The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1897-07-08
Certain Exemptions I'm.
der the Law.
One of Most Important Acts Ever
Placed on HawaiPs Sta
tute Books.

Hawaiis new internal revenue law
the Income Tax Act, is soon to becom,
: actually operative. 1t was made a stat
/ ute at the last session of the Legisla
ture. In both branches it was giver
exhaustive discussion, and as well ha6
the close attention of committees. the
comment of the press and the scrutiny
of public men and prominent members
of the business and industrial COM
munities. Opinion was very generally
in commendation of the act.
The act provides that returns shall
be made to the assessors of the various
districts of the Islands during the
month of August of each year. For this
purpose blanks will be available dur
ing the month of July. Payment is to
be made on or before the 18th of No
vember, annually.
Assessment lies against corporations
and individuals engaged in any busi-
ness, trade or vocation in Hawaii
Firms are not reached as combinations,
| but the call is made upon the members
| separately.
The assessment rate is fixed at / per
cent. When the income has not ex-
! ceeded $4,000, an exemption of 81, 900
is allowed to individuals, but corpora
tions are not allowed any exemption.
An income of more than 81 500 must
be returned for the information of the
assessor, although incomes not exceed
inn
There will be no tax upon corporations
or associations of charitable, relig-
ious, educational or scientific nature.
Neither is there tribute upon benef1-
ciary societies operating upon the
lodge system
The return sheet is very neatly ar
ranged, and is clear and concise in it's
terms, directions and requirements. |
There are three schedules and a sum-
mary. They are as follows:
ACROSS INCOME-HOW DIVIDED. |
Interest received or accrued on bonds,
notes, mortgages and other securities |
Profits on sales of real estate Gin
Guiding Ieaseholds), purchased within
two years.
Dividends on corporation stocks
Premiums on bonds, notes and cou-
pons.
Sales of movable property of every
description.
Money and other personal property
acquired by gift or inheritance.
Salaries, fees and other compensa-
tion for services.
*Amounts paid or payable, distrib-
uted or distributable from any fund or
account
*Amounts carried to the account of
any fund or used for constructions or
enlargement of plant, and other expen-
ditures or investments paid from net
annual profits.
All other gains, profits and income
from any source.
Total income
*These items apply to corporations
and are not to be stated unless covered
by one of the previous items.
B = DEDUCTIONS AND EXEMP-
TIONS.
Interest on Government bonds.
Interest paid by or due from the un-
dersigned upon bonds, notes, mort
cages or other existing Indebtedness
Interest due to the undersigned upon
bonds, notes, mortgages and other Sc
curities, but uncOllectab1e.
Debts ascertained to be worthless
Amounts expended in the purchase
or production Of movable property
in Schedule GA"
Necessary expenses actually incur
red in carrying on the business. trade,
profession or occupation, or in manag-
ing the property (as the case may be-.
Taxes and license fees paid to the
Actual losses incurred in trade not
included in any preceding item.