Evening star., 1940-03-24

cause the 475 is the same propor-
ton Of the tax paid to Maryland
as the income in the District bears
to his total income.
Every corporation not expressly
exempt from the tax would be re-
quired to make a return and pay q
filing fee Of $25 which would be
credited against the tax. However,
corporations which during the tax
able year neither engaged in busi-
ness in the District nor derived any
gross income from District sources
would be exempt from payment of
the filing fee.
Organizations Exempted.
The following organizations are
specifically exempt: Corporations,
including any Community Chest,
fund, foundation, cemetery, associa-
ton, teachers retirement fund as
sociation, church or club organized
and operated exclusively for relig-
tous, charitable, scientific, literary,
educational or social purposes, or for
the prevention of cruelty to children
or animals, no part of the net earn
lngs Of which inures to the benefit
OF any private shareholder or indi-
vidual and no substantial part Of the
activities Of which is carrying on
propaganda, or otherwise attempt
ing to influence legislation; and
labor organizations, trade associa-
tions, boards of trade, chambers of
commerce, citizens associations or
organizations, not organized for
profit, etc.: banks, insurance COM
panies, building and loan associa-
tions, and companies, incorporated
or otherwise, which guarantee the
fidelity Of any individual or individ-
uals, such as bonding companies, all
OF which pay taxes upon gross pre-
miums or earnings under existing
laws of the District; voluntary en-
ployes' beneficiary associations pro-
viding for the payment of life, sick,
accident or other benefits to men,
bers II Cd no part Of their net
earnings inures to the benefit of any
private shareholder or individual,
and (2) IS per cent or more of the
income consists of amounts collected
for the sole purpose of making such
payments and meeting expenses.
Estates and Trusts.
With respect to estates and trusts,
the income tax would apply to the
income of estates or any kind of
property held in trust. including:
l. Income accumulated in trust for
the benefit of unborn or unascer-
tained persons with contingent in
terests, and income accumulated or
held foi future distribution under a
will.
2. Income which is to be distrib-
uted currently to the benehciaries,
and income collected by guardian
OF an infant which is to be held or
distributed as the court may direct.
3. Income received by estates of
deceased persons during the period
of administration or settlement of
the estate.
4. Income which, in the discre-
ton OF the fiduciary, may be either
distributed to the beneficiaries or
accumulated.
Individuals carrying on business
in partnership would be liable for
income only in their individual ca
pacity, under the bill which would
make no assessment on the net in
come of partnership. Every part
nership would be required to make a
return, however, listing the items OF
gross income and deductions.
Extensions Permitted.
The new bills provisions for COL
lection of the tax. extension of time
for payments. deficiency assess
ments and collections. delinquent
returns, appeals. penalties for false
returns or failure to file returns,
interest on deficiencies. additions to
the tax in cases of deficiency or non-
payment closely follow those in the
present tax act.
The assessor would be authorized