CHAPLIN TO PAY INCOME TAX.

Shannon News, 28 June 1927, Page 3

CHAPLIN TO PAY INCOME TAX.

CLAIM BY STATE. EXTENDS TO FIVE YEARS. New York, May 1. Mr. Charles Chaplin has agreed to pay the Government £350,000 in settlement of claims for unpaid income tax extending over five years. A cheque, it is understood, has beea deposited and the film star's property here and in California, seized as security, will be released forthwith. Mr. Chaplin's fortune was then estimated at £3,500,000, of which £8,000,000, it was stated, came under the Californian communal property law. . This law, dating from the days of the early Spanish settlements iu Mexico and California, says, in effect, that all earned income, subsequent to marriage, is the joint property of husband and wife. In the event of divorce proceed ings, the Courts may divide such coilmunal property as they see fit, provided the grounds of such' proceedings are infidelity or extreme cruelty. “Financial Inquisition.” In pursuance of this law, the whole of Mr. Ohaiplin’s Californian property was seized last January. It was reported, a few days later, that the receive?*' were “ruthlessly proceeding with their financial inquisition,” It Was also said that Mr. Chaplin’s private safes were-' opened, and that Los Angeles banks were canvassed with a view to examining the contents of safe-deposit boxes. . * .

The Federal Government then entered the arena with a demand for £815,* 000, said to represent tax claims covering the past seven years, and it w&a stated that this claim would take P r i* ority over all rights possessed by Mrs. Chaplin. • Three days later the centre of interest'shifted to New York, when it was stated that a revenue collector had filed liens amounting to £314,000 against Chaplin’s accounts in New York banks. The last announcement, prior to the news of the settlement (published today) was that the American inoome, authorities had' filed elaims against Chaplin for £300,000 in respect of the six years from 1918 to 1924.