Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-12-15
CORPORATION TAX
IS NOW IN EFFECT
Collection Will Amount to Over a
Million in Local Reve-
nue. District.
COMPRISES THREE STATES.
Money VIII Pass Through Hands of
Internal Revenue Collector Calls
ter-Corporations Concerned.

Notices arc being sent to many cor
porations throughout Utah, Montana
and Idaho, OF the special excise tax
commonly called the corporation tax
which is now in effect through an act
of the last Congress. Tho collection
which Will amount to over n million
will pass through the office of E. II
CalIster. internal revenue collector for
the three states mentioned. The con-
stitutionality OF the law Is being con-
tested by corporations and my pay
nients made VIII be under protest
The law IS applicable to most cor
lpoiations and involves per cent tax
upon any net income which is over
$4,000 This is exclusive of dividend
anounts received from other corpora
tions, There are exempted lodge and
lflatcrnal organizations. domestic build
inGs and loan associations, religious
and charitable organizations.
HOW INCOME IS DETERMINED.
Every corporation which comes with
Nm the pale of the law must make re-
turns TO the proper revenue collector
of Its gross and net incomes. These
ere sent TO Washington and there the
The net income. or that which Is tax
,able Is reached by deducting from the
lgrosS amount OF income from all
sources "all the ordinary and neces-
gary expenses actually paid within
the year out of income In the main
tcnance and operation of its business
and properties, including all charges,
such as rentals and franchise pay
ments required TO be made as a condi-
tcn TO the continued use or possession
OF property; ali losses actually sus-
tanned within the year and not COM
pensated by insurance or otherwise. in
gliding % reasonable allowance for de-
prcc;ation of property, II any. and In
Ice Gaze of Insurance companies, the
Suns other than dividends paid within
tne year on policy and annuity con-
tracts and the net addition, II any, re-
CURED by law TO be made within the
Year to reserve funds; interest actu-
Tally paid within the year on Its bond
Cd or other Indebtedness to an amount
OF such bonded and other indebtedness
not exceeding the paid-up capital stock
or such corporation, joint stock COM
1any or association or insurance COM
rany, outstanding at the close of the
year, and In the case of a bank. bank
ing association or trust company. all
interest actually paid by it within the
year on deposits"
tUItElGN CORPORATIONS
IN case Of foreign corporations. 'the
proportion or its paad-up canItaI sfock
outstanding at the close of the year
MNch Tic gross amount OF its ircoma
Ter the year from business transactcd
aad capital invested within the United
states and any OF its territories. Alas
ia ana the District of Columbia bear.
io the gross amount OF Its income de-
Hfeu from all sources within and with
cut the United States: (fourth) all sumo
lad by II within the year for taxes i'm
gosed under the authority of the United
states or of any state or territory there
81, or imposed by the government of
t3Y foreign country as q condition To
carrying on business therein; (fifth) all
amounts received by IL within the wear
as dividends upon stock of other cor
porations, joint stock companies or as
toclations or Insurance companies, sub
aect to the tax hereby imposed"
inc notices which are being sent out
contain blank forms upon which re-
turns arc to be made Mercantile houses
Mh.ch come under the law must furnish
inventories OF stock.
PENALTIES SEVERE.
The penalties In connection with the
I9s are very severe. The violation OF
business confidence on the part. of any
deputy or officer connected with the op-
Grafton of the law may be fined $1,000
and impTieoncd for one year Fines
from $1,000 to $4,000 may be imposed on
corporations which do not maloe proper
returns or fall TO make them at the
proper time.
CORPORATIONS AFFECTED.
The corporations affected are az fol-
lows;
Class A-Financaal and commercial:
Including banks, banking associations,
trust companies. guaranty and surety
companies, title Insurance companies.
building associations Qf for profit. and
insurance companies. not specifically
exempt.
Glass B-Public service: Such as rail-
roads, steamboat. ferryboat and stage
Inc companies. pipeline. gas and cleo
TIC light companies: express. trans
portntion and storage companies; telc-
graph and telephone companies.
Class C-Industrial and manufactur-
ing: Such as mining, lumber and coke
companies: rolling mills: foundry and
machine shops: sawmills: flour. woclcn,
cotton and other mills; manufacturers
or cars. automobiles. elevators. agri-
cultural implements and all articles
,s,.., "hohy VI iH pAil ilOni
metal. wood or other material: manu-
iactuners or rclncrs of sugar, molasses.
Syrups OF other products. leo and re-
ffgerating companies; slaughter house,
iannery. packing or canning companies,
etc.
Class D-Mercantile: Including all
dealers (not otherwise classed as pro-
duccrs or maunfacturers) in coal. lum-
her. grain. produce and all goods. wares
and merchandise.
Glass E-Siiscellaneous: Such as ar
chitects. contractors. hotol. theater or
other companies or associations not
otherwise classed.