The Alaska daily empire., 1918-03-22

| 127. At what rates and from | what income is the normal income tax now to be deducted and with held at the source?
 , All persons, corporations, partner 1 ships, associations, or insurance companies paying any amount of | fixed or determinable gain, profit, | or income, other than that paid as | dividends on the capital stock or | from the net earnings, profits, or income of corporations, joint-stock companies, etc, subject to a like tax, to a nonresident alien individ- ual, are required to deduct and withhold normal tax at rate of per cent from the entire amount paid.
 l Normal income tax at the rate of s per cent. is to be withheld from all payments of interest upon bonds, mortgages, deeds of trust, or other similar obligations of domestic or other resident insurance corpora tions, joint-stock companies, assoeia- tions, or insurance companies having no office or place of business in the United States.
 When dividends are paid upon the capital stock or from the net earn ings of domestic or either resident corporations, joint-stock companies, associations, or insurance companies, having no office or place of business in the United States, normal tax at the rate of per cent. is to be withheld.
 No amount of tax is to be withheld from any payment of income made to a partnership, whether domestic or foreign.
 The normal income tax is not to be deducted and withheld from any payment of income made to a citi- zen or resident of the United States except when derived from interest on bond, mortgage, or other obli- gation issued by domestic or resi- dent corporation which contains a contaract or provision by which the | obligor agrees to pay any portion of the tax imposed by the Federal in | come tax law upon the abligee or l to reimburse the obligee for any portion of the tax which the obligor may be required or permitted to pay thereon, or to retain therefrom, un- der any law of the United States. That is, if interest is paid upon any obligation of domestic or resident corporation. ioint-stock company, etc, which contains a so-called 'tax-free' or "nodeduction" clause to citizen normal tax at the rate of 2 per cent. is to be withheld, unless per sonal exemption is claimed, and then only from the amount paid in ex cess of the exemption claimed
 A State, county, municipality, oi any other political subdivision of a State is not required to withhold any amount of income tax from in terest which it may pay upon its own obligations, even though sucl AhtCiSot pau tO nun OoiNSAt s>A fen individuals or foreign corpora tions.
 12S. Is a corporation required tC actually deduct and withhold the normal income tax from the amount of interest it pays on bonds which contain a so-called "tax-free" or mo deduction" clause; or may it pay that interest in full and hold itseli liable for payment of the tax from it's own funds?
 The stipulation in the hands of 6 corporation whereby the tax which may be assessed against them, ol the income therefrom. is guaran teed, is held to be contract wholly between the corporation and the bond holder. The debtor corporation will be held liable for the amount oi tax due. whether that tax is ac tually deducted and withheld. ol the interest paid in full and re sponsibility for payment of the ta, assumed by the corporation.
 129. How may a citizen or resi- dent of the United States secure the benefit of personal exemption tt which he is entitled when receiving payment of interest on bonds con taining a so-called 'tax-free' or mo deduction" clause?
 By attaching to the interest cou pons an income-tax exemption cer tificate. Form 1901, revised January 1918. If exemption is not desired