New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-22
TO COLLECT NEW TAX
THE TREASURES PLANS.
Collectors Instructed to Prepare Lists
Of Taxable Corporations.

Washington, Aug l-The first steps for the col
lection OF the corporation tax authorized in the
Payne tariff law taken to-day by the Treas
ury Department Although corporations subject to
the tax not required TO make returns setting
forth facts about their business until March 1.
1910, the Treasury officials think IL is advisable to
make an early start in putting in motion the ma
chinery which will be required to enforce this part
Of the tariff law. Circulars sent to-day to all
internal revenue collectors in the country directing
Them TO make thorough canvass OF their districts
for the purpose OF furnishing the department a
complete list OF all corporations doing business
there.
The corporation tax section which imposes an
annual special excise with respect the car
rying ON doing business of per cent upon net
incomes In excess OF $1,000 applies to every cor
( tofauon, joint stock company or association or
sanized for profit and having capital stock rep
resented by shares, and every insurance company.
Under the instruction sent out to-day these cor
pofat'ons are TO be divided five classes fol-
I lows: Financial and commercial organizations.
public service. Industrial. mercantile and mscel-
laneous The local collectors are instructed to give
lhe place OF business Of each corporation and the
amount of its capital stock When THIS inforna
uoh Is received circulars and blanks will be sent
OUT containing the inteIrogations upon which re-
turns are 10 be based.
Great pains will be taken nv the rr-saxr-r o.7
eias IN formulating the questions which are to be
SEM 10 the heads OF corporations for answer.
Nhsh the Senate was considering the tax question
PRESIDENT Taft made il clear that he regarded the
revenue TO be derived from the tax as of small
or'dhce compared to the information resps citing
COZ poratlons that the government would be able TO
0o'iect IN us enforcement of the tax In his spe-
1iaI message TO Congress recommending the adop-
uoh OF corporation tax MIR. Taft said:
, 1no'her merit Of this tax is the federal super
Ne Ison whlcn must be exercised in order to make
businsss trauSe over the annual account and
the F,, ctions Of all corporations While
~ re, tbcuity ~ assuming corporate form been
ois te utmost utility In the business world IT is
an OF the evils which have aroused the public TO
the M, neeess{y OF reform were made possible by
ieg:tnate and effective system of taxation we
and the stockholders and the pubic of tbe
edEe Of the real business transactions and the
visor We nane MADE long step toward that super
siSoIy control OF corporations which NAV preVenr
further abuse of power.
The tax law itself provides for returns under
eight separate heads as follows:
First-Total paid up capital stock
Second-Total bonded and other Indebtedness
Ihrd-GToss income received during the preced-
Ing year; also received as dividends on
stock of other corporations
Fourth-Iotal expenses paid out of earnings in
the maintenance and operation of its business and
properties. stating separately all charges such as
rentals or franchise payments requ red to be made
as condition TO the continued use or possession
OF property
F1fth-Losses sustained and not compensated by
insurance or Use, and giving also amounts
! allowed for depreciation.
Sixth-Interest actually paid On bonded or other
Indebtedness. not exceeding paid up capital out
standing al the close OF the year and IN the case
Of banks. giving separately interest paid de-
posts.
Seventh-Amount Of taxes paid
Eighth-Net income after making the deductions
enumerated IN the foregoing