The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-06-26
1.-THE TAFT PLAN"
Continued from Page One,

lperty. if any and in the case of in
Isurance companies the sums required
by law to be carried to premium re-
serve funds.
| Interest actually paid within the year
on its bonded or other Indebtedness to
| an amount or such bonded and other
Indebtedness not exceeding the zpropor-
ton of Its paid up capital stock out
standing at the close of the year which
the gross amount of its income for
the year from. business transacted and
capital invested within the United
! States and any of its territories Alas
ka and the District of Columbia, bears
TO the gross amount of its income de-
rived from all sources within and with
cut the United States;
THE sums paid by it within the year
Tor taxes imposed under the authority
| OF the United States or of any state
o. territory thereof;
| ''All amounts received by it within the
year as dividends upon stock of other
lccrporations, joint stock companies or
ass ociatious and insurance companies
subject to the tax hereby imposed
| 1t Is provided that there shall be
deducted from the amount of the net
i the tax, the sum of 5000, the tax be-
ing computed upon the remainder.
| Every concern subject to the tax is
required, on or before March 1 of each
year. to make true and accurate re-
/ turn. The return must set forth:
|
| cd. Total amount of paid up CAPT.
tai stock outstanding at the close of
the year; (2) total bonded and other in
debtedness; (3) gross amount of income
during the year from all sources, and
| If organized under the laws of a for
| eign country the gross amount of its
/ income derived from business trans
acted and capital invested within the
United States; az amount received by
way of dividends upon stock of other
| rnn E11h In
| tax; 90 total ordinary and necessary
expenses actually paid out of earnings
| in the maintenance and operation Of the
business and properties. and in the case
| OF foreign companies the cost OF oper
atoms in conducting business transact
| ed within the United States; CO. total
losses actually sustained during the year
and not compensated by insurance or
otherwise sitting separately any
amounts allowed for depreciation of
property; and in the case of insurance
companies the sum required by law to
be carried to premium reserve fund,
and in the case of a concern organized
under the laws of foreign country all
losses actually sustained by 1t IN busi-
ness conducted within the United States,
| not compensated by insurance or other
wise, stating separately any amounts al
/ lowed for depreciation of property, and
| in the case OF insurance companies the
sums required by law to be carried to
| premium reserve fund: ~ amount of
interest actually paid on bonded or 9TH
| er Indebtedness TO an amount not ex-
ceeding paid up capital stock, or In
| case of foreign corporation, not ex-
ceedihg the proportion of its paid up
capital stock which gross income from
business a., transacted and capital in
vested within the United States bears
| TO gross income from all sources with
| In and without the United States; (S)
amount paid for federal )r local taxes;
| (e) net income after making the deduc-
tons authorized.
| Local collectors will transmit the
returns forthwith to the commissioner
of internal revenue in Washington.
| Improper Returns.
| Upon evidence justifying the opinion
| that the return made by corporation
| is incorrect, or whenever insufficient
or no return has been made, the COM
missioner is empowered to designate
| any regularly appointed revenue agent
| to examine the books or papers of
such corporation and take testimony
| of a responsible officer of the corpora
| ton in order to produce the informa-
| ton required for the purpose of as
| sessing the tax The commissioner is
authorized also to invoke the aid of
any United states court to require the
| attendance of such officers or en-
ployes and the production of books
| and papers. Upon the information so
acquired the commissioner of internal
revenue may amend any return or
| make a return where none has been
| made.
Returns are to be retained by the
commissioner who will assess the tax.
In the event of any return being made
4 with false or fraudulent intent the
| commissioner is required to add 100
I per cent of such tax and in cases Of
neglect or refusal to make return, or
to verify the same, the commissioner
is to add SO per cent to the tax. When
the neglect is occasioned by sickness
or the absence of responsible ofhcer
tn TOW
the collector is allowed to extend the
time not exceeding thirty days. As
sessment made by the commissioner
must be paid by the corporation be-
fore June 80 of each year.
After assessments have been made
the returns on corporations must be
filed in the Office of the commissioner
of internal revenue and they will then
constitute public records and as such
will be opened for inspection. For the
protection of a corporation against the
wrongful use of information the fol-
lowing is provided:
cit shall be unlawful for any collec-
tor, deputy collector. agent. clerk or
other officer or emp1oye Of the United
States to divulge or make known in
any manner whatever not provided
by law to any person any information
II obtained by him In the discharge of
his official duty or to divulge or make
known in any manned not provided by
law any document received, evidence
. taken or report made under the sec
ond section except upon the special
| direction of the president; and any
, offense against the foregoing pro-
vision shall be misdemeanor and be
punished by a fine not exceeding one
\ thousand dollars or by imprisonment
, not exceeding one year, or both, at the
discretion of the court"
If any corporation subject to the tax
! refuses or neg1ects to make a return
in the manner required or shall make
a false or fraudulent return it is liable
to a penalty of not less than $1,000
and not exceeding $4,000. When any
person authorized by law to make or
to verify a return shall make false
or fraudulent statement for the pur-