Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1903-01-27
Merchants Association
End Where They Began

are combined and made the basis of an
enterprise for profit. to require tho
taxpayer to include in his return the
following statements incorporated in
what is designated as Schedule a." to-
wit:
LIST. Amount OF gross receipts for
year:
End. Balance of crop or product not
sold:
Sd. Total actual running expenses
for year;
4th. Amount of net profits for year:
9Th. Amount of bonded indebted
ness:
9Th. Market price of bonds;
9TH. Number of shares of paid-up
stock;
sth. Market price per share paid-up
stock:
9th. Number OF shares assessable
stock:
10th. Market price per share assess
able stock; and as you desire further
to be informed as to whether a tax
payer conducting such an enterprise as
stated above, who has failed or neg
lected to make the required statement,
would lose the right of appeal in case
the assessment was unsatisfactory:
After careful investigation give the
following as my legal opinion:
The law under which the tax asses
sor assumes to demand the right 10
bn,o ,hae, gt,,n,,,nt, in,IuIaI In tho
return was passed by the Legislature
In 1896 and was clearly intended TO APP
ply to sugar plantations mainly which
is shown not only by its terms, but al
SO by the other legislation passed dur
ing that session. The act Is printed at
the top Of the proposed Schedule "I''
and is in terms as follows:
III any of the property by this Act
directed to be returned shall consist OF
real and personal property or several
classes or kinds or parcels of real or
personal property, respectively, which
ere combined and made the basis Of an
enterprise for profit, the person making
the return shall give a detailed de-
scriptipn of such property and state the
aggregate value thereof, taking into
consideration the net profits made by
the same, also the gross receipts and
actual running expenses, and where II
Is a company, or a corporation whose
stock is quoted in the market, the mar
ket price thereof, as well as all other
facts and considerations which reason
ably and fairly bear upon such valua'
ton.
HE shall state what, II any, the mel
profits as well as the gross proceeds
and actual running expenses OF such
enterprise have been during the twelve
months nsXt preceding; and II known
what sale or sales of stock or other in
terest in such enterprise have taken
place during the twelve months next
preceding, giving the naem of the per-
son selling, the person buying, the
number OF shares or proportion OF in
terest sold upon each sale; and. wher
known, the purchase price thereof.
Sec. 81, Civil Laws of 81.
The statutory penalty for failure tt
make returns is Sec, S72 OF the Civil
Laws of '97 and is in terms as follows
IF any person shall refuse or neglec
to make said return, or shall decline Il
take oath to the accuracy thereof, tn
Assessor may make such assessmen
according to the best informaties with
in his reach, and the same shall b.
binding and conclusive upon all par
ties, and shall not be subject to appeal.
The validity of both these acts wa
brought into question in IN appeal b.
the Inter-Island Steam Navigation
Company against Shaw, on January Il
1897, and by the decision of the Su
preme Court the act was sustained an
returns required to be made in accord
Rnce Herewith.
Legislative Power.
II has been repeatedly held by tn
courts, not only here but Throughout
the United States that legislatures hay
the power to require taxpayer to fur