Show CORPORATION TAX LA LAV V IS EXPLAINED WASHINGTON D. D C. C Dec 13 More Mora than corporations in tho the United States Stales will havo have to make their returns in conformance w with th the tho now new corporation t tax x Se Secretary ry of the tho Treasury MacVeagh has is issued a very cry comprehensive statement for the tho gov- gov of these corp corporation raHon officials ho Thu statement is calculated to cover cr any ny question of classification and distinction distinction dis- dis which mi might ht arise uise in the makin making mak- mak in ng ing of tho the reports and it sets forth in n terse language o what tho tim government expects Secretary MacVeagh's statement plainly begins with tho the statement that ho tho government expects returns to bo be made to conform with tho the intent of ho tile law and that tho the law Jaw had two in- in tents first first that it should 1 bo be a revenue producer for the government and second sec sec- ond nd to levy a tax of 1 l' l per er cent on the ho not net income of corporations as provided pro pro- vided in tho the law After a concise deli deli- of what is considered net income with the tho law the statement says It is ia clear t that at tho the purpose of ho the law was not to put a a tax on re- re but a a. a tax on profits and that the he terms net income and gross Jross income iu- iu come omo aro are used because while they arc aro practically identified with gross profits and md net profits they aro are yet more em eat and consequently p permit a more moro comprehensive o administration of tho law aw 11 For convenience and facility in cl classification class class- ssi- ssi cation corporations have havo been bocu divided into uto five classes lasses They aro arc insurance companies transportation companies manufacturing companies s mercantile companies and miscellaneous corpora- corpora ions Tho The statement makes makes' detailed explanations nations lations of what can bo be considered gross ross income net not income a and a defines s what other ther terms torms used in tho ho statements aro are held to be bo within luthin the tho law Jaw I a curacy cu- cu racy acy is expected in some tome of tho the returns returns re- re turns urns tho the statement says and it is expected they will be bo from two causes The ho first is honest error and the sec ond nd is intent to defraud the tho govern govern- o ern mont mente Honest errors will bo be corre corrected ted but mt any attempts at fraud will b bo met with i vigorous orous prosecution Tho re regulations do not call for methods of keeping accounts or any other particular method of book- book keeping leepin Tho requirement is simply that hat the tho business transactions be bo so recorded that accurate returns can cnn bo be mado made and verified when nc necessary essar- essar |