Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1909-08-19
The NEW CORPORATION TAX LAW


joint stock company or association,
organized for profit and having
capital stock represented by shares,
and every insurance company, now or
hereafter organized under the laws
of the United States or under the acts
of congress applicable to Alaska or
the District Of Columbia, or now or
hereafter organized under the laws of
any foreign country and engaged in
business in any state or territory of
the United States or in Alaska or in
the District of Columbia, shall be
subject to pay annually a special ex-
else tax with respect to the carrying
on or doing business by such corpora
ton, joint one per centum upon the
entire net income over and above S.
1000 received by it from all sources
during such year, exclusive of
amounts received by it as dividends
upon stock of other corporations.
joint stock companies or associations.
or insurance companies subject to the
tax hereby imposed; or if organized
under the laws of any foreign coun-
try upon the amount of net income
over and above five thousand dollars
for the year from business transacted
received by it from business trans
acted and capital invested within the
United States and it's territories, Al
aska, and the District of Columbia
during such year, exclusive OF
amounts so received by it as divi-
dends upon stock of other corpora
lions, joint stock companies or asso,
Citations Or insurance companies, sub
iect to the tax hereby imposed: Pro,
vided, however, that nothing in this
section contained shall apply to Ia
Dor, agricultural or horticultural or
CARNATIONS, or to beneficiary So
cieties. orders or associations operat-
ing under the lodge system, and pro
viding for the payment of life, sick,
accident and other benefits to the
members Of such societies, orders, or
associations, and dependents Of such
members. nor to domestic building
and loan associations, organized and
operated exclusively for the mutual
benefit of their members, nor to any
corporation or association organized
and operated exclusively for religious,
charitable, Or educational purposes,
no part of the net income Of which III
ures to the benefit Of any private
,+ocI-LoITa1, or iDdiyidu91
Second. Such net income shall be
ascertained by deducting from the
gross amount of the income Of such
corporation, Joint stock company or
association. or insurance company, re.
ceived within the year from all
sources. (frst) all the ordinary and
NECESSARY expenses actually paid
within the year out of income in the
maintenance and operation of its
! business and properties, including all
| charges such as rentals or franchise
payments, required to be made as
condition to the continued use or pos
session of property; (seCond all
losses actually sustained within the
wear and rot compensated by insur
ance or otherwise, including a rea
sonabIe allowance for depreciation OF
property, if any, and in the case OF
insurance companies the sums other
han dividends, paid within the year
on policy and annuity contracts anc
the net addition, if any, required by
IL do hi
reserve funds; (third) interest actu
allv paid within the year on it's bond
ed or other Indebtedness to az
amount of such bonded or other IN
debtedness to an amount OF sucn
bonded Indebtedness not exceeding
the paid-up capital stock of such cor
grafton Joint sock company Or as
| ISOLATION. or insurance company, out
standing at the close Of the year, and
in the case of a bank, banking asso
citation or trust company, all Interest
actually paid by it within the year
on deposits; (fourth) all sums paid
bv it within the year for taxes I'M
posed under the authority of the Unit
ed States or of any state or territory
thereof, or imposed by the govern
ment of any foreign country as a con
ditiOn to carrying on business there
in: (ffth) all amounts received by II
within the year as dividends upon
stock of other corporations, joint
stock companies or associations, or III
surance companies, subject to the tax
hereby imposed: Provided, That III
the case Of a corporation, joint stock
company or association, or insurance
company. organized under the laws
of a foreign country, such net income
shall he ascertained by deducting
from the gross amount Of its income
received within the year from busi-
ness transacted and capital invested
within the United States and any OF
its territories, Alaska, and the Dis
trict of Columbia, (frst all the ordin-
airy and necessary expenses actually
paid within he year out Of earnings
in the maintenance and operation CT
its business and property within the
United States and its terri cries, Al
aska and the District Of Columbia, III,
Guiding all charges such as rentals or
franchise payments required to be
made as a condition to he continued
use Ct possession Of property: (sec-
ondl ell losses actually sustained
within The year n business conducted
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