The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-07-31
CorporationsHa
No Thousands
Exempt.
RULING OPPOSED
TO THE INTENT
Over 1000 Returns Have Been
Made-Trouble Over Ex.
emptions.
- INCE a corporation has no soul,
it is not entitled to the exemption
that is given an individual, in the

p it is not entitled to the exemption
that is given an individuab in the
income tax Office ruling.
Whatever may be the result Of the
proposed contest against the validity
of the income tax law, some there will
be who will hold that mistaken rul-
ing has been made in the mater of ex-
emptions. This lies in the holding Of
the office that there cannot be any free
dom from taxation on the part or cor
porations of the $1,000 provided in Sec
ton of the law.
It is the holding of the tax Office
that the $1,000 which is taken off the
incomes of persons, does not apply to
the organizations of capital, as there
is no specific entity. The holding is
that the exemption was made to pro-
vide for the personal expenses of the
taxpayer and since there could be no
such claim made on the part Of a COR
poration, there is no reason for the
exemption.
This brings up an interesting condi-
tion.A for it was the intention of at
least a majority of those who gave
any thought to the law, that the ex-
emption be applied to each taxpayer.
whether an individual or a company.
The reason for this was to escape the
charge and claim that the act was spe-
cial or class legislation, and thus Insure
| in advance it's defeat. 1t was to give
no good ground for contest as to the
unconstitutionality of the law, that it's
terms were made general, and the ad-
verse holding of the tax office 1T is
| feared may lead to the result which
was sought to be avoided.
! Senator George Carter said yester-
day: When the income tax law was
/ being considered in committee, this
matter was talked of and the conclu-
sion reached that this general exemp-
ton was necessary, for any other pro-
lection to the worker would be OPEN
/ ling a door for the contesting the valid
, ity of the tax 1t was the decision
then that there could be no way of
, making difference between the indiyid-
ual and the corporation, and the word
, ing was made as simple as possible.
The intention at that time was that
the rule should be general, and that all
should meet the same conditions,
. Over two thousand returns were
I made up to last evening by citizens
o and corporations liable to the income
8 tax. All day yesterday the tax office
). was blocked by line of waiting appli-
:. cants, two and three deep. but by the
II time the office was ready to close the
crowd had dwindled away. The Chi
nese seemed to be most in evidence
and to the ordinary observer it would
n have appeared that all the. rich men
q in Honolulu were ASiaticS. Watching
o. the proceeding for while, made a very
different impression, for while it re-
quired less than a minute to dispose
of Americans or natives, the Chinese
e would linger about the Office for from
e five minutes to an hour each, the
d deputies slowly and carefully explain.
= ing to them each point in the new
law.
n There was some little friction at the
!, tax window, several men refusing tC
- make any statement of gross income
;, and giving only the net income. 9th
ers made a return of only total mon
y les received and paid out, and refused
y to give the items making up the sched-
n ules These returns the collector re-
: fused to accept, and the men had the
n option of filling the blanks according
= to law, or not making a return, and
laying themselves liable to the heavy
penalty prescribed.
: Schedule b, which allows for exemp-
tions,. is causing the most trouble, the
majority of the taxpayers giving house
hold expenses, money paid servants
and all sorts of reasons for making de.
ductions from the income actually
given. Few people take the law Sc
riously, and say they are making the
returns simply because the law re-
quires it, and not with the expectation
y that they will be called upon to pay
=, the tax. The collector expects a tota,
of $500 returns, and of these, 1000 are
already in, SO that the rusn tomorrow
will not be very great. All of the
# corporations and, big taxpayers have
II made their returns, and it is the small
It salaried men and women who are no,
It in yet. There are. very few women
<, who think the law applies to them
and not more than score have sworr
k to statements. Probably a hundred
e Chinese have made returns. the large
d majority of the taxpayers being Am.
IT ericans
= Today the tax Office will be kept oper
l. later than usual to accommodate the
late Corners.