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Show TAP f CORPORATION PLAN PRESENTED TO SENATE MEASURE IS CONSIDERED TO BE AMENDMENT PROOF. Effort Will Be Made to Put It Through Congress With No Changes. ; Washington, Juno 23. President Taft's much heralded corporation tax plan was presented to the senate today to-day by Senator Aldrich and was ordered or-dered printed as a committee amendment amend-ment to the tariff bill. If schedules are completed by Monday the amendment amend-ment will bo taken up. In general frm the measure follows t'le outline given by the Associated Press, after the conference at. the While House on Tuesday night. As drafted b- Attorney General Wicker- within the United States and any of its territories, Alaska and the District of Columbia, bears to the gross amount of its Income, derived from all sources witnln and without the United States, "The sums paid by it within the year for taxes imposed under the authority of the United States, or of any s'ate or territory thereof. All amounts received by it within and without the United States. "The sums paid by It within the year for taxes imposed under the authority au-thority of the United States, or of any state or territory thereof. AH amounts received by it within the year as dividends divi-dends upon slock of other corpora tions, joint stock companies or associations as-sociations and insurance companies subject to the lax hereby imposed." It is provided that there shall be deducted from the amount of the net Income of each corporal ion, subject to the tax, the sum of So.OOu. the tax being computed upon the remainder. Every concern subject to the tax Is required, on ir before March 1, of each year, to make a true and accurate ac-curate return, under oath or affirmation af-firmation of its president, vice president presi-dent or other principal officer, and its treasurer or associate treasurer, covering cov-ering the character of its organization, organiza-tion, and tho amount, of business transacted during the year, to the j collector of internal revenues, for the district in which the corporation is I organized; or in the case of foreign , corporations, stock companies or insurance in-surance companies, in the place where its principal business Is carried on with the United Slates. 'The return must, however, set forth: "First, total amount of paid-up capital cap-ital stock outstanding at tne close of the year; second, tutal bonded and oilier Indebtedness; third, gross amount of Income during the year from all sources, and if organized under un-der the laws of a forign country, the gross amount of its income, derived j from business transacted and capital invested within the United States; fourth, amount received by way of dividends upon stock of other corporations cor-porations or concerns subject to the tax; fifth, total ordinary and necessary neces-sary expenses, actually paid out of earnings, in the maintenance and operation op-eration of the business and properties, and in the case of foreign companies, the cost of operation In conducting business transacted within the United Unit-ed States; sixth, total losses actually sustained during the years and not compensated by Insurance or otherwise, other-wise, stating separately any amounts allowed for depreciation of property; and in the case of Insurance companies, com-panies, the sum required by law to be canied to premium reserve fund, and in the case of a concern organized organ-ized under the laws of a foreign coun-Iry, coun-Iry, all losses actually sustaln.-d bv it In business conducted within 'th United States, not compensated by insurance or otherwise, stating any amounts allowed for depreciation n'r property, and in the case of insuranc? companies, the stoma required by law to bo carried to premium reserve fund; seventh, amount of Interest actually ac-tually paid on bonded or other indebtedness, indebt-edness, to an amount not exceeding paid-up capital stock, or, in case of a foreign corporation, not exceeding (Continued on Page Eight) sham and Senator Root, the measure Is believed to be amendment-proof and fin effort will be made to put. it through congress unchanged. If will bo designated as "the Tart plan." The plan imposes a tax of 2 per cent upon the net earnings of every corporation, corpo-ration, joint stock company or association asso-ciation organized for profits and Slaving Slav-ing a capital stock represented by shares, and every insurance company organized under the laws of the United States or of any state, territory or district, dis-trict, or organized under the laws of any foreign country and engaged in business within the United States. Every latitude is given to concerns for exemption of expenses, cost of maintenance-, depreciation of property, debts and tho interest theron, other forms of taxation and all expedites usually taken from earning accounts. Every corporation is also given an exemption of $3,Ouo of earniugs belore the tax shall apply. All machinery relating to the collection, collec-tion, remission and refund of internal revenue taxes is made applicable to th corporation tax, and the responsibility responsi-bility for the enforcement of the proposed pro-posed law rests with the commissioner of internal revenue in the same manner man-ner as other internal taxes. While the car juration s are required to supply intimate information relating relat-ing to their business, provision is made to safeguard to em aganst wrongful use of data obtained for the purpose of assessing the tax. Penalties are provided in cases of false or fraudulent fraudu-lent returns. Practically every character of incorporated incor-porated Institution organized for profit is brought within the provisions of the tax. The provision defining the concerns from which the tax will be collected follows: "That every corporation, joint stock company or association organized for profit and having a capital stock represented rep-resented by shares, and every insu- Tniii'O rnmnanv nmv or i t.ro-j f t m-. parmcd und?r the laws of the United States or under the acts of congress applicable, to Alaska or the District of Columbia, or organized' under the laws of any foreign country and engaged in business in any state or territory of the United S(a"tes or in Alaska or in the District of Columbia, shall be sub ject to pay annually u. special excise tax with respect to the carrying on or doing business by such corpoiation, joint stock company, association or insurance in-surance company, equivalent io 2 pei centum upon the entire net Income over and above $.".,000 received by it from all sources during such year, exclusive ex-clusive of amountp received by it as dividends upon stock of other corporations, corpo-rations, juint stock companies or associations as-sociations of insurance companies subject to the tax hereby imposed, or, if organized under lavs,'of any foreign country, upon th amount of net income in-come over and aboe SS.OOO received by it from business transacted and capital invested within the United States and its territories, Alaska and the District of Columbia during such 3 ear, exclusive of amounts so received re-ceived by it as dividends upon stock of ot'aer corporations, Joint stock companies com-panies or associations or insurance companies, subject to the lax hereby Imposed. "Such net Income shall be ascertained ascer-tained by deducting from the gross amount of the inrome of such corpoea-tions, corpoea-tions, joint stock company or association associa-tion or insurance cvtnpany from all sources. "All losses actually sustained within the year and not compensated by Insurance In-surance or otherwise, including a reasonable allowance for depreciation of property, if any, and in tho case of Insurance companies the sunis require I by law Lo be carried to premium reserve re-serve fund. ' "Interest actually paid witain the year on its bonded or other indebtedness, indebted-ness, not exceeding the paid up capital capi-tal stock of such corporation, joint stock company or association or insurance in-surance company, outstanding at the close of the year. "All sums paid by it within the year for taxes imposed upder the" authority of the United State or any territory theceof. "All amounts received hy it during the year as dividends upon stock of ofaer corporations, joint stock companies compa-nies or associations or Insurance companies com-panies subject to the tax hereby imposed. im-posed. "Provided, that in the case of a corporation, cor-poration, joint Ktoek company o- as-boclatlon as-boclatlon or insurance company organized organ-ized under the laws f a foreign country, coun-try, such net income shall be ascertained ascer-tained by deducting from the gross amount of IU Income from business transacted and capital' invested within tho United States and any of its territories. ter-ritories. Alaska and the District of Columbia. "All the ordinary and necessary expenses ex-penses actually paid witTiin the year out of earnings In the maintenance and operation of Its business and property prop-erty within the United States and its ter'ritcries. Alaska and the District of Columbia. "All losses actually sustained within the year In business conducted by it within the United States, not compensated compen-sated by insurance or otherwise, including in-cluding a reasonable allowance for depreciation de-preciation of property, and, In the case of insurance companies, the sums required re-quired by lav to be carried to premium reserve funds. "Intetrest actually paid within t.,ie year 01 Its bonded or other iridebtrd-ness, iridebtrd-ness, to an amount of such bonded and other Indebtedness not exceeding the proportion of It3 paid up capital stock ! outstanding at t'ne clo?e of the 'year which the gross amounts of Us income for the year from business busi-ness transacted and capiUl invested or both, at the discretion of the court.'' I If any corporation, subject to tho tax, refuses or neglects to make a return re-turn iu the manner required or shall make a false or fraudulent return. It is liable to a penalty of noL less thai $1,000 and not exceeding $lft.iivi. "When any person, authorized by law to make or to verify a return, sha'l make a; false or fraudulent statement for tho purpose of evading the ass:-; ment. he becomes liable to a fine not exceeding $1,000. or a prison sent cm: of not more than one year, or bot'a. of assessing the lax. The commissioner commis-sioner is authorized also to Invoke the aid of any United States court, to require re-quire the altendanco of such )fflcer3 or employes and the production of books and papers. Upon this information, informa-tion, the commissioner may amend any return or make a return where none has been made." Returns aro to be retained by the commissioner, who will assess the tax. In the event of any return being made with false or fraudulent intent the commissioner is required to add one hundred per cent to such tax', and in cases of neglect or refusal to make return, or ..to verify; the same, the commissioner is to add no per cent to the tax. When the neglect is occasioned by sickness or the absence ab-sence of a responsible officer of the corporation subject to the tax,, the collector is allowed to extend the time, not exceeding thirty days. Assessment Assess-ment made by the commissioner must be paid by the corporations before June 30 of each year. After assessments have been made, the returns of corporations must bo paid by the corporations before June 30 of each year. After assessments have been made, the returns ot corporations must be filed In tho office of the commissioner of internal revenue, and they will then constitute public records, and-as 9uch will be openeu for inspection. For the protection of a corporation against the wrongful use of information, informa-tion, the following Is provided: "It shall bo unlawful for any collector, col-lector, deputy collector, agent, clerk, or other officer or employe of the United States to divulge or make known, in any manner whatever, not provided by law, lo a'iy person, any information obtained by him In the discharge of his official duty, or to divulge di-vulge or make known in any manner, not provided by law. any document received, evidence taken or report made under this section, except upon the special direction of the President; and any offense against the foregoing provision shall be a misdemeanor and be punished by a fine not exceed- ing ono thousand dollars, or by imprisonment im-prisonment not exceeding one year, TAFT ' CORPORATION PLAN PRESENTED PRE-SENTED TO THE SENATE. (Continued from Tage Seven) the proportion of its paid-up capital stock, which gross Income from business busi-ness transacted and capital invested within the United States, bears to gross incomes from all sources within and without the United States; eighth, amount paid tor federal or local taxes; ninth, net income after making the deductions authorized." Local collectors will transmit the returns forthwith to the commission-ei commission-ei of Internal revenue in Washington. "Upon evidence justifying the) opinion that the return is incorrect, or that whenever insufficient or no return has been made, live commission commis-sion is empowered to designate any regularly appoinlod revenue agent to examine the hooks or papers of such corporations, In order to produce the information required, for the purpose |
