Evening star., 1923-12-27
SIMPLER TAXATION
LAWS IN PROSPECT
Court of Appeals Now Plan
ned, Expected to Remove
Many Hardships.
BY DAVID LAWRENCE.

Administration of the income tax
law is to be simplified at last.
Decision by the Ways and Means
committee to include a court or tri-
bunal of appeal composed of twenty
eight members who will sit as a
quasi judicial body, is one of the
most important steps taken since the
income tax law was first passed. 1t
has been constantly sought by busi-
ness and trade organizations.
Business men have felt that under
the present system the officials of the
income tax bureau acted as prose-
cutting attorneys as we'll as judges
and that the desire to increase the
government revenues sometims took
precedence over equity.
Court of Last Resort.
Under the proposed plan. the tri-
hunal will be a court of last resort,
before which attorneys representing
private parties and attorneys repre-
Santing the Treasury or income tax
units will argue their cases. Thls. IL
is expected. will have far reachlnS
effect not only in saving the federal
courts from many appeals taken from
Treasury decisions, but in making the
had judicial consideration.
Again and again there have been
literal interpretations of the income
tax law by various parts of the In
como tax unit which have been made
the basis of equity suits later on. The
law itself has vested Il great deal or
power in the Secretary of the Treas
ury and i'll the commissioner of in
ternal revenue, but both these officials
are far too busy to give personal con-
Sderation to income tax controversies
even of major Importance in dollars
and cents. With a special tribunal
created. this discretionary power
probably will be exercised for the
commissioner of internal revenue or
the Secretary of the Treasury.
Collection Har>bips.
Another important step provided
for i'll the bill being framed in the
House ways and means comniitte is
one relating To collections. Hard
ships have been imposed in the past
by the Treasury Department In en-
forced collections, but the Treasury
has had no discretion in the matter
The law has required collection in
cash in thirty days. Most business
men have their money tied up in
capital assets. such as machinery or
goods on hand. Dozens of them have
been compelled to raise large sums on
thirty days notice. The banks have
not always been able to lend the
Heeutu d1lOullLS- anu IN many cases
bankruptcies have resulted. The
concerns have in reality been solvent
hut unable to realize on their assets
quickly enough to suit the govern
nent.
Frequently under the advice OF
counsel business men have made out
their returns and felt that they had
lrEitimately returned to the government
the right tax. only to find out suddenly
two or three years later that an ad-
bill introduced in the House with the
approval of the Treasury gives the
defendant a chance to give bond for
the amount of his assessment 1t
means an opportunity to turn around
within period of reasonable length.
Realize Injustices.
Treasury officials themselves want to
see the provision adopted, because they
have recognized many cases in which
the law worked unjustly. To force
company into bankruptcy means to cut
off in future years a source of revenue.
It is to the interest of the Treas
ury to have as many companies pay
Ing taxes as possible, and there is no
advantage in forcing anybody to the
wall. The statisticians have not been
able to compute the losses to the gov
ernment indirectly as result of
these enforced bankruptcies, but the
Treasury realizes that from the view
point Of the government and the tax
payer it is wrong, and sentiment in
Congress likewise favors the change.
AS the tax bill is being considered
this time. officials of the Treasury
hope to have many provisions cor
rected which time and experience
have shown to be unwise.
Women in Russia who are skilled
I'm fur and felt hatmaking receive on
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