Show 1 i J r i i r ft i Tax Fax Collectors Launch Drive in Hollywood WASHINGTON July 26 28 UP m The government has launched a n arive drive rive collect to many millions millions' in n income taxes it claims to be duo due ue from s several e eve v e r n. n l 1 top-ranking top Hollywood movie producers stars stara and nd directors An official of ot the bureau of ot internal internal in- in revenue who told a reporter Friday a about out the campaign named no names But he did disclose that one one no unnamed m d' d time big producer already has been ordered to pay up This tax official who asked Bilked to remain emain anonymous said the movie executives and actors had avoided payment of the Income taxes by setting up and taking stock incorporations incorporations in hi corporations to produce single pictures liquidating the companies companies compa- compa nies and then collecting liquidatIng Ing ng dividends The dividends were paid on the assets principally the revenue derived from sale of the p picture to a distributor Under this arrangement the tax official said the thc Hollywood personalities per per- Banalities paid a capital gains levy of ot about 25 instead of heavier income taxes ranging up to a rate of 90 on earnings of annually an an- The bureau decided that this corporation device was only a legal fiction that the movie people were in this manner escaping escaping escaping ing the full fUn assessment on earnIngs earnings earn earnings earn earn- ings for Ifor their services So it cracked down It was wn made plain however that the tax deficiencies will be collected collected collected col col- col- col only insofar as the assets of oC the corporations are arc distributed exclusively for personal services Money investments In the corporation corporation corporation corpora corpora- tion may be subject only to capital gains levy officials said |