The copper era., 1909-01-07
Corporation Tax Law Conditions.

effect with the coming year-in fact, is applicable for the entire year now ending?
 Section 3S of the tariff law of 1909, commonly known as the corporation tax law, provides for a tax of l per cent. on the net income over S50OO of all corporations, organized for gain-and the first year to which the new law applies is the year ending December l, 1909.'
 This new law requires that Sin come" is to be computed, for taxing purposes, on the basis of actual re- ceipts less actual payments, not on the basis Of revenue earned less ex- penditures incurred.
 Heads of corporations, not only in this territory, but throughout the United States, will readily recognize the importance of posting them selves as to the provisions of the new "corporation tax law" and for the benefit of such as these the following synopsis of the law is given, being section 3S of the tariff law of 1909, as far as it relates to domestic cor porations:
 I. Every corporation to pay an- nually a special excise tax of Ter cent. on it's net income oyer s5OOO re- ceiyed during each year.
 II. The "net income" is to be as- certained by deducting from the gross income the following:
 l. Maintenance and operating ex- penses actually paid during the year:
 ?. Losses sustained during the year which are not covered by in surance or otherwise, 'including a reasonable allowance for depreciation of property" Insurance companies may also deduct, (al sums paid on policy and annuity contracts, and (b) the net addition required by law to be made to reserve funds.
 8. Interest actually paid during the year on bonded and other in- debtedness to an amount of such bonded and other indebtedness not exceeding the paid-up capital stock outstanding.dt the close of the year. Banks and trust companies may de- duct all interest actually paid during the year on deposits.
 4. All taxes paid during the year. 5. All dividends received during the year.
 III. (a) The tax year to be from January to December 31, beginning with the year 1909.
 (b) On or before March in each year a return under oath is to be made by each corporation to the col lector of inland revenue, stating:
 l. Paid-up capital stock at close of the year.
 2. Bonded and other indebtedness at close of year.
 8. Gross income from all sources received during the year.
 4. Total ':ordinary and necessary expenses" actually paid during the year in the maintenance and opera tion of the business and properties. Rentals and franchise payments to be stated separately.
 5. Total amount of all losses ac- tually sustained during the year and not covered by insurance or other wise. Allowances for depreciation must be stated separately. Insur- ance companies must state (a) the sums, other than dividends, paid dur ing year on policy and annuity con- tracts, and (b) the net addition re- quired by law to be made to reserve funds.
 6. Interest actually paid during the year on bonded and other in- debtedness to an amount of such in- debtedness not exceeding the paid up capital stock outstanding at the close of the year. Banks and trust companies must state separately all interest paid on deposits.
 '. The amont of taxes paid and dividends received during the year.
 8. Net income after deductiug from the gross income the above items Nos. to T.
 ". Provides remedy against cor poraeions failing to make returns be- ieved by the commission of inland revenue to be incorrect.
 V. Assessment of taxes for each year to be made on -nr=hafore- -JJEzTez JEzTez 1 of the l-N4e444ewing, and tax to be paid not later than June 30.
 VI. After assessments have heeaz
 IEz[Gz4r--os5u revenue as pub lie records.
 VII. Government officials not to divulge information, except as pro- vided by law.
 VIII. Provides penalty for refusal or neglect to make returns and for making false returns.
 Over SIS, ,OOO,OOO Invested in Enterprise.
 Over sl5,OOO,OOO is invested in the electric light and power, gas and electric railway business in Arizona,