Evening star., 1924-05-25

sale of assets transferred in connec-
ton with the reorganization, or by
are In effect dividends out of earn
ings.
II. The deduction for discovery
depletion is limited to SO per cent of
the net income from the property de-
pleted.
13. In the case of trust where the
trustee has the discretion to distrib-
ute the income or not, the income is
taxed to the beneficiary If distributed
and to the trustee IL not distributed.
IA. Where the grantor of a trust
reserves the right to change the trust
In favor of himself, the income of the
trust is taxed to the grantor.
10, The, tax under section 22O.
which seeks to penaliZe corporate
forms used to avoid imposition of the
surtaxes on the stockholders, is now
based on all of the income of the cor
poration which will be taxed in the
tax has been changed from 25 per
cent to so per cent in the bill as re-
ported.
16. The application of the present
law requiring income for a fractional
part of a year to be placed on an an
nual basis Is restricted to cases where
a return is made for part of a year
as the result of voluntary act of the
taxpayer in making a change in his
taxable year.
II. A board of tax appeals, the
members to be appointed by the
President, with the advice and con-
sent of the Senate, Is created to hear
appeals from the assessment of addf-
tional income and estate taxes. The
board will sit locally in the various
judicial circuits throughout the coun-
try. The cases of both the govern
ment and the taxpayer will be pre-
sented before the board and the prac-
tice will be similar to that before the
Interstate Commerce Commission.
70, Nha
ernment the additional tax can be as
sessed by the commissioner of inter-
nal revenue, and the taxpayer is left
to his remedy in the courts for re-
covery of the tax. If the decision is
in favor of the taxpayer, the commits
sioner may not assess the tax, but Is
left to his remedy in the courts in a
suit to collect 1t. In any court pro-
ceedings the findings of the board
shall be taken as prima facie evi-
dence of the facts contained therein.
18. The tax on telephone and tele-
graph messages is repealed.
10. Title vi Of the existing law I'M
posing a tax on beverages and the
constituent parts thereof is repealed.
90. The excise tax upon automo-
biles and trucks is retained with this
modification: chassis of trucks solo
for less than $1,000 are exempt. I'm
der the present law there is no ex-
emption. The tax on tires, inner
tubes, parts and accessories sold 70
any person other than manufacturer
is reduced from to 2l2 per cent:
81. The tax imposed upon admis-
sions by title VIII of the existing
law is changed to apply only to ad-
missions in excess of 80 cents.
%. The taxes imposed upon candy.
knives. dirks, livery and hunting
garments and yachts, by paragraphs
90. (S), (9), U2). G3) and QD Of
section 900 OF title IX are repealed.
23 The taxes imposed upon car
pets, trunks, valises, purses, lghting
fixtures and fans, by section so4 OF
title IN are repealed.
"a. A tax of 10 per cent is imposed
upon sales by manufacturers of nah
jong and similar tile sets.
%. The tax upon the sale of jewel.
ry has been amended so that 1t VIII
not apply to articles used for relig-
ious purposes or to articles sold for
an amount not in excess of $50.
26. The taxes imposed upon pro-
prietors of theaters. circuses and
other public exhibitions by para
1901 are repealed.
81. Brokers exclusively engaged
in negotiating purchases and sales of
produce and merchandise are ex-
empted from the occupational tax of
$50 imposed upon brokers.
%. The tax imposed upon sales of
produce by paragraph of schedule A
of title XI (stamp taxes) is reduced
from 2 cents per 800 to 1 cent.
%. The stamp tax of cents for
each 500 imposed upon drafts. checks
and promissory notes, is repealed.
so. Publicity: (a) 1t is provided
that income tax returns shall be open
to the ways and means committee
and finance committee and provision
is made for the publication of the
amount of tax paid by each taxpayer.
CD 1t is provided that all hearings
in contested cases before the board
of tax appeals shall be open to the
public, and that all evidence before
the board and the record of the board