Show CONSOLIDATED TAX RETURNS ARE ALLOWED I Requirements for Groups of I Corporations Changed I I IDy II in Revenue Bill I Dj fly Washington Oct 23 An An amendment to the re revenue bill to permit groups group of or corporations owned In whole or In part by a taxpayer or by another corporation corporation corpora corpora- tion to make a a. consolidated return in computing the Income tax was adopted adopt adopt- ed by br th tho tho Senate finance committee to to- to day The House bill contained a specIfic specific provision against such a construction construction construe construe- tion of or regulations and required each Individual corporation to m make ke a arate sepa- sepa rate filing The amendment made by tho the Senate committee Is of vital Importance to business generally as It not only simplifies sim tho the method of ot making the re returns returns re- re turns there thereby b lightening the tue administrative adminis adminis- duties of or the collector but also alsom it will m enable a a. holding corporation for instance to make ono one return In Instead Instead In- In stead stear of ot a 0 half haIC dozen or more where there are arc a number o of smaller corporations corporations corporations corpora corpora- affiliated with it In interest rr Text feit of N w Section Section t The committee struck out the prohibitive prohibitive pro pro- section in the House bill and substituted a a. new section making It mandatory upon upon such taxpayers to file filea a I. I consolidated return The rho section Is Isas Isas Isas as follows Section 2 2401 CorporatiOns 2101 2 Corporations which are affiliated within the meaning or orthis of this section shall sWall under regulations to tobe tobe be bc prescribed by the commissioner with the approval of f the tho secretary make a consolidated return of ot net income and invested capital for the purposes of the thc income and the tho war excess profits proUts tax an and such taxes shall be bo computed compute an and determined in accordance therewith In any case In which a tax Is as assessed ns- ns upon tipon the basis of a a. consolidated return tho the total tax shall be computed In the first Instance as a a. unit and shall then be assessed upon the respective and affiliated te corporations In such proportions proportions proportions pro pro- portions as may be lie a agreed r ed upon among them or In the tho absence of or any such agreement then thon the tho basis of the net Income and Invested In capital properly assignable to each Only one specific credit as provided In section shall be allowed In computing tho the war ex excess ex- ex cess profits tax of or Affiliation For the purpose of this section two or moro more domestic corporations will be deemed to be affiliated l a l If lf such corp corporations corporations cor cor- p are engaged eng In tn the same or ora a closely dosch related trade trad or business and b If Ir one corporation owns directly or affiliated In In- In t t or ob by D a n- n nominee I e or nominees I I substantially all of ot the thc stock of or theother theother the tho other or other others or or if substantially all allot of ot tho ho stock of or two or more corporations corporations corpora corpora- 4 Is owned or controlled by the same interests or It If one such such corporation corporation corpora corp tion buys from front or sells to another products products products prod prod- or services at prices above or below bolow bo- bo low Jow tho the current market thu thus effecting an artificial distribution of or profits or 01 orin orin in any wa way so arranges its financial relationships with another corporation as to assign to it a disproportionate share of or net income or Inv Invested stell cap cap- ital hal For the purpose of or this section two or more more railroads gas as electric water or other public service corporations corporations corpora corpora- will not bo lIo deemed to be affiliated at cd when operated independently and not physically controlled or merged provided that when a a. railroad or public utility y is owned b by an industrial corporation cor cor- and operated as a l plant facility facil tacH- It ity 13 or as an integral part o of a a. group I organization o of affiliated corporations it shall bo be Included in the consolidated return if it an any of off f ll affiliated cor cor- Roper toper Favors Amendment The Thc amendment b by the treasury treasur department department department de de- de- de was submitted with tho the approval approval approval ap ap- ap- ap of or Commissioner Roper who urged It its adoption in the interest of simplicity in the administration of oC the I law a w. w When hen the prohibitive section was put In the House Mouse bill Chairman Kitchin of or orthe the ways wars and ancl means committee contended contended con con- tended that It was directed against tho the large largo holding corporations to require them to file individual returns for fOI each and ever every interest Commissioner Roper holds however that with the tho re restrictions re- re placed In the Senate amendment amendment amendment amend amend- ment corporations will not be specifically specifically call cally favored while the tho work of oC his office will bo be considerably lessened I The committee has under consideration I ion tion an important suggestion to the the effect thaI that individuals and copartner copartner- I ships should bo be included with the lie corporations cot cor in tho the class subject to tho the war excess profits tax ta |