The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-04-25
60 AFTER ESTATES
Of TAX DODGERS
Assessors Find Way To Collect on
Property That Escaped Daring
Lives OF Owners

Through an investigation hy the
state TAX commission into the property
OF the late James Scott way has
been opened for the clty TO proceed
TO collect hundreds OF thousands OF
dollars from the estates OF persons
who died possessed OF large amounts
OF pen sonal property and who had es
capped taxation on a large portion Oh
that property during their lives
IL is proposed 10 put the Scott es-
tate on the rolls to collect back taxes
Tor ~ years With the aid OF the
state tax commission the city may
follow the same procedure with sew
eral other large estates Investigation
toward that end has already begun
and the assessors viii report 10 the
board OF TAX review next week and
communicate with the state taX com
mission !ater.
Al the TINE or Scott : deTrn, r WIS
found that-Mhile- most of his prop
eTry was in the shape OF real estate,
ne mad sum exceeding $4,000 IN
Canadian banks He had been
assessed for only $1,000 of personal
property in Detroit. evidently believ-
ing that the fact that his money Was
deposited IN Canada exempted him
from taxation upon IL. The state tax
commission looked into the matter
and wrote TO the Detroit board OF
assessors directing that the estate be
placed on the rolls Tor collection CT
back taxes
A law OF 1899 provides that the
state commission may thus proceed
-tras-c ESCAPED taxation In accordance
has escaped taxatin. In accordance
with this order, an assessment or
100000 was placed on the rolls. [.
NJ Burton, one OF the executors, nied
a statement showing S42 900 or per
sonal property.
These facts came up al Saturday
mornings session OF the board oI TAX
review, when Barton protested against
the collection OF back taxes. spe-
cial meeting of the board OF tax re-
view will be held Tuesday TO consider
the matter further.
II the state tax commission can put
the Scott estate on the rolls and col
lect taxes that were e|aded theH
ether estates can be put on the rolls
in the same way and this procedure
may also be adopted with regard %
living persons found 10 have evaded
taxes in part or whole for d year or
r,ore. In the law OF 1899. Section lb+.
It is provided that such taxes shall be
levied al the rates OF the several years
in which the property escaped taxa
ton. The effect OF this statute runs
back only 10 its enactment IN lS9?
and taxes cannot be levied against
property which has since been trans
lerTsd.
Quite a long time ago Assessor He''
r. 5 Doran, with the help OF Mort
cage Clerk w. H. Christian, investi-
gated the tax statements OF number
of Detroit estates as shown by the in
yentories filed in the probate court
In a large number OF cases they found
that the owners had covered up !
large share of their taxable personal
property during their life The CITY
assessors have no power TO 20 after
back taxes. however. where such eva
sion has been made and nothing fur
tier was done, although Assessor
DoYan had been casting about for
5 enc feasible method OF procedure.
The state tax commission has now
opened the way 10 sucn procedure
Il lIE ia W GdA OE NhAOAA 49, ~ y - i'DN
90 so attractive 10 wealth" persons 10
evadc taxation as the records OF the
probate court will disclose rhoir doing
So. and leave THEN estates open -
suit and recovery
When Marshall Field died in Chi
cage the tax authorities found that
mis- property had been grossly under
assessed Court proceedings were be
GAL and the case was finally settled
Is the payment OF a sum running no
t. more than a million dollars 10 the
city OF Chicago
we are going 10 try TO do here
Just as was done in the Field case IN
Chicago" says Assessor Doran.
II is improbable that the necessa~"
Proceedings can be begun in time ID
get these estates now known to the
assessors as covered by ;his tax-dodg
Ing law onto the rolls for 1910. Even
IL such were attempted. lawsuits
would no doubt be begun TO enjoln the
assessors from carrying the law into
Immediate effect The assessors Will
go after these estates with the aid 10
the state tax commission immediatel7
after the city rolls for this year are
completed.
One effect in case the law is sus-