The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-06-26

companies the cost of operation in conducting
business transacted within the United States
90 total losses actually sustained during the
year and not compensated by insurance or 9th
erwise, stating separately any amounts allowed
for depreciation of property, and in the case
of Insurance companies the sum required by
law TO be carried TO premium reserve fund, and
in the case Of concern organized under the
laws OF a foreign country all losses actually
sustained by il In business conducted within
the United States not compensated by insur-
ance or otherwise. stating separately any
amounts allowed for depreciation OF property,
and in the of insurance companies the
sums required by law to be carried to pre-
MUM reserve fund; 90 amount Of interest
actually paid on bonded or other Indebtedness
TO amount not exceeding paid up capital
stock. or in of a foreign corporation not
exceeding the proportion Of its paid up capital
stock, which gross income from business
transacted and capital invested within the
United States bears to gross incomes from
al sources within and without the United
States; (s) amount paid for federal or local
taxes; (eD net income after making the dedue-
lions authorized.
Local collectors win transmit the returns
forthwith TO the commissioner of internal
enue in Washington.
TO EXAMINE BOOKS
Upon evidence Justifying the opinion that
the return IS incorrect, whenever INSULT
Client or no return has been made. the commits
soner is empowered to designate any regularly
appointed revenue agent to examine the books
or papers OF such corporation in order to pro-
duee the information required for the purpose
Of assessing the tax The commissioner is
authorized also TO invoke the aid Of any
United States court TO require the attendance
Of such Of its officers and employees and the
production Of books and papers. Upon this in
formation the commissioner may demand any
return or make return where none has been
made.
Returns are to be reained by the
commissioner, who will assess the tax.
In the event of any return being made
with false or fraudulent intent. the
commissioner is required to add 100 per
cent Of such tax and in cases of neglect
Or refusal to make return. or to verify
the same, the commissioner is to add
SO per cent to the tax. When the
neglect is occasioned by sickness or
the absence Of responsible officer of
the corporation subject to the tax, the
collector is allowed to extend the time,
not exceeding 80 days. Assessments
made by the commissioner must be
paid by the corporation before June
30 of each year.
After assessments have been made
the returns of corporations must be
fled in the Office of the commissioner
Of internal revenue. and they will then
constitute public records and as such
will be opened for inspection. For the
protection of corporation against the
wrongful use Of information, the fol-
lowing is provided:
1t shall be unlawful for any collector. deputy
collector. agent, clerk other officer or en-
ploye Of the United States to divulge or make
known in any manner whatever not provided
by law TO any person any information obtained
By him in the discharge of his official duty or
TO divulge or make known in any manner not
provided by law any document received evil
dence taken or report made under this section
except upon the special direction of the presi-
Gent, and any onense against the foregoing
provision shall be a misdemeanor and be pun
ished by fine not exceeding 81 900, or by i'm
prisonment not exceeding one year, or both at
the discretion OF the court.
II any corporation subject to the tax refuses
or neglects TO make return in the manner
required or shall make false or fraudulent
return. il is liable TO a penalty of not less
than $1,000 and not exceeding $4,000. When
any person authorized by law TO make or to
verify a return shall make false or fraudu-
lent statement for the purpose of eyading the
assessment he becomes liable to a fine not ex-
ceeding $1,000 or prison sentence Of not more
than one year, or both.