TAX EVASION.
GLARING EXAMPLES.
Spurious Sales of Stocks to
Holders' Wives,
J. P. MORGAN FIRM REVELATION (United r.A.—Electric Telegraph—Copyright) (Received 9.30 a.m.) WASHINGTON, June 11. The inquiry by the Banking Committee of the Senate into the affairs of the J. P. Morgan firm was closed with the evidence of three of the junior partners. These witnesses explained how in 19110 they had avoided payment of income tax by .selling stocks to members of their families at depreciated prices, thus showing capital losses to offset their earnings. Thomas S. Lamont, son of Thomas W. Lamont, details of whose transactions were typical of those of the other two witnesses, said he transferred securities to his wife, who gave him her personal note. Later the stocks were returned and the note was cancelled. The only cash involved was interest on the note. It is expected that legal action will be taken in due course to deal with these evasions. In the meanwhile the affairs of other private financial institutions are to be investigated.
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Bibliographic details
Auckland Star, Volume LXIV, Issue 136, 12 June 1933, Page 7
Word Count
170TAX EVASION. Auckland Star, Volume LXIV, Issue 136, 12 June 1933, Page 7
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