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Show NEW QUESTION IN CORPORATION TAX -XEW HAVEN. ConnMay S4.th New York, New Hnvea A Hsrtford Railway 'eotnpanv" ts to aise with th federal authorities an 'important question ques-tion under the law. lately deeided constitutional, con-stitutional, imposing a tax of 1 per cent on the net earnings of corporations. The federal authorities claim that in the case of leased railway lines the tax is to be imposed on th net return, if any, to th lessee over and above the rental and ehargea on th leased line, which i. thu practically treated aa a separation corporation. The New Haven eompany hold., on th other baad, that as leased lines do no separate bueiness and are operated by the leasing eompany, th net profit, if any, of such line go into the general gen-eral account of the lessee corporation, whose net general ineom i taxd in th full annual accounting. |