Daily press. [volume] (Newport News, Va.) 1896-current, 1909-06-26
CORPORATION TAX PLAN
PRESENTED TO SENATE
Continued from First Page,)

other Indebtedness not exceeding the
proportion OF the year which the gross
amount of its income for the year
from business transacted and capital
invested within the United States al
any OF its territories. Alaska and the
District of Columbia, bears TO the gross
amount Of It's income derived from all
sources within and without the Unit
ed State;
1.-THE sums paid by 1t within the
year for taxes imposed under the au-
tority OF the United States OF OF any
state or territory thereof.
"All amounts received by II within
the year as dividends upon stock of
other corporations. joint stock COM
panles or associations. and insurance
companies subject TO the tax hereby
imposed
II is provided that there shall be
deducted from the amount of the net
income of each corporation. subject 30
the tax, the sum of $4,000. the tax
being computed npon the remainder.
Reports to Government.
Every concern subject to the tax
% required. on or before March OF
each year, 10 make true aud accurate
return. under oath or affirmation or
its president, v,ce-presiuent or other
principal officer. and its treasurer or
assistant treasurer. covering the char
acter of its organization and the
amount Of business transacted during
the year. 10 the collector OF Internal
revenue for the district in which the
corporation is organized: or In the
case OF foreign corporations. stock
companies. or insurance companies. IN
the place where its principal business
is carried on within the United Stat s.
The return must, however. set forth;
~. Total amount of paid up capt.
tai stock outstanding at the close Of
the year; (2), total bonded and other
indebtedness; go. gross amount Of IN
come during the year from all sources,
and IL organized under the laws OF a
foreign country the gross amount oil
its income derived from business
transacted and capital invested within
the United States; ca. amount re-
ceived by way Of dividends upon stock
OF other corporations or concerns SUBJ
iect to the tax; (5). total ordinary
and necessary expenses actually paid
out OF the earnings In the mainten-
ance and operation Of the business and
properties, and in the case OF foreign
companies the cost of operation IN
conducting business transacted within
| the United States: 10. total losses
actually sustained during the year and
not compensated by insurance or 9th
erwise. stating separately any amounts
allowed for depreciation OF property;
and In the case OF insurance compan-
| les the sums required by law TO be
| carried to premium reserve fund, and
In the case OF concern organized
under the laws of a foreign country
all losses actually sustained by IL IN
business conducted within the United
| states, not compensated by insurance
or otherwise, stating separately any
amounts allowed for depreciation OF
L DIOUtIt1, anu XII lbC tdot VI
companies the sums required by law
to be carried TO premium reserve
fund: 90, amount of interest actually
paid on bonded or other indebtedness
to an amount not exceeding paid M
| capital stock, or in case OF q foreign
corporation, not exceeding the proper
ton of its paid up capital stock which
gross income from business transact
ed and capital invested within the
| United States, bears to gross income
from all sources within and without
the United States; 81, amount PAID
] for federal or local taxes; (9), net in
come after making the deductions au
thorized.
Local collectors will transmit the
returns forthwith TO the commissioner
of internal revenue in Washington.
Examines Books and Papers.
Upon evidence qualifying the opin
| ion that the return made by a cor
poration Is incorrect, or whenever In
sufficient or no return has been made
1.-THE commissioner is empowered Il
designate any regularly appointed
revenue agent to examine the book
or papers of such corporation. AM
take testimony OF responsible officel
OF the corporation in order to produce
the information required for the pur
pose OF assessing the tax The com
missioner is authorized also to invoke
the aid OF any United States court e
require attendance OF such officers o.
employees and the production OF book
and papers. Upon the information Sc