The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1894-10-31

by law to withhold, and does. withhold the tax
and pays the same 10 the officer authorized 10
receive II. In computing incomes the necessa-
~ expenses actually Incurred in carrying
On any business, occupation or profession
shall be deducted and also all interest due
or paid within the year b. such person on
existing Indebtedness. And all national state.
county, school and municipal taxes. not in
Guiding those assessed against local benefits,
paid within the year. shall be deducted from
the gains, profits OF income of the person who
mas actually palu Inc same, " hether sucn per
son be owner, tenant or mOrtgagor. Also loss
actually sustained during the year. incurred
III trade or arising from Hres, storms or ship
wreck. and not Ompensated for by insurance
OF otherwise, and debts ascertained To be
wort HESS, but excluding all estimated depreci
g;iOn Of value and losses within the year on
real estate purchased within two years pre-
vious 10 the year for which income j. estl-
mated.
Provided. That no deduction shall be made
for any amount paid out for new buildings,
permanent improvements or letterIneuts. made
To increase the value OF any property or estate.
Provided further, That only one deduction
Of S4,OOG shall be made from the aggregate in
come Of ali the members of any family. CON-
posed OF one or both parents and one or more
guardians shall DC allowed 10 make deduc-
ton in favor OF each and every ward, except
prised in one family and have joint property
interests, the aggregate deduction in their ia
vor shall not exceed 5000. And provided fur
Their, that IN cases where the salary or other
compensation paid 10 any person in the employ
ment or service OF The United States shall not
exceed the rate or S+,UUO per annum, or shall
be by fees, uncertain or irregular In the
amount or in the time during which the same
shall have accrued or been earned. such sala
ry or other compensation shall be included in
estimating the annual gains, profits or income
OF the person 10 whom the same shall have
been paid, and shall include that portion OF
any income salary upon which n tax has
not been paid by the employer, where the en-
ployer is required by law TO pay on the excess
over $1,000; provided also, that in computing
the income OF any person, corporation COM
pany association, there shall not be included
the amount received from any CORPORATION,
company or association, as dividends upon the
ETD n raj sNfs-
ton. If the tax OF per cent has been paid
upon its net profits by said corporation, COM
pany or association as required by this act
Must Report His Profits.
Sec IS. That il shall be the duty of all per-
sons OF lawful age having an income OF more
than $500 Tor the taxable year. computed on
the basis herein prescribed, 10 make and rem
der a list or return. on or before the day pro-
vided by law, in such form and manner as may
be directed by the commissioner of internal
revenue, with the approval OF the secretary OF
The treasury, TO the collector or a deputy COL
lector of the district in which they reside, of
the amount or their Income. gains and profits
aforesaid. And all guardians and trustees.
executors. adninistra, ors, agents. receivers
and all persons or corporations acting in any
nduCiary capacity. shall make and render s.
list or return. a aforesaid, TO the collector or
a deputy collector OF the district in which
such person acting in a fiduciary ca
pacity resides Cr does business. of the
amount of income, gains and profits of any
minor or person Tor whom they act but per-
sons having less than $3.50 income are not re-
quired TO make SUCH report, and the collector
list or return TO be verified by the
oath affirmation of the party rem
any list return if he has reason to believe
that the same is understated. and in case any
such person having taxable income shall neg
lect or refuse TO make and render such list
and return or shall render a willfully false
fraudulent list or return II shall be the duty of
the collector or deputy collector to make such
list, according to the best Information he can
Obtain, by the examination of such person
any other evidence and TO add 90 per cent
penalty to the amount of the tax due on
such list in all cases of willful neglect or re-
fusa! to make and render a list or return, and
in all cases of willfully false or fraudulent
list return having been rendered to add lOC
to Be due the tax a1d the "a add
tions thereto as a penalty to be assessed and
collected in the manner provided for in other
cases of willful neglect refusal to render a
list or return or OF rendering false OF fraudu-
lent return.
his. her, or its own behalf, such fiduciary,
shall be permitted TO declare, under oath or
shall be prescribed by the commissioner of in
ternal revenue, with the approval of the secre-
its ward or beneficiary was not possessed of an
income of $4,000 liable to be assessed accord
clare that he. she or it, or his, her or its ward
or beneficiary has been assessed and has paid
der authority of the United States. upon all
his, her or Its income, gains, profits, and
upon all the income, gains or profits for which
scribed by law; and If the collector or deputy
collector shall be satisfied of the truth OF tie
declaration, such person or corporation shall
thereupon be exempt from income tax in the
said district for that year; If the list or re-
turn OF any person or corporation, company or
association shall have been increased BY the
collector or deputy collector, such person or
corporation, company or association may be
permitted to prove the amount of income liza
BILE to be assessed; but such proof shall not be
as conclusive OF the facts, and no |
deductions claimed in such cases shall be made |
or allowed until approved by the collector o.
deputy collector.
mr.
citation feeling aggrieved by the decision of the |
deputy collector in such cases may appeal tn |
unless reversed by the commissioner |
of internal revenue, shall be final Ii dissatis-
son or corporation, company or association |
may submit the case. with all the papers, to |
and may furnish the testimony OF |
witnesses TO prove any relevant facts, having |
served notice 10 that effect upon the commits |
sioner OF internal revenue, herein prescribed.
Such notice shall state the time and place at |
which, and the officer before whom the testi- |
mony Will be taken; the name, age, residence |
and business OF the proposed witness, with the |
questions to be propounded to the witness |
orlei statement OF the substance or the test |
mony he is expected 10 give. Provided, that |
the government may at the same time and |
place take testimony upon like notice 10 rebut !
the testimony or the witnesses examined by |
the person taxed.
The notice shall be delivered or mailed TO |
the commissioner of internal revenue a suffi- |
cient number OF days previous TO the day fixed |
for taking the testimony TO allow him after
period required for mail communication with |
The place at which the testimony is to be TAX
IN, in which 10 give, should he so desire, in
as TO the cross examination of the
proposed witness.
Whenever practicable, the affidavit or depo-
sltlon shall bc taken before a collector or dep
atty collector OF internal revenue, in which case
notice shall be given TO the collector
)r deputy collector of the time fixed for taking
he deposition or affidavit.
Provided further, That no penalty shall be
assessed upon any person or corporation, com
5any or association Tor such neglect or refusal
IL Tor making or rendering willfully false or
raud ulent return, except after reasonable no
ice OF the time and place of hearing, to be pre-
;crlbed by the commissioner of internal rev
anue, TO give the person charged al op-
70 be heard.
Sec. %. That every corporation, company or
association doing business for profit shall make
and render to the collector of Its collection dis
riot, on or before the first Monday of March
Il every year, beginning with the year 1895, a
uIl return, verified by oath or affirmation, in
uch form a the commissioner OF internal
evenue may prescribe, OF all the following /
for the v hole calendar year last pre-
eding the date or such return:
Flrst-The gross profits OF such corporation,
company association. from all kinds OF
OF and