The Birmingham age-herald., 1909-06-26

amount of it's income for the year from business transacted and capital invested within the United States and any of the its territories, Alaska and the District of Columbia, bears to the gross amount of its income derived from all sources within and without the United States.
 "The sums paid by 1t within the year for taxes imposed under the authority of the United States or of any state or territory thereof
 "Al1 amounts received by 1t within the year as dividends upon stocks of other corporal tions, joint stock companies or associations and insurance companies, subject to the tax hereby imposed"
 It Is provided that there shall be de- ducted from the amount of the net in- come of each corporation subject to the tax the sum of s500O. the tax being com puted upon remainder.
 Accurate Returns.
 Every concern subject to the tax is re- quired on or before March 1 of each year to make true and accurate return, under oath or affirmation of its president, vice president other principal officer, and its treasurer or associate treasurer cov- ering the character of its organization and the amount of business transacted during the year to the collector of internal rev enue for the district in which the corpor- ation is organized, or in the case of for l eign corporations stock companies insurance companies in the place where its principal business Is carried on within the United States The return must, | however set forth:
 i. Total amount of paid-up capital stock outstanding at the close of the year.
 2. Total bonded and other indebtedness.
 3. Gross amount of income during the year from all sources, and if organized under the laws of foreign country the gross amount of its income derived by q within the United States
 4. Amount received by vhay of dividends upon stock of other corporations or con cerns subject to the tax
 5. Total ordinary and necessary expense actually paid out of earnings in the main tenance and operation of the business and properties, and In the case of foreign com panies the cost of operations in conduct ing business transacted within the United States.
 6. Total losses actually sustained during 1 the year and not compensated by insur- ance or otherwise, stating separately any amounts allowed for depreciation of prop erty, and in the case of insurance com panies the sums required by law to be carried by premium reserve fund.- and in the case of concern organized under the laws of foreign country losses actually sustained by it in business conducted within the United States not compensated
 
 rately any amounts allowed for deprecia- ton 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 on other indebtedness to an amount not exceeding paid-up capital stock, or in case of'a foreign corporation not exceeding the proportion of it's paid up capital stock, which gross income from business transacted and capital in vested within the United States bears to gross income from all sources within and without the United States.
 8. Amount paid for federal or local taxes.
 9. Net income after making the deduc- tions authorized.
 Local collectors will transmit the re- turns forthwith to the commissioner of internal revenue in Washington.
 Incorrect Returns.
 Upon evidence justifying the opinion that the return made by corporation is incorrect, or whenever insufficient or no return has been made, the commissioner Is empowered to designate any regularly appointed revenue agent to examine the books or papers of such corporation and take testimony of responsible officer of the corporation In order to produce the information required for the purpose of assessing the tax. The commissioner is authorized to invoke the aid of any United States court to require the att tendance of any such officers or employees and the production of books and papers. Upon the information 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 com missioner who will assess the tax. In l O nv ms tyif h false or fraudulent intent the commis- sioner is required to add 100 per cent of such tax and in cases of neglect re- fusal to make return, to verify the same, the commissioner is to add o0 per cent to the tax. When the neglect is oc- casiohed by sickness or the absence of a responsible officer of the corporation sub ject to the tax the collector is allowed to extend the time not exceeding 30 days. Assessment made by the commissioner must be paid by the corporations before June 30 of each year.
 Date of Filling.
 After assessments have been made the returns of corporations must be filed in the office Of the commissioner of internal revenue and they will then constitute pub | lie records and as such will be open for inspection. For the protection of $ corporation against the wrongful use of information the following Is provided: Tt shall be unlawful for any collector. : deputy collector, agent, clerk or other officer of the United States to divulge or to make known in any manner whatever not provided by law to any person any information obtained by him in the dis | charge of his official duty or to divulgt or make known in any manner not pro vided by law any document received, evi- f dence taken or report made under this l section except upon special direction oi the President, and any offense against ths foregoing provision shall be a misde. meanor and shall be punished by a fl sa not exceeding 5000, or by Imprisonment r not exceeding one year, or both at tn, ? discretion of the court.'
 If any corporation subject to the ta, 3 refuses or neglects to make a return 1T I the manner required, or shall make g false or fraudulent return 1t Is liable tC a penalty of not less than 5000 and no exceeding $l0,000.
 , l. When any person authorized by law tt v make or verify returA shall make : false or fraudulent statement for the pur f pose of evading the assessment he be