Page images
PDF
EPUB

THE
TAXATION OF CORPORATIONS

AND

PERSONAL INCOME

IN NEW YORK

BY

HENRY M. POWELL

OF THE NEW YORK BAR

Revised Edition

NEW YORK

CLARK BOARDMAN CO., LTD.

COPYRIGHT, 1919;
BY HENRY M, POWELL

PREFACE

In June, 1918, the author in his preface to “The New York Franchise Tax on Manufacturing and Mercantile Corporations," made the statement in calling attention to the adoption by the states of the federal plan of income taxation, that "we may therefore look forward to the extension of the principle of net income taxation as a permanent feature of our state revenue system.” At that time, there had been in successful operation for more than a year, in the State of New York, the act taxing manufacturing and mercantile corporations on net income based on their return to the United States Treasury Department. This law has now been extended by the New York Legislature of 1919 so as to apply to all business corporations, including personal service corporations, and the rate has been increased from three to four and one-half per

cent. The same Legislature acting upon the recommendations of the Joint Legislative Committee on Taxation, headed by Senator Frederick M. Davenport and Assemblyman Franklin W. Judson, passed a law taxing personal incomes modeled on the federal plan (Article 16 of the Tax Law), which, together with Articles 9 and 9a governing the taxation of public service corporations, banks, insurance companies and business corporations, forms the subject of the present volume. Parts I, II and III cover the taxation of corporations and the remedy by certiorari. Part IV treats of the tax on personal incomes. These subjects may not appear at first glance to be closely related, and yet, the general scheme of both New York acts is taken from the federal income tax laws. In their state administration they are closely allied by reason of the fact that the common remedy of certiorari is applied generally to the corporation taxes as well as to the personal income tax. So, too, in their method of collection, they are similar. It was for these reasons that the author combined the revised

edition of his former work on the taxation of corporations with a commentary on the substantive and case law on the taxation of personal incomes. It is true that there have been no adjudications on the New York Income Tax Act, which has just gone into effect, but the federal law is replete with rules, regulations and decisions, which have been made use of in Part IV of the present volume. The State Comptroller's rules and regulations have also been made a part of the book under the appropriate chapter, and decisions in recent cases affecting the Corporation Income Tax Law are a supplementary feature.

The difficulty of accurately presenting a book on a complex subject like the Income Tax within thirty days after the end of the legislative session will be apparent to the professional if not to the lay reader. If errors and omissions appear in the book, under these circumstances, it is hoped that the reader will be merciful in his criticism, particularly since an effort has been made to publish the book in time to make it useful to lawyers, corporation managers and others, before the time expired to file the annual state tax reports.

HENRY M. POWELL. June 30, 1919.

51 Chambers Street, New York City.

1

« PreviousContinue »