Ogden Standard-Examiner | 1920-05-29 | Page 7 | Bill on Back Taxes of Corporations Passes

BILL ON BACK TAXES OF H CORPORATIONS PASSES H WASHINGTON, May 29. Without opposition, the hquse passed and sent to the senate a bill amending tho 1918 revenue law so as to insure taxation !'H of 2,500 personal service corporations which treasury ofifclals said might escape payment of taxes as a result of " the supreme court's decision exempt' " ing stock dividends from taxation. i Under the measure personal service 1 corporations would be taxed on the ', same basis as other corporations in- ; stead of on the partnership basis. Un j distributed profits of such corpora- M tions would be taxed 20 per cenL iH To discourage litigation and the re- opening of old tax returns as result of i slock dividend decision, the bill fixes ; levies of thirty per cent on the net in- come of such corporations for 1918 and I 20 per cent for 1919, unless the cor- porations elect to accept as final the returns made and taxes paid. Without tho legislation, it was sard, ,( the government might lose $6,000,000,- 1 000 in taes annually and then compel- jj led to refund ten or twelve mililon dol- j