The Hawaiian gazette., 1901-11-15
INCOME TAX
FINDINGS
Penalty Added by
Court in Two
Cases.
(From Thursdays daily.)

The Court of Tax Appeals has filed
the appeals taken from the income tax
assessments. Following out the policy
adopted at the first session of the court
these records are kept secret in so far
as they show the business transacted
by the firms appealing. during the past
year. In two cases the court sustains
the charges of false and fraudulent re-
turns az was alleged by the attorneys
for the assessor at the hearing. In
both these cases the two hundred per
cent penalty provided by the law Is adj
ded: in one case 1t amounts TO an ad-
ditional tax OF Sl20 while in the second
it is but SIS. The court in its opinion
says that there is no doubt of the will
full intent to defraud in the one case,
but intimates that in the other it was
simply an oversight on the part of the
taxpayer. In both these cases the par
ties are Chinese merchants.
, Altogether there are twenty opinions
filed by the tax court and in nearly
all of them the assessment was sus-
tanned, though in some cases the fig
ures reported by Mr.. Pratt We're reduc-
ed. All the findings We're based upon
the examination of the books of the ap-
pellants by three experts, who reported
to the court the amount OF income
shown by their accounts In but one
case did NE appellant escape the tax.
/ though everyone of them, nearly
shove l a loss In their returns to the
tax Office. As 1t WAS simply n ques-
tion Of compelling the firms who had
refused 20 open their books, to comply
with tie law, the assessor has virtual
ly won. In al ~ th's cases where the
taxpayer refused to permit an eX-
animation of accounts by the asses
sor he simply added twenty-five per
cent to the return and on appeal the
taxpayer was compelled to bring the
disputed books into court for an eX-
animation.
The findings of the court were not
based on either the taxpayers or the
assessors figures. but on the results OF
the examination Of the books. Alto
gether the Territory will be enriched
but n few thousand dollars because OF
these decisions. 1t Is hardly likely
that an appeal will be taken In the in
come cases.
This has been busy week for the
tax assessor and his deputies and today
and tomorrow will see the climax. To-
morrow is the last day upon which
taxes can be paid without the added
penalty. In both the income and gen.
eral tax laws there is a provision for
an inG.Nse of ten per cent upon all
taxes not paid on or before November
18th. In the income tax law there Is
an added penalty of interest at nine
per cent per annum until the tax is
paid The office will be kept open later
than usual tonight and tomorrow to
catch the stragglers who always walt
until the last moment before paying
taxes. Collector Pratt expects the
rush 10 begin in earnest today. and
probably there will be hard fight for
places at the counter.
Tuesday was the banner day for taxes
in Honolulu so far this year. the total
collections amounting to s9l,S99 for the
day. Yesterdays receipts amounted to
about $4,000. So far this month the
total receipts, not including yester-
days amount to s274,47S. Besides this
from the outside district on Oahu about
$4,000 have been collected, which ad-
ded to yesterdays receipts will make
the total very nearly 3ioo. 600
Treasurer Wright stated yesterday
that the returns from the other ISL
ands had not begun to come in as yet.
and he did not expect much money