The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1909-06-26
|O6P0RAT|OA TAX
PIlh SUBMITTED
Measure Is Prepared BY Finance
Committee in Conjunction With
Taft and Others.

K, WASHINGTON. June 26.-The cor
marathon tax amendment, prepared by
the finance committee. In conjunction
with President Taft aud the lawyer
members Of his cabinet, was reported
TO the senate yesterday by Senator
Aldrich.
II 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 $1,000.
Reports arc 10 he made on or be- |
fore March each year to the coliec-
Tor OF internal revenue for tho dis
trict In which the incorporation has
It's principal place OF business. IL
y false and fraudulent returns are made.
b the commissioner OF INTERNAL revenue
<s1~ - M 100. per cent OF the tax as
o6rna upon the corporation and In
- OF refusal or neglect to verify
<urns, he Ii TO add 90 per cent OF
HE tax. Refusal or neglect 10 make
feturns my March / or the rendering
n OF false returns will make the cor
poration liable to a penalty OF not
less than $1,000. nor more than sl0.-
600.
~ To Ascertain Income.
Any person who is authorized 10
make the returns for any corporation
and who makes false return, with
intent Ito defeat or evade the assess
ment, 10 liable TO a fine OF not more
4 than $1,000 or Imprisonment not ex-
ceeding one year, or both, AT the dis
erection OF the court. The net income
Is to be ascertained by deducting from
the gross amount OF all ordinary and
necessary expenses actually paid, all
losses actually sustained, not COM
y 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
II for taxes; all amounts received as
|X dividends upon the stock OF other
'8 companies, and In the case of insur-
NJ ance- companies the sum required by
|t law to be carried TO the premium
~ reserve fund.
Nj The tax is TO be computed on the
& net income for the year ending Dec
= 81. 1909.
EE What Reports Must Contain.
|} The reports which must be filed by
March each year, are TO include the
total outstantfng capital stock. bond
ed ana -ctifer indebtedness. the gross
Income, 1.-The amount derived from diy!-
dends. -from soihsr corporations. the
total @expsnseg, the total losses, and
In case of insurance companies. The
sums required by law TO be carried
to the premium reserve fund: the
amount of interest paid within the
year Ga bonded eF-ether- indebtedness
- 4 81
amount paid for taxes under the aU-
thority Of the United States or any
4 state or territory and the net income
E& When evidence lis presented that
( the reports OF any CORPORATION are in
TIT correct. OF any corporation fails u
1 make its return, the commissioner, Cf
internal revenue may require further
4 Information, or by any regularly ap.
4 pointed revenue agent, especially
1 designated for that purpose, he may
examine the Books require the at
Il tendance of officers OF the corpora
ton aud tuke their testimony He is
also authorized TO invoke the aid OF
any. court to require the production OF
persons, books and papers.
VII = Tax To Be Paid BY June 30
Ik The assessments are To be made
by the commissioner OF internal reve-
nue. and corporations are 10 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
h ternal revenue and open to inspection
4 1t is made unlawful for an employe OF
the United States toadivulge any con.
! fldential information obtained. under
a penalty of fine of not more than
$1,000 or imprisonment for one year
hi 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 5000
\ received by 1t from business transact
ed and capital invested within the
/! United States and its territories.
+ Alaska, and the District OF Columbia.
4 The amendment Is made section 1
F. - IL