Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1917-10-17


collected. and paid annually an addl-
tional tax OF 10 per centum upon the
amount. remaining undistributed six
months after the end of each calendar
or fiscal year. OF the total income OF
every corporation. Joint-stock COM
panv. or association, or insurance
company, received during the year. as
determined for the purposes Of the
tax imposed by such subdivision (a).
but not including the amount OF any
income taxes paid by IT within the year
Imposed by the authority OF the
United States
The tax imposed by this subdivis-
Ion shall not applay to that portion
Of such unGistributed net income
which Is actually invested and EN-
ployed in the business or is retained
for employment I'm the reasonable re.
quirements OF the business or Is in
vested in obligations or the United
States issued after September I. 1917:
Provided, that if the secretary OF the
treasury ascertains and finds that any
portion OF such amount so retained
at any time for employment in the
business is not so employed or Is not
reasonably required in the business n
tax Of Is per centum shall be levied,
assessed, collected, and paid thereon.
The foregoing tax rates shall ap-
ply 10 the undistrlbuted net income re
ceived by every taxable corporation,
Joinf-stock company or association, or
insurance company i'm the calendar
year 1917 and i'm each year thereafter.
except that II IL has fixed its own fis-
cal year under the provisions of eN-
listing law, the foregoing rates shall
apply To the proportion OF the taxable
undistributed net income returned rol.
a Inn oil e.
her 81, 1917, which the period between
January /. 1917, and the end of sucn
fiscal year bears TO the whole of such
fiscal year"
Section 1907. % That paragraphs
third and fourth Of subdivision (a)
OF section II OF such act Of Septembe
s, 1916. are hereby amended to read
as follows:
Third. The amount OF interest
paid within the year on its indebted
ness Except on Indebtedness incurred
for the purchase of obligations or Sc
curities the interest upon which is
exempt from taxation as income under
this title) to an amount of such In
debtcdness not in excess of the sum
of ta) the entire amount of the paid
up capital stock outstanding at the
close OF the year, If no capital stock,
the entire amount Of capital employed
in the business at the close OF the
year. and (b) one-half of its interest
bearing Indebtedness then outstand-
ing. Provided. that for the purpose of
this title preferred capital stock shall
not be considered interest bearing in
debtedness' and interest or dividends
paid upon this stock shall not he de-
ductible from gross income: Provided
further. that in cases where shares
of ngnitDl iGenC1 With
par or nominal value, the amount
of paid-up capital stock, within the
meaning of this section. as represented
by such shares will be the amount OF
cash, or its equivalent, paid or trans
ferred 10 the corporation as a consid-
eraticn for such shares: Provided
further. that in the case of indebted
ness wholly secured by property col
lateral, tangible or Intangible, the sub
tect OF sale or hypothecation in the
ordinary business OF such corporation,
Joint stock company or association as
a dealer only in the property consti-
tuting such collateral, or in loaning
the funds thereby procured. the total
interest paid by such Indebtedness may
be deducted as n part Of its expenses
of doing business, but interest on such
shall only be deductible
on an amount of such indebtedness not
in excess Of the actual value of such
property collateral: Provided further,
that in case OF bonds or other indebt-
edness which have been issued with
a guaranty that the interest payable
thereon shall be free from taxation, no
deduction for. the payment of the tax
herein imposed, or any other tax paid
pursuant to such guaranty. shall be
allowed and in the case of n bank.
hn f,l oGcnntafip,,
pany. interest paid within the year on
deposits or on moneys received for In
Ncstment and secured by interest
hearing certificates Of Indebtedness is
s0ed by such bank, banking associa-
ton, loan or trust company shall be
deducted:
Fourth. Taxes paid within the
year imposed by authority of the
United States feXcopt income and ex-
cess profits taXes), or of its territor-
les, or possessions, or any foreign
country. or by the authority of any
state. county, school district or mu-
nicipality. or other taxing subdivision
of any state, not includirg those as
sessed against local benefits"
ca Paragraphs third and fourth Of
subdivision (bl Of section 10 OF such
act of September 8, 1916, are hereby
amended to read as follows:
Third. The amount of interest
paid within the year on its indebted
ness Except on Indebtedness incurred
for the purchase OF obligations or Sc
curitics the interest upon which is ex-
empt from taxation as income under
this title) TO an amount of such in
dehtedness not In excess of the pro-
portion of the sum of (a) the entire
amount OF the paid-up capital stock
outstanding at the close of the year.
or, n no capitol stock, the entire
amount OF capital employed in the
business at the close OF the y>lr. and
(b) one-half of it's interest bearing In
debtedness then outstanding, which
the gross amount OF its income for
the year from business transacted and
capital invested within the United
States: Provided. that i'm case Of the
bonds or other Indebtedness which
have been issued with n guaranty that
the interest payable thereon shall be
free from taxation no deduction for
the payment of the tax herei~ irnposed
or any other tax paid pursuant TO
such guaranty shall be allowed: and
In case OF bank, banking associa-
ton. loan or trust company. or branch
thereof. interest paid within the year
on deposits by or on moneys received
for ipNncfpnpnt from pitbar cifizanc oy