The Washington times., 1917-10-17
EVADE
SUPERTAXES;;
GOVERNMENT
TRANSACTION
Revenue Department Issues
Warning Against Transfer of
Property With Intent to De-
priVe Government of Income.
~ BILL PRICE.

ington man has transferred more
than half a million dollars OF valuable
real estate holdings in this city to
relatives, thereby evading some of
the supertaxes levied in the war rev.
enue tax law upon large incomes, to-
day caused internal revenue officials
to declare to a representative of The
Times that careful investigation may
be instituted by the Government into
such cases. with a view to protecting
the interests of the Government and
the American people.
Whether the particular instance in
mind is the beginning of a new class
of tax slackers," Government Off
cials did not know; but, they declared,
with emphasis that II there is any
thing the Government can do in such
cases, action will be taken.
City VIII Not Lose.
The Washington case, which must
at present go without Identification,
is one of a wealthy man OF long res
idence and business activity here,
whose real estate holdings have been
assessed for the present year at close
to three-Quarters OF a million dol
lars with a large personal tax as
sessment in addition. Since the war
revenue act became law he has trans-i
ferred to near relatives large paying
properties assessed upon the books of
the District Of Columbia at more than
half q million of dollars. Whether
he has divided any OF his personal
property does not yet appear of re-
cord.
While District and Government Off
cials today recognized the legal right OF
man to make such transfers and ad- I
mitted that they were unaware as to I
what his motives might have been, they I
pointed out that the effect would be TO
deprive the Government of a considera-
Bile amount Of surtaxes under the income
tax provisions. and probably also OF in
heritance taxes, should the conyeyor Of
the property live for some time. District !
taxation would not be affected, mas /
much as the property will pay the same I
taxes, no matter in whose hands 1t may
be.
The war income tax imposes higher
taxes as earnings become larger, and to
split this income among a number Of !
people considerably reduces the amount
the Government would obtain, assuming
that the income Of the property divided
went to the new owners instead Of to
the former owner.
Scheme to Be Investigated.
Having no detailed information in
han das to the particular case men-I
toned. but realizing that this method
may be attempted by persons who
seek to deprive the Government OF as
much taxation as possible Commits
sioner Roper Of the internal revenue
bureau today declared it his purpose
TO instruct officials under him to
watch developments in that line.
I'VE will look carefully into alrl
such cases with a view to protecting
the interests OF the Government
against efforts to defraud it and the
American people in this crucial
period" declared Mr.. Roper This is
the time when everybody is expected
to pay a share Of the Liberty tax i'm
posed to defray the expenses of a
war of defense. II
I'VE want all the light we can get,
and I do not know a more patriotic
work the newspapers can do than in
the public as to develop
nents Of the kind just brought to our
attention"
Transfer OF unimproved property.
having no income, will lose nothing
10 the Government, but where the
is in a business and resi-
iential section, well improved, and
rom which splendid income Is de.
lived, the Government is a large loser
( the income is divided among many
people.
The Internal Revenue Bureau, under
which enforcement OF the income tax
aw Is placed, has secret service di-
'ision Of expert investigators.