The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1909-07-01
rats Plan.


President Tafts plan to impose
tax of two per centum on net earn
ings of corporations, joint stool
companies and associations doinl
business for profit. and every insur
ance company doing business in tn,
United States has been introduced
In the Senate by Senator Aldrich a,
an amendment to the tariff bill.
A brief outline of the bill is giver
below:
The plan imposes tax of two
per cent. on the net earnings of ever,
corporation, joint stock company OF
association. organized for profit and
having capital stock represented
by shares, and every insurance COM
pany in the United States.
Every latitude is given to con-
Germs subject to the tax for the ex-
emption OF expenses, cost OF main
tenance, depreciation of property.
debts and interests thereon, other
forms of taxation and all expendi-
lures usually taken from earnings
accounts. Every corporation is also
given an exemption of five thousand
dollars on earnings before the tax
shall apply.
All machinery relating to the COL
lection, remission and refunding Of
internal revenue taxes is made APP
plieable to the corporation tax and
the responsibility for the enforce
ment of the proposed tax rests about
the commissioner of internal reve-
nue in the same manner as other in
ternal taxes.
While corporations are required
to supply information of the most in
innate character relating to their
business. provision is made to safe
guard them against wrongful use of
data obtained for the purpose of as
sesstng the tax. Penalties are pro-
vided in cases of false or fraudulent
returns.
The amendment provides that the
tax shall be computed on net In
comes for the year ending iDecem-
her 81, 1909, AID for each year
thereafter true and accurate re-
turn under oath or affirmation shall
be made by the corporations and
companies. to the internal revenue
collector of the district. This return
will include a full statement of the
business of the corporation and so
on. When false returns are sus-
pected or failures to make returns
are discovered the collector is en-
powered to have special agents
make examinations and inspections
OF the corporations books. take tes.
timony and the like. and from infor-
nation so acquired the commission
err shall make returns for the corpo-
rat'ons. In case of false returns one
hundred per ceaum is added to the
tax and in cases of neglect to make
returns fifty per centum is added.
Payment of the tax must be made
on or before June so each year a
months notice having been given.
In the case of fraudulent returns
the internal revenue commissioner
has three years within which to add
the additional assessment. II not
paid within ten days after June 80
each year five per centum on the
amount of the unpaid tax and In.
terest at the rate of one per centum
per month will be added as n pen.
atty.
Divulgence by government offic,
falls of the business of any corpora
ton is accompanied by a fine o.
$1,000, or by Imprisonment not ex
ceeding one year, or both, in the dis
erection of the court.
Corporations or companies refus
ing or neglecting to make returns
by March l each year. or making
false or fraudulent returns, are Ii
able to fines of not less than $1,000
nor more than $4,000. Any per
son authorized to make returns, VIII
does so with intent to defraud. /
subject to fine of $1,000 and i'm
prisonment one year.
Jurisdiction is conferred on ci,
cult and district courts of the Unite
States.