Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1910-04-08
CORPORATIONS
SUBJECT To TAX
Commissioner Cabell Fur
nishes Synopsis of De-
cisions
MUCH INTEREST IN THE LIST
Many Concerns, Thought Ex-
empt, Must Pay Excise
Tax.

Internal Revenue Collector Henry
Bardshar has received from Commits
sioner Royal Z. Cabell of the treasury
! department, synopsis of decisions
relating to the tax imposed by section
3S, act of August ), 1909, on corpora
tions, etc. Joint stock companies, as
sociations and insurance companies.
appears that many concerns that have
considered themselves exempt from
this tax are really subject to it and
will of course pay the fine imposed
! for failure to make returns as TO the
amount of business they transacted.
Class of Corporations.
| The class of corporations subject to
tax is discussed in Sc paragraphs as
| follows:
l. The tax imposed by the act ap-
| plies to all corporations, etc, de-
scribed, except those specifically ex-
empted, without reference to the kind
of business carried on.
2. Every corporation, etc, not spe.
| cifcally enumerated as exempt shall
make the return required by law, al
though its net income during the year
may not have exceeded $4,000.
3. Corporations claiming special ex-
emption should nevertheless make re-
turn lin blank if desired) accompa-
MED by statement setting forth the
ground on which exemption is claimed.
4. corporations, etc, organized
during the year or going into liquida-
ton during the year should neverthe-
less render a sworn return on the pre-
scribed form. The tax imposed. how
ever, is held not to apply to corpora
tions which went out of existence prior
TO the passage of the act.
5. Where company has dissolved
and the required return is not made
by its officers, such return will be
prepared by commissioner.
6. Where corporation has gone in
to bankruptcy, returns in such cases
to be made by trustee in bankruptcy.
T. Railroad companies operating
leased or purchased lines to include
all receipts derived therefrom, and If
bonded Indebtedness has been assum-
ed may deduct interest thereon to an
amount not exceeding its own paid-up
capital stock If such subsidiary COM
panies receive income in the way of
rentals, etc, return to be also made
by such companies.
rnrnnrotinnC +n
der the authority of the United States
or any state or territory thereof, or
Alaska or the District of Columbia, to
include in their returns not only the
income derived from the business car
ried on within the confines of the Uni
ted States, but income received from
business transacted in any foreign
country as we'll.
9. Corporations having branch or
subsidiary companies to include in
their returns the income of all such
companies.
10. Foreign companies having sew
eral branch Offices in the United
States should each designate one of
p"SiA DiohShSo co llS DIluClDdl OulCt
and should also designate the proper
officers to make the required return.
IL. Where a consolidation of two
or more corporations has been effect
ed during the year, and each or any
such corporation subsequent to such
consolidation collects prior existing
debts, each such corporation should
make separate return and include
therein all such collected debts, as
also all income received during the
year prior to the date of consolida-
ton.
II. Principal place of business" is
held to mean the principal Office
where the company keeps its books
from which the required return is to
be prepared and not the place where
the operating plant is located.
13. AS the law specifically provides
that the tax imposed shall be comput-
ed on the net income during each cal
endar year, returns of income based
on any period than the calendar year
can not be accepted.
IA. Full amount of stock, as repre-
sented by the par value of the shares
issued, to be regarded as the paid-up
capital stock, except when such stock
is assessable on account of deferred
payments, in which case the amount
actually paid on such shares will con-
stitute the actual paid-up capital
stock of the corporation.
10. Capital stock held to include
both preferred and common stock.
l6. Surplus and undivided profits
not to be included in capital stock.
II. Holding companies known as
Voting trusts" receiving only divi-
dends on stock held, and having no
capital stock, ETC., not liable.
IS. Mutual savings banks having
no capital stock not liable to tax inn