Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1921-03-29
INCOME TAX DODGERS" HARD HIT
BY RULING OF SUPREME COURT
PAY NE IS DEMAND OF UNCLE SAM
Ny Associated Press.
WASHINGTON

WASHINGTON. March 2s-Threc
weeping victories were won by the gov.
ornment today In a supreme court In
tcrprg utlon of the term Income" for
the assessment of taxes under the in.
come md excess profits act
The court held that any gain de.
rived from corpora,cd securities or cor.
prrate asscts. and any increase In the
value Of capital investment. when
realized. IL taxable as income In each
ease the opinion was ordered By the
entire court.
solicitor General Fricrson. who heard
the opinions read interpreted them
NJ upholding IN every particular. the
contentious of the government He
believed elimination of problems In.
,olvcd In cascs decided today would
go far toward relieving the treasury
department of lnconvenienccs II has
suffered as n result OF mulil.angicd
tax litigation facing Il Tor the last
year
No estimation could be obtained 10.
right Rs To the amount IN dollars and
cents affected by the courts action.
Apparently with view OF early
clearing the docket of all important
tax questions. the court. before recess
ing until April II advanced to that
date hearings ~ arguments In the
insurance dividend case. In the corpora.
ton reorganization case arki inheritance
tax case. The first involves taxation
Of dividends applied as partial pay
ment TO insurance premiums, the sec
ond applies to stock received from the
reorganization ~ a corporation. In this
ease the Dupont Powder Company and
the last. whether inheritance taxes eau
he deducted from ,aXiblc income.
The key case" selected by IN,
court Ter decision today was the ap
peal brought by the Merchants Loar
and Trust Company, M trustees ~ IN,
estate q Arthur Rycrson of Chicago
from decisions Of Illinois courts up
| holding assessment levied by interna
revenue officials upon profits realized
Z through the sale of certain trus; as
sets.
Included In the trust fund were . a.S0i
shaics ~ stock ot Joseph Ryersnn ant
I Son. corporation which were valuct
| at 1861 .OCO On March I. 1913. hut which
were sold In 1917 Tor ti.2S0.oOO. Col
| lection ~ tax on the difference II
value between March. 1918 and th'
date Of sale. as income. was upheld b!
I the court In the decision rendered "a
| day.
The word Income" was defined h'
the supreme court In q case under tn
I corpCraiions excise tax act of 1909. jus
tlcc Clark said. MS gain derived From
capital from labor or from both com
. hincd"
This definition. frequently approx
"a by this court, the opinion continues
received an addition IN the latest In
come tax decision Gsisncr vs.. Macon
hcrl which IN v.n"cially significant u
its application To such ease as "
have here. The definition was then {
read Income NAV be- defined ~
gain derived from capital from lnho
~ from both combined. provided Il h
understood to include profits game
through the sale of conversion of cap
tai assets"
1T ~ obvious that unless this def
riti,n bc modified u rules the caso q
bar. and notwithstanding the arg,
monts heard In this ease continued q
tlrciy satisfied with that definition
since the fund so taxed wus the amour
realized from the sale uf stock IN 1871
; less the cauitil invested as ~ March
; 1919. u n palnal',e that II was 'sai
or profit. produced hy' or derive
from that investment and thereby b
came the realized gain which ha
. repeatedly declared to bc taxable q
o come within the meaning ~ the col
. siitu,lonal amendment and the acts
congress