Ogden Daily Standard | 1917-01-15 | Page 1 | Supreme Court Tax Decision

SUPREME COURT TAX DECISION I i Government Has Authority to Collect Taxes From Lessors of Mining Land. U. S. IS SUSTAINED Royalties Are Taxable Gross Income Instead of Return of Capital. Washington, Jan. 15 The federal government, in a supreme court deci-; sion todav in litigation with the Sargent, Sar-gent, Sutton and Kearsage Land com I panies of Minneapolis, was held to have authoritv to collect large amounts ! of taxes under the corporation and income in-come tax laws, from holding corpora-1 tions which are lessors of mining land royalties. The corporations, the court decided, I are "organized for profit'' and "doing business" within the taxation clauses of the corporation t a x law The court also sustained ihe government's gov-ernment's contentions that royalties received are taxable gross income in-1 stead of return of capital, as contended j by the corporations.