The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1907-05-17
Blocking
Tax Appeal
To The u. s.
SuprGnleCOuft
TAX Assessor HOLT REFUSES TO
ALLOW APPEAL OF EVA IN
COME CASE IN PRESENT SHAPE

| If the suit that the plantation in
| terests propose to bring in order to
| test the income tax law administration
in this district ever gets into the SUI
preme Court of the United States, the
attorneys will have to take a legal
crowbar and a stick of giant powder,
to break into that tribunal. At the
present time Tax Assessor Holt has
taken a position in the matter that
would seem to effectually block any
attempt to get the case before the
cision be given by the Territorial Su-
preme Court.
The question involved is the matter
of allowing for wear and depreciation
of machinery and plant in determining
the income tax. Eva plantation is to
be made the test case but apparently,
the attorneys will have to go into
court to mandamus Holt or else take
some other method to force him to al
low their appeal from the tax assess
ment, in order that the case can be
gotten before the u. S. Supreme Court.
At the present time there is only
difference of $1,7OO involved in the dis
pute and as no sum less than $4,000 can
be taken to the United States Supreme
Court should the Territorial Supreme
Court decide against the plantation in
terests, it would seem that the plan
tation people were blocked from fur
ther appeal.
Eva plantation made certain re-
turn as income on which they wanted
to pay some where in the neighbor-
hood of $11 900 as income tax This
figure was reached upon the contention
that an allowance of about $4,000
should have been made for deprecia-
ton of property. The Tax Assessor re-
fused to make any such allowance and
raised the income by about S1,700 in
round figures. A protest and appeal
were filed by the attorney for the
company, the appeal being taken on
the total assessment of income. The
costs of such appeal were rendered.
But Holt refused to accept the costs
or to allow any such appeal. He took
the position that the only dispute be-
tween the plantation and the territory
was over the matter of the per cent
on the item of $4,000 for depreciation
of machinery and plant and which
amounted to $1,7OO. He was ready to
allow the appeal on this basis but not
on the total assessment. The matter
is now in allegiance. And is likely to
be taken into the courts.
Holt holds evidently, that no appeal
has been filed officially. The Supreme
Court held adversely to the plantation
on this point four years ago in a suit
brought by the Hawaiian Commercial
and Sugar Company against the tax
assessor. A portion of the opinion
by the court on this subject was as
follows:
advance in the price of property
cannot be taken into account in es-
timating net income subject to taxa
ton, for any particular year, under an
income tax law. Gray & Darlington,
Is Wall GO. The converse of this pro-
position follows that depreciation in
the value of property cannot be con-
sidered for like purposes"
This allowance for depreciation of
property is made in the property tax
but the assessor evidently holds that
it should not apply in the case of in
come tax. The point at issue is I'M
derstood to be touched upon in the
action brought by the RAPID Transit
and Land Company from a decision OF
the Territorial Supreme Court in the
matter of certain property ana income
taxes