East Oregonian : E.O. (Pendleton, OR) 1888-current, 1913-12-10


cent of the tax assessed against him.
or In case a person. corporation.
company or association shall fail or
neglect to make a return within the
time specified. except where such
failure or neglect Is occasioned by
sickness or absence, such person, cor
poration, company or association shall
be liable to a penalty of SO per cent
of the tax assessed against them.
ed by sickness or absence. the collec-
tor may grant an extension of time for
filing of said return not exceeding
thirty days.
Corporations Taxed.
Corporations are subject to the nor
NAL tax of one per cent They are
not allowed any exemptions. For ex-
ample. If a corporation has a net n.
come Of 100000 a year. they will pay
tax Of .sfc. or $1,000.
Corporation Tax Repealed.
The corporation tax was repealed
January 1st to February 2Sth inolu-
slve. 1913. 1t was done for the rea-
son they are subject to the income
tax which is to take the place of the
corporation tax. which will require but
one report to be made by them, for
the year 1913 and hereafter.
Exemptions.
I should have said in passing that
this income tax does not apply to la
Dor organizations. nor to religious or
educational or scientific corporations
nor to chambers of commerce and
boards of trade or the like. Those
are all exempt from returning any in
izations. Generally speaking. all or
ganizations whose earnings are moi
represented by stock are in this class
so that there Is q definite part OF
their earnings passing to the benefit
of an Individual. but where 1t Is de-
voted to some particular purpose
those are all exempt, and so are the
fraternal organizations who conduc'
their business upon the loan system
which, of course will exempt a very
considerable amount of income.
PARTNERSHIPS.
Partnerships, as SUCH are not sub
, ject to tax under this act but the va
. rious partners are liable Individual.
, for the returns on their share of an.
profits or gains from such partner
ship. Any undivided profits of sucl
partnership must be reported in tn
returns of the individual partners a
, though actually paid, and any sucl
firm can be required to return a cor
rect statement of profit and list O
the partne0s entitled to receive same
How Is the income tax collected
4, and wherethe corporation issuing tn
u bond guarantees the purchaser fror
any tax that might arise?
Ans. The payment of the tax Is
be adjusted between debtor and bond
holder.
Shall banks withhold the per Ger
Il interest on notes presented them fo
collection?
Ans. Person who makes notes an
u pays interest Is the source. Tax
y withheld at source and not by tn
agent
Merchants Deductions.
Necessary expenses actually paid
carrying on any business. not inclut
ing personal living and family e,
l. penses but the necessary expenses I
9 carrying on the business, would be 6
follows:
l. All interest paid by taxable PEI
> son on Indebtedness. This Of cour,
: would be confined to the intere
paid within the year on the indebted
> ness Of the taxable person and natu
ally in the ascertainment of the II
u come for any one year should not II
. clude any interest which had accun
Is ulsted and had been payable in pr
u vous years.
~ All national, state, school and MI
nicipal taxes paid within the yea
III not including those assessed again
u local benefits (by local benefits
20 meant improvements which would II
10 crease the value of the property upt
d" which the tax is paid.)
'r Losses actually sustained durir
the year in trade or arising fro
70 fires, storms or shipwrecks and n
ascertained to be losses until after
lapse Of time. That gives rise to Il
ID eth proposition for deductions, whi(
20 is:
- Debts due to the taxpayers and af
40 erwards ascertained to be worthle
:" and charged off within the year.
90 A reasonable allowance for the e.
a. haustion and wear and tear of pro
=, erty arising out Of its use or emplo
!" ment in the business. Such alloy
. ance usually known by the name
~. depreciation, and must be based upt
~ the experience and best Judgment
those engaged in that business. Nea
ly every line Of business of any ma
- nitude has fixed rules governing Il
~. credits to be placed against the a
=. .. count Of the property effected becau
~ of the wear and tear arising out
~. its use or employment. Especially
=. this true where the income Is deriv
= from machinery, where in the d
course of time It will be necessary
replace the old with new. Thereto
n