The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-11-14
TAX
FINDINGS
Penalty Added by
Court in Two
Cases.
RETURNS FOUND TO
BE FRAUDULENT
Assessor Pratts Collections Will
Reach $500, OOO-Rush
Will Begin Today.

The Court of Tax Appeals has filed
it's findings with Assessor\ Pratt upon
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 as 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 it amounts to an ad-
ditional tax of S120 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
fled 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 were reduc-
ed. All the findings were 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 he appellant escape the tax,
though everyone of them, nearly,
showed a loss in their returns to the
tax Office. As it was simply n ques
ton of compelling the firms who had
refused TO open their books, to comply
with Tie law, the assessor has virtual
ly w01.) In all Of these cases where the
taxpayer refused to permit an ex-
animation of accounts by the asses
sor he simply added twenty-five per
cent tor 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 a 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 a 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 gem
eral tax laws there is a provision for
an increase 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 annun until the tax is
paid. The office will be kept open later
than usual tonight and tomorrow 10
catch the stragglers who always wait
until the last moment before paying
taxes. Collector Pratt expects the
rush to begin in earnest today, and
probably there Will be a 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 $9l, 500 for the
day. Yesterdays receipts amounted TO
about $4,000. So far this month the
total receipts not including yester
days amount to S27i,f7S. Besides this
from the outside district on Oahu about
SO 600 have been collected, which ad-
ded TO yesterdays receipts viii make
the total very nearly 100000.
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
from the outlying districts until after
the 18th. Arrangements are being
made for the repayment Of the $l50,000
advanced by the banks a few months
ago, and a settlement will probably be
concluded before the end of this week.