The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-06-26
TAT I CORPORA TION
PLAN PRESENTED
TO SENATE
MEASURE Is CONSIDERED TO BE
AMENDMENT PROOF.
Effort viii Be Made to Put II Through
Congress With No
Changes.

I day by Senator Aldrich and was OF
r dered printed as a committee amend
ment TO the tariff bill II schedules
? are completed by Monday the amend
ment will be taken up
In general form the measure follow.
the outline given by the Associated
Press, after the conference at tn,
White House on Tuesday night A,
drafted by Attorney General Wicker
sham and Senator Root, the measure
is believed TO be amendment-proof anC
an effort will be made to put Il
through congress unchanged 1t viii
be designated as the Taft plan"
The plan imposes a tax of . per cent
upon the net earnings of every corpo
ration. joint stock company or asso
citation organized for profits and nav
ing a capital stock represented by
shares, and every insurance company
organized under the laws of the United
states or of any state, territory or dis.
trict, or organized under the laws oil
any foreign country and engaged in
business within the United States.
Every latitude is given to concerns
for exemption of expenses, cost OF
maintenance, depreciation of property
|
forms Of taxation and all cXpeditures
usually taken from earning accounts
Every corporation is also given an
exemption Of $4,000 oil earnings before
the tax shall apply,
All machinery relating to the collec-
ton. remission and refund of internal
revenue taxes is made applicable t.
the corporation tax, and the reSponSi-
billty for the enforcement of the pro.
posed law rests with the commissioner
of internal revenue in the same man
ner as other internal taxes.
While the corporations arc required
10 supply intimate information relat-
Ing TO their business, provision is made
TO safeguard them against wrongful
use OF data obtained for the purpose
Of assessing the tax. Penalties are
provided in cases OF false or fraudu-
| lent returns
Practically every character Of incor-
porated institution organized for profit
Is brought within the provisions of the
tax
The provision defining the concerns
! from which the tax will he collected
| follows:
That every corporation, joint stock
company or association organized for
profit and having a capital stock rep
| resented by shares, and every insu-
| rance company now or hereafter or
ganized under the laws Of the United
| States or under the acts of congress
| applicable TO Alaska or the District of
Columbia, or organized under the laws
of any foreign country and engaged in
httGi in f.t1
the United States or IN Alaska or in
the District of Columbia, shall be sub
ject to pay annually a special excise
tax with respect TO the carrying on or
doing business by such corporation,
joint stock company, association or in
Surance company. equivalent 10 ? pei
centum upon the entire net income
over and above $4,000 received by it
from all sources during such wear eX-
elusive OF amounts received by il as
dividends upon stock OF other corpo-
ratlons, joint stock companies or as
sociationS Of insurance companies
subject 10 the tax hereby imposed. or.
If organized under laws of any foreign
country, upon the amount OF net in
come over and above $4,000 received
by it from business transacted and
capital invested within the United
States and its territories. Alaska and
the District of Columbia during such
year, exclusive of amounts so re-
ceived by it as dividends upon stock
of other corporations. joint stock com
panies or associations or insurance
companies, subject TO the tax hereby
imposed.
Such net income shall be ascer-
tanned by deducting from the gross
amount OF the income Of such corpora
tionS. Joint stock company or asSocia-
ton or insurance company from all
sources.
IAN losses actually sustained within
the year and not compensated by in.
surance or otherwise, including A
reasonable allowance for depreciation
of property. il any and in the case Of
insurance companies the sums required
by law TO be carried 10 premium re-
serve fund.
Interest actually paid witnin the
year on It's bonded or other indebted
ness. not exceeding the paid up capi-
tai stock Of such corporation. joint
stock company or association or in
surance company, outstanding at the
close of the year.
"All sums paid by it within the year
for taxes imposed under the authority
of the United States or any territory
thereof
"All amounts received by it during
the year as dividends upon stock OF
other corporations, joint stock compa-
nies or associations or insurance COM
panics subject TO the tax hereby inn
posed.
provided, that in the case of a cor
poration. joint stock company or as
ISOLATION OF insurance company organ
lied under the laws Of foreign coun-
try such net income shall be ascer'
tained by deductlng from the gross
amount OF It's income from business
transacted and capital invested within
tho United States and any of its ter
ritories. Alaska and the District Of
Columbia.
IAN the ordinary and necessary OK
penses actually paid wlt1in the year
ont Of earnings In the maintenance and
operation OF its business and prop
ertv within the United States and It's
territories. Alaska and the District
Of Columbia
"All losses actually sustained within
the wear In business conducted by IT
within the United States, not compen'
stated by insurance or otherwise. In
Guiding a reasonable allowance for de-
preciation Of property. and, In the case
of insurance companies. the sums re-
quired by Law to be carried to premium
reserve funds.
"Interest actually paid within tde
wear on It's bonded or other indebted.
ness. to an amount OF such bonded and
other indebtedness not exceeding the
- u Ia. rnlL I'M canifal stock