Show j Ij I T TAFT fI PLAN I i fOR TAXING I r COr COMPANIES Measure Levies 2 Per Cent Centon on Net Earnings Over F W WASHINGTON ASHI June 26 President President Tat rafts s much heralded corporation tax plan pIan was pre presented to the senate Y yesterday yesterday yester yester- ster- ster day by s Senator a or and was ordered r printed as a c committee amendment to tot t the tariff bill If It s schedules are completed y amendment be t by Mond Monday o ay the amendment twill wi will be i taken up In general form torm the mea measure measure- surf follows th the wf outline given n by the Associated Press I ij fter the conference at the White House U Ort Tuesday on-Tuesday lg night As Aa drafted at by n bYS-n Attorney Attorney ney General te a and d Senator Root the measure Is believed to be T g amendment amendment proof proof and an effort will Trill be made to put It through r congress s un unchanged un- un Z changed eJ v it will be designated fi as the Taft Tatt plan Th The plan Imposes a tax of ot 2 per cent r. r u upon on the net not earnings of ot every corpora corpora- t- t tion Joint stock company or al association organized for profit and having a capital capitalI I j stock represented by shares and every Insurance company organized under e the ther r laws of the United United ls States or of any state t O territory or district or organized under the t laws of ot torel foreign n country u and enS en- en l i j ged e In business any within the theand United t S gg ged In business business' v. v within thin the United 1 States States Ufe jar Every latitude Is given to concerns for tor forge ge exemption of ot expenses cost of ot maintenance TV nance depreciation of ot property debts and andi f i i I the Interest thereon other forms torms of ot taxa- taxa I and all e expenditures es usually taken is ise llo i F from om m earnings nl accounts Every corpora corpora- t Is also given an exemption of ot 50 I. I 1 of lOt earnings before leforc the tax shall apply J w internal Revenue Service f fc l t AH AU machinery relating to the collection 1 tion remission and refund of ot internal x r revenue taxes Is made applicable to the m. m corporation tax and the responsibility j for tor the enforcement of ot the proposed law t. t WV rests reels with the commissioner of ot Internal M revenue in the e same manner as other internal In- In i o f taxes e S While tho the corporations are required to 5 1 Supply intimate Information relating to t- t 4 j. their business provision Is made to safe safe- w guard them against wrongful use ot of data obtained for the purpose ot of assessing the tax Penalties are provided In cases of I ta fraudulent d returns l false or re i Practically a every character of ot incorporated incorporated institution organized for profit Is t brought within the provisions of the k Ja Jat law Jaw 1 t j It reads as follows In part c Such net In income Olne shall b bo be ascertained V by deducting g from the e gross amount of the Income g of r such uc ucc c corporation i Joint I stock company or association or insurance s ance ante company from all sources sourcE's ni V All A losses actually sustained within the year and not compensated by insurable insurance t an ance 8 or otherwise including a reasonable reasonable reason- reason able able allowance ance for tor for depreciation o of propErty property prop prop- erty if It an any and In the case of Insurance s companies the sums required by bv law to be carried fund f earned carried to premium reserve e 41 Interest actually paid within the year ear k f- f fon on its bonded or other Indebtedness not exceeding the paid up capital stock of fJ such nuch corporation Joint stocK company or association or insurance company outstanding outstanding outstanding out out- standing at the close of the year All AH sums paid by it within the year t I i for taxes imposed under the authority of the United States or any territory iI thereof t All i amounts moun l received by it during the tear as dividends upon stock of other dot orations n j joint stock companies C is or ors as- as j f m or r insurance companies J sub sub- sect le t t t t- the tax ta hereby Imposed t. t Must l ICS It Up Every concern ern subject to the tax Isi is ish March 1 of each r required on or before h year turn Urn r to under d make oath a true or a affirmation and accurate a of re re- re Its i president vice president or other principal r p pal 1 officer and its treasurer or associate fI treasurer covering covering the character of ot its r 4 organization and the amount of ot business s JW transacted during the year to the collector colle collector col col- le lector tor of internal revenues S for the distract district dis dis- tract In Jn which the corporation is organised organized organ organ- or in the case of foreign corporations corpora corpora- stock companies or insurance companies com corn Ies in the place where its principal t business S is carried on with the tho United J States Local collectors will transmit the returns re ref returns re- re f turns forthwith to the commissioner of ot Y 1 Internal revenue In Washington And nd If They Do Not Not Not- Upon Upon evidence Justifying the opinion I that t the return is correct or that when- when frer Er insufficient or no return has been made ade the commission is empowered to It d designate any regularly appointed revenue agent to examine tho books or r papers I re such corporations In order t to tp p produce J Oak j-Oak tie e Information required for the purpose V oi or i assessing the tax The commissioner r is is- authorized d also t to 1 Invoke k the aid of ofay a ay y United States StatE court to require the tho thoS' thoS y S' S of ot such officers or employ employees es the production of books and papers I J Ji i Mc ion this Information the commissioner commissioner y amend any return or make a a. return ere none has b been fn made I. I 1 Returns are to be retained by the com com- comI I 1 loner who will assess the tax In a L Eloner wo o 0 event of ot any return bein being made with i x Wise else or fraudulent Intent the commis- commis Stoner loner Is r required d to add percent of ofT r g l iC T boeh oca tax and in c cas cases s s of neglect or re- re 7 final to make return or to verify verify the fly If came me the commissioner is to add i 00 0 per W vV-W fio IDt to to th the tax When the neglect Is 1 V occasioned by sickness or the absence of ot responsible r responsible officer of or the corporation t the tax the collector Is allow to allowed d to Lo extend the time not exceeding thirty V I A Assessment made by tho tho commis- commis oner ner must be paid by the corporations 1 ore fore ore June 30 of each year Z Information Is Protected After assessments have hao ten Men made the thel l' l i turns returns of ot corporations must be bo filed in inthe 4 the e a office of ot the commissioner of ot inter- inter 1 revenue and they will win then constitute r lie c records and as such will be beat bei at 1 i ned for o Inspection n For the 1 t toA n of a a. corporation t against the wrong wrong- tit use of ot Information the following is Vided k a V It t shall stall be unlawful for any collector He t Duty collector agent clerk or other t. t y or employee ee of ot the United d States tp divulge e or make known In any manner t tm a not provided s by law to any E on n n. n any information obtained b by him t l. l the d discharge charge 01 ot his official duty or r- r T divulge not provided rg or make by known law n a any in any document n manT mannot man man- t t tW W tved IVed evidence e taken or report port made r f der epee ider der this section except upon the al U direction of or the pr president ld nt and any against the foregoing provision hall 1 be b a 8 misdemeanor meanor and be punished Eby Tay a a. fine not tl exceeding one ona thousand dollars dollar or by imprisonment not exceed exceed- V r i p lag ing one year or 01 both at the discretion of ot 7 i the thO court Punishment for or Fraud If It any corporation subject to the tax 1 refuses or neglects to make a return in Rt the manner required or shall make a false fatse falser r JOr r fraudulent nt return it Is liable to a penu penalty penalty pen pen- u alty of ot not le less s than 1000 and not ex- ex feeding 1 When f any F person aur au- au r orl ed by law to o make maka o or to tenon o verify a amt eo turn tarn shall h l make a false e er or r fraudulent r for the purpose of ot evading the nt he becomes liable to a fine tine t it t t exceeding 1009 or a prison sentence i not more than one year or both |