 70 The return on
view OF at n many from United states
you may, perhaps deem u ppoYptry you represent
the WOES ,enective parties subject 70 me YAK ak.
avoid the aforesaid penalty spTn 10 assess tho
,ay and penalty against the dehhq"e''' . ..s
Mr. Sanderson said yesterday tha' ''' aa5.l
-, transmitted to his Government Out TIC
10, ba aid not understand that the Hcoi'o
o,,l,sd 70 British subjects who o"heu
s,a,os securities Mr. Crosses letter 10 Mt: ian.
,.o hroupht forth Inquiries from other foreisn
rs,resentatiyes in this city. Mr. crosse fep"v~
that the law applies TO all aliens as WEI, % ~.
zans whether residing In the Lh''eo o
-, Tho Cerman Consul answered this oy 10
,,na that according to his Interpretation Oh "o
,,ar,oua international treaties the worn p,op
r,y" only applied to real estate 10 'his or.
Crossa replied that decision OF the supreme No''
h.a Settled this point. and that the herman No"'
sui was wrong ,,,,.,orr 90.
ON this decision. which IS known as kHkiahn w
uotchkiss Mr. Harland says that MI "rosse 10 ia
error. - 49,, m
NJ Crosse saws thar his action has been APP
proved by the Commissioner IN "asn'ns 'o"' a.
that II was his purpose 10 assess the properly IN
.tI oour,rv Of all persons who failed 10 make tho
proper returns. Mr. Harland had this 10 say d"o"'
the matter: 49, 49,.
The COLLECTOR IS right IT. his position that tn9
Supreme Court has affirmed the right OF me ss
States TO tax alien noh-res,aea,,Sd, .nch taxation
The old Internal Revenue acts fequilstu a,es
companies TO pay tax direct 10 tne IT, honds
upon the interest paid by tnem upon tieI, ~ ~ :.
and authorized them TO deduct the amount oi NJ
tax thus paid from the payment h hon, ~ ~ he
bondholder Under these acts II was held py UP
supreme Court that railroad companies were NOT
authorized 10 withhold the tax from interest," pay
abIe abroad 10 alien bondholders. and 70 meet tne
S s 20 qhts decision Congress in 1866 amended
the act so that II read that the tax shoud De p.S
on the amount OF all such interest," wntheoe, ha,
wherever the same shall be payable. ana 10 "nat-
soever marty or person the same shall be payable
Including on-resdents. whether citizens or ahens
the mere fact that Congress possesses the power
10 impose such tax by no means implies tnat II
sboos clear that they have attempted TO tax
interest securities owned by nonresident aliens