The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1909-06-26
CORPORATION TAX
PLAN SUBMITTED
Measure Is Prepared By Finance
Committee in Conjunction With
Taft and Others.

WASHINGTON, jane 26.-The cor
Roratien tax amendment, prepared by
the finance committee, In conjunction
with President Taft and the lawyer
members OF mis- cabinet, was reported
TO the senate yesterday by Senator
AtdrtCh.
IL provides that every joint stock
company. all associations organized
for profit and every insurance COM
pany, shall pay an annual tax OF per
cent upon It's net income. over and
above $4,000.
Reports are to be made on or be-
fore March ! each year TO the collec-
tor OF internal revenue for the dis
trict In which the incorporation has
its principal place OF business. IL
false and fraudulent returns are made.
thee commissioner OF ltnernal revenue
is 10 add 100 per cent OF the tax as
sessed upon the corporation and In
case OF refusal or neglect TO verify
returns, he is 10 add so per cent or
the tax. Refusal or neglect 10 make
returns my March / or the rendering
Of false returns will make the cor
poration liable to a penalty OF not
less than 81 1000, nor more than Sl0.-
900.
To Ascertain income.
Any person who Is authorized to
make the returns for any corporation,
and VINO makes a false return, with
intent 10 defeat or evade the assess
ment. is liable to fine OF not more
than $1,000 or Imprisonment not ex-
ceedlng one year, or BOTH at the dis
erection of the court. The net income
is 10 be ascertained by deducting from
the gross amount of all ordinary and
necessary expenses actually paid, all
losses actually sustained, not com
pensated by insurance. including rea'
sonable allowance for depreciation;
interest actually paid on bonded or
other Indebtedness not exceeding the
paid up capital stock all sums paid
for taxes. all amounts received as
dividends upon the stock of other
companies. and In the case OF insur-
Gnce companies the sum required by
law 20 TIC carried to the premium
reserve fund.
The tax Is TO be computed on the
net income for the year ending Dec.
Il, 1909.
What Reports Must Contain.
The reports which must be filed by
March | each year, are to include the
total outstanding capital stock, bond
cd and other Indebtedness, the gross
income, the amount derived from divi-
bends from other corporations, the
total expensea, the total losses, and
In case of insurance companies, the
sums required by law To be carried
to the premium reserye fund: the
Fmount of interest paid within the
year on bonded or other Indebtedness
not exceeding the paid up capitals the
amount paid for taxes under the du-
thority OF the United States or any
state or territory and the net income.
When evidence is presented that
the reports OF any CORPORATION are In
correct. or any corporation fails 10
make its return, the commissioner CT
internal revenue may require further
information, or by any regularly ap
inted revenue agent, especially de-
pointed revenue agent especially
designated for that purpose, he may
examine the books, require the at
tendance Of officers OF the corpora
ton and take their testimony. He Is
also authorized to invoke the aid or
any court to require The production Of
persons. books and papers.
Tax To Be Paid BY June 30.
The assessments are 10 be made
by the commissioner of internal reve-
nue and corporations are TO be notified
Of the amount of tax levies against
them by June / OF each year, and the
tax is TO be paid by June 80. After
assessments have been made. the re.
turns are to be OF public record in
the office OF the commissioner Of in
ternal revenue and open TO inspection.
II is made unlawful for an employe Of
the United States TO divulge any con-
Gdential information obtained, under
a penalty OF a fine OF not more than
81 900 or imprisonment for one year.
Provision is made under similar
terms for the taxing OF any corpora
ton organized under the laws Of any
foreign countries, the tax to be as
sessed upon the income above $4,000
received by il from business transact
ed and capital invested within the
United States and its territories,
Alaska, and the District OF Columbia.
The amendment is made section 4
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