The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1909-07-01
THE TAX ACT
IN THE SENATE
SSESSMENT IMPOSED UPON
ALL CONCERNS EARNING
OVER $4,000 ANNUALLY.
Net Income to Be Ascertained by De
Quoting Necessary Expenses and
Losses.

Washington, June 2S The corpor-
alton tax amendment, prepared by
me finance committee, in conjunction
with President Taft and the lawyer
members OF his cabinet, was reported
TO the senate by Senator Aldrich
1t provides that every stock joint
company, all associations organized
for profit and every insurance COM
pany shall pay an annual tax OF ,
ger cent upon its net income, over
ard above $4,000 Reports are to be
made on or before March 1 OF each
year to the collector OF internal rev.
enue for the district in which the
corporation has its principal place OF
usiness Where false and fraudulen.
returns are made the commissioner
IF internal revenue is to add 100 per
.ent OF THE tax as set upon the cor
grafton, and in case OF refusal or ne
eject to verify returns, he is to add
80 per cent 10 the tax Refusal or
neglect TO make returns by March
or the rendering Of false returns will
make the corporation liable to pen
ally OF not less than $1,000, nor more
IN $4,000. Any person who is au-
.horized to make the returns for any
>orporation and who makes a false
eturn with intent to de'feat or evade
me assessment is liable TO a sre Jf
rot more than $1,000 or Imprisonment;
sot exceeding one year, or both, at
the discretion OF the court The net
income is TO be ascertained by de-
Quoting from the gross amount OF all
ordinary and necessary expenses act
1ally sustained, not compensated 10y
Insurance, including reasonable allow
arce for depreciation: interest actual
" paid on bonded or other indebted
ness not exceeding the paid capital
,took; all Sums paid for taxes; all
mounts received as dividends upon
he stock OF other companies, and in
The case OF insurance companies the
I'm required by LAW to De carried to
the premium reserve fund
The tax is to he computed on the
net income for the year ending Dec.
81 1909.
Annual Reports Must Be Complete.
The reports, which must be filed
by March i of each year, are to in
,lude the total outstanding capita,
stock, bonded and other Indebtedness,
:he gross, income. the amount derived
from dividends Of other corporations.
The total expenses, the total losses,
and in case sof insurance companies
the sums required by law to be car
ried by the premium reserve fund,
the interest to be paid within the
year on bonded or other indebted
ness not exceeding the paid UP CAPT.
tai; the amount paid for taxes under
the authority OF the United States or
any state or territory, and the net in
come
When evidence is presented thai
the reports Of any corporation are in
correct or if any corporation fails to
intake its return, the commissioner
of internal revenue may require fur
ther information or by any regularly
appointed revenue agent, especially
designated for that purpose, he may
examine the books, require the at
&c rsdance of officers of the corpora
ton and fake their testimony He is
also authorized to invoke the aid Of
any court to require the production
OF persons, books and papers
The assessments are to be made by
the commissioner OF internal revenue
and corporations are to be notified
of the amount of tax levies against
them by June l Of each year. ard the
tax rs TO he paid by June 80 After
the assessments have been made the
returns to be of public record in the
office of the commissioner of internal
revenue and open to inspection. 1t is
made unlawful for an employee of the
United States to divulge any conf
dental information obtained under a
penalty of a fine of not more than
$1,000 or imprisonment for one year
Provision is made under similar
terms for the taxing of any corpora
ton organized under the laws of any
foreign countries, the tax to be as
sessed upon the income above $4,000
received by it from business trans